The French Tea Market: 2 main distribution channels

In France, the tea market doesn’t know the crisis.

Indeed, tea grows in popularity and French consumption is constantly increasing, it has even tripled in less than 25 years.

The purpose of this article is to learn more about the various distribution channels that exist for this product.

Like most food and beverage products, tea is distributed through two major channels:

Mass-market retailing (such as Auchan, Carrefour, Leclerc…)

Or Specialist shops.

In large retail stores, consumers can find industrial products owned by large group.

Major players in this market are:

- Unilever with Lipton, Elephant or Tchaé

- Tata with Tetley

- Associated British Foods with Twinings

- Or also Retailer own brand products.

Tea players in supermarkets

Regarding specialty stores, major players in France are:

- Mariage Frères

- Dammann Frères

- Kusmi Tea

- Lov Organic

- Palais des Thés

- Betjeman & Barton

Betjeman & Barton Shop

A large majority of French consumers buy tea in supermarkets; indeed, this distribution channel represents 80% of sales in France when specialty stores represent only 20% of tea sales. And Lipton is the undisputed market leader, the brand alone holds more than 45% of market share.

However, recently, new trends are emerging on the French market.

The tea market is one of the most valued, and in terms of price sensitivity, tea is one of the less sensitive markets (it ranks second, just behind the champagne).

Teas consumers are evolving and are looking for high quality products with high added value. They are no more seeking for low prices and begin to make their purchases outside supermarkets. And it's for that reason that specialized networks know a strong growth (more than 10% per year) when sales of industrial teas decline for few years.

These brands are very successful because they are able to differentiate themselves from large multinationals with premium teas and original flavours. Moreover, they can offer a new kind of customer experience with the decoration, the music or the colours of their stores.

This sales channel is in full expansion and seems to be more and more efficient in attracting new consumers.

Finally, we will talk about the last distribution channel that is increasingly appreciated by consumers: the online sale.

Most of the major players of this marketplace have understood the importance of the Internet and are already present on this segment. It seems that this distribution channel has a promising future...

Sources:

http://www.lsa-conso.fr/le-the-en-pleine-ebullition,115536
http://www.streetdirectory.com/food_editorials/beverages/teas/tea_distribution_chain.html
http://iloveinternationalbranding.wordpress.com/2011/12/31/the-tea-market-mostly-in-france/
http://agritrade.cta.int/fr/Agriculture/Produits-de-base/The/Note-de-synthese-mise-a-jour-2012-Secteur-du-the