Flavored Tea market size was valued at $ 2.8 Billion in 2023, and is projected to reach $ 4.74 Billion by 2032, registering a CAGR of 7.8% from 2024 to 2032.
The term "flavored tea market" describes the area of the tea industry that provides a wide variety of teas that have been flavored with different ingredients, like fruits, herbs, spices, and floral notes, to improve the flavor and scent of conventional tea blends. This market includes a broad range of flavored teas to suit various customer tastes and health-conscious trends, such as green, black, white, oolong, and herbal teas. The market for flavored tea has grown significantly in the last several years due to shifting customer tastes toward healthier beverage options and creative flavor combinations.
There are many different types of flavored tea available on the market, ranging from classics like Earl Grey (black tea with bergamot) and Chai (black tea with spices like cinnamon and cardamom) to more contemporary options like Vanilla Rooibos and Blueberry Acai Green Tea.
The addition of functional ingredients that provide certain health benefits is responsible for the flavored tea market's strong increase in health and wellness trends. For instance, consumers who want to strengthen their immune systems and enhance their general well-being are drawn to teas that are loaded with antioxidants, such as matcha or green tea. In a similar vein, people who prioritize holistic health tend to select herbal teas that contain herbs like peppermint, ginger, or turmeric due to their possible anti-inflammatory and digestive benefits. The flavored tea industry uses clever branding and marketing to capitalize on wellness and health trends.
In the flavored tea industry, there is a growing need for unusual flavors. This offers businesses a great chance to provide customers with distinctive and unforgettable flavor experiences. Teas flavored with exotic fruits, such as dragon fruit, passion fruit, or lychee, offer a pleasant and tropical touch that appeals to adventurous tea drinkers who are looking for flavors that are different from the typical selections. Similar to this, floral notes like rose, hibiscus, or jasmine give teas a delicate and fragrant profile that appeals to customers seeking flavor profiles that are upscale and refined.
Global Flavored Tea Market, Segmentation
The Flavored Tea market is segmented on the basis of Type, Flavour, Distribution Channel, and region.
Type:
The Type segment is further classified into Black Tea, Green Tea, Herbal Tea, and Others. Among these, the Green Tea sub-segment accounted for the highest market share in 2023. The growing popularity of green tea among health-conscious consumers can be ascribed to this area of the flavored tea market. Green tea is well known for having a high concentration of antioxidants, such as polyphenols and catechins, which are thought to provide several health benefits, such as improving cardiovascular health, accelerating metabolism, and helping with weight control.
Distribution Channel:
The application segment is further classified into Supermarkets and Hypermarkets, Specialty Stores, Online Retailers, Others. Among these, the Supermarkets and Hypermarkets sub-segment is anticipated to show the fastest growth by 2032. As they are convenient and widely accessible, supermarkets and hypermarkets have accounted for the largest portion of the flavored tea market's distribution route. Customers can explore and buy a variety of flavored teas and other groceries in one place at these retail stores, providing them with a one-stop shopping experience.
Region:
The Flavored Tea market in Asia-Pacific is projected to show the fastest growth by 2032. The flavored tea industry in the Asia Pacific (APAC) area can be linked to the region's rich tea culture, which is deeply ingrained in nations like China, Japan, and India. These countries have long-standing customs around the drinking of tea, where it is not only a beverage but also an essential component of ceremonial, social, and cultural activities. Because consumers in these nations are already aware of and appreciative of a wide variety of tea kinds, the strong tea legacy in these countries offers a strong foundation for the expansion of flavored tea. For instance, the history of spiced chai in India and the popularity of jasmine tea in China have helped to make flavored teas with a variety of taste profiles acceptable and well-liked in these countries.
Some of the leading Flavored Tea market players are
- Mighty Leaf Tea Company (US)
- Tazo Tea Company (US)
- Harney and Sons Fine Teas (US)
- The Republic of Tea (US)
- Associated British Foods plc (Twinings) (UK)
- Bettys & Taylors Group Ltd. (UK)
- Unilever (UK)
- Barry’s Tea (Ireland)
- Dethlefsen & Balk GmbH (Germany)
- Halssen & Lyon GmbH (Germany)
Key Industry Developments
- In April 2023, Lipton introduced its 'Hard Iced Tea' in four fruit varieties, with an alcoholic version currently available. Smooth and pleasant, these 5% ABV drinks are created with real brewed Lipton tea, natural fruit flavors, and a premium malt base.
Key Findings of the Study / Key Industry Developments.
- Due to changing customer tastes for healthier beverage options and inventive flavor combinations, the market for flavored tea is expanding rapidly.
- To satisfy a variety of palates and health-conscious fads, the market offers a wide variety of flavored teas, such as herbal, green, and black tea.
- Businesses have a chance to provide unique flavor experiences since there is a growing demand for flavored teas with strange and exotic flavors.
