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Tea in Denmark

Denmark tea market: Merrild Kaffe the key industry player with 27% value share

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2014-01-28 12:27:02 - Tea in Denmark - a new market research report on

Merrild Kaffe, with its Pickwick brand, and Unilever Danmark, with its Lipton brand, were the two leading companies in the Denmark tea market in 2012 with value shares of 27% and 22% respectively. Pickwick and Lipton are well-established brands of tea in Denmark, and products under these brands are available through most retail distribution channels. Haugen-Gruppen Denmark, which makes Twinings, was ranked third with a value share of 13%.

Tea retail volume sales stabilised in 2012 after a continuous decline over the review period. The Danish media and consumers are increasingly recognising the health benefits of tea, particularly green tea and fruit/herbal tea. Certified labelled tea, such as organics, fair trade, eco-friendly, and source origin, is particularly growing in demand. Organic



green tea retail volume sales, for example, grew by 16% and reached an 8% share of green tea in 2012. Black tea, however, continued to decline and accounted for 71% of tea retail volume sales in 2012. As a morning drink, tea is in close competition with coffee, which has a greater degree of popularity.

Health and wellness will remain the key growth driver in tea over the forecast period. As indicated by the popularity of green tea over the review period, Danish consumers are very keen on tea products with health and wellness positioning. Manufacturers and retailers are expected to target health and wellness by expanding their ranges of certified labelled tea, and aiming to offer a broader choice of fruit and herbal flavours. Fair trade, eco-friendly, and source origin are likely to remain as USPs, and organic tea is, for instance, expected to grow during the forecast period at a CAGR of between 1% and 5% in retail volume sales within each of the black tea, fruit/herbal tea, and green tea categories.

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