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NEW YORK, NY — (MARKET WIRE) — 11/05/09 — If the recession has proven anything, it’sthat American consumers are willing to pay a premium for healthy products.Due to its compelling image as an innovative yet accessible beverage thatis good tasting, good for you, and budget friendly, tea has remainedprofitable, with 2% annual gains in 2008 and 2009, according to "Tea andReady-to-Drink (RTD) Tea in the U.S.: Retail, Foodservice and ConsumerTrends," by leading market research publisher Packaged Facts.

Over the next several years, tea’s health halo will gradually return themarket to the double-digit gains it experienced prior to the recession,particularly as additional research solidifies tea’s healthful andfunctional properties. Packaged Facts estimates the U.S. market for teasold through retail and foodservice channels at $9 billion in 2009,forecasting a 5% increase in 2010. Steadily rising annual percentage gainsare projected through 2014, when growth will reach 10% and sales willexceed $12 billion.

Consumers also flocked to tea due to the high quality of the beverage. Manynew product introductions in the tea category include exotic flavored teas,tea and fruit infusions, and premium loose tea bags that are at theforefront of innovations in both the retail and foodservice arenas.

"Tea’s healthfulness is still, of course, the beverage’s primary appeal,but in the current market environment consumers are increasinglyrecognizing good quality, customized tea as a comforting, affordablepremium beverage splurge," says Don Montuori, publisher of Packaged Facts.

Additional factors driving overall market growth will be the greaterinvolvement of international beverage behemoths including Coca-Cola,PepsiCo and Nestle; a greater emphasis on tea in the foodservice channelvia expansion of specialty brews into restaurants of all kinds, as well ascoffee/tea chains a la Starbucks and Peet’s Coffee & Tea; hybrid teabeverages crossing over into competitive categories including sparklingwater, energy drinks and superfruit juices; and the additional penetrationof RTD teas into convenience channels including convenience stores andalternative outlets such as bookstores.

"Tea and Ready-to-Drink (RTD) Tea in the U.S." examines the market for teaacross the retail and foodservice spectrum, including ready-to-drink tea,leaf (bagged and loose) tea, and instant tea. The report provideshistorical sales figures and projections through 2014, in addition toexamining market drivers and trends. An exclusive feature of this report iscustom survey data from Packaged Facts’ February 2009 online poll of 2,600U.S. adults, which was conducted to measure purchasing patterns, attitudesand demographics specific to tea and other functional foods and beverages.For further information, please visit:http://www.packagedfacts.com/redirect.asp?progid=76258&productid=1939949

About Packaged Facts - Packaged Facts, a division of MarketResearch.com,publishes market intelligence on a wide range of consumer market topics,including consumer goods and retailing, foods and beverages, demographics,pet products and services, and financial products. Packaged Facts alsooffers a full range of custom research services. To learn more, visit:www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.

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Contact:Jenn TekinPackagedfacts.com(240) 747-3015jtekin@packagedfacts.com

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