The rise in tea’s popularity in the U.S. has opened the market for
manufacturers to emphasize the natural taste of tea, range of tea types, and
various preparation options. Through education, manufacturers have the
potential to elevate tea to the level of other premium beverages, such as
coffee, that are respected for their growing region, production method, and
preparation types.
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Table of Content
Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Overview
The market
Healthy reputation
scheduled to boost tea and RTD tea sales through 2018
Figure 1: Total U.S.
sales and fan chart forecast of tea and RTD tea, at current prices, 2008-18
Growing tea segments not
rising enough to challenge canned/bottled RTD tea’s lead
Figure 2: Total U.S.
sales and forecast of tea and RTD tea, by segment, 2008-18
Market factors
Highly sweetened RTD
teas face scrutiny from New York City health ads
Tea is embraced by
families, so decline in households with children not good news
Yet the tea and RTD tea
category could gain from multicultural population growth
Retail channels
RTD tea leads in
convenience stores, remaining segments sell well across channels
Key players
PepsiCo, Coca-Cola
increase competition in tea category with push on RTD teas
The consumer
Ready-to-drink teas
appeal to younger consumers, ready-to-brew skews older
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Figure 3: Purchase of
tea, by types, by gender and age, March 2013
Afternoon most apt to be
tea time for RTD, instant tea mixes
Figure 4: Personal
consumption of tea by tea type and time of day, March 2013
Health a driver of tea
purchases, especially compared to coffee or soft drinks
Figure 5: Attitudes and
behaviors toward health and tea (any agree), by age, March 2013
What we think
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