Tuesday, October 10, 2006

ArticleBlaster Growing Demand for Loose Leaf Tea and Tea Rooms


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Article Title:
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Growing Demand for Loose Leaf Tea and Tea Rooms

Article Description:
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The tremendous demand for high quality loose leaf tea is
favorably affecting the tea room industry.

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768 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-10-10 10:48:00

Written By: Jon M. Stout
Copyright: 2006
Contact Email: mailto:jon.stout@GoldenMoonTea.com

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Growing Demand for Loose Leaf Tea and Tea Rooms
Copyright (c) 2006 Jon M. Stout
Golden Moon Tea
http://www.GoldenMoonTea.com

The new American tea culture places high value on stress
reduction (perhaps partially attributable to the relaxing
properties of L-Theanine-a natural amino compound occurring in
tea), blends that respond to the demands of the market, product
purity (Fair Trade and certified organic tea is thriving in the
U.S.) and exotic brewing accessories (the after-market for tea
accoutrements is substantial compared to espresso-based
drinks)..

Until the boom in RTD (Ready to Drink) teas (circa 1990-95) made
tea drinking simultaneously easy (nothing to steep or prepare),
hip (colorful packaging, zany copy and chic packaging) and
healthy (a no/low calorie, antioxidant-rich alternative to soda
pop), tea sales in America were sleepy at best.

As compared to the rest of the world, the American market is
unique with 80% of tea consumption based on iced tea products and
the remainder 20% primarily tea in bags. Revenues for loose leaf
teas are increasing rapidly in both the iced and hot segment of
the market however.

How Do Loose Leaf Tea And Tea Bags Compare?

Most experts compare loose leaf tea and tea in bags in four
ways:

* Most of the tea that goes into bags in not high quality. Tea
bags usually contain broken grades so infusion takes place
quickly
* Whole leaf loose leaf teas come in a larger number of
varieties than bagged tea and some higher quality teas are only
found in loose offerings
* Bags are semi-nonbiodegradable additions to biodegradable tea
leaves with implications for the environment
* Generally speaking, tea bags offer greater convenience
although e-commerce now offers loose leaf tea drinkers the
convenience of on line ordering and home delivery

Is Loose Leaf Tea More Costly Than Tea Bags?

Many advocates of bagged tea in believe that loose leaf tea costs
more than tea in bags. Actually, most good tea is not very
expensive and can be very cost effective. When you buy tea in
bags, most of what you pay for is the process of putting the teas
in the bags, and the brand name advertising. High quality tea is
generally sold loose, and the price per cup is often lower than
for commercial bagged tea.

Some truly fine teas retail in the United States retail for less
than US$20 per pound, which means less than 10 cents per cup.
When one considers that most loose leaf teas support multiple tea
infusions the prices drop dramatically. High quality loose leaf
tea is typically not available in supermarkets; but a good mail
order web site will accept and process orders rapidly and offer
the convenience of home delivery.

The rise in American consumption of loose leaf tea from 1990-2004
represents more than the evolution of a new beverage segment, but
rather the birth of a loyal tea-consuming community (demographic
consumer segment), thriving on a complex fusion of diverse global
cultures and flavor preferences.

Loose Tea Sales are Increasing

Annual retail sales had not reached $1 billion prior to 1990 and
tea producers were simply uninspired. Snapple, Arizona Iced Tea
and a handful of other specialty RTD teas catapulted the entire
loose leaf tea category into double-digit growth while whetting
appetites on Wall Street. Increasing interest from America's 76
million baby boomers just beginning to embrace tea as a
health-promoting product for the entire family is laying a solid
base for loose leaf tea.

Health Aspects of Loose Leaf Tea

This exceptionally health-conscious demographic is starting to
explore loose leaf tea culture through brewed tea beverages,
tea-based skincare products and neighborhood caf�s offering
exotic teas. The consumer product dollars available for loose
leaf tea purchases within the U.S. over the next decade will be
significant

This stellar consumer interest in tea is being driven by
scientific findings linking tea consumption and improved health
and a seemingly endless wave of favorable media coverage.

Novel flavors and convenient packaging may be securing American
consumers attracted to loose leaf tea, but news of the health
promoting benefits afforded by regular tea consumption is the
number one market driver.

Researchers at The Natural Marketing Institute (NMI),
Harleysville, PA, have released survey data indicating heavy
frequency consumers of herbal and hot teas spend more on healthy
and natural products than the general population or coffee
drinkers. This is yet another indication of the emerging
demographic pursuing loose leaf tea within the nation's hottest
spot for loose leaf tea sales-natural foods retail outlets.

Effect on Tea Rooms

Finally, as the demand for loose lea tea grows, customers will
also demand pleasant and wholesome surroundings to better enjoy
the tea experience. The tea room business, as a result, has a
very strong growth path and a bright future.

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Jon M. Stout is Chairman of the Board of Golden Moon Tea
a division of Element H2O. Golden Moon Tea is a supplier
of high quality loose leaf green, white, black, oolong and
pu-erh tea as well as flavored and blended teas. Golden Moon
Tea�s website is found at http://www.GoldenMoonTea.com .
Try Golden Moon Tea�s collection of fine tea.

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