Report touts US hot tea sales growth
A report on the state of the US hot tea industry predicts solid growth for the years ahead thanks to health-conscious consumers shifting away from sugary drinks. For the past five years, sales grew at an annualized rate of 3.1% to reach $987 million in 2012. This year will see growth of 1.8%, as awareness about tea's health benefits spreads and consumers continue to shift away from sugar-rich beverages. The report, compiled by IbisWorld, also points to an increasing variety of flavors, strengths and sweeteners that benefits companies at the top of the sales list, such as Unilever and Hain Celestial. On the other hand, research suggests that niche markets, such as specialty and gourmet tea segment, will drive growth in the future, helped by America's aging population receptive to tea's health attributes.