Trade Journal: Leading Post-Pandemic Specialty Tea Industry Trends in 2021
Tea & Coffee Trade Journal | June 25, 2021
This year, 2021, is without question the most complex time to make forecasts and predictions since the specialty tea category emerged in North America. An analysis of the groundbreaking shifts of 2020 can, however, provide some insight into what to expect regarding trends in tea in the coming years, in a post-pandemic world.
According to the Tea Association of the USA, Inc, premium tea bag sales in grocery grew at an unprecedented rate of over 18 percent during 2020, fueled by tea’s reputed benefits of decreasing stress and boosting immunity, which consumers sought out for helping to ease the stress of dealing with the pandemic. New consumers turned to tea, and existing tea drinkers drank more tea. Fueled by an explosion of online sales and omni-channel acceleration in grocery, tea products still have room to grow in the grocery channel and show no signs of slowing in 2021. This bodes well for making functional teas with perceived health benefits even more accessible to the consumer.
On the flip side of the tea industry, the restaurant sector will take several more years to bounce back from declines of 40 to 70 percent in 2020, at which point we can expect to see a rebalance of that channel, resulting in higher prices. For tea, although absolute numbers may remain in decline, this represents an opportunity for premium expansion, reinvention and dramatic innovation in the restaurant and hospitality sector. It is important to note that the Kombucha category remains a strong double-digit growth segment, as do the tea-infused mocktail and low-ball cocktail market niches.
So, what do these shifts mean for tea industry trends in 2021 and beyond? Here are a few important things to consider.
The article elaborates on four tea trends on the rise:
1. Taking the Premium Tea Experience Home
2. Keeping Tea a Part of Everyday Wellness
3. Intelligent Data in the Retail Chain
4. Retaining Customer Loyalty
Read the full article here