TEA REVOLUTION: Tea’s Healthful Appeal to Push U.S. Sales to $25 Billion in 2014

Tea’s Healthful Appeal to Push U.S. Sales to $25 Billion in 2014

Rachel Adams

June 25, 2014 - Blogs

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Growth in the tea market is projected to reach $25 billion by the end of 2014, and will depend heavily on conveying tea's healthy halo to children and their parents, according to Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition, a new report by Packaged Facts.

Leveraging tea’s healthful properties and perhaps even juxtaposing these attributes against other popular sugary kids’ beverages (i.e., sports drinks, soft drinks) could be key to winning over the parent demographic by positioning tea as a replacement for alternative beverages. This could be especially critical since consumption of sugar-sweetened beverages, particularly soft drinks, has been linked to adverse health effects in children, including increased risk of obesity.

In fact, a 2013 study showed, over a period of 1 year, one daily serving increment of a sugary beverage was associated with a 0.06 units increase in BMI in children and adults. What’s more, another recent study showed children who regularly drink sugary beverages experienced more weight gain than other kids their age, and were also more likely to drink less milk and watch more than two hours of television daily.
However, even if mom is convinced a beverage will be more healthful for her children, kids must approve as well. In fact, according to Packaged Facts’ February/March 2013 Food Shopper Insights Survey, two-thirds of grocery shoppers with children agree that their kids’ preferences influence which groceries they buy.

As we know, kids can be choosy when it comes to foods and beverages, and to achieve success, kids’ products rely more heavily on taste, visual appeal and packaging design. Even within the children’s market, preferences such as flavor vary depending on a child's age, and must be considered for successful product formulation. The same grape flavor that a 3-year-old loves might not be accepted by a teenager, as noted in Food Product Design’s FoodTech Toolbox Gallery, Formulating Healthy Kids’ Snacks.

To win over the kids, ready-to-drink tea varieties are key to leveraging convenience. For example, liquid concentrates offer the opportunity to retain convenience, yet give kids the power to control their flavors and “play" with their beverage. At present, teas aimed specifically at kids and teens are underrepresented.