Tea in Canada: Briefing from A Market Research

Even though tea is not the main hot beverage in Canada, more health conscious consumers and Millennials have started to consume more tea than ever before. With this background Euromonitor International (https://www.euromonitor.com/) has published their latest market research report on “Tea in Canada”. Below are some useful information based on their executive summary,

PROSPECTS
MORE SOPHISTICATED OFFERINGS IN LOOSE TEA TRIGGER GROWTH WHILE TEA BAGS BLACK UNDER-PERFORMS

Black and other premium teas in loose form are increasing revenue as more tea lovers are willing to buy these relatively expensive specialty teas. This is mainly due to the strong association of these offerings with health and wellness as well as the introduction of attractive
and sophisticated formulas which justify the premium price

EXTREME POTENTIAL EXISTS IN THE ON-TRADE CHANNEL

Tea consumption in key on-trade outlets namely Tim Hortons and Starbucks is growing at a rapid pace. One of the main reasons for the transition from coffee to tea is the higher level of consumer awareness of tea types which has eventually resulted in the availability of a wider range of teas in coffee shops.

MILLENNIALS ARE MORE INCLINED TO SWITCH FROM COFFEE TO TEA DUE TO PERCEIVED HEALTH BENEFITS

There is a clear differentiation between millennials and baby boomers in terms of their favorite hot drink. While many baby boomers remain loyal to coffee as the main hot drink in their daily diet, millennials are more flexible to switch to attractive speciality teas which are in general infused with different fruits and herbs.

COMPETITIVE LANDSCAPE
DAVIDS TEA REMAINS AS THE SALES LEADER OF LOOSE TEA

Davids Tea (https://www.davidstea.com/us_en/home/)Inc continued to play a major role in shaping consumer demand in 2018 irrespective of their poor financial performance (http://www.teawithnipun.com/news/davidstea-inc-releases-second-quarter-fiscal-2018-financial-results/). According to Euromonitor, The company offers consumers an exceptional experience which is not accessible in any other conventional speciality tea store.

MAIN TEA BAGS SUPPLIERS EXPAND THEIR PRESENCE IN FRUIT/HERBAL TEA

In response to the good performance of Davids Tea, main global multinational players like Unilever Group, Tata Global Beverages Ltd and Associated British Foods Plc are gradually expanding their presence in fruit/herbal infusions and green tea through the introduction of new products. For example, Tata Global Beverages has crafted a new speciality tea type and has introduced Tetley Ayurvedic Balance teas.

FRUIT/HERBAL INFUSIONS REMAIN VERY FRAGMENTED IN 2018

Consumer needs with regard to tea are not limited to the product itself but involve other levels of satisfaction. Consumers are eager for an experience that reflects their thrust to premiumise their hot drink choice.

Canadian community is multi-ethnic / multi-cultural. There are many Chinese and Indian nationals in Canada. They play a key role in making other communities aware on teas coming from their mother land.

View More Latest Tea News + Articles: http://www.teawithnipun.com/

If you’re a Canadian, you can learn more on tea and follow educational programs conducted by Tea and Herbal Association of Canada (https://www.tea.ca/)

References

Executive Summary: https://www.euromonitor.com/tea-in-canada/report