US tea market to hit $25bn in 2014
Packaged Facts, a market research firm, projects that sales of tea in the US will reach $25 billion in 2014. Retail sales are expected to account for a quarter, or $6.2bn, with the remaining $18.8bn coming from foodservice. In the report's fifth edition, Packaged Facts paints an ambivalent picture of the US tea market. While foodservice will continue to drive growth thanks to the iced tea category and niche beverages such as chai tea, retail sales of ready-to-drink tea, a former growth driver, will remain flat. Loose and bagged tea manufacturers will face increasing threat from single cup producers, whereas coffee establishments may offer a new avenue for growth.