23 March 2016
Offering quality tea may benefit hospitality operators
The UK’s out-of-home tea drinkers market has grown to an annual turnover of £305m, according to the latest report from Allegra World Coffee Portal. As consumers look for more variety in their choice of hot beverages, there is a strong opportunity for hospitality operators to further develop the market through an increase in offering of speciality teas.
Tea is an integral part of British culture, with more than 165 million cups of tea consumed each day in the UK. While the majority of hot beverages are consumed at home or work, the amount of tea drank out-of-home is increasing, rising to an average of 0.55 cups per week. This uplift, combined with increased pricing, has led to 2% growth, with the total out-of-home tea turnover across the entire coffee shop market estimated at £305m.
The most popular tea in the UK chosen by 62% of consumers is tea with milk, but demand for premium tea is growing. Tea makes up just 4% of beverage sales across the total market, however 34% of consumers stated that hospitality operators need to increase their tea offering and 49% said they would spend more on a premium tea, such as loose leaf mesh bags or loose leaf in a pot, if it was available.
The most successful operators are already responding to consumer demand by offering a wider variety of teas, including green tea, herbal tea, chai and matcha. Twinings remains the most popular brand of tea, both at home and out-of-home.
The report also suggested that hospitality operators need to improve their tea-making skills. 29% of consumers claimed that operators do not make a cup of tea the way they like it and believe they can make a better cup of tea at home. Consumers also want to see premium tea brands, with 58% considering this to be the most important factor when ordering tea out-of-home. The popularity of afternoon tea is also a key opportunity for branded chains, as it offers a premium experience for consumers.