In 2015, more than 69% of hot tea purchased in the U.S. was bagged tea. Herbal teas were at about 30% and loose teas made up just under 1% of purchases. Tea Bags, as measured through Grocery and DMM, continue to lag with little or no growth. Private Brands are growing in both volume and dollars. Total category is growing in dollar terms, but lagging in volume. Loose tea continues to grow in both dollars and units.
Current Sales:
In 2015, U.S. tea imports were approximately 285 million pounds, with an estimated wholesale value of approximately USD $11.5 billion.
Hot Tea has been growing steadily over the past 5 years, as consumers embrace its health benefits. Total category sales for hot tea have increased more than 15% over the last 5 years – however growth has slowed in the past year.
The tea market represents 6% or nearly $11 billion in consumer dollars spent in foodservice beverage category in 2014. Between 2010 and 2015, tea saw a 16% increase in menu occurrences.