Flavored Tea Market – Global Industry Size, Share, Growth, Trends and Forecast 2017 – 2025

Flavored Tea Market: Snapshot

Tea is one of the popularly consumed hot beverage in the world made by brewing, decocting, and boiling the dried leaves of the evergreen Camellia plant. Tea has multiple health advantages and is easily available in a wide range of flavors such as apple and orange, which delicious as well as a great alternative to sodas. Different tea types such as herbal tea has numerous health advantages and is rich in minerals, antioxidants, and vitamins. Some of the immensely popular herbal teas include chamomile tea, hibiscus tea, and peppermint tea. There has been a growing awareness about precautionary healthcare and trying lifestyle is inspiring customers to choose for products like herbal tea for health benefits.

A cup of tea offers several health benefits, but overconsumption of the same has its adverse effects. Tea contains a certain amount of caffeine which affects people in different ways. According to different research studies, excessive consumption of tea may increase the risk of colorectal cancer, esophageal cancer, and lung cancer.

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Online retailing is the current trend that has spurred the development prospects of the global flavored tea market in the recent years. Although, more conventional retail channel still remains an important channel in for revenue generation. Along with increasing popularity of different flavors in the global tea market, rising consumer base has led to introduction of new flavors of tea in the market. This is also expected to spur the growth of the global market for flavored tea.

Tea is a drink with aroma, which is made by pouring boiling or hot water over dried leaves of an evergreen plant called Camellia sinensis. The plant is local to Asia. Tea is the most consumed beverage in the worldafter water. There exists a wide range of teas such as Chinese greens and Darjeeling. These types have a cooling, mildly bitter, and astringent flavor, while other types of tea have unique properties such as sweet, nutty, flower or lush notes. Flavored tea is a type of tea that is flavored with herbs, flowers, or fruits that enhance the aroma, taste, and feel on the palate.

The global flavored tea market has been segmented on the basis of type, flavor, distribution channel, and region. Based on type, the market has been segregated into leaf tea and CTC tea. The leaf tea segment held a major market share in 2016 and the trend is anticipated to continue throughout the forecast period. This segment is also anticipated to witness rapid growth during the forecast period. This is attributable to the health benefits that leaf tea offers. The leaf tea segment is sub-divided into black tea, white tea, and green tea. The black tea segment held a major market share in 2016 and the trend is anticipated to continue throughout the forecast period. The green tea segment is expected to witness rapid growth during the forecast period. This growth is attributable to increased demand for green tea from consumers that are fitness-conscious, especially the urban consumers. Antioxidant and weight-loss properties of green tea are resulting in the surge in demand for green tea worldwide.

Based on flavor, the global flavored tea market has been segregated into chamomile, earl grey, mint, oolong, cinnamon, jasmine, and others. The chamomile tea segment held a major market share in 2016 and the trend is projected to continue during the forecast period. This segment is likely to witness steady growth during the forecast period. The cinnamon tea segment is expected to witness rapid growth during the forecast period. This growth is attributable to the property of cinnamon tea to control bad cholesterol and blood sugar. Consumers are gaining awareness about the benefits of cinnamon tea. This factor, in turn, is triggering the segment. Based on distribution channel, the global flavored tea market has been segregated into wholesale and retail. The retail segment accounted for a leading market share in 2016 and is estimated to expand at an exponential rate from 2017 to 2025. This is owing to direct contact of the retail channel with consumers, which results in higher revenue generation. The retail distribution channel segment has been further divided into online, supermarket/hypermarket, specialty retail stores, and others. The supermarket/hypermarket sub-segment held a leading market share in 2016 and the trend is expected to continue throughout the forecast period. This is due to the wide range of choices that supermarkets/hypermarkets offer to consumers. They also offer a wide range of price choices to consumers. This makes retail a desired distribution channel. The retail segment is expected to witness rapid growth during the forecast period.

Major factors driving the global market for flavored tea include easy availability of tea all over the world. Tea is exported all over the world and flavored tea is receiving special attention in modern times, due to its added and enhanced taste. This is resulting in the surge in demand for flavored tea across the globe. The recent shift toward flavored tea from traditional tea is another driver for the global market for flavored tea. However, high prices of flavored tea are restraining the market. Increasing demand in countries of North America and Europe is a major growth opportunity for the global flavored tea market.

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Geographically, the global tea market has been divided into North America, Europe, Asia Pacific, Middle East &Africa, and Latin America. Asia Pacific held a major market share in 2016 and the trend is estimated to continue during the forecast period. Europe is expected to witness rapid growth between 2017 and 2025.

Major players operating in the global flavored tea market include Associated British Foods plc (Twinnings) (U.K.), Apeejay Surrendra Group (Typhoo Tea) (India), Tata Global Beverages Ltd. (India), Goodricke Group Ltd. (India), and Golden Tips Tea, Co. Pvt. Ltd. (India).

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