Tea and coffee: Two of 2015’s biggest grocery growers

Will packaged tea and coffee continue to grow in US grocery stores?

Liquid coffee and liquid tea were two of the biggest dollar value growers in grocery stores in 2015, according to Nielsen.

The company said the dollar growth of liquid tea was up 17.3% and liquid coffee was up 16.6% in US grocery stores. Additionally, refrigerated liquid tea was up 13.5% for the year.

In the fresh department of the store, tea was up 17.8% on the year, according to Nielsen. While liquid tea refers to shelf-stable products with an extended life, teas from the fresh department likely have fewer preservatives and a shorter shelf life.

“Having similar products in various areas of the store allows both retailers and manufacturers increased opportunity to merchandise items,” Carman Allison, VP of consumer insights at Nielsen, told BeverageDaily.

Out of home, but healthy, consumption rising

Out of home consumption saw an increase across the board in 2015, Allison said, something she expects to continue well into this year.

“Consumers have become more sophisticated over the past number of years with a growing tea and coffee culture,” Allison said. “Retailers are paying attention and are expanding their offering to win over the beverage occasion as well as consumer needs for more variety and formats.”

Consumption of sugary beverages, such as soda, has slid way down. Consumers are now more focused than ever on health and wellness; with coffee and tea, Allison said consumers are able to get their caffeine fix without having to consume added sugar.

“In addition the growth and influence of Asian consumers and cultures will continue to fuel new formats of tea,” she said. “The rise in consumption for one beverage, as with all products, comes at the expense of another beverage.”

What will 2016 bring?

While Allison said there will always be niche players in the beverage industry that serve a role with a specific group of consumers, the rise of unique products like kombucha will be dependent on their distribution, availability and demand.

“Retailers are always looking to differentiate and unique products [are] a great place to focus,” she said.

Both dairy and grocery products are slated to grow in 2016, Allison said. Dairy is slated to grow 3.2% on the year and non-food grocery is forecasted to grow 1.4%, data from Nielsen shows.

Related News

Tea may help prevent artery stiffness.

Habitual tea consumption may help reduce arterial stiffness

Califia's new Creamer line

Califia Farms’ CEO announces alternative plant-based coffee creamers

Aqua ViTea has increased its brewing potential.

Aqua ViTea moves into a bigger facility, increases production

An increase of two cups of coffee per day can help fight cirrhosis of the liver, a study said.

Coffee consumption may help curb cirrhosis: Study

CSPI report dresses down the beverage industry, but the International Council of Beverages Associations claims its members are behaving responsibly

Soda companies rapped for allegedly targeting low and middle income countries

The kombucha market will grow 25% each year through 2020, MarketsandMarkets said. pic: iStock / yasuhiroamano

Kombucha market to grow 25% each year to 2020

Gold Peak is set to launch a cold brew coffee line as well as RTD tea latte products in 2017, as Coca-Cola gears up to become major player in $2bn+ RTD coffee market. ©iStock/bhofack2

Coca-Cola’s Gold Peak brand to debut cold brew coffee and tea latte lines, keeping up with growing $2bn RTD coffee market

Could slow-release coffee change the market?

Nestlé scientists developing slow-release coffee

Press'd for time? New coffee format builds on liquid concentrate trend

‘People are really excited to see something new in coffee’: Press’d launches liquid coffee concentrate in portable squeezable bottle

Drury Tea and Coffee ceo Dino Olmi and Lloyds relationship manager Andrew Watts

Tea and coffee firm invests in plant

Borrow learnings from specialty coffee to develop cocoa quiality standards, says Lutheran World Relief. Photo: iStock - gojak

Wake up and smell the coffee: Cocoa and chocolate industry can learn from coffee grading system

The three flavors of ChugaChaga, with the chaga mushroom on the right. Photo: courtesy of ChugaChaga via Facebook.

New York start-up to launch chaga ‘mushroom tisane’ for the health conscious

Standard fruit flavors make way for those with functional properties. Pic: iStock / Og Vision

Cactus, birch, lychee and lemongrass: Soft drink consumers turn to natural flavors and functional innovations

Reports suggested 1.5m bottles were affected

Nestlé Waters-owned company recalls tea after consumer complaints

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.