The tea room market - France (2024)

1.2 The booming global tea and tea room market

The global tea market was valued at $** billion in ****[***].

The Covid-** epidemic reportedly affected tea consumption away from home, but was offset by an increase in consumption at home, according to the Economist Intelligence Unit (***), a British forecasting and consultancy company. The EIU estimates a *.*% growth rate in global consumption by ****[***].

Market size for out-of-home tea consumption

Tea market size (***) World, ****-**, in $ billions Source: ****

The out-of-home tea market, which encompasses places where tea is sold and consumed outside consumers' homes such as cafés, restaurants, hotels, tea stands and tea rooms, is growing steadily. With an observed value of $**.* billion in ****, and projections indicating an increase to $**.** billion by ****, this market offers significant opportunities for tea shops. This growth reflects the growing demand for quality, diversified tea, offering tea shops the opportunity to capture a growing share of this expanding market.

Worldwide tea consumption

World tea consumption World, ****-****, billion liters Source: ****

Global tea consumption has been growing steadily for several years.Global tea consumption increased at an average annual growth rate of +*.*% over the period ****-**** [***].

International tea trade

Main tea exporting countries World, ****, $ billion Source: ****

In ****, world tea exports will be dominated by China, which stands out with ...

1.3 The French market follows this trend

Tea consumption in France

Tea is a widely consumed beverage in France, with * out of * French people claiming to drink it, and an average annual consumption of *** grams per person per year in ****[***].

Foreign trade in teaUnsurprisingly, France has a large trade deficit in the tea segment, with a coverage rate of just over **% in ****, although this figure seems to be rising.We note that import and export quantities fluctuate widely, and that the Covid-** crisis does not seem to have had any particular influence. However, over the period ****-****, annual growth rates in the value of imports and exports fell by *% and *.*% respectively.

Source: ****

Poland is the main supplier of French imports in ****, accounting for almost $** million.

Main countries of origin of French imports World, ****, in millions of $ Source: ****

Main destination countries for French exports World, ****, in millions of $ Source: ****

1.4 Impact covid

According to BPI France, the tea room business belongs to NAF code **.**C, entitled "Fast-food restaurants". [***] The scope of the corresponding NAF code is thus broader than the subject of this study; nevertheless, it remains interesting to consider the data relating to the fast-food business in France.

sales index trends for sector **.**C France, ****-****, Base *** in base **** Source: ****

Unsurprisingly, the fast-food sector suffered over the period from February to June ****, reaching its lowest point in April, just before deconfinement. The sector nevertheless caught up with **** levels over the period May to October ****, until suffering again due to the second containment. At the start of ****, the sector follows the same trend as the **** curve, but at a lower level, bearing in mind that the cover was still in force until June ****. The latest available data, for June ****, shows a higher sales index than in ****, a sign that the fast-food sector, including tea rooms, is starting to recover from the health crisis.

2.1 Consumption of soft drinks and hot beverages in France

We begin our study by looking at non-alcoholic beverages and hot drinks, two categories to which tea belongs.

Household consumption of non-alcoholic beverages:In ****, household consumption of non-alcoholic beverages (***) reached**.* billion euros, up +**% over the last ten years.

Consumption of non-alcoholic beverages France, ****-****, in billions of euros Source: ****

Since ****, the value of household consumption of non-alcoholic beverages has been rising, albeit slowly, although in **** there was a very slight drop. Over ** years, consumption of non-alcoholic beverages has grown at an average annual rate of +*.**%, with more marked growth from **** to **** at *.*%.

Annual change in volume consumption of non-alcoholic beverages France, ****-****, in % Source: ****

The volume of non-alcoholic beverages consumed has been growing steadily since ****, with a peak in ****, since growth from **** to **** was *.*%. From **** to ****, growth was the lowest, however, but remains positive.

Hot beverage consumption occasions:The number of hot beverage consumption occasions in France fell by -*.*% in **** compared with ****. While the number of hot beverage consumption occasions rose sharply for breakfast (***).

Hot beverage consumption occasions France, ****-****, in millions Source: ****

change in the number of occasions when hot beverages are consumed France, ****, in % vs **** Source: ****

2.2 French tea consumer behavior

As mentioned above, tea is widely consumed in France. Nevertheless, different consumption patterns can be distinguished according to a wide variety of criteria: frequency, type of tea, format...By formatTea in bags is the most widespread in France, with over **.** million users in ****, however, the use of teas in bags has been declining since ****. The loose tea category, while gathering fewer consumers, is on the other hand experiencing greater stability. Capsules are the least widely used type of tea consumption, but are growing at an average annual rate of *.*% between **** and ****.

