Flavoured Tea Ingredient Market Size, Share & Industry Analysis, By Type (Herbs & Spices, Fruits, Flower), By Form (Powder, Liquid) and regional Forecast, 2024-2032

The global flavoured tea ingredients market is driven by the flourishing demand for healthy and exotic tea all across the globe. For instance, According to the Tea Association of the USA, tea is the most commonly consumed beverage in the world next to water. The rising demand for beverages which can instantly boost the energy level and multifunctionality of the tea are predicted to boost the sales of tea, as a result, the demand for tea flavouring ingredients is expected to increase.

The prominent, as well as niche players operating in the market, are embarking on the base expansion and launch of innovative products to increase their footprint in the market. For instance, in December 2019, Spritz Sparkling Tea, Ohio-based beverage start-up announced the launch flavoured tea in two variants i.e. hibiscus tea with dragon fruit, guava and mango, and a green tea with pomegranate, peach and lemon. The product is widely available locally and through an e-commerce platform.

The increasing popularity of various tea flavours such as camomile, honey, lemon, and others has led to an introduction of various innovative tea flavours in the market which is expected to boost the market share of the product. In addition, the enhanced taste of tea due to the flavour addition and some health benefits of herbal or green tea are projected to positively leverage the sales of flavoured tea ingredients among tea manufacturers. The increasing number of cafeterias in the developed and developing regions along with the rising popularity of healthy beverages is anticipated to propel the sales of flavoured tea. The on-going research regarding the production of innovative tea flavours and improvement in existing flavours is expected to positively leverage the sales of the product in forthcoming years.

High price of some exotic and gourmet tea flavours such as Tieguanyin Tea, Big Red Robe, and others is predicted to hamper the growth of the market in the forthcoming years.

Key Market Driver -

Increasing Popularity of Flavoured Tea

Key Market Restraint -

High Prices of Exotic Tea Flavours

Key Players Covered:

The prominent players operating in the global flavoured tea ingredients market are Associated British Foods Plc. Tata Global Beverages, Bettys & Taylors Group Ltd., Unilever, Barry’s Tea, Mighty Leaf Tea Company, Tazo Tea Company, Goodricke Group Ltd, Harney and Sons Fine Teas, Apeejay Surrendra Group, Bettys & Taylors Group Ltd. McLeod Russel, and Others.

Herbs and spices are predicted to hold a considerable share in the global market. Increasing demand for functional beverages such as herbal tea is predicted to boost the market share of the product. The pleasant aroma, refreshing taste and health benefits of herb and spice flavoured tea is driving the product growth. In addition, increasing product launches of herbs and spice flavoured tea is expected to positively impact the market growth in forthcoming years. For instance, in May 2017, Sipwise, Indian start-up announced the launch of its first herbal tea and green tea. The product is available in 200 ml PET bottles. The herbal tea is available in two variants i.e. Calm and Curious. Brahmi & Ashwagandha are the key ingredients of Calm and Curious respectively.

The powder form of flavoured tea ingredient is expected to hold a considerable share in the market. With the increasing popularity of tea sachet as they are easy and convenient to use the demand for powdered flavoured tea ingredients is increasing. Moreover, tea manufacturers are embarking on the launch of ready-to-drink flavoured tea, as a result, the sale of liquid tea flavours is expected to increase in forthcoming years. For instance, in March 2018, U.S.-based zero-calorie beverage producer Zevia has launched a range of eight ready-to-drink organic tea flavours. The new ready-to-drink tea range includes Black Tea, Green Tea and herbal flavours, and two caffeine-free options.

Regional Analysis:

Asia Pacific is expected to hold a considerable share in the global market. The increasing focus of prominent market players such as Tata Global Beverages, Apeejay Surrendra Group, and others to produce an innovative and wide range of flavoured tea is expected to positively impact product growth. For instance, in March 2020, Typhoo India announced the launch of three new variants of its organic herbal tea range. The complete herbal range of the company is prepared from organic ingredients which are rich sources of natural minerals and vitamins.

North America is predicted to grow at a significant pace in the global flavoured tea ingredients market. The increasing popularity of tea and rising awareness regarding the consumption of herbal tea and its health benefits is expected to boost the market share of the product. For instance, according to the Tea Association of the USA Inc. approx. four in five Americans drink tea including millennials and on any given day, over 159 million Americans are drinking tea. Increasing demand for tea within the region is expected to positively impact product growth.

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Segmentation

Key Industry Developments:

• In May 2019, Teapigs announced the launch of new range of ice teas. The product is available in three flavours i.e. Cucumber & Apple, Lemon, Lime & Ginger, and Lychee & Rose.


• December 2019, Tata Tetley launched ethic range of Indian-flavoured tea bags in the U.K. market.