By Dan Bolton
A change in consumer behavior spurred a slight increase in tea consumption globally in 2020, overcoming massive declines in foodservice volume.
The Economist Intelligence Unit (EIU) confirms the coronavirus (Covid-19) outbreak “…affected consumption in the out-of-home sector, but there is evidence that this has been more than offset by rising at-home consumption.” EIU estimates global tea consumption increased by a “modest” 1.5% in 2020, “but that will pick up pace in 2021-22 growing by 2.8% and 3.5% respectively.”
Taking tea at home always accounted for the greatest consumption volume in producing and consuming nations. Ready-to-drink and iced tea account for higher rates of away-from-home consumption in the US and Asia, but tea is mainly purchased at mass-market retailers at rates that increased in 2020.
Britain is a bellwether of western consumption with a 361-year history. Sales of coffee, tea, and hot chocolate in grocery increased by 7.1%, equal to $172.4 million (£126.7 million) last year. The hot beverage category grew to nearly £2 billion in 2020. Coffee and tea shops and cafes, in contrast, experienced a 37.7% drop in sales compared to 2019. Coffee shops accounted for £1.8 of the £2.4 billion decline in sales of food and drink.
In tea, "overall value sales are up 3.5% to £581.4m but, crucially, units have fallen 0.5%, marking the 11th consecutive year of volume decline in the Top Products report,” published by The Grocer. Traditional blends benefitted most, with Yorkshire advancing to become the top selling tea, growing by 14.5%. Twinings saw 3.4% growth and Tetley grew by 2.2%, but sales of PG Tips [Unilever] declined 3%, according to point-of-sale statistics compiled by Nielsen in the UK.
A total 4 in 10 UK residents surveyed in 2020 said they “feel most content when spending time with loved ones, having a cup of tea and sleeping.”
“More than half of those polled admitted to needing comfort more than ever this year,” according to a report in the Independent with many “feeling that the last 12 months have been mentally tough.”
A 2019 survey of 2,000 Britons found “more than half of those over 60 see putting the kettle on in a crisis as typically British, compared to just 36% of millennials,” according to OnePoll. The study revealed that 78% of Britons describe themselves as "typically British," but half think the meaning of "being British" has changed over time – 30% say they are English, instead.
Market research firm Mintel found that while great British tea time is traditionally an afternoon event, in terms of day-to-day use, consumers are more likely to drink it in the morning. Three quarters (73%) of tea drinkers say they typically drink tea in the morning, compared to two-thirds (66%) who drink it in the afternoon. Just half (56%) drink tea between 6-9 pm and a quarter (27%) after 9 pm.
Health concerns are the other reason for the overall increase. Research findings published recently in the European Journal of Preventative Cardiology show that "habitual" consumption is associated with a lower risk of cardiovascular disease. The seven-year Chinese study of 100,902 participants with no history of heart attack, stroke, or cancer concluded that a 50-year-old habitual tea drinker “would develop coronary heart disease or stroke, on average, 1.41 years later and live 1.26 years longer than someone who never, or rarely, drank tea.”
Drinking two cups of green tea per week lowered the risk of all-cause death by 15%, a 20% lower risk of heart disease, and a 22% lower risk of fatal heart disease and stroke. British tea drinkers average three to four cups per day, but most consume black tea.
Tea consumption in the British Isles has fallen from 70g per person per week on average to just 20g since the 1970s. Sales of alternatives teas, including fruit and floral and herbal blends, continue to climb.