French Tea Market
© 2016 Decision Architecture Limited
Water, voted French’s favourite drink
Water occupies a leading position, not only due to geographic reason but also due to cultural factors: French culinary traditions have always favoured water and wine with meals.
http://www.emn-sante.com/evolution-de-la-consommation-de-boissons-en-france/fulltext
STILL
57,7 %
4,4 %
Water consumption in France in 2013 among people older than 3 years old
37,8 %
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
FIZZY
Generational gap splits drink consumption
There is a generational divide – the youth consume more soft drinks , hot drinks play little role in the repertoire.
http://www.emn-sante.com/evolution-de-la-consommation-de-boissons-en-france/fulltext
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
The decline of Big Soda in France
Soft drinks are less of a daily staple, considered more as “festive drinks”, reserved for special occasions, parties and celebrations. French consumers continue to look for more authentic and / or natural drinks, with sales driven by smoothies, organic products, the micro-niche of coconut water and chilled not from not concentrate 100% juice.
http://www.coca-cola-france.fr/stories/que-boivent-les-francais--
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Espresso is making way for a “cup of tea”
The French have always been huge coffee drinkers, until the end of the 20 th century coffee was the hot beverage of choice. For the last few decades, there has been a shift in hot beverages’ consumption: people are looking more and more to tea.
500 million of eurosTurnover of the French tea industry per year
X 3The tea consumption has tripled for the past 25 years
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
French tea sociology
As it has been said that coffee has negative effects on people’s health, people found in tea a healthier alternative, and seem to be more and more attracted to green tea and infusions, following the trend forward more health conscious consumption.
More tea is consumed among the older demographic but younger people also.
Tea consumption is higher amongst higher socio-economic classes and retired women but also increasing amongst the urban professionals. West area
Paris area
Mediterranean area
35 %
57 %
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Tea, a drink that French enjoy all day long
When do French people like to have tea? Most of the tea drinkers like to have tea at breakfast, to start the day, but also during the day between the meals. As most of them consume it as an alternative to coffee it explains why they consume it in the morning and keep drinking it during the daytime.
@BordelaiseByMim French blogger
@delivredesthes French blogger
Sample: 1711 tweets
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Green and herbal vs. black
If black tea is one of the most consumed type of tea among French consumers, it has to face the rise of green tea and herbal tea. As people are more preoccupied by their health, it explains the recent popularity of these tea types.
http://www.statista.com/statistics/437705/tea-usage-in-france-by-product-type/
@Only_Jeanphi Fitness Coach
Anne-Charlotte Roumier Product Manager, Lipton
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© 2016 Decision Architecture Limited
The booming sector of organic tea
A new generation of health-and-fashion-conscious consumers has begun discovering the world of tastes that tea can open up. As health consciousness rises, people are abandoning sugary drinks and artificial sweeteners, turning instead to natural and organic teas.
Organic tea’s turnover rose by 10% in 2014 in France
Olivier Scala, president of the French Tea Committee – 2007
http://www.journaldunet.com/economie/expliquez-moi/the-en-france/1-consommation-en-hausse-constante.shtml
Motivational drivers Sample Size : 1711
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Moreover, French people tend to consider tea as a gourmet product and therefore, are ready to put more money in it. They’re more and more looking for advices from professionals and to discover new types of flavours, which explains the success of specialist tea shops.
Motivational Drivers Sample size : 1711
Philippe Cohen-Tanugi General secretary of Mariage Frères
Interview given in www.journaldunet.com
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
The promising market of tea-based beverages
Following the recent success of tea, tea-based-beverages are also showing strong growth and strong potential. On the bade of rising on-the-go consumption, they appeal to a growing number of consumers, especially among the urban, always in a hurry, but looking to have a healthier way of life.
@AuroraBBlog Fashion and beauty blogger
From 2012 to 2013, the tea-based beverages’ has shown a © DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Ice Tea, the big asset of Lipton
Tea Type with Brand Name
Sample Size : 1711
Lipton is the big winner of the iced tea market in France. The brand hold more than 64 % of the market share in 2014, and has shown a growth of 11,8% between 2013 and 2014. Whereas the classic Lipton teas have a poor reputation among French consumers, which consider it as bland, and even insipid.
@sheminey Paris, France
@KazeBwah France
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Lipton iced tea, a summer treat
Number of tweets per day in relation to the temperature in July
Iced tea consumption is correlated to the temperature. If there is a high temperature, the consumption of ice tea is high, as we can see during the month of July, whereas when the temperature cools down like in October the iced tea consumption decreases.
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Lipton iced tea, a summer treat
Number of tweets per day in relation to the temperature in October
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
The rise of the tea shops
This shops represent 20 % of the tea sales in France
This shops know a growth of 10 % per year
Specialist tea shops’ turnover per year
Tea drinkers are ready to put more money on tea. They prefer buying in specialized shops where they can have advices, and an elaborate products staging. Responding to the new trends of the market, specialized networks know a strong growth when sales of mass mark retailing decline for a few years.
@airnation Blogger
25/10/2016
@lcs_hbr Student
19/10/2016
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
High-end tea: a French tradition
The luxurious tea market has showed an annual growth of 10% per year for the last 10 years.
French people prefer giving priority to quality over quantity.
High-end tea brands have understood the strong opportunities on the market, expanding their offer and the customer experience.
@parissecret Blogger
1/10/2016
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Key strengths of high end French tea companies
BRAND VALUE
CASE STUDY
Mariage Freres, one of the oldest French tea company focuses on both its heritage and the quality of its products. - Quality and taste: tea is weighted like a precious product
- Colonial tradition: shop style in dark wood, customer must feel like a traveller in faraway places
- Focus on the art of tea: seminars, tastings, workshops
PACKAGING
CASE STUDY
The packaging and design of Kusmi Tea is equally as important as the product itself. The design of Kusmi Tea gives the consumer not only the experience of a delicious tea, but also a sort of lifestyle.
Consumers not only like to keep their tea boxes in their kitchen but also feel proud to share it on social networks.
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Key strengths of high end French tea companies
STRONG PRESENCE ON SOCIAL NETWORKS
Dammann Frères the brand that has it all in terms of social networks. Indeed, the tea brand is one of the most dynamic not only on Twitter but also on Instagram. Posting new tweets on a daily basis the brand has now an important number of followers, extending the visibility of the brand. © DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
Where is Twining’s?
Number of tweets for each brand in October
© DVL Smith (Marketing Consultancy) Limited (2016). Al rights reserved.
© 2016 Decision Architecture Limited
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© 2016 Decision Architecture Limited