e-News
|
|
Specialty tea, RTD remain driving forces in U.S. tea industry |
04.10.2009
|
By Anna Wolfe
NEW YORK-The specialty tea industry remains the fastest-growing segment of the U.S. tea industry, according to the Tea Association of the USA, based here.
STORY CONTINUES BELOWAdvertisement
Tea imports in the United States increased 7 percent last year compared to 2007, said Joe Simrany, president of the Tea Association. And the specialty tea segment is "going to continue to grow and grow," he said. "It's in its infancy in this industry. A lot of gains have been made over the past five years or so."
U.S. tea imports in 2008 were projected to be around 257 million pounds, up from 240 million pounds in 2007, Simrany said. The Tea Association compiled the data from government import statistics and first unveiled this data at the National Coffee Association meeting in Boca Raton, Fla., on March 21.
While the specialty tea segment, or tea from a single origin, is the fastest growing segment of the tea industry, "don't confuse fastest growing with the biggest," Simrany said. "It has made up a lot of ground" and the category, he said, has "come from nowhere" to distinguish itself from the mass market.
What's having the biggest impact on the U.S. tea industry, Simrany said, is the ready-to-drink tea market. It has been posting double-digit growth in recent years, and now is starting to slow down because it is reaching full distribution. "It is still going to flourish because the big boys (the soft drink companies) are behind it." With the marketing power of beverage giants such as Coca Cola and Pepsi, "the growth of the RTD is going to surpass the growth rate of bottled water," said Simrany.
Imports of traditional tea- black, white, green and oolong-have been growing in volume at an annualized rate of 3 percent to 5 percent over the past decade, he said.
Green tea accounts for 17 percent of the tea imported into the U.S. while 2 percent of the tea market is oolong and white tea. "White tea is very rare," said Simrany. "Very few people are aware of it let alone consuming it."
About 81 percent of the tea imported into the U.S. is black, and most of the black tea sold in the U.S. is a blend of 24-36 lots of teas from six or seven different countries, he said.
Green tea sales are on the upswing because of the reported health benefits. About 15 years ago, the health benefits were studied to market green tea to U.S. consumers, Simrany said.
Now the health benefits of green tea is used for marketing worldwide.
Both green tea and black tea have many of the same antioxidants. In a research setting, the chemical composition of green tea is easier to track, he said.
"The perception is that green tea is better for you than black tea. That's not necessarily true," he said. "But perception is everything."
|
|
|
