Britain’s Tea Consumption Declines Amidst Changing Preferences

Tea has long been a quintessential British tradition, cherished for centuries. It has served as a solution during crises, a welcoming gesture for guests, and the initial beverage for many upon waking. Phrases like “Fancy a cuppa?” or “Tea?” are often well-received, but this sentiment may not be universal. “I suppose there’s kind of an association with tea as an old person’s drink,” states Gillie Owen, a 20-year-old student from London, who notes that he and his peers favor water or diet soda beverages. Layba, also 20, abstains from drinking tea entirely. “I have never liked tea,” she explains, adding, “I just think it tastes really off, like, really weird.” This preference stands in stark contrast to her parents, who, she mentions, “really love” tea. These observations raise the question of whether this trend is generational and if the nation’s affinity for tea is diminishing. Last week, Typhoo Tea, one of Britain’s oldest tea firms, went into administration following a decline in sales. The 120-year-old company was subsequently acquired by vape manufacturer Supreme, whose chief executive expressed intentions to innovate new products under the Typhoo brand. Sandy Chadha informed the BBC that the tea market was experiencing a downturn, but stated that Supreme aims to attract younger consumers who show a preference for “things like iced tea and healthier drinks”. According to NielsenIQ analysts, tea sales volumes have decreased by 4.3% over the past two years. Furthermore, a recent Mintel survey indicated that fewer than half of the population, specifically 48%, now consume tea daily. Kiti Soininen, a food and drink researcher at Mintel, observes that traditional tea is encountering “intense competition” from fruit, herbal, green, and speciality black teas. Dylan, a 21-year-old student, reports drinking tea, but not the conventional builder’s tea – black with a small amount of milk – and opts for caffeine-free varieties. He states, “I drink less tea than my parents definitely. I drink Redbush tea and other less ‘tea’ teas.” Shayma, 18, also favors herbal tea, noting that most of her friends consume coffee. She remarks that there are “so many drinks now” and that she is unfamiliar with Typhoo. Ms Soininen highlights a significant disparity in sales between tea and coffee. She notes, “Sales of ordinary tea stood at £377m in 2023, leaving it far behind instant coffee, at [almost] £1bn.” She further adds that even instant coffee’s popularity is being challenged by the rapidly expanding ready-to-drink coffee market, which has experienced sales more than doubling in the past five years. Polina Jones of NielsenIQ suggests that while individuals “are not falling out of love with tea per se”, the market environment is evolving, with a vast array of options like bubble tea, herbal teas, kombuchas, and energy drinks appealing to younger demographics. Should this trend persist, she contends that brands ought to innovate and explore entry into the ready-to-drink sector. As an illustration, Twinings has begun providing canned sparkling tea, and bottled kombuchas attract students and young professionals purchasing meal deals, she explains. Supreme’s acquisition of Typhoo encompasses two herbal tea brands, Heath & Heather and the London Fruit & Herb Company, alongside the specialty tea brand Ridgways. Susannah Streeter, an analyst from Hargreaves Lansdown, anticipates that Supreme will integrate these into its existing wellness brand portfolio. A further challenge for black tea is that even among its regular consumers, increasing costs are leading to reduced purchase volumes. Government statistics indicate that in 1974, the typical family bought 68g – approximately 30 tea bags – of tea per person weekly. By 2023, this figure had decreased to 19g – roughly 10 tea bags – per person. Kiti Soininen of Mintel states, “What’s particularly telling of the potential long-term threat for black tea is that while all age groups have similarly high usage of tea in the early morning and with breakfast, younger groups are much less likely than older ones to reach for the drink later in the day.” She concludes by issuing a clear warning to traditional tea manufacturers: if younger generations maintain these consumption patterns as they age, it will ultimately “chip away” at the market’s overall size. As one BBC reader remarked regarding the Typhoo collapse: “You know things are bad when a tea company in the UK goes bust.” Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external sites. Information regarding their approach to external linking is available.