Out-of-home Tea consumption underperforms
Drinking Tea has been for a long time part of the very fabric of British culture with over 15 million cups every day in the UK., but the majority of this UK staple as always been consumed at home or at work.
Sales in the UK tea consumed out-of-home category are underperforming against the wider coffee shop market value, according to Tea Out-Of-Home 2017 - the latest report in the Project Café UK Series by Allegra World Coffee Portal.
Although sales of tea in coffee shops continue to rise, the growth is predominantly driven by an increase in price and by the growth of the coffee shop sector as a whole, rather than increased consumer participation.
The UK coffee shop sector increased by 12% in turnover to reach £8.9 billion in 2016, with the low performing tea out-of-home category contributing £308 million to the total sales.
The tea category currently accounts for 3.8% of the total coffee shop market turnover, declining in sales share from 4.1% in 2015.
Consumers drink on average 9 cups of tea per week at home, 3 at work and less than 1 cup (0.65) per week in coffee shops. A recent consumer study conducted by Allegra World Coffee Portal, shows that Brits simply prefer tea the way they make it at home, with nearly a third of consumers stating that coffee shops do not make a cup of tea to their taste. 22% of the consumers surveyed also claimed that the tea available out-of-home presents poor value for money. This has increased by 6% since 2014, as better tea offers have not kept pace with rising prices.
Coffee shops have tried to add value to get consumers turned on to their tea offer by adding speciality and iced tea categories. What this research clearly shows is that in contrast to coffee menus, the secret to strong tea sales is simply to be able to make it as good as your customers’ mum, dad or partner can make it!