The consumer goods giant has said that Generation Z and millennial consumers much prefer herbal teas and coffees instead.
As a result, the firm is struggling to grow its black tea brands in western markets like the UK and the US.
But why have young people’s tastes changed so much?
Unilever’s chief financial officer Graeme Pitkethly says that although young people do drink tea, it tends to be “quite high-end, expensive products”.
“I drink five or six cups of builder’s tea a day, but unfortunately we are dying at a faster rate than generation Z and millennials are consuming it,” he told investors.
According to research firm Kantar, the British tea industry is currently worth £667m per annum, and over the last two years, demand for black tea has fallen by 2.7%.
In contrast, demand has risen for other types of tea, with herbal teas now worth £52m and cold infusions valued at £11.2m.