In 2014, Specialty Black Tea saw an increase of 5% in the overall retail sales of tea in Canada (Euromonitor, 2015).
Specialty Tea is leading a surge in tea consumption fueled by changing tastes in consumer habits and demographics. The Specialty Tea industry in Canada has great opportunities, with higher-end teas making great strides. Specialty tea like Tea Campaign's single origin Darjeeling Black and Green tea are fine examples and are a protected Geographic Indication as well.
Consumers are changing their view of tea with a growing demand for both herbal infusions and so-called “Fortified/Functional” types of teas. Indeed, in 2014, herbal tea as category grew 14% overall and weight-loss teas increased their sales at a fast clip. “Detox” tea has evolved as a brand new tea category.
This year, tea will continue growing in terms of overall sales driven by Millennial’s view of tea as a healthy beverage related to an active lifestyle. Demographics will also drive growth as specialty retail and tea consumed in cafés grows: Starbucks is set to open several hundred new Teavana Tea Bars. Indeed, the research firm Euromonitor predicts compounded annual growth rates over the next five years on the order of a healthy 6% for in store retail sales (2015, p.4).
Green tea is now solidly entrenched in the Canadian market — some retailers, for example have been successful mass marketing their Japanese green tea Matcha blends.
Large market players such as Tetley have recognized the change in consumer tastes and will continue to drive sales of their Tetley Pure Ceylon brand through their distribution network. For smaller players, Specialty tea growth is a golden opportunity to capitalize on.
Euromonitor International (2015). Tea in Canada. Retrieved fromhttp://www.euromonitor.com/canada