Foodservice Tea Market in US to Grow by $ 2.66 Billion During 2020-2024 | Featuring Aroma Espresso Bar, Davids Tea Inc., and Dunkin Brands Group Inc. among others | Technavio :

LONDON--(BUSINESS WIRE)--Technavio estimates the foodservice tea market in US to grow by USD 2.66 billion, progressing at a CAGR of almost 4% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall market environment.

The market is driven by the rising demand for mobile food service. However, the impact of overconsumption of tea might challenge growth.

Foodservice Tea Market in US: Type Landscape:

Based on the type, the market saw maximum growth in the iced tea segment in 2019. The segment is driven by the rising demand for flavored iced tea from Gen Z and millennial consumers in the US. The market growth in the segment will be significant over the forecast period.

Foodservice Tea Market in US: Distribution Channel Landscape:

The full-service restaurants segment led the market with a 35% share in 2019. The growth of the market in the segment is driven by the growth of the food delivery and takeaway market in the US.

Major Three Foodservice Tea Market Vendors in US:

Aroma Espresso Bar

Aroma Espresso Bar operates its business through the Unified segment. Some of the products offered by the company include iced tea and iced chai latte.

Davids Tea Inc.

Davids Tea Inc. operates its business through segments such as Canada and US. The company offers cheery berry punch and Caribbean crush.

Dunkin Brands Group Inc.

Dunkin Brands Group Inc. operates its business through segments such as Dunkin U.S., Baskin-Robbins U.S., Baskin-Robbins International, and U.S. Advertising Funds. Some of the products offered by the company include premium hot tea and iced tea.

Global Tea Market – Global tea market is segmented by product (black tea, green tea, and others), distribution channel (offline and online), and geography (APAC, Europe, MEA, North America, and South America).

Global Slimming Tea Market – Global slimming tea market is segmented by distribution channel (retail stores and online channels), product (green tea, herbal tea, and others), and geography (APAC, Europe, MEA, North America, and South America)

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Technavio’s in-depth research has direct and indirect COVID-19 impacted market research reports.

What our reports offer:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers market data for 2019, 2020, until 2024
• Market trends (drivers, opportunities, threats, challenges, investment opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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Parliament Finally passes much-awaited  Tea Bill:

The National Assembly Tuesday nigjt passed the much awaited Tea Bill which will see the revival of Tea Board of Kenya and adoption of new regulations to govern the cartel soaked sector.

Debate on the Bill, which passed the Second reading Tuesday, was concluded at 11pm and will have to now go through the Third reading where it is only scrutinezed for clarity.

The Tea Bill, sponsored at the Senate by Kericho Senator Aaron Cheruiyot, was at the National Assembly for the final passing.

" We really thank God for the journey so far. This is huge," wrote the Senator last night. If the Bill is signed into law, tea brokers, buyers and auction organisers will have to ensure that the proceeds from the sale of tea is paid within 14 days and the factory will now pay 50 per cent of receipt of the sales to the farmers. This will mean that Kenya Tea Development Agency (KTDA), which has been holding a huge chunk of the proceeds for a year, will no longer have access to the tea billions since the money will now be controlled at the factory level. The balance of the money will be paid at the end of the financial year.

Unending court cases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        On Tuesday evening, Laikipia Woman Rep Catherine Waruguru accused KTDA of squandering farmers’ money with unending court cases. At the moment, the agency has filed various cases to oppose new regulations proposed by Agriculture Cabinet Secretary Peter Munya.

An earlier attempt this week to have management agents such as KTDA sit at the Tea Board was dropped and the crucial one-man-one-vote in the election of directors, which had been omitted, leading to uproar by farmers, was reinstated and passed.

The Tea Research Foundation, which used to carry our research on the sector, will also come back in the proposed law.

The law will also give the Cabinet secretary powers to prescribe regulations for the registration of management agents, such as KTDA, and the appeal process. 

Opaque agreements

Management agents will no longer enter into an agreement with a tea factory without the approval of the agreement by the Tea Board. KTDA has previously been accused of taking powers of the factory boards and running the farmers’ companies by entering into opaque agreements.

In the KTDA agreements, the agent provides the factories with a company secretary and thus controls the election of the directors by disqualifying candidates through a pre-qualification process.

The CS will also have powers to prescribe regulations for the tea auction. At the moment, the sole tea action, East African Tea Trade Association, has taken CS Munya to court for prescribing regulations to govern the tea sector.

Farmers will now be able to monitor their tea through the value chain.

