OMPANY -

MARKET ENTRY
Australia - Yorkshire Tea
obal Marketing Mangement
UMKD6Q-15-3 Nguyen Hai Quang 10210902-2406
 POLITI
Trade Agreement Political Stability: High Tax policy for Tea products
The United Kingdom and Australia's political The import tax on tea into
Australia agreed to abolish stability is 0.92 Australia mainly includes a
tariffs on most imports from (Theglobaleconomy, 10% GST (ABPS, 2024),

CS each other under AUKFTA. Once

the Agreement takes effect, all
UK-to-Australia imports will be
This creates
tariff-free. extremely
(Ministry of Industry
2024), reflecting
stability of policies and
the
Minimizing
environment,
economic
political
the

risks
helping
however tea products
imported from the UK can
be exempted from tariffs
Reduce
thanks costs
to the but also
AUKFTA
favorable conditions
and Trade, 2023). businesses operate long- for
and creating confidence increasing
agreement. competitiveness
for Yorkshire Tea to enter the investors
term and develop. with other tea products.
Australian market

ECON
Australian GDP growth has averaged Inflation rate
3.2% per year during the 1990s (World
Economics, 2024), and average income Australia's average annual consumer inflation rate during the
has reached 100,000 AUD/year (Luis period 2014-2023 is 2.7%. (World Bank,2024)
Minvielle, 2024). The solid economy
Creating favorable conditions for Yorkshire Tea to maintain

OMIC
reasonable prices and grow market share. This helps the
evelopment of the Tea marketand
in average
Australiaincome allowed Yorkshire
Tea to join the market. brand build an effective long-term business plan and compete
with other tea products.
Revenue from the tea market in Australia is expected to reach
77.62 million USD in 2025, with an expected annual growth rate
(CAGR) of 10.5% in the period 2025-2029. (Statista, 2024).
Australian consumers are increasingly interested in herbal teas
and health-promoting tea blends, such as immune-boosting teas,
Yorkshire
chai teaunflavored
teas, and can easily natural
penetrate and teas.
green expand the Australian
(World Tea News,
market
2024)
Foodservice Growth
The Australian foodservice market is expected to reach $61.98
billion by 2024 and grow at a CAGR of 10.41% to reach $101.68
billion by 2029.
This expansion increases tea consumption at cafés, restaurants,
and hotels can be another potential Yorkshire Tea distribution Figure 1: AUD to GBP conversion chart
route. 1 AUD = 0.4857 GBP Source: Wise Payments Limited, 2025
 Health and Wellness Trends in Australia
SOCIA Embracing healthier lifestyles, driving
demand for herbal, green, and organic
teas with stress reduction, immune
LEGAL
L
support, and detoxifying advantages. Australia has regulations related to food
quality and safety, products entering the
Tea Consumption Trends(Your
Rising
Neighbourhood, 2024).
Australian market need to participate in
Australian consumers are increasingly interested in herbal teas many inspection steps, after being assessed
and blends with health benefits, such as immune-boosting teas. to meet the help
This will relevant standards
Yorkshire to enter.
Tea build its
(World Tea News, 2024). As a result, the number of tea drinkers reputation and avoid legal issues related
in Australia has increased in recent years to food safety (Australian Competition and
Opportunity for Yorkshire Tea to capitalize on the growing health Consumer Commission, 2024). Ensuring
and wellness trend in Australia by developing organic and product quality meets Australian
functional tea products to meet growing consumer demand standards is a necessary condition for
Cultural diversity and tea drinking habits in Australia Yorkshire
Australia hasTea's products
strict to be widely
regulations on food and
beverage
acceptedadvertising, requiring advertising
in this market.
Multicultural Australia has multinational communities. Tea campaigns to be transparent and not
consumption is part of this diverse culinary history (Australian misleading about product features
Government Department of Home Affairs, 2023). Asian (Department of Culture, Sports and Tourism,
immigration has increased Japanese green tea and bubble tea 2024). Some specific requirements should be
consumption in diversity
The cultural Australiaand
(Australian Bureau
rich drinking of Statistics,
tea habits 2023).
in Australia added.
Strict Promoting products
regulations can honestly
make it difficult to and
create opportunities for international tea brands, such as accurately will help Yorkshire Tea maintain its
introduce products to the public.
Yorkshire Tea, to reach and meet the diverse needs of reputation and avoid legal disputes.
consumers. Understanding and respecting different drinking Consumer protection policies and regulations,
habits will help brands position their products appropriately these regulations protect consumers' rights
The Riseand
ofattract
Online a wide range of customers.
Shopping when products are unsafe or do not meet the
promised quality. Consumers have the right to
Australians spend online more, notably on Amazon, Woolworths, request repairs, replacements or refunds for
and Coles (Statista, 2023). Online tea shopping offers a variety defective products (Australian Competition
of brands and items. and Consumer Commission, 2024).
Yorkshire Tea needs to build a strong online business strategy, Complying with consumer protection
partnering with popular e-commerce platforms in Australia to regulations will help Yorkshire Tea avoid
reach customers. At the same time, investing in digital complaints and build positive relationships
marketing and promoting products on online channels will help with customers. However, these regulations
increase brand awareness and boost sales.​ also force Y tea to change some sales
regulations, or with intermediaries.
 Figure 2: Australia Tea

MARKET The Australian tea market Market

Source: Outlook
Expert Market Research,
2024
was valued at AUD 656.56
million in 2024 (EMR,
2024).

SIZE
Opportunities Challenges
• Creating a great opportunity • Strong competition from
for Yorkshire Tea to expand long-standing brands such as
and grow. Lipton, Twinings, and
domestic tea brands.
• Creating an opportunity for
Yorkshire Tea to develop new
products to meet this trend.
• Australian consumers
shifting to functional tea
are
5.1% Compound Annual Value in AUD million
products, requiring Yorkshire
Growth Rate
Tea to develop new products
to meet health needs

MARKET
GROWTH
Market drive
Australian customers are altering their consumption patterns,
favoring healthy, organic, and caffeine-free tea options. The
Positive growth, potential & demand in the Australian tea
market
increase in health awareness, particularly during the epidemic
and the emphasis on nutritious meals, has enhanced the tea Yorkshire Tea should have appropriate marketing strategies that
business. (EMR, 2024) align with consumer trends, emphasizing health-conscious
products such as organic and herbal teas.
Growth in specialty tea segments: Teas such as herbal and
organic teas, detox teas, and weight loss teas are becoming Compelling rationale to invest in market penetration through
more popular. Consumers are looking for not only traditional strong distribution channels and targeted advertising
Dominant tea segment
teas but also teas with health benefits, driving market growth. campaigns, ensuring long-term growth in the Australian
(EMR, and
Black 2024)green teas: Traditional teas, such as black and green market.
teas, still make up a large proportion of total tea consumption in Opportunity for Yorkshire Tea to develop its
Australia. However, demand for herbal teas and decaffeinated
teas is growing rapidly. (EMR, 2024) market share.
 Distribution channel

CUSTOMER AND 60–70%

of tea sales accounted for by
supermarkets and convenience
stores, with Woolworths and Coles

DISTRIBUTION
being the major contributors.
(Euromonitor
of tea sales come from2023).
International,
15–20% commerce platforms like Amazon
online-

Australia, eBay, and Kmart Online

CHANNEL
(Statista, 2024). generated through
of tea sales
Customer 10–15% convenience shops, which are ideal
Tea consumers in Australia are of different for quick purchases (EMR, 2024).
age groups, but are concentrated mainly in of tea sales through other channels
two main groups (Euromonitor International,
• Young adults (25–40): Herbal, green, and functional teas that facilitate
2023):
05–10% such as tea shops and mini-markets,
typically catering to premium or
digestion and alleviate stress are in high demand. They are attracted herbal tea enthusiasts (Euromonitor
to natural, organic, and sustainable items. International, 2023).
• Middle-aged and elderly people (over 40): They consume black tea
but are drinking more sleep, cardiovascular, and anti-aging teas. Ensure presence in major supermarket chains
such as Woolworths and Coles, which account for
60–70% of tea sales in Australia.
Focus on prominent product placement for easy
• Health-conscious consumers pursuing natural and functional beverages access to customers in convenience stores.
are propelling the Australian tea sector. (EMR, 2024)
Increase sales on Amazon Australia, eBay, and
• Many customer choose teas abundant in antioxidants and anti-
Kmart Online platforms, which account for 15–
inflammatory properties and also herbal and specialized teas for digestion
and sleep are gaining popularity. (EMR, 2024)
20% of tea sales.
Leverage digital marketing strategies, promote
via Google Ads, Facebook, and optimize SEO to
• Over 94% of Australians are internet users, with social media usage
reaching around 78.3% of the population (ProfileTree, 2024). Younger
increase online presence.
generations especially prefer streaming platforms and are heavily
engaged on social media, using them for both entertainment and news.
Opportunity for Yorkshire Tea to develop new product lines to meet the tea Yorkshire Tea needs to adjust its marketing strategy to emphasize the
needs of different age groups health benefits of the product, meeting the growing demand of
Yorkshire Tea can leverage digital advertising and social media Australian consumers for natural and healthy drinks.
to target younger audiences and health-conscious consumers. Yorkshire Tea may need to develop new product lines such as herbal teas
or teas rich in antioxidants.
 Comparison between Yorkshire tea & T2
Figure 3: Key Players in the

MARKET Tea Market (Australia)

Source: Statista, 2024
Yorkshire Tea

3% of the Australian market

T2

23% of the Australian market

COMPETITIVENES
A globally renowned brand, Strong brand in Australia,
particularly in the UK. with a strong line of specialty
Featured in premium black teas, herbal teas, and
tea and organic tea. functional teas.

