Tetley’s Tea Report found that overall there has been a 2.5% OOH hot drinks growth, with 7% growth within coffee shops and cafés and 2.8% year-on-year speciality tea growth.
Whilst coffee remains a popular choice for many across all foodservice channels, it has seen a slow down in occasion growth down 5.5% year-on-year - from 6.7% to 1.2%.
Marshall Kingston, senior brand manager - out of home for Tetley, said: "Whilst the coffee sector has changed beyond recognition since the explosion of the café culture some fifteen years ago, the once loved ‘tea house’ has all but disappeared from popular culture.
"The launch of this report demonstrates our 180 years of expertise and commitment to providing the industry with the insight and advice to deliver a profitable tea offering. To engage and resonate with the tea drinker of tomorrow, the industry must continue to evolve and innovate, we hope our annual tea report will act as a key pillar and drive industry growth of the great British brew.”
In pubs, tea is the sixth most popular drinks, the second in coffee shops, the fourth in colleges and schools, the seventh in chain restaurants, the second in the workplace, the third in sandwich retailers and the second in department store/supermarket cafés.
OOH tea sales are now worth £3.4bn, with workplaces (£810m) and coffee shops (£790m) taking the biggest slice. Tea has seen significant 8.8% growth in pubs across all day parts and the channel is now worth £76m, the chain restaurant channel is worth £72m.
According to the report, the percentage of meal occasions that include coffee are declining across all day parts, with a 4% decline in breakfast, and 1% at lunch and dinner.
Green tea and fruit and herbal blends are also growing by 5.6% and 2.5% respectively, especially in the under-45s.
Looking towards the future, Tetley identifies the following potential trends:
- Remedy teas - tea enriched with medicines and caffeine. Youthbrew teas will emerge, enriched with collagen to create younger looking skin for instance.
- Tea total bars - Tea bars will serve tea-based mocktails, alongside tea tastings
- Totali-Tea devices - New devices will receive our health data and predict when we need a personalized cuppa
- Tea Tap - a programmable device to produce a steaming cup of perfectly brewed tea at the touch of a button
- Tablets and strips tea - tea sprays have already launched in to the retail market and will enter foodservice before 2026.
- Tea jellies, sorbets and syrups - products to meet consumer desire for indulgent tea products.
To read the full Tea Report, click here.