Natural Products Insider

SEP-OCT 2017

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

Issue link: http://digital.naturalproductsinsider.com/i/871469

Contents of this Issue

Navigation

Page 36 of 160

30 INSIDER September/October 2017 Food & Beverage: Coffee & Tea Tea-Based Beverages' Growth Potential and Sustainable Sourcing by Hope Lee Natural and organic are among the most desirable features infl uencing purchasing decisions, according to Euromonitor International's latest survey. Globally, tea-based beverages, such as naturally healthy tea and ready-to-drink (RTD) green tea, are expected to contribute to a large part of the growth from 2016 to 2021, with a net increase of around US$4 billion, according to Euromonitor International's Health and Wellness data. Sustainable sourcing is relevant and important for brand owners to have a sustained tea business. Considering tea generates vast amounts of revenue for some developing countries, drinking tea is serving two purposes: personal health and sustainability for the community. Naturally Healthy Tea Shows Promise Naturally healthy tea is predicted to generate a net increase of around $3.5 billion from 2016 to 2021, driven by China, India, Canada, the U.K. and Germany. China alone will contribute absolute growth of $1.6 billion over the period thanks to the fact that tea is a native and integral part of people's lives. Consumption of tea beverages is rising even in coffee-drinking nations. Euromonitor International's Hot Drinks data demonstrated hot tea growth (2 percent) largely outpaced coffee (-0.3 percent) in retail value sales terms in Germany from 2015 to 2016. This contrasts with the global decline of carbonates by around 0.2 percent and struggles with diet brands. The Coca-Cola Co.'s Coca-Cola Zero grew by 3 percent compared to naturally healthy RTD tea Ayataka's 10 percent globally from 2015 to 2016, according to Euromonitor International's Health and Wellness system. Naturally healthy RTD tea is more commercialized than the hot variant, and a large amount of unpackaged tea continues to be available in China and India. Major naturally healthy RTD tea brands' sales far outweigh those of naturally healthy hot tea. For example, the world's No. 1 naturally healthy tea brand, Lipton (Unilever), achieved around $740 million in sales compared to Jiaduobao's (JDB Group) $5 billion in 2016. However, Lipton naturally healthy hot tea sales are 64 percent higher than its RTD variant. This is largely because hot Lipton is widely available globally, but Lipton RTD tea is a minor brand in major RTD tea markets such as China, Japan and Indonesia, according to Euromonitor International's Soft Drinks system. In China, domestic players have the local knowledge and developed RTD herbal tea ranges, and fi rmly retained their strong leadership in the traditional Chinese medicine (TCM) beverage space.

Articles in this issue

Archives of this issue

view archives of Natural Products Insider - SEP-OCT 2017