Global Flavored Tea Market - 2023-2030

Overview:

Global Flavored Tea Market reached US$ 2.6 billion in 2022 and is expected to reach US$ 4.7 billion by 2030, growing with a CAGR of 7.9% during the forecast period 2023-2030.

Herbal teas can be found in a huge variety in the flavoured tea market. They include, among others, hibiscus tea, rose tea, cardamom tea, organic tea, chamomile tea, peppermint tea, and pure herbs tea. One of the key factors propelling the market towards growth during the forecast period is the rising awareness among the world's population to take precautions with their health and lifestyle.

Consumers love the flavour and aroma of flavoured tea. Additionally, it offers some medical advantages that draw people who care about their health from all over the world. It contains a lot of vitamin C, which supports healthy blood sugar and cholesterol levels, aids in weight loss, and strengthens one's immune system. In order to provide consumers with complete satisfaction and a variety of tastes and advantages, flavoured tea is widely available. The demand for this product rises as consumer attitudes towards their eating habits change.

Research and development are ongoing investments for businesses in the tea industry. As a result of this pattern, people are already accustomed to drinking tea on a regular basis, and companies have expanded the tea market with new flavours and sensations. People's tastes and preferences have also changed in response to the shifting market trends. Asia-Pacific held highest market revenue share of more than 45% in the year 2022. In the Asia-Pacific flavored tea market, customers are open to trying new things and are greatly influenced by celebrity endorsements that raise awareness of the product's therapeutic and health benefits.

Dynamics:

Rising Trend of Health and Wellness

Numerous flavoured teas are viewed as healthier substitutes for sweetened drinks like soda and juice. More and more customers are looking for natural, low-calorie, low-sugar options. For instance, herbal and fruit-infused teas frequently contain antioxidants and other health-promoting ingredients.

Antioxidants have been linked to a number of health advantages, including the ability to fight off oxidative stress, lower the risk of developing chronic illnesses, and promote general wellbeing. Sales of organic quality teas, herbal infusions, and fruit infusions increased dramatically in 2021, according to the German Tea & Herbal Infusions Association, with 15.9% of sold teas carrying the organic label.

Growing Intrest in Clean Label Products With Few Artificial Ingredients and Additives

The wellness sector is now heavily focused on digestive health. Popular choices for their alleged capacity to ease digestive discomfort and encourage better digestion include teas made with ingredients like peppermint, fennel, and ginger. Additionally, stress management and relaxation are crucial in today's fast-paced world. The benefits of flavoured teas for relaxation, stress reduction, and improved sleep are promoted.

Customers are becoming more interested in clean label products with few artificial ingredients and additives. This trend is supported by flavoured teas made with natural flavourings, actual fruit, and herbs rather than artificial additives or preservatives. Clean label flavoured teas make it simpler for customers to understand what they are consuming by clearly listing the ingredients.

The respective transparency fosters trust and enables people to make well-informed decisions about their dietary preferences. The natural flavours and nutritional benefits of the ingredients used in flavoured teas can be preserved by using clean label products, which aim to minimise processing and chemical treatments.

Convenience is a Key Factor Contributing to the Popularity of Flavored Teas

Flavoured teas provide consumers with a convenient way to enjoy their preferred flavours without the need for time-consuming preparation, making them an appealing option for people looking for a balance between taste and convenience in their beverage choices. The wrappers guarantee that each serving is hygienic and convenient to use while also preserving the tea's freshness.

Flavoured teas in bottles or cans are very portable and frequently available in convenience stores, vending machines, and cafes, enabling customers to buy them while on the go. Some RTD teas come in resealable containers that let customers store any leftover tea without worrying about spills or losing freshness. No matter if they are sold in tea bags or RTD bottles, many flavoured teas come in single-serving sizes.

For instance, in June 2022, The American division of the UK-based Clipper Tea Company added new flavours and packaging to its existing product line. Organic earl grey black tea, orange & turmeric herbal tea, green tea & lemon, winter apple and cinnamon herbal tea, and organic winter berries herbal tea are among the recently added flavours.

High Cost of Flavored Tea

Compared to some other beverage options, flavoured teas, especially premium or artisanal varieties, can be relatively more expensive. Consumer price sensitivity, especially in price-conscious segments, may restrain market expansion. High-quality tea leaves and organic components like real fruit pieces, herbs, spices, and essential oils are frequently used in premium flavoured teas. The higher production cost is a result of these premium ingredients.

Furthermore, complex blending techniques are frequently needed to produce distinctive and well-balanced flavour profiles in flavoured teas. The skillful process of blending various tea varieties, herbs, and botanicals to achieve particular flavour profiles can raise production costs. Due to their rarity and special flavour combinations, some flavoured teas are produced as specialty or limited-edition blends, which can fetch higher prices.

Segment Analysis:

The global flavored water market is segmented based on type, flavor, distribution channel, end-user and region.

