Project Tea 2019, a new study released by the Allegra World Coffee Portal, shows an 11% increase in tea shop sales across the United Kingdom. Demand for premium and loose-leaf tea is driving the increase.
2018 sales reached nearly $367 million in the UK tea out-of-home segment, according to the study. Projections indicate that number could grow to $400 million by the end of this year.
The research also estimates 3.6 million hot tea beverages are served in the United Kingdom’s specialty coffee shops each week. That’s 4.4% of average coffee shop sales there. Despite the number, 37% of tea drinkers survey consider out-of-home tea to be a poor value for the money. “This indicates more work is needed to boost consumers’ estimation of tea served in cafés,” the study’s summary stated.
“Tea is yet another category of the UK hospitality that is seeing a shift toward premiumisation,” Allegra c.e.o. Jeffrey Young said. “Premium teas provide further opportunities for foodservice operators to increase average spend and increase the breadth of their customer base. However, they to need to communicate value-add by inspiring and educating customers on the true benefits of premium tea.”
In conducting the research, Allegra talked with more than 50 coffee shop operators, conducted more than 50 online surveys with industry insiders, decision-makers and key staff and surveyed more than 2,000 UK consumers while targeting regular tea drinkers. For this study, specialty coffee shops comprised branded coffee chains and independent coffee shops.
Allegra World Coffee Portal is the global information platform covering global coffee, café, and related food-to-go sectors. For more information, visit www.worldcoffeeportal.com.