The downward trajectory within the overall tea market continues. Overall volume sales dropped by 15% between 2010 and 2014, with an annual decline of 7% forecast for 2015. Despite a rise in average selling price, the value of the market has also been steadily slipping over the 2010-15 period, with an overall decline of 6% to £654 million.
This poor performance, however, masks very contrasting performances from the different segments within the tea market. The downfall is almost completely attributable to diminishing sales of ordinary teabags, which dominate the market. Meanwhile, fruit/herbal tea, speciality tea and green tea continue to enjoy strong growth. As such, these segments have become hotbeds of innovation activity.