The appeal of premium tea in coffee shops is driving loose-leaf sales in England. A study by Allegra’s World Coffee Portal reveals the segment grew revenue by 11.1% last year to reach $373 million (£302 million) sales and is forecast to exceed $406 million (£329 million) by the end of 2019.
Project Tea UK 2019, World Coffee Portal’s annual analysis of the UK’s opportune yet challenging out-of-home tea segment, estimates 3.6 million hot tea beverages are served across the UK’s specialised coffee shop segment every week, comprising 4.4% of the average UK coffee shop sales mix.
While UK industry leaders remain positive in their outlook for out-of-home tea sales, 37% of tea drinkers surveyed perceive tea out-of-home as poor value-for-money. This indicates more work is needed to boost consumers’ estimation of tea served in cafés.
Introducing a premium range of loose-leaf teas can be an effective strategy to generate value-driven narratives around provenance, preparation, and appreciation. This approach can also catalyze interest from 31% of UK consumers surveyed who prefer loose-leaf tea over tea bags.
Allegra advised operators to “expand their tea ranges to boost sales. Twenty-one percent of UK tea drinkers surveyed purchased one of either a green, herbal or fruit tea variety on their last café visit.