Electronic trading platform

In the passed Bill, the auction organiser will establish an electronic trading platform that is accessible to all players in the value chain. This will remove the opaque practice where farmers hardly know how their produce is sold.

The Kenya Tea Sector Lobby group has hailed the passing of the Bill as “significant and a huge triumph to the tea farmers”.

“This is a big step towards making sure that we save the farmer from exploitation by cartels. We shall keep our eyes on the ball until the Bill is signed into law and then we embark on the crucial process of streamlining the value chain,” said Mr Irungu Nyakera, the Kenya Tea Sector Lobby chairman.

With the passing of the Bill, the National Assembly will now compile a report and send it to the Senate for approval and concurrence. If there are disagreements, the Speakers will appoint a mediation committee which will report to both Houses and the Bill will then be sent to the President for signing.

By John Kamau, Daily Nation

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Chemical Compounds in Green Tea May Inhibit a Key SARS-CoV-2 Enzyme:                                                                                                               

Chemical compounds in some foods and beverages – such as green tea, muscadine grapes and dark chocolate – can bind to and block the function of a particular enzyme, or protease, in the SARS-CoV-2 virus (which causes the coronavirus disease, or COVID-19), according to a new study by plant biologists at North Carolina State University.

Proteases are important to the health and viability of cells and viruses, according to De-Yu Xie, professor of plant and microbial biology at NC State and the corresponding author of the study. If proteases are inhibited, cells cannot perform many important functions – like replication, for example.

“One of our lab’s focuses is to find nutraceuticals in food or medicinal plants that inhibit either how a virus attaches to human cells or the propagation of a virus in human cells,” Xie said.

In the study, the NC State researchers performed both computer simulations and lab studies showing how the so-called “main protease” (Mpro) in the SARS-CoV-2 virus reacted when confronted with a number of different plant chemical compounds already known for their potent anti-inflammatory and antioxidant properties.

“Mpro in SARS-CoV-2 is required for the virus to replicate and assemble itself,” Xie said. “If we can inhibit or deactivate this protease, the virus will die.”

Computer simulations showed that the studied chemical compounds from green tea, two varieties of muscadine grapes, cacao powder and dark chocolate were able to bind to different portions of Mpro.

“Mpro has a portion that is like a ‘pocket’ that was ‘filled’ by the chemical compounds,” Xie said. “When this pocket was filled, the protease lost its important function.”

In vitro lab experiments completed by Yue Zhu, an NC State Ph.D. student in Xie’s lab, showed similar results. The chemical compounds in green tea and muscadine grapes were very successful at inhibiting Mpro’s function; chemical compounds in cacao powder and dark chocolate reduced Mpro activity by about half.

“Green tea has five tested chemical compounds that bind to different sites in the pocket on Mpro, essentially overwhelming it to inhibit its function,” Xie said. “Muscadine grapes contain these inhibitory chemicals in their skins and seeds. Plants use these compounds to protect themselves, so it is not surprising that plant leaves and skins contain these beneficial compounds.”

The research paper appears in a recent edition of Frontiers in Plant Science. Zhu is the paper’s first author, and the research was supported by the U.S. Department of Agriculture.

To learn more, see the report at Frontiers in Plant Science.

-Aaron Kiel, World Tea News

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 How Starting a Tea Ritual Can Encourage Mindfulness and Elevate One’s Self-Care Routine:

As we in the tea industry know, drinking tea is much more than simply pouring hot water over a tea bag from your local grocery store. The practice of drinking tea can be a gateway to communing with yourself and, in the right setting, it creates space for you to reach a new level of intention, reflection and mindfulness.

In its simplest form, a tea ritual is a ritualized, ceremonial way of preparing and drinking tea. Tea rituals, in fact, are common in China, Korea and Japan. You can also find traditional tea drinking principles or a “tea culture” outside of Asia, with Millennials in the U.K. and U.S. developing a booming tea culture of their own.

  How to Create a Tea Ritual?

For the tea industry, encouraging your customers to start tea rituals is vital. Or, you may simply want to start a tea ritual yourself, if you haven’t already. Here are some tips and advice.

When creating a tea ritual, start with the cup. Choose your favorite mug or tea brewing set, preferably one that has meaning for you. Then, choose your tea. Keep it in a special container or location, one that is visually appealing and helps you treat your tea ritual as a sacred time. It’s also important to make sure you understand how to brew your chosen tea blend to ensure optimal flavor. Lastly, design your space and set aside some time.

  When Is the Right Time to Have a Tea Ritual?

Choose a time of day that will allow you to best connect with yourself and your environment and be present in the moment. If morning is your optimal time, consider setting your intensions for the day, conducting a visualization exercise, or choosing to meditate on what you’re grateful for.

