The global tea and tea-based beverage market is growing at a rapid pace owing to increasing tea consumption, urbanization, and health consciousness among customers. According to the German Tea & Herbal Infusions Association, German tea consumption increased in 2021, with about 95,000 cups used every minute, owing to rising demand for tea (Camellia sinensis), herbal infusions, and fruit infusions. Additionally, owing to urbanization, consumer lifestyles are changing, specifically those of the younger generation. As more consumers look for convenience in urban areas, ready-to-drink packaged beverages such as tea have become more common. Among young consumers, iced tea beverages are growing in popularity. Owing to such factors, the market was valued at $43.7 billion in 2018 and is growing at a CAGR of 5.6% during the forecast period (2019–2025).
Key Trends in the Tea and Tea-Based Beverage Market
Increasing Trend of Health Consciousness
Some teas, such as chamomile tea, hibiscus tea, and others, are considered healthy. The public is also becoming aware of the harmful effects of carbonated beverages. These factors are the key drivers of market demand. Consumers suffering from arthritis, cardiovascular diseases (CVD), and high blood pressure are increasingly inclined toward tea-based beverages. Owing to this increasing demand, market players are also launching new products in the market. For instance, in March 2023, Tego LLC, a small Native American-owned business, launched five new traditional Native American teas. The new teas are helpful in reversing the health effects of high arthritis, poor blood circulation, low blood glucose levels, colds and flu, concentration issues, and poor overall health.
Sustainable and Environmentally Friendly Initiatives
As more people become conscious of their choices regarding the earth and environment, the market offers new opportunities for new innovations and products. The key companies in the market are contributing to these sustainability initiatives. For instance, TH Group offers tea products that are environmentally friendly. The company’s herb cultivation follows strict standards set by the Ministry of Health in Vietnam for filter-bag herbal tea. Additionally, the items are packaged in paper filter bags that satisfy European standards, which do not contain nylon or plastic. This type of packaging is ecologically beneficial as well as safe for customers. Additionally, in March 2023, Bridge Goodness Pvt. Ltd. launched FromBhutan, a herbal tea brand. According to the company, FromBhutan sources organic tea from Bhutan using sustainable farming methods without using any chemicals.
Organic Tea and Tea-Based Beverages
There is an increasing trend toward organic products that people consider healthier and more nutritious, which is driving the market further. Companies are also launching organic teas and beverages to further meet the demand. For instance, in April 2023, Cymbiotika, a major supplement brand known for providing clean, science-backed supplements, introduced its newest product, a ceremonial-grade matcha that is 100% organic. To address particular nutritional deficiencies and support healthy aging, detoxification, and longevity, Cymbiotika employs innovative bioavailable absorption technology and provides the highest quality plant-based nutrients. In its products, Cymbiotika does not use synthetics, GMOs, fillers, chemicals, preservatives, or additives.
Expansions and Innovations by Major Market Players
The tea and tea-based beverage market has significant contributors such as Associated British Foods Plc, ITO EN Ltd., Nestle SA, The Republic of Tea, Inc., Bettys & Taylors Group Ltd., Ceylon Organics, Ltd., Alkaloid AD Skopje, and McLeod Russell India, Ltd., among others. These players assist in the market’s growth with the launch of new and innovative products and through collaborations and investments. Some of the recent developments in the market include-
• In September 2022, TH Group, a Vietnamese milk producer, launched a range of herbal tea products. These tea products are made from lingzhi, jiaogulan, chrysanthemum, adenosma cordifolium, passion flower, ginger, lotus embryo, perilla, and others. These herbs in tea are useful for blood pressure regulation, high blood fat reduction, type 2 diabetes, liver diseases, fatigue, fever, cough, and many other diseases.
• In September 2022, Honest Tea co-founders, along with celebrity chef Spike Mendelsohn, announced the launch of Just Ice Tea. It is a ready-to-drink iced tea brand. The brand is focused on using Fair Trade Certified teas, sweeteners, and other simple ingredients. Just Ice Tea comes in Honey Green Tea, Berry Hibiscus Herbal Tea, Original Green Tea, Peach Oolong Tea, Moroccan Mint Tea, and ½ Tea ½ Lemonade.
• In June 2022, Clipper Tea Company, located in the UK, increased its product line in the US with new packaging and flavors. The company added organic orange and turmeric herbal tea, organic Earl Grey black tea, organic winter apple and cinnamon herbal tea, organic green tea and lemon, and organic winter berries herbal tea flavors to its portfolio.