S
Premium teas, with a wide
Premium tea, traditional
Direct Competitor Indirect Competitor black tea, and organic tea.
range of herbal teas, green
teas, and functional teas.
Source: Source: Expert Market Source: IMARC Group’s Report,
Research, 2024 2024 Strong distribution network in
Large production scale, stable
Australia, diverse products,
STRENGTHS quality, global brand THREATS
focusing on health and
Nerada Tea Pty Australia’s Own recognition.
innovation.
• Well-recognized globally as a • Competitors
premium brand. providing organic,
clean-label drinks
Tavalon Tea Byron Bay • Offers a variety of products,
Australia & New Coffee Company including organic and • Substitute drinks
functional teas. such as organic
Zealand coffee:
Golden Grind • Aligns with the growing
Adore Tea and Mojo Beverages demand for organic and • Well-supported
health-focused teas. brands with
extensive distribution
• Strong distribution network, networks
making it easy to build trust
T2 and expand in markets like make high-quality, premium teas from l
• Key Australian tea industry operators
Australia.
Common points of foreign sources.

competitors in the market

• Sustainability and ethical sourcing are their priorities, and they sell black, gre
herbal teas.

• They target health-conscious customers with distinctive mixes and handmade ta

VALUE CHAIN
Inbound Logistics Operations
• Yorkshire Tea combines traditional production
methods with modern technology to produce high-
• Yorkshire Tea sources premium ingredients from
quality tea. The company maintains strict quality
renowned tea-growing regions such as Sri Lanka,
control at every stage, from fermentation to
India, and East Africa. The company partners with
Key trusted suppliers to ensure consistent, high-quality
packaging.( Yorkshire Tea, 2024)
Streng raw materials.
• Additional Point: Yorkshire Tea implements
ths • Yorkshire Tea maintains long-term partnerships with
advanced automation in production, which
increases consistency and efficiency while
sustainable farms, ensuring that the tea is ethically
maintaining the traditional flavor profile.( Yorkshire
sourced and adheres to environmental standards.
Tea, 2024)

The use of high-quality tea leaves and pure water

The use of advanced automation in production
sources ensures a superior product. This gives
processes helps maintain a high level of consistency
Compe Yorkshire Tea an edge in terms of product consistency
in the final product. This is critical in maintaining a
and flavor profile. High-quality raw materials also
titive enable the company to build a strong reputation and
premium image and building brand loyalty.

Advant remain competitive in the premium tea market. By

working with sustainable farms, Yorkshire Tea appeals
The balance of traditional methods and modern
automation allows Yorkshire Tea to keep its products
age to environmentally conscious consumers and
aligned with traditional tea values while improving
positions itself as a responsible brand, gaining favor
efficiency and scaling production.
among customers who prioritize sustainability.

This advantage will remain strong in the Australian

market, as Australian consumers are increasingly This FSA will be applicable in the Australian market,
health-conscious and environmentally aware. The as consumers increasingly appreciate authentic,
demand for organic and ethically sourced products is quality products and the balance between tradition
 VALUE CHAIN
Outbound
Marketing and Sales
Logistics
• Yorkshire Tea focuses on creative marketing and strong brand
• Yorkshire Tea has a wide distribution promotion. They emphasize the quality of tea and their
network, which includes major heritage as a brand. (Yorkshire Tea, 2024)
supermarkets, convenience stores, and • Yorkshire Tea has a strong customer loyalty program and
e-commerce platforms like Amazon, deepening brand engagement through special promotions and
Key reaching a broad consumer base. exclusive offers. ( Yorkshire Tea, 2024)
( Yorkshire Tea, 2024) • Yorkshire Tea’s main consumer demographic is well-distributed
Streng across age groups, with significant consumption from 26-35-
ths • Yorkshire Tea has a strong presence in
the hospitality industry, supplying cafes
year-olds (34%), followed by 17-25-year-olds (42%).
(IvyPanda,2023)
and restaurants, ensuring their product • The brand uses varied packaging designed to appeal to
is available in premium dining settings. different market segments. Packaging plays a key role in
( Yorkshire Tea, 2024) shaping the consumer perception of the brand.
(IvyPanda,2023)

