Consumer Goods & Food

Flavored Tea Market Segmentation By Type (Loose Leaf and CTC Tea); By Flavor (Fruits, Flower, Herbs and Spices); By Distribution Channel (Online and Offline) – Global Demand Analysis & Opportunity Outlook 2027

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.

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Introduction to Flavored Tea

Flavored tea is an aromatic, hot beverage available in wide range of flavors such as, lemon, mint, and rose. It is among the most prevalent beverage across all the cultures worldwide. Numerous kinds of tea blends are available in the market, for instance black tea, white tea, green tea and herbal tea. Black, green, oolong, dark and white tea, all are obtained from same plant- Camellia sinensis, which is a warm-weather evergreen plant. The basic difference among these collection of teas arise from varying degree of processes and level of oxidation. Flavored tea has multiple health advantages as some tea are rich in antioxidants, minerals, and vitamins. Before being sold in the market there are some additional processes that are carried including, blending, flavoring, scenting and decaffeination to obtain better taste, consistency and aroma.

Market Size and Forecast

Flavored tea market is anticipated to grow considerably on account of its flavor along with advantage of few health benefits. Increased consumer consumption of the tea worldwide had led to the introduction of several new flavors in the market is also expected to foster the growth of the market. Moreover, enhanced taste, ease in availability along with some other health benefits that come with the consumption of green, herbal and fruit tea are also projected to positively impact the growth of the market. 

Flavored tea market is anticipated to project a significant CAGR over the forecast period i.e. 2019-2027. The market is segmented by type into loose leaf and CTC tea, out of which, the loose-leaf tea segment is anticipated to have a higher demand in the market on account of health benefits it offers. 
Flavored Tea Market Graph

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Growth Drivers

1. Health Benefits

Some flavored teas in addition to taste and aroma also provide various medicinal benefits. For instance, fruit teas usually contain a high amount vitamin C, which helps in maintaining the cholesterol and blood sugar. It also aids in reducing weight and enhance the immunity. This is expected to drive the growth of the market. In addition, some flavored tea are high in antioxidants. This helps to neutralize the damaged cells, prevents cardiovascular diseases and also provide a soothing and calming effect to body and boost mental clarity. This is also projected to foster the growth of the market.

2Wide Availability of Tea Globally

Initially tea was majorly native to Southeast, South, and East Asia, however, with growing advancements in agriculture and rising modernization, it is cultivated across all the subtropical and tropical regions. This has led to easy availability of tea to almost entire world, which is expected to result in the growth of different types of teas such as flavored tea.

3. Changing Consumer Behavior

There is a recent shift of the consumer from traditional tea towards the flavored tea. This can be attributed to enhanced aroma of the tea that helps reducing the stress and relieve the anxiety which is expected to increase the adoption of the flavored tea in the upcoming years. Rising personal incomes and increasing modernization to adopt different food pattern has increasingly contributed to the growth of this market.

Flavored Tea Market Graph
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High Prices of Exotic Teas

Some exotic and gourmet tea blends are quite expensive to purchase. There are few flavored tea leaves which can worth a million dollar such as, Tieguanyin Tea, Da-Hong Pao Tea, and others. This is expected to hamper the growth of the market over the forecast period.

Market Segmentation

Our-in depth analysis of the global flavored tea market includes the following segments:

By Type

  • Loose Leaf Tea
  • CTC Tea

By Flavor

  • Fruits
    • Lime
    • Strawberry
    • Apples
    • Others
  • Flowers
    • Rose
    • Jasmine
    • Lavender
    • Others
  • Herbs
    • Chamomile
    • Mint
    • Rosemary
    • Others
  • Spices
    • Cinnamon
    • Cardmom
    • Others

By Distribution Channel

  • Online
  • Offline

By Region

On the basis of region, the global flavored tea market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The market in Asia Pacific is anticipated to show significant growth during the forecast period owing to rise in demand for tea along with its numerous health benefits. Flavored tea consumption has increased particularly in China, India and other emerging economies. This can be attributed to its anti-inflammatory, antioxidants and weight-loss benefits.

According to Food and Agriculture Organization of the United Nations, global output of green tea production is expected to increase at a rate of 7.5% annually and is further anticipated to reach 3.6 million tonnes by 2027. This is largely fostered by China, where production of green tea is estimated to double from approximately 1.5 million tonnes to 3.3 million tonnes, by the next decade.

Europe is also expected to witness a considerable growth over the forecast period on the back of increasing innovations to produce unique tea blends and flavors.

The global flavored tea market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis

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Top Featured Companies Dominating the Market

    • Associated British Foods plc
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis 
    • Apeejay Surrendra Group (Typhoo Tea) (India)
    • Tata Global Beverages Ltd. (India)
    • Goodricke Group Ltd. (India)
    • Golden Tips Tea, Co. Pvt. Ltd. (India)
    • Bettys & Taylors of Harrogate Ltd.
    • Tetley
    • Dilmah Ceylon Tea Company Plc.
    • Harney and Sons Fine Teas
    • Unilever
    • Other Prominent Players

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