While afternoon tea may not be as popular, taking a mindful break in the middle of the day may be just what you need to promote productivity and give you renewed energy to finish your day.   

A nighttime tea ritual may include options for winding down and releasing stress, including teas with valerian root, chamomile, lavender or skullcap, to name a few that may help reduce anxiety, stress, and insomnia.

 

No matter what time of day you choose, it’s important to check in with yourself to understand what your body, heart, and mind need in that moment. You can lend all of your senses to not only preparing the tea, but to enjoying every part of the process, using your five senses to get into the habit of staying present.

  Tea Ritual Tips to Engage Your Five Senses Include: 

• Watching the tea leaves unfurl in your cup and the colors change while steeping.
• Paying attention to what the herbs smell like before and after adding water or lighting your favorite candle or incense.
• Creating a playlist of go-to songs that help you wind down. (One of my personal favorites is “In a Sentimental Mood” by Duke Ellington and John Coltrane.)
• Experimenting with different sweeteners. Try different recipes to enhance the flavor of various herbs, or pair your tea with your favorite dessert.
• Getting as comfortable as possible. Select the seating or clothing that will make you the most relaxed.
• Sipping consciously. Every sip can be a rejuvenating moment to enjoy!
• Staying flexible. No part of your ritual has to be set in stone. Feel free to tweak your plans based on your needs at the moment.

Tea rituals don’t take a lot of time to create and can be a source of calm, as well as a great reminder to slow down. Encourage your customers to create their own tea rituals, and offer your own advice for creating a tea moment. Overall, tea is a self-care indulgence that’s affordable and can help put one’s mind, body and spirit into alignment. Happy sipping!

By Niya Vatel,  Tea and I

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     How Has COVID-19 Impacted Tea Production?

COVID-19 has been – by any measurement – a harrowing pandemic. It has impacted everyone in the tea industry, some parts more than others. This is a pick of some of the major impacts, but selected because collectively they illustrate that a single event can manifest itself differently, depending on where it lands.

Tea growing and production employs or provides livelihoods for more than 80 million people worldwide, so it was always going to be heavily impacted by the disease and by the measures imposed to control it. In this regard, tea was like any other labor-intensive industry, but suffered a unique and cruel blow based on timing alone.

   Timing Is Everything

First reported in December of 2019 (earlier by some accounts), COVID-19 became an international event quickly, with cases in at least 20 countries by the end of January – but it took until March 11^, 2020, for the World Health Organization (WHO) to call it a pandemic. This prevarication cost the industry dearly. That’s right, the announcement of the pandemic initiated aggressive containment strategies by governments that coincided with the most important quality harvest periods in several countries.

   National Incidences:

   China: A Domestic Affair

In China, restrictions on the movement of people had some impact on the spring harvest but not so much because of the inability to farm, as the belief that domestic sales would take a beating. Indeed, this was the case, highlighted by the loss of the lunar New Year trade, when usually three billion trips are made in China over a four week period and gifting, including that of tea, is prevalent.

From an export standpoint, the country fared better. There were delays caused by CIQ and transport related issues, but overall, exports continued their upward trend in value, despite a slight decline in volume (1.65 percent to June).

   India: The Epicentre of the COVID-19 Tea Crisis

In India, a national lockdown, prompted by the WHO announcement, coincided with and destroyed the first flush harvests of both Darjeeling and Assam, causing ripples throughout the tea drinking world.

In Darjeeling, where many workers were returning from hospitality jobs all over India, there was fear that they would bring the virus back to the hill country and all work was stopped. The loss of the first flush is particularly devastating for a region which generates approximately 40 percent of it’s annual revenue from this event, as does Nepal and Sikkim.

In Assam too, the first flush was lost but without such a negative effect (the second flush is the “main event” in this most north-easterly of India’s production areas).

Ironically, India had started the year with a carryover of 50 million kgs and was fearing a decrease in pricing – exacerbated by the lockdown – which reduced domestic consumption by 40 million kgs in a month. However, the lockdown also halted production and, by June, North Indian production was 113 million kgs down on the previous year, bringing supply back into alignment with demand.

   A Spanner in the Works: Climate Events

This balanced market could have been maintained had typhoon Amphan not ripped through the Bay of Bengal and destroyed millions of kgs of tea in Kolkata, equating to 6 weeks of domestic consumption.

From a country fearful of a huge carry over, India swung to a nation in tea deficit, of over 100 million kgs in a 12 week period. The market reacted decisively.

