The tea room market - France

The global bubble tea market has experienced significant growth, with the market estimated at $2.50 billion in 2022. Forecasts predict a robust compound annual growth rate (CAGR) of 8.8% from 2022 to 2032, indicating the beverage's increasing popularity worldwide and the influence of social media on its dissemination. Allies Market Research projects the market could hit $4 billion by 2027, driven by the proliferation of sales outlets, particularly in malls, and lower initial investments. Meanwhile, an analysis by Facts & Factors anticipates the demand for bubble tea to reach $4.5 billion by 2026, with an estimated CAGR of approximately 8.1% between 2022 and 2028.

Within the French market in 2022, the Go Bubble Tea brand emerged as the top self-service fresh convenience product launch in hypermarkets and supermarkets after just three months, generating sales of €3 million. Despite the perception of bubble tea as appealing primarily to younger consumers, the main customer base at bubble tea kiosks spans ages 20 to 40. Regular consumption does entail a substantial monthly budget, potentially impacting customer demographics and frequency of purchase.

The Evolving Market of Tea Rooms

The French tea room market is an ever-changing landscape with evolving consumer preferences and market dynamics. Tea rooms, which represent a cultural staple in France, have been traditionally seen as cozy establishments where patrons can enjoy a wide selection of teas and accompanying snacks. This market segment includes a colorful variety of tea offerings ranging from classic favorites like Viennese pastries to more savory options such as sandwiches and pies.

Tea consumption in France remains a popular activity, with approximately two-thirds of the French population enjoying the beverage, averaging an annual consumption between 200 and 300 grams per person. Interestingly, around one-fifth of this consumption happens outside the home in settings such as tea rooms and restaurants. Particularly noteworthy is the significant growth of tea rooms over the past decade, with a concentration in regions like Île-de-France, PACA, and Auvergne Rhône Alpes.

Despite experiencing some setbacks due to health crises, which led to a decline in sales during lockdown periods, the tea room sector is bouncing back with vigor, thanks in part to new and innovative offerings. For instance, the emergence of combination tea room bookstores and co-working-friendly tea rooms has contributed to a resurgence in the market, surpassing pre-crisis figures and boasting an impressive forecasted annual growth rate of around 9%.

The global tea market, of which France is a part, has also been on an upward trajectory, valued at nearly $51 billion, with out-of-home tea consumption alone expected to potentially rise from over $15 billion to over $30 billion in the coming years. This expansion is a reflection of the growing demand for high-quality and diverse tea options. The French market specifically appears to be following the global trend with an increasingly sophisticated palette for tea and a solid performance in both import and export activities.

France's trade deficit in the tea segment shows signs of improvement, with a coverage rate rising to over 30%. Furthermore, France's non-alcoholic beverage market, which includes hot drinks like tea, has witnessed a significant increase over the last decade, suggesting a steady consumer demand. This is coupled with a variety of tea consumption patterns, such as a preference for tea bags, although loose tea and capsule varieties also find considerable favor among French consumers. In addition to traditional tea rooms, the French market has welcomed a new trend with the burgeoning popularity of bubble tea kiosks. The bubble tea market is anticipated to experience robust growth.

Prominent Market Contenders in the Tea Room and Coffee Shop Landscape

In the bustling world of tea and coffee consumption, several players have carved a niche for themselves, establishing a strong presence in the market. Their distinctive approaches and innovative offerings have shaped the market dynamics and consumer preferences.

Iconic Tea Rooms and Their Renowned Offerings

Emblematic establishments such as Angelina and Ladurée have transcended beyond mere tea rooms to become symbols of luxury and French sophistication. Angelina, renowned for its signature Mont-Blanc cakes and delectable hot chocolate, has expanded globally under the Bertrand Group and boasts a significant presence in Asia and the Middle East. Similarly, Ladurée, which is renowned for its macarons and pastries, continues to enchant patrons on the iconic Champs Élysées with its new dessert bar concept.

Tea Houses Expanding into the Tea Room Sector

Tea brands have capitalized on the tea room trend by integrating in-house salons into their establishments. Noteworthy examples include Mariage Frères, with its exquisite tea rooms interspersed across Paris and London; Betjeman & Barton, which has reinvented the traditional salon with its Tea Bar concept; and Twinings, which has elegantly merged tea enjoyment with literary culture in its Parisian bookshop café.

Cafés and Coffee Shop Franchises with a Tea Room Twist

Alongside dedicated tea rooms, there are prolific franchises such as Starbucks Coffee, which, while known primarily for coffee, offers a wide selection of teas, catering to a diverse clientele. Columbus Café & Co, another formidable name, has a network of franchises across France, offering a cozy environment for both coffee and tea aficionados.

Bubble Tea Phenomenon's Remarkable Ascent

A newer addition to this market has been the ever-popular bubble tea kiosks. The explosive growth and demand for this Taiwanese tea-based drink have led to brands like Go Bubble Tea making significant strides with their innovative self-service offerings in supermarkets. The eye-catching assortment of bubble teas has appealed to a demographic spanning from young adults to those in their forties, each seeking unique flavors and the novelty of chewy tapioca pearls in their beverages.

Independent and Specialized Tea Rooms with Unique Flairs

Numerous independent tea rooms have emerged, betting on the allure of specialized concepts and themes, ranging from cat cafés to art gallery hybrids.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 04/04/2024

Summary and extracts

List of charts

• Tea exports from China
• Top ten tea exporting countries
• Main tea importers
• World tea consumption
• Size of the out-of-home tea market (by value)
• Main countries of origin of French imports
• Main destination countries for French exports
• Consumption of soft drinks
• Annual change in consumption volume of non-alcoholic beverages
• Hot beverage consumption occasions
• Change in the number of occasions on which hot drinks are consumed
• Tea consumption by format
• Tea consumption by type
• Tea consumption by frequency
• Places to drink tea
• Types of establishments visited during the year
• Tearoom traffic
• Visits to cafés and tearooms by time of day
• Loyalty to a café or tearoom
• Products most popular in cafés and tearooms
• Consumer price index for teas and infusions
• Import price index for processed teas and coffees
• Producer price index for processed coffees and teas
• Consumer price index for restaurants, cafés and similar establishments
• Average budget for a café or tearoom
• average budget for a formula with a drink and a home-made pastry
• Change in sales index for sector 56.10C