Trends In The Wholesale And Retail Loose Leaf Tea Industry Part 1

The retail tea industry in the United Sates is a growth industry and the role of retailers or value added resellers has played an important part in the overall expansion.

Value added resellers and retailers add  significant value to the retail tea industry as they bundle tea offerings with quality dining and other services but they must be supported by comprehensive wholesale programs that are reliable, consistent and profitable.

What trends are driving the market?

In most countries in the world, tea is the second most popular beverage after water. The one exception is tea drinking in the United States. But the market for quality loose leaf tea has unlimited upside potential for tea drinkers in this country.

The market for high quality loose leaf tea is experiencing strong growth and this is expected to continue for the foreseeable future. The growth of revenue and profits in the value added retail sector of the market is also very strong particularly when tea is prepared and presented as a part of a total offering in tea rooms, fine dining establishments and hotels.

There are a number of factors influencing this growth in loose leaf tea demand:

• The incredible good taste of tea and blends.

• The health benefits of tea.

• The wide variety of tea flavors and blends.

• A growing awareness about the enjoyment benefits of loose leaf tea .

• An expansion of the value added reseller network for quality loose tea.

• Many consumers are looking for an alternative to coffee as a hot or iced drink of choice.

• Consumers are tired of the “tea bag mentality” where the taste and quality of tea is sacrificed for the convenience of the tea bag.

Because of a number of historic factors like the American Revolution and other socio-economic events, the market for loose leaf teas was stalled for over two centuries in the United States but that is changing dramatically and rapid growth is now a fact.

What is the biggest mistake retailers make in regards to their tea program?

The biggest mistake that retailers make is the failure to prepare and present tea properly.

Quality tea, served either hot or iced, is a wonderful discriminator for any restaurant, tea room or hotel. Quality, loose leaf tea on the menu of a high quality food establishment will separate the retailer from the competition.

Quality tea can also serve as a profit center for the retailer as consumers are willing to pay extra for a quality cup of hot tea or glass of quality iced tea.

Many resellers however, have not focused on the value that tea can bring to their Unique Selling Proposition. Through oversight in the tea offering, many consumers are left with lower levels of satisfaction and this is adversely affecting retailers and their overall product offering.