Seeking low-calorie option, consumers drink tea
Growth of ready-to-drink tea may have slowed, but industry experts say the segment still has room to grow as consumers increasingly turn to tea as a healthy alternative. Future growth is likely to come from specialty, lightly sweetened or unsweetened teas.
(For the complete category report, including data, click here).
Over the past 10 years, the ready-to-drink tea segment has grown more than 15-fold, according to the Tea Association of the U.S.A. The Tea Association anticipates “continuous growth over the next five years” from all segments “driven by convenience, interest in the healthy properties of tea, and through the continued discovery and appreciation of unique, flavorful and high-end specialty tea.”
Ashley Sellers, a spokeswoman for Euromonitor, said consumers view ready-to-drink tea as healthier and lower in calories than other alternatives, even if most consumption is of the sweetened variety. Manufacturers, said Sellers, are going beyond traditional black tea to include lemonade and juice blends.
Mintel analysts believe that continued category success could depend on innovations that answer consumers’ desires for all-natural, functional and flavored teas.
Lauren Freundlich, national brand director for Honest Tea, agreed, saying growth is coming from organic and healthier bottled teas, which are lower in calories and sugar.
“Within the drug channel, we recently came out with Unsweet Lemon, in 16-oz. plastic bottles,” Freundlich said. “We’ve been presenting it to customers and feel good about gaining shelf space in the coming months.”
Dr Pepper Snapple Group also has seen strong growth coming from the unsweetened category and is testing Straight Up tea, which tastes like real, brewed tea with a touch of sugar. The company also recently launched Snapple Apple in six-packs, based on the flavor’s strong performance.
Argo Tea recently introduced a line of unsweetened teas in three flavors, an herbal Hibiscus Apple, Green Tea Strawberry and Ginger Peach black tea.
Promotional pricing dominated the category last year. “The average unit price of ready-to-drink tea declined in 2013,” Sellers said. “There is heavy discounting in ready-to-drink tea, with retailers frequently discounting even the AriZona ready-to-drink tea that is pre-priced at 99 cents for 79 cents or 50 cents to bring consumers in.”
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SheaMoisture offers natural baby formula
AMITYVILLE, N.Y. — Personal care brand SheaMoisture has broadened its portfolio with new formulas made especially for babies and children with allergies and sensitive skin, including gluten and fragrance intolerance.
The new Fragrance-Free, Gluten-Free Baby Extra-Mild Wash and Shampoo and Fragrance-Free, Gluten-Free Baby Healing Lotion are made with natural and certified-organic ingredients, such as Shea butter sourced from women’s coops in Northern Ghana.
“As a family-run company, we’re extremely particular about what products we use on our little ones. Since my grandmother Sofi Tucker started making and selling her Shea butter soaps in Sierra Leone back in 1912, our focus has been creating natural, solution-oriented products for the entire family,” said CEO Richelieu Dennis. “We’ve specifically formulated these products to pamper and protect the delicate, ultra-sensitive skin of the newest member of the family.”
The products, priced at $9.99 each, are free of parabens, phthalates, paraffin, gluten, propylene glycol, mineral oil, DEA, sulfates, silicones, fragrance and artificial coloring.
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Brands embrace natural ingredients
When it comes to caring for their little bundles of joy, parents are concerned not only with what they feed their children, but also what they put on their skin. Their concerns have given rise to heightened awareness of products that are made with natural ingredients and free of harsh chemicals.
(For the full category review, including data, click here.)
The natural personal care market has seen a compound annual growth rate of 11.3% over the last five years and is projected to post an increase of 9.2% to reach $46 billion in 2018, according to Kline & Co. While these numbers factor in personal care products for adults, as well as little ones, there’s no doubt that parents seeking “safer” formulas are helping to fuel the growth.
“Although growth numbers have settled, many factors, including a focus on new natural ingredients, the opening of new channels of distribution and consumer movement demanding greater transparency in labeling, are stimulating the industry. Moreover, marketers are offering products specifically designed for such specific demographic groups as men and babies, thereby opening up greater opportunities,” said Carrie Mellage, who is responsible for the consumer products practice of Kline’s market research group worldwide.
Manufacturers are heeding the call and are increasingly developing baby care products that promise to be gentle for a baby’s sensitive skin. For example, luxe baby care line Noodle & Boo was founded by mom Christine Burger, who was inspired by her children’s need for products developed for ultra-sensitive skin.
But take note that it doesn’t stop with skin care. Tom’s of Maine, a natural oral care brand, recently unveiled its new natural Toddler Training Toothpaste for children 3 months to 2 years old. Safe if swallowed and fluoride-free, the formula has no artificial flavors, sweeteners, preservatives or dyes. There’s also Happy Teeth, a line of gentle and natural dental products for babies.
Check out Oh Baby brand by DeVita International