Increase in Demand for Loose Leaf Tea, Driven by Chaning Consumer Preferences

Due to the fact that loose leaf tea typically contains whole or larger tea leaves and retains more of their flavour and essential oils than tea bags, it is frequently thought of as being of higher quality. Due to its perceived higher quality and freshness, loose leaf tea attracts customers looking for a premium tea experience.

A wider variety of flavour profiles, including complex and nuanced flavours that are difficult to achieve with tea bags, are offered by loose leaf teas. A more varied flavour experience is made possible by the range of tea varieties available and the flexibility of brewing techniques. Customers can adjust the strength and flavour of their tea by adjusting the brewing time, water temperature, and tea-to-water ratio.

Additionally, since loose leaf tea typically produces less waste than tea bags, which may contain plastic or other non-biodegradable materials, some environmentally conscious consumers favour it. Direct sourcing from tea gardens and open supply chains are two selling points for many loose leaf tea brands.

Geographical Penetration:

Growing Acceptance of Tea Among Health Consicious Cosumers in Asia-Pacific

As health-consciousness continues to rise, consumers in Asia-Pacific are turning to flavored teas for their potential health benefits. Certain ingredients commonly used in flavored teas, such as ginger, ginseng, and green tea, are associated with various health-promoting properties. Moreover, tea has a long and deep-rooted cultural history in many Asian countries, and flavored teas have been a part of these traditions for centuries.

Additionally, the working population in the region prefers tea for instant energy and hydration during working hours. Owing to all these factors, the market players are launching healthy and flavorful tea products in the market to cater to consumer demand. In November 2022, Netsurf Network launched a series of herbal teas in India. The products are available in different herbal flavors, i.e., Bramhi & cinnamon, ginger & cumin, ashwagandha & lemon, and others.

Competitive Landscape

The major global players in the market include: Unilever, Numi Inc, Twining and Company Ltd., Goodricke Group Ltd., Harney and Sons Fine Teas, Golden tips Yea, Tetley, Apeejay Surrendra Group, Nestle and Tata Global Beverages.

COVID-19 Impact Analysis

During the pandemic, consumers who were concerned about their health sought out beverages with perceived health advantages. The market expanded quickly as a result of the COVID-19 pandemic's growing health concerns. Demand for flavored teas increased as consumers sought out more healthy and soothing options, especially those with herbal or functional ingredients like immunity-boosting herbs.

Due to their alleged health advantages, tea is frequently chosen by consumers. Green, black, white, and herbal teas are just a few of the many varieties of tea that have different functional properties. For instance, while herbal teas like chamomile are valued for their calming properties, green tea is well known for its antioxidant content.

Russia-Ukraine War Impact

Geopolitical tensions lead to fluctuations in currency values, impacting the cost of importing flavored teas from other countries. The affordability of imported teas was impacted by exchange rate instability and price volatility. Trade restrictions, embargoes, or sanctions are a result of geopolitical conflicts. Such regulations may obstruct international trade in flavoured teas, which will have an impact on import and export markets.

Due to the conflict, broken supply chains, and lower demand, Ukraine's production in 2022 fell by 31.5 percent compared to 2021, when it stood at a level of about 15,000 tonnes. Imports fell by nearly 40% in 2022 compared to 2021, which is related to a sharp rise in raw material prices and the nation's economic crisis.

Tea packaged in filter bags made up the majority of imports because Ukrainian consumers are more accustomed to this type of packaging. Between 2017 and 2021, tea imports' geographic distribution remained largely stable, and UAE, Sri Lanka, Azerbaijan, Poland, and China were among the principal suppliers. Poland and China overtook Sri Lanka as the top exporters of tea to Ukraine in 2022, though Sri Lanka still holds the top spot.

By Type

• Loose Leaf Tea
• CTC Tea

By Flavor

• Fruits
• Flowers
• Herbs
• Spices

By Distribution Channel

• Supermarkets and Hypermarkets
• Specialty Stores
• E-Commerce
• Others

By End-User

• Food and Beverage
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On June 28, 2023, the popular global wellness brand VAHDAM India, known for its premium, organic teas and spices from India, has debuted a brand-new, intriguing product line: ICED TEAS! This new line of iced teas is made with only real tea and is offered in two practical formats: instant premix and pitcher tea bags.
• On April 21, 2023, 'Hard Iced Tea' from Lipton now comes in four fruit flavours and is alcoholic. According to the manufacturer, the drinks are "reimagined" as "smooth, refreshing, and seriously delicious" 5% ABV non-carbonated drinks using "real brewed Lipton tea, natural fruit flavours, and a triple-filtered, premium malt base."
• On November 23, 2022, With the introduction of Tetley Green Tea Immune Tulsi, Tetley Green Tea expanded its wellness selection. The addition of the new Tulsi variant expands the flavours available in the Tetley Green Tea Immune line, which already includes Lemon & Honey, Ginger, Mint and Lemon, as well as Naturally Sweet with Mango Flavour.

Why Purchase the Report?

• To visualize the global flavored tea market segmentation based on type, flavor, distribution channel, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of flavored tea market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global flavored tea market report would provide approximately 69 tables, 67 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies