The World’s Most Popular Beverage Is Getting More Expensive
September 24, 2020
With everyone working from home, tea has become a more popular beverage. It was already the most popular beverage globally, aside from water, with an estimated 3.7 billion cups consumed daily, according to reporting in the Wall Street Journal. Even with restaurants and cafes closed, it is increasing in popularity with Americans stuck at home, particularly millennials. This increased demand, coupled with bad weather in the regions that produce tea, labor shortage, and logistical issues, has sent tea prices surging.
The wholesale price of tea leaves has jumped 50% since March. This increase has started to result in higher prices for consumers in the U.S. The price of packaged tea bags is 1.7% annually, according to market research from Nielsen. The price of pre-prepared bottled tea has climbed 9.6% since last year. The good news for tea drinkers is that prices are expected to go back down once production issues in Sri Lanka and Kenya improve, according to analysts who spoke to the WSJ.