Tea, made by pouring hot water over the leaves of the Camellia sinensis plant, is one of the most popular beverages in the world. Thought to originate in China, tea has been consumed for thousands of years. Tea is also widely associated with the United Kingdom and traditions such as afternoon tea and high tea. The British have been drinking tea since the 1600's when it was first brought back by Dutch traders but it wasn't until the late 18th century, when tax on tea was reduced, that it became widely popular.
Market overview
Despite the love affair with tea, the COVID-19 pandemic had a negative impact on the
UK tea market, with revenue declining by over 14 percent in 2020. In the same year, the
sales value of tea manufactured within the UK declined by over five percent. The market is not expected to fully recover until 2022. Unsurprisingly, the import of tea also suffered. The
value of UK tea imports dropped by nearly three percent to 271 million GBP in 2020 and continued to decrease in the year that followed to 223 million GBP.
Consumer landscape
When consumers in the UK reached for a tea, their
preferred type of tea was English Breakfast, by an overwhelming margin. When it comes to
tea brands, Tetley has a slight lead over PG Tips, with sales of 10.3 million and eight million GBP respectively. As far as
supermarket brands, Tesco had the most loyal following.
Expenditure on tea has fluctuated slightly over the years, reaching an average of 15 pence per person per week.
High- income earners spent the most on tea, but not much above average.
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