Hot drinks, which are popular at the best of times, are especially helpful as people stay on the floor during the troubling pandemic.
According to the most important players in the tea market, tea growth is stable overall with many variations considered, with a noticeable trend towards herbal, fruit and organic ranges.
Health, quality characteristics and sustainable practice are increasing as focus areas for consumers, combined with the search for new products and new ways to use tea.
The performance of coffee, however, is always surprising. Innovation, partnership and premiumization are the order of the day.
According to Dilmah's senior executive, John Trovato, the tea category grows by approximately 3.5% over the previous year.
This shows a "healthy" category, but "searches for innovation" in all segments, he told Retail World.
"Herbs are still one of the leading segments in the market, driven by the younger generation who take herbs first before entering the black or green category," he said.
To bring the category to life, it's also about the health benefits of tea. "
According to Trovato, discounts for promoting products in supermarkets are widespread, but "because our tea is a first-class and price-sensitive offer, we don't want to be in this market".
"Flavored and infused tea will continue to flourish, but black tea will remain a staple," said Trovato.
Nestlé: cult brands feel love
Nestlé, marketing manager for beverages Olga Starush, told Retail World that the food and beverage company as a whole is experiencing continued growth in the coffee market.
"Nestlé's coffee business is experiencing strong growth with growing coffee consumption outside and at home as Australians continue to love the legendary coffee brands in our portfolio: Nescafé, Nespresso and most recently Starbucks." She said.
Every year Nestlé wonders if coffee has reached its full potential, only to find that there is still room for growth.
"This is due to the increasing penetration by younger drinkers and buyers, but also by immigrants who come from countries where coffee is less popular but which will soon turn to coffee culture here," said Ms. Starush.
"However, the main driver is premiumization, which is clearly shown in the rapid growth of capsules, R&G [roast and ground] and mixtures."
Click here to read the full story in the May issue of Retail World magazine.
Post-Cuppa insurance, which was a tonic in difficult times, first appeared in Retail World Magazine.
