Functional Tea Market is projected to Grow at a CAGR of 6.15% during the Forecast Period due to the Launch of Innovative Flavors

March 2022, MRFR Press Release/- Market Research Future has published a Report on the Global Functional Tea Market.

Market Highlights

Global Functional Tea Market is projected to be valued at USD 12,942.3 Million by 2030, expanding at a CAGR of 6.15% during the forecast period. Functional tea is a beverage that is infused with healthy, functional ingredients. Such types of teas are intended to provide additional health benefits. The consumption of functional tea is increasing worldwide due to its medicinal properties, followed by a pleasant flavor, and mildly stimulating effects. The growth of the global functional tea market is driven by the high demand for functional beverages and several flavor variants. The increasing demand for organic products worldwide is also expected to offer a lucrative opportunity to market players in the coming years. However, climatic changes, high costs of functional tea as compared to its regular counterpart, and limited natural resources are expected to hamper the growth of the global market during the forecast period.     

Europe constituted a dominant share of the functional tea market in 2021 due to the increasing awareness of healthy tea consumption. The UK dominated the lucrative market for manufacturers in the region. The presence of some of the key brands of functional tea in the region, such as Tetley, Twinings, Hälssen & Lyon, and Yogi Tea, has further led to the market's growth in the region. The market in Asia-Pacific is anticipated to exhibit the highest CAGR during the review period. Functional tea in the Asia-Pacific region is relatively at the introduction stage. However, the presence of a strong herbal tea market in the region creates lucrative opportunities for manufacturers of other types of functional tea.

Segmental Analysis

Global Functional Tea Market has been segmented on the basis of Type, Form, Function, Distribution Channel, and Region.

By type, the market has been divided into green tea, herbal tea, and others. The green tea segment accounted for the maximum market share in 2021, and the same segment is expected to register the highest CAGR of 6.25% during the forecast period. Green tea has a subtle, delicate flavor and less caffeine than fermented tea. It is also beneficial to health since non-fermented leaves retain a higher concentration of natural vitamins and polyphenols than fermented leaves.

Based on form, the global functional tea market has been classified as loose leaves, bags, and powder. The loose leaves segment accounted for the maximum market share in 2021 whereas, the bags segment is expected to register the highest CAGR of 6.37% during the forecast period. Functional tea bags are filled with ingredients that can be infused in water to prepare functional tea. The segment is growing at a high rate due to the convenience offered by functional tea bags both for household and out-of-home purposes.

By function, the market has been divided into immunity, detox, weight loss, gut & digestive health, multifunctional, and others. The multifunctional segment accounted for the maximum market share in 2021, and the same segment is expected to register the highest CAGR of 6.28% during the forecast period. Multifunctional tea with a fