It was not abnormal in the 1940s and 50s for a group of ladies to get together for afternoon tea. It was also relatively common through the 1960s and 70s for grandparents to enjoy a nice cup of tea during early evening. Yet tea has not been an American staple since the infamous Boston Tea Party gave rise to the revolution more than 200 years ago. The good news for the tea industry is that 15 years of market evolution is helping the beverage regain a place of prominence.

The total retail market for tea in the U.S. was $43.1 billion in 2014. In terms of compounded growth, 2014 was 7.7% higher than 2009, translating to absolute growth of $13.3 billion. Even more impressive is the fact that tea is the second most popular packaged beverage in the world behind only water. At 286 billion liters sold every year, bottled tea outpaces carbonated drinks, iced coffee, fruit juices, and even energy drinks.

Three Reasons for Tea’s Popularity

It is clear that we are drinking more tea in the U.S. than ever before. But why? What has changed for the tea industry above and beyond a growing desire to limit caffeine intake and consumption of sugary drinks? There are three primary reasons for the rising popularity of tea over the last 15 years:

1. More Options – Our selection of teas has increased exponentially since the dawn of the 21st-century. Where we used to be limited to fewer than a dozen different flavors at the grocery store, we now have so many more to work with. Just consider the sheer number of herbal and fruit teas we now have to choose from. Then there are tea lattes, tea and juice blends, and even what are known as bubble teas.
2. Good Health – Green tea is one of the most popular tea products in emerging markets. Our desire for better health is causing us to make more conscientious decisions about what we eat and drink. Thus, green tea is popular because it is seen as being part of a lifestyle that relies more on ancient Eastern practices than Western medicine for good health.
3. Shopping Habits – Millennials, which just happen to be the most coveted demographic for retail sales, are now more likely to shop at Whole Foods and other specialty stores rather than traditional grocery chains. What’s more, the places they choose to shop are more likely to have a larger selection of teas than coffees. It is all part of a culture shift that seeks to get back to a simpler, more wholesome way of life. Millennials view tea as part of that more healthy life.

Galaxie Coffee offers a full range of tea products, both brewed and bottled, to our customers in the greater New York area. We would be proud to provide your workplace with coffee and tea service offering plenty of choices, the latest equipment, and excellent pricing.