Tea consumption by format France, ****-****, in millions of users Source: ****

By typeFruit or herbal teas and green tea are the most widely consumed types of tea, with **.* million and **.** million users respectively in ****. By contrast, more specialized teas (***) are much less widespread.

Tea consumption by type France, ****, in millions of users Source: ****

By frequencyMore than ** million French people drink tea at least once a day, including more than * million more than twice a day. Around * million French people drink tea only once a week or less frequently.

Tea consumption by frequency France, ****, in millions of consumers Source: ****

2.3 Tearooms in France

Tea consumption locations France, ****, in percent Source: ****

In ****, just under half of all tea consumption takes place at home, making this the main place where tea is consumed. A third of tea is consumed at work and a fifth in tea rooms. Followed by a small proportion consumed nomadically, on the road or walking, for example. Tearooms are therefore the first public establishments where tea is consumed.

Type of establishment visited by respondents during the year France, ****, in percent Source: ****

Tearooms were the least frequented venue in **** among those surveyed, but were still frequented by a quarter of respondents.

Visits to cafés and tearooms by time of day France, ****, in % Source: ****

tearooms and cafés are frequented throughout the day, but more often at the end of the day than at the beginning. But these places are much frequented between meals, so it can be at any time of day.

Tearoom attendance France, ****, in % Source: ****

Although it's often friends who meet up to go to a tearoom, this doesn't stop families and couples from making up a large proportion. It's also a place to go with colleagues or alone, even if this represents a smaller proportion of the clientele.

Loyalty ...

2.4 Tearoom budgets in France

Average budget for a café or tearoom France, ****, in percent Source: ****

Three quarters of those surveyed are not willing to spend more than * euros when visiting a tea room or café. Less than a tenth are prepared to spend more than ** euros.

average budget for a formula with a drink and a home-made pastry France, ****, in percent Source: ****

More than half (***) of those surveyed are unwilling to spend more than * euros for a "drink + home-made pastry" formula, with a majority willing to spend between * and * euros. Another third are willing to pay between * and * euros. And hardly anyone is willing to pay more than ** euros for a package that includes a drink and home-made pastry.

2.5 The burgeoning trend of bubble tea kiosks

General market data

The global market for pearl tea, also known as bubble tea, is currently estimated at $*.** billion in ****. Forecasts indicate promising growth, with a compound annual growth rate (***) rising from *.*% between **** and **** to *.*% between **** and ****. This growth is attributed to the beverage's increasing global adoption, as well as the positive impact of social media[***].

According to Allies Market Research, the bubble tea market could reach $* billion by ****, stimulated by the multiplication of points of sale, particularly in shopping malls, and a relatively affordable initial investment. This trend is considered sustainable, offering long-term investment opportunities[***].

An analysis by Facts & Factors forecasts that demand for pearl tea will reach $*.* billion by ****, with an estimated CAGR of around *.*% between **** and ****. These forecasts suggest sustained market growth, fuelled by various driving factors and increasing demand[***].

Demand analysis

In ****, according to NielsenIQ, Go Bubble Tea will be the top self-service fresh convenience product (***) launch. After just three months on the market, it has achieved an impressive sales figure of * million euros thanks to sales in hypermarkets and supermarkets. The brand offers ** cl beaded tea cups in a variety of flavors, priced between €* and €*, offering a cheaper alternative to traditional Bubble Tea kiosks[***].

Although bubble ...

3.1 A multitude of players

Emblematic salons in France

A number of tea salon brands have established themselves as emblematic salons, benefiting from both domestic clientele and tourist flows, and playing on the image of luxury and refinement à la Française. Examples include Ladurée and Angelina.

Angelina is one of Paris's most famous tea rooms, notably for its Mont-Blanc cakes and hot chocolate. Brought under the Bertrand Group umbrella in ****, the brand has since launched a vast international expansion plan, with a presence in France, Asia and the Middle East, and soon in New York. By ****, Angelina will have ** points of sale, two-thirds of them outside France.

In ****, Angelina's sales grew by *%, and sales at its original flagship store (***) have increased fivefold since the Bertrand Group took over in ****. The boutique is now visited by around *,*** customers a day. [***].

Tearooms from tea houses

Some tea brands have also seized on this trend to open their own salons, either in one of their boutiques or in a separate establishment. In France, this is the case for Mariage Frères (***).

Tearooms in hotels and palaces

Many hotels and palaces offer "tea time" in their restaurant/tea rooms, often in collaboration with top pastry chefs. Among the best-known ...

