The traditional British cuppa is under threat as consumers switch to herbal alternatives and coffee, according to new research.

Despite a renewed fashion for taking afternoon tea, sales of standard tea bags have dropped 16% and sales of loose tea by 9% in the last two years.

Research from Mintel said the total tea market has declined 12% over the past five years, from £707m in 1999 to just £623m in 2004.

The traditional English cuppa is fighting a real battle against coffee as a hot beverage and against increasing competition from tea alternatives such as soft drinks, bottled water and fruit juice,” said Ellen Shiels, senior market analyst at Mintel.

Speciality teas and herbal and fruit teas have been the sector’s only success story, with sales rising by as much as 50% and 30% respectively between 2002 and 2004.

Almost 80% of British people claim to be tea drinkers, rising to 85% amongst those aged 65 plus. But, numbers fall to 72% for those aged between 15 and 24.

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