The monsoon season followed – the strongest in a decade – and the rains flooded Assam, where more than 3,300 villages were inundated causing the evacuation of three million people. In these instances, controlling social distancing, mask wearing and good hygiene is impossible and logically exacerbated the spread of COVID-19 in the region, which has reported more than 800 deaths to date.

   East Africa: Saved from Drowning (in Tea)

On the other side of the Indian ocean, crops were very healthy and July saw Kenya surpass 300 million kgs and the market in an unsurprising slump. Despite some weather forecasts suggesting smaller crops, the correction to a slumping market came as buyers switched buying into Kenya from the, now, much more expensive Indian markets.

   Sri Lanka: Repercussions of Another World

Despite a heavily enforced lockdown, from March 20, tea and paddy were exempted as “essential services.” All well and good for tea production, but workers were – without doubt – put at some risk. The impact on production was understandably insignificant.

However, with a drop in foreign exchange earnings from overseas workers and tourism, there came a need to restrict imports to balance inflation, leading to a longer term lag on material imports for servicing value added activities, including flavors, herbs and packaging materials.

   Turkey: An Issue of Border Control

In Turkey (the fifth largest producer and consumer), the usual influx of workers from Georgia and Azerbaijan in May (to harvest the tea) was impossible, due to the border closure. With 40,000 fewer workers, much of the tea went unharvested. Sri Lanka was the main beneficiary of this, as imports of Ceylon tea went up.

It will be interesting to see what happens post COVID-19, as having to harvest tea themselves, the Turkish kept $100 million in the country and gave employment to many in the south of the country. This, coupled with thoughts that the quality can be improved through the training and employment of local people, make for an attractive combination and one that might be supported in years to come

    Argentina: a Single Channel Issue

Currently, in the grip of very worrying numbers, there has been little impact on tea production, thanks largely to the automation of the sector that requires very few people to harvest and produce the 80 million kgs of made tea per year. What is of more concern is the cyclical nature and timing of its contracting. Usually completed by the end January, for annual requirements, Argentina had sold and was fulfilling contracts as the Pandemic struck. With more than 70 percent of Argentine tea going to the United States for iced tea – and with much of that being consumed in food service channels – any decline in restaurant traffic is bad news. This channel declined by 80 percent and has since recovered to about 50 percent of revenue; but, the unspoken consumption of tea in foodservice is the ubiquitous free refill, so when looking at this number, we must assume a higher percentage decline in tea by weight.

The knock on effect is that packers’ stocks may last for a considerable time, resulting in deferred shipments and/or reduced new season contracts for Argentina and for other iced tea raw material countries.

   Silver Lining to COVID Clouds

Not all is doom and gloom, and it is right to focus on the bright spots in such circumstances. One such “silver lining” in Assam is that of the smallholder sector. From being on the verge of collapse, based on 12Rs/kg pricing for their green leaf, the requirement to lightly prune their unplucked bushes (post first flush) meant that their second flush leaf was supple, good quality, and this – coupled with an imbalanced market – saw their returns rebound to a healthy 40 to 50Rs/kg. We can only hope that this “forced” prune has sown a few seeds for the future; a return to the two-year prune cycle from three and four years would elevate quality at the expense of some crop – just what the market doctor ordered!

   E-Auctions: a Springboard for Further Digitization

They say that the mother of invention is necessity and, in this case, COVID-19 was the prod required to move tea auctions to e-platforms, based on the inability to meet in person. I will personally miss the dynamics of a good auction, but it will free-up time and allow anyone to buy from anywhere and, ultimately, enable the digitization of the supply chain, which is happening elsewhere.

    COVID-9: Time for Tea

We have all enjoyed watching tea find its place in the homes of all COVID-19 constrained households, as tea really is in its element when faced with a need for comfort and health, let alone the more obvious attributes of flavor and variety. Within the repertoire from that magical camellia, no type other than green should be able to take advantage so easily, and so it is that we see several data points supporting the rise in reaction to a heightened need state.

  The Prognosis for Tea in the Near to Mid-Term:

The likelihood is for some short-term pain with respect to logistics – time to market and costs. There should be no significant long-term effect on supply.

   Perspective

COVID-19 is a devastating virus that has killed many people, but we will find a vaccine for it and soon (perhaps 12 to 18 months), but climate change is here to stay. The timing of this event made it appropriate to talk about COVID-19 as the problem, but each situation has been exacerbated by weather, floods in India, drought and floods in China, and an un-seasonally wet monsoon. This phenomenon will be here long after COVID is passed, and we must attend to it in every aspect of our business today.

By John Snell,  NMTeaB Consultancy

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