• A robust distribution network enables • Yorkshire Tea's innovative advertising campaigns and
Yorkshire Tea to reach a broad and engagement with diverse consumer groups help establish a
diverse consumer base across multiple premium brand image and foster strong brand loyalty.
Compe markets, including Europe and Australia,
titive regions with a strong tea culture. • The loyalty program and exclusive offers are essential for
building a reliable customer base and encouraging repeat
Advant • Presence in premium dining settings purchases, which drive growth.
(cafes and restaurants) allows the brand
age to position itself as a premium product, • Packaging diversity allows the product to cater to various
catering to consumers who value quality consumer preferences, creating opportunities to target
 COUNTRY-SPECIFIC ADVANTAGES
(CSAS)
AND
THEIR SUSTAINABILITY IN THE
Country of AUSTRALIAN
Reputation for Quality MARKET
Free Trade Growing Demand for
Origin Effect (COE) and Craftsmanship Agreements (FTA) Organic and Sustainable Produc

• UK Advantage: The • UK Advantage: The UK • UK Advantage: The UK- • UK Advantage: The UK's
British heritage of has a strong reputation Australia FTA allows for commitment to
Yorkshire Tea is seen as for quality tea, and reduced tariffs and sustainability and ethical
a symbol of quality and Yorkshire Tea’s better market access for sourcing has positioned
authenticity. Tea from traditional craftsmanship British products, which Yorkshire Tea as a brand
the UK, particularly is recognized as one of facilitates the entry of that values the
Yorkshire Tea, is its core strengths. Yorkshire Tea into the environment and
considered premium Australian market. sustainable practices.
and is associated with
the traditional tea- • Australia values high-
drinking culture. quality products, and • Sustainability in • Australia’s tea market is
Yorkshire Tea’s focus on Australia: This FTA gives increasingly shifting
premium tea will align Yorkshire Tea a cost towards organic and
• This COE will still be an with Australian advantage in terms of sustainably sourced
advantage in Australia, consumers' preference import duties and easy products. This is in line
where there is a strong for high-quality and market access, helping it with Yorkshire Tea’s
appreciation for British authentic beverages. to stay competitive in sourcing practices, and
 Product-Market Fit Adaptability
Yorkshire Tea aims to provide consumers Yorkshire Tea is aiming to expand into
with premium, sustainable and quality tea international markets, especially the
Goal products. The company's goal is to build Australian market, where consumers are
brand reputation through quality and looking for healthy, caffeine-free tea
fairness in the production process. products.
Yorkshire Tea has over 100 years of
experience in the tea industry, helping Yorkshire Tea has a presence in many
them understand the needs of the market international markets and has adapted its
and build products that are suitable for product strategy to suit consumer habits in
Experience consumers. They have been successful in different countries. For example, they have
many countries and have organic tea, developed organic and herbal teas to suit
black tea and herbal tea products that are the global health trend.
suitable for healthy consumption trends.
Yorkshire Tea has a strong research and
Yorkshire Tea has strong financial
development team, which is flexible enough
resources, modern production processes
to change product formulations to meet
and strict quality control systems. The
Resources company has also built a wide distribution
new market demands. The company's
manufacturing and distribution systems
system, especially in international
also help them adapt easily to international
markets.
market requirements.
Yorkshire Tea has a high fit for the
Australian market due to its product With its international experience and
features such as organic tea, herbal tea, product development capabilities, Yorkshire
and premium tea, which meet the growing Tea is highly adaptable to the Australian
Assessment consumer demand for health-conscious tea market. The company can adjust its
products. At the same time, Yorkshire Tea's strategy and products to meet the growing
high brand recognition in the UK and other demand for herbal teas, decaffeinated teas,
 Distribution
Recomendation
Yorkshire Tea wants to expand its global
Goal presence and leverage distribution channels • Broaden the product assortment
to bring its products closer to consumers. to include more organic, herbal,
and caffeine-free teas to address
Yorkshire Tea has developed a strong the increasing health-conscious
distribution network in markets such as the inclinations of Australian
Experi UK, US, and other countries. They distribute customers.
ence through major supermarkets, convenience
stores, and online retail platforms, helping to • Advocate for the health
reach a wide range of customers. advantages of Yorkshire Tea,
emphasizing goods that facilitate
The company has long-standing partnerships detoxification, enhance immune
Resourc with major supermarket chains such as function, and promote overall
es Tesco, Sainsbury's and global e-commerce well-being in alignment with
platforms such as Amazon. current trends in the Australian
market.
Yorkshire Tea has the ability to build
effective distribution channels in Australia • Establish robust partnerships
through major supermarkets such as with Australian retailers such as
Woolworths and Coles, where tea is a major Woolworths and Coles to
consumer product. They can also expand
Assess guarantee extensive product
through e-commerce platforms such as distribution.
ment Amazon and eBay, especially with the
growing popularity of online shopping in • Partner with cafés and
Australia. The company needs to focus on restaurants to enhance the
developing relationships with cafes and premium brand image and bring
restaurants to build a premium brand image. Yorkshire Tea to upscale eating
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