3.2 A similar player: coffee shops, the player with multiple available franchises

What are the differences between a coffee shop and a tearoom?A coffee shop is a cross between a café and a tearoom. Coffee shops and tea rooms offer both drinks and snacks. The difference between the two is that coffee shops offer a wider range of coffee-based beverages, while tea rooms offer a wider range of tea-based beverages. A number of coffee shop franchises exist. Here is a non-exhaustive list:

Source: ****

Finally, the barrier between coffee shops and tea rooms is blurred, since the various players listed above are sometimes considered as tea rooms, and other times as coffee shops, or even as hybrid bakeries for others. Nevertheless, tea shops are easily differentiated when they present an innovative concept, as will be described in *.*.

4.1 A huge variety of tea room concepts

As mentioned above, many tearooms have coupled their business with a*nd concept, creating ever more original establishments. Below is a non-exhaustive list of existing concepts:

bookshop-teahouses themed tea rooms or tea rooms specializing in a foreign country tea rooms/cat bars associative salons offering discovery, cultural or creative activities tea rooms and co-working spaces tea rooms with concept stores tea rooms with art gallery tea rooms with board game bar tea rooms in museums or cultural establishments :

Source: ****

4.2 Foodservice and snacking offer

Snacks, and in particular sweet products, are an integral part of the tea room offer. A large number of salons offer tea-time packages (***) or breakfast and lunch packages.

Indeed, many of them have also moved into savoury catering, often including products such as savoury tarts and quiches, hot and cold sandwiches and salads.

On the food side, viennoiseries are the most popular products in cafés and tearooms, followed by cold sandwiches and pastries. Cakes such as muffins, cakes and cheesecakes are also widely available in tearooms.

Most popular products in cafés and tearooms France, ****, in Source: ****

Source: ****

4.3 Overview of market price trends

Tea (***) price trendsThe tea salon business is highly dependent on tea prices, which is why it is interesting to study the consumer price index, the import price index and the production price index for coffee and processed teas.this is why it is interesting to study the consumer price index, the import price index and the producer price index for processed coffees and teas.

Consumer price index for teas and infusions France, ****-****, base *** in **** Source: ****

The consumer price index for teas and infusions in France has varied fairly unevenly over the last ten years: after peaking in ****, the CPI reached a minimum in ****, before rising again to ***.* in ****.

Import price index for processed teas and coffees France, ****-****, base *** in **** Source: ****

Producer price index for processed coffee and tea France, ****-****, base *** in **** Source: ****

The import and production price indexes follow different curves, but both have been rising since ****, with an average import price index of ***.* in **** and a production price index of ***.* since ****.

Consumer price index for restaurants, cafés and similar establishments France, ****-****, base *** in **** Source: ****

Overview of market prices

Source: ****

Prices vary enormously depending on the establishment, which is to be expected as they range from ...

5.1 Business regulations

Tearooms are establishments offering non-alcoholic beverages and possibly food for consumption on the premises. Since ****, a license is no longer required for the sale of non-alcoholic beverages, either for consumption on the premises or for takeaway. However, if the salon wishes to sell alcoholic beverages for consumption on the premises, it must hold a " licence de débit de boissons à consommer sur place", or either a "licence restaurant" or a "petite licence restaurant". The nature of the business is defined as commercial if it has fewer than ** employees, and commercial-craft if the business is associated with the manufacture of craft products (***).The business of running a tearoom is not subject to any specific standards, but it must comply with a number of broader regulations relating to catering. Among the regulations applicable to this activity are the following:

Safety standardsERP (***) are subject to safety obligations, particularly with regard to fire risks. The applicable rules are listed in the decree of June **, ****. In particular, all establishments must have at least * exits, distributed in such a way as to enable rapid and safe evacuation. ERP buildings must also be equipped with alarm systems. Accessibility standardsERP accessibility standards are set by the February **, **** law for ...

6.1 Segmentation

6.2 Analyse financière des entreprises du secteur

• Bertrand Groupe
• Ladurée (Lov Groupe)
• Betjeman & Barton
• Mariage Frères
• Angelina Salon de Thé (Bertrand Groupe)
• Au fond du jardin
• Bernachon
• Christian
• Comptoirs Richard
• Dammann Frères (Illy Group)
• Kusmi Tea
• Meert
• Coffea
• Conservatoire des Hémisphères
• Café Kousmichoff (Kusmi Tea)
• L’Essence du Thé (George Cannon)
• Twinings Salon de thé
• Le Dali (Hotel Meurice)
• La Mosquée de Paris
• Le 68 Guy Saint Martin (Guerlain & Guy Martin Atelier)
• Le Grand Café Pouchkine Madeleine
• Le Loir dans la théière