According to a recent study by Statista, revenue in the tea segment amounts to US$10,766.5m in 2020. The market is expected to grow annually by 8.2% (CAGR 2020-2025). (STATISTA). In fact, tea is the second-biggest segment in the market for Hot Drinks after Coffee.
We did our study on one of the most widely consumed beverages "Tea".
We leveraged DataHawk's Amazon keyword tracker to analyze the competitive dynamics around the keywords, "Tea, Green Tea, Tea Bags, Detox Tea, Black Tea, Chai Tea" in Amazon US by looking at products that appeared the most on the first page of search results over the past 30 days in the US.
We analyzed 859 products from 283 brands ranking on the Keywords, "Tea, Green Tea, Tea Bags, Detox Tea, Black Tea, Chai Tea".
1. Share of Voice Organic Ranking Leaderboard
Here is an overview of the brands that had products spending the most time in the top rankings organically for the category "Tea."
Bigelow Tea & Yogi are found to be the top two brands with 54 & 31 products each with a total share of voice of 13.2%. Twinings is in the third position and Unilever’s Lipton is in the fourth position. The top 4 labels in this category capture a 22.3% share of voice in the Tea category on Amazon US.
In our Share Of Voice Research, we analyze the number of days during which products belonging to each brand have ranked organically in our desired ranking range, for our analyzed period and for our desired set of search queries. The result is used to compute the Share of Voice and efficiency by product.
The top-performing Brand, as seen above, is Bigelow Tea, priced at an average $16; it has a share of voice of 7.4%. Yogi is the nearest competitor to Bigelow Tea in terms of pricing. However, it is striking that with almost half the number of products, Yogi is ranking #2, leaving behind Twinnings and Lipton, both having more number of products listing on page1 in comparison with Yogi.
With the average rank of 25, Bigelow Tea is a clear winner. Yogi, Twinings, and Lipton are very closely competing on their average rankings with ranks #30 & #31, respectively. Priced at $14 on average, Twinnings has the most products on the first page after Bigelow Tea. They make a total share of voice 4.9%. It is interesting to note that the Brands with more number of products do not necessarily have higher Share Of Voice on the digital shelf, as can be seen in this niche.
Having more number of products is clearly not the criteria for having a larger Share Of Voice in this category. We have seen that previously in a few other categories too.
There are a number of other factors that impact this. One of them is the average price, a great indication of how pricing is impacting the organic ranking results on Amazon. The brands with the highest average price - "SkinnyBoost" & "PG Tips", both priced at $30, have a share of voice of only 1.1% & 1.0% respectively, out of a total of 283 brands that we have analyzed.
The average price of this category is around $18 and the products priced within the average price range capture 46.7% of Share Of Voice from the top 30 brands on Page 1 for this query. The other brands left with a share of Voice of 20.0% are priced at an average of $22.
The best average ranking list is dominated by FGO & Taylors of Harrogate with only 7 & 13 products each. Next in the list is the with 6 products at rank #27 is Amazon’s 365 Everyday Value, the only Amazon brand to be ranking organically, in top 30, on page 1. In fact, 365 Everyday Value has the lowest average price of $4, out of the top 30 brands in the category "Tea."
We also found that the top 10 Brands in this Niche capture a 41.2% Organic Share of Voice out of a total of 30 brands that had at least one product that made it to page1. With its space in the top 10, “Taylors of Harrogate” is priced one of the lowest in the category, with a total of 13 products and is quite competitive with other frequently purchased, “everyday” brands of Tea. It is also the second-best average ranked brand in the category.
2. Share of Voice Sponsored Ranking Leaderboard
Here is an overview of the brands that had sponsored products spending the most time in the top rankings for the analyzed for the keywords “tea, green tea, tea bags, detox tea, black tea & chai tea.”
A striking average rank #1 for all the brands with Amazon sponsored products in the top 30 in the tea category. 3 out of the top 5 Brands, with 31, 35 & 26 products in the organic section have no products as sponsored on Page1.
Bigelow Tea ranking with 54 products in the organic section has only 3 products as sponsored on page 1. Only 63 products out of a total of 796 are sponsored on page 1 in this category. The rest of the products have a Share Of Voice of only 39% and are placed on the later pages.
It is rather interesting to see that the brand “VAHDAM ”, ranked 9th, has the most sponsored products on Page 1, bagging an SOV of 13.7%. The Republic of Tea has the highest SoV in the sponsored products section with only 13 sponsored products and a share of voice of 15.1%.
The brand with the highest average price, Brazilian Belle, made it to page 1 with only one product as sponsored. It is priced at $25, much higher than the average price of the category in the sponsored section, $19.2;
At DataHawk, we also compute Amazon product competition scores that reflect, to what extent the product is deemed to be competitive on Amazon, and it’s based on a set of parameters such as the Pricing, Reviews, and Ratings of the competing products that are ranking for a given keyword. You can assess it yourself by using DataHawk's Amazon ASIN lookup.
Here is our scorecard for the top competitor in this category.
It can be inferred that the competition in this category is super high, among the top 30. A product in this category with good ratings and in the average price range could make it to the top 30 for sure.
The brands that have a high number of products and that offer more variations in flavors and types of tea are ranking high in this category.
It can be inferred that the competition in this category is super high, especially for the top 10 rank positions. A product in this category with good ratings and in the average price range could make it to the top 30 for sure.
3. The Organic vs. Sponsored Products SoV Leaderboard
It can be seen here that the most sponsored products come from the brands - Republic Of Tea, VAHDAM, Ito En, Tea Fort & Numi. It is significant that Yogi, Lipton & Harney & Sons are three top brands ranking organically with no sponsored products. They have a combined 14.1% share of voice on the first page. The competition for this keyword “tea, green tea, tea bags, detox tea, black tea & chai tea.” is seen to be tough but with the right insights and correlations, it is vincible.
66.7% of brands have products ranking for this Keyword are ranking organically with no sponsored products. It can be said that the online tea business may be there for the taking for the company that gets it right.
4. The Organic Share Of Voice vs. Average Selling Price
This graph is very helpful to identify the competition on the basis of Average Selling Price. Bigelow Tea & Yogi Tea have surely made their space in this niche. Though they have a significant difference in the number of products & Share Of Voice, the top two products on the shelf are in close competition on the basis of pricing. In fact, most of the brands in Tea Category are priced around the average price.
With the highest average star ratings in the category, Bigelow Tea is leading the tribe. Our study on this subcategory helped us identify Bigelow Tea, Yogi Tea, Twinnings, Stash & Harney&Sons as the leading vendors in the tea market. The trends contributing to this market’s growth is the rising demand for flavored tea and green tea products.
However, our research also allowed us to explore the Ready To Drink Tea Market, which is by far the largest segment in tea, earning more than $10 billion and accounting for almost 50% market share with $4 billion in sales in the mass market and convenience outlets.
DataHawk enables you to make such an analysis very quickly. Download the complete analysis here.
Our study helped us analyze the best and lowest-ranked products in the Tea category. Understanding why some products are best-sellers gives a blueprint to brands and sellers to follow. You can get all these tips and tricks with DataHawk.
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