Tea sales grow on health claims, says report

Published this month, the report estimates that sales for instant, leaf, liquid concentrate and ready-to-drink tea will reach nearly $15bn by 2012, compared to $7.4bn this year. The main driver behind this growth is the product's positioning within the good-for-you market, at a time when interest in health and wellness foods is continually increasing. According to Packaged Facts, tea's "all-natural halo" and its lower caffeine content than coffee or cola is one of the major attractions for consumers, particularly the older generation. "A functional beverage, tea fits into the well-established movement among aging Baby Boomers to seek out foods and beverages that promise wellness and anti-aging effects," writes the report. Indeed, there is a growing list of benefits that have been linked to tea and tea extracts, ranging from a lower risk of certain cancers to weight loss, and protection against Alzheimer's. Last month alone saw the emergence of three new studies on the health benefits of consuming tea. A study in the Journal of the American College of Nutrition suggested that one gram drink of black tea may have the potential to stimulate an insulin response and reduce blood sugar levels. Another study conducted by researchers in Japan and appearing in the American Journal of Epidemiology found that drinking five cups of green tea a day may reduce the risk of prostate cancer by 48 percent. And a study published in the American Journal of Clinical Nutrition found that drinking tea regularly may lead to improvements in bone health similar to that observed with calcium or physical exercise. The health benefits of tea, including protection from certain cancers and Alzheimer's, have been linked to the polyphenol content of the tea. Green tea contains between 30 and 40 percent of water-extractable polyphenols, while black tea (green tea that has been oxidized by fermentation) contains between 3 and 10 percent. Beyond the health benefits of tea, Packaged Facts reveals that another major driver for the category is the diversity of the product. The market researcher projects that by 2012 the specialty tea segment of the market, which currently makes up 36 percent of the total, will grow to command over half of all tea and ready-to-drink tea sales in the US. "As more flavors and packaging options enter the market, tea and ready-to-drink teas are increasingly securing a position as an alternative to carbonated soft drinks," said Tatjana Meerman, publisher of Packaged Facts. "The days of the generic black tea bag are gone and the chai, yerba mate, rooibos and other specialty teas that Boomers are consuming in mass quantities are here to stay."

Tea sales grow on health claims, says report

The US market for tea is expected to double over the next five years, boosted by a growing interest in wellness, says a new report by Packaged Facts.

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