Gen Z is a potential group of customers with almost 30% of the world’s population. So, understanding their tea consumption trends is necessary for any tea sellers if they want to build a stable customer base for the future.
Introduction
The astounding purchasing power and tendency to spend extensively of Gen Z have also made them important trend-setters in a number of businesses, including the tea industry. Compared to earlier generations, Gen Z consumes tea at a rate of 37% on average and tea has become a part of their daily routine. Understanding the tea consumption trends of this demographic group is necessary for tea brands.
What is Generation Z (Gen Z)?
According to demographic researchers, Gen Z is the name of the current generation of young people who were born between 1997 and 2012. They come after Millennials and before Generation Alpha with about 2 million Gen Zers globally. They are the first generation to be really global, having grown up in the twenty-first century, connecting via digital gadgets, and participating in social media. They are also known as “generation connected” or “dot com kids”.
What are tea consumption trends of Gen Z?
Afternoon tea is coming back
Afternoon tea is known as a British tradition, in which people sit down for an afternoon meal of tea, sandwiches, scones and cake. A survey by JINGTM Tea shows that with 56% of Gen Z going out for afternoon tea at least once a month, afternoon tea is experiencing a comeback among younger generations. The study also revealed that the popularity of loose leaf tea is growing, with 69% of Gen Z consumers reporting that they enjoy loose leaf tea at least once per week.
Another survey by BevNet showed that Gen Z preferred higher-quality products with herbal tastes and ready-to-drink tea products. The groups were recorded to have a greater preference for green tea (38%) when compared with black tea (19%), according to GlobalData. Besides, they tended to opt for herbal or sweet flavors.
Gen Zers are health and environmental conscious consumers
Gen Zers now care a lot about mental and physical health and tend to build their own self-care routine. Thanks to the great health benefits, tea products can become a part of that routine. A study in America in 2018 reported that Gen Z consumes 20% less alcohol than Millennials. The decrease in the alcohol consumption has caused Gen Z to seek a replacement which is better for health, which has increased the demand for tea.
The tendency of Gen Z consumers today is moving away from artificially flavored drinks and soda, and looking for healthy beverages. Younger US consumers were reported to prioritize natural and plant-based ingredients and they were also ready to pay more.
Moreover, Gen Zers prefer products with clean labels, sustainability and ethical sources. The term clean label means healthy and free from artificial flavors, coloring, and preservatives. They also put a higher priority on sustainability. Not only the ingredients, but there is also an increase in demand for sustainable packaging solutions as they consider eco-friendly lifestyles a specific way to improve quality of life.
Gen Z is the bubble tea generation
Bubble tea has gained significant popularity, and could be considered as Gen Z’s signature drink. Boba tea typically contains tea, milk and tapioca pearls. The flavor is the combination of a tea base such as black or green and other fruit flavors like lychee, peach or blueberry.
Not only favored in Asia, Gen Z is making this drink loved worldwide. CLSA survey indicates that 94% of 20-29 aged people purchased boba tea in the last few months. Fortune Business Report expects that the global market share of bubble tea can reach $3.39 billion by 2027.
Gen Z is attracted to bubble tea for its diversity and social component as they can enjoy it with their friends instead of soda or energy drinks. Boba tea originated from Taiwan, and it is accepted widely around the world, especially in the US. Because Gen Z is a global-minded generation, they are more open in appreciating different cultures, flavors and toppings. Moreover, Gen Zers are becoming more aware of boba tea thanks to influencers and celebrities like Billie Eilish, Selena Gomez, and Post Malone.
What do tea sellers should do to attract more Gen Zers?
It could be time to reassess your brand and target market. Attracting Gen Z customers is crucial if you want to have a long-lasting business.They are demanding more from tea products which lead to the changes of the market to adapt.
To attract more Gen Z consumers, tea sellers should focus and highlight the health benefits of tea products which are ready to brew and ready to drink. Due to the busy lifestyle, ready-to-drink tea is liked by most Gen Zers because of its convenience. If you can make the differences outstanding, you might change the beverage routine of that group.
In an effort to serve health-conscious Gen Z customers, a variety of healthier tea products are introduced including dairy-free options such as oat milk and sugar-free sweeteners like stevia. Gen Z is really into trends, so it is important to stay up-to-date and change your product ranges if necessary. Additionally, they usually find it exciting to try new drinks with new recipes and flavors. Tea brands should update their menu and offer diverse healthy choices to reach a wider group of customers.
Last but not least, Gen Zers tend to build brand loyalty and want relationships with the brands they trust. The rapid development of the Internet, social media, blogs and websites makes it so easy to connect and keep a good relationship with your customers. So, why not make use of it and sell more tea products to them?
Conclusion
Today, Gen Z is the generation that cares more about health and environment as well as are ready to spend more on tea products. This generation is also featured by bubble tea drinks. From these tea consumption trends, tea brands should research and adjust their products as well as marketing campaigns to draw Gen Zers’ attention.
Contact
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Phone: +84 24 73 000 125/ +84 24 6664 7788
Mail: info@vietnam-tea.com
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Source:
https://www.hintonmagazine.com/post/gen-z-drinking-more-tea
https://www.fooddive.com/news/tea-makers-stepping-up-as-millennials-gen-z-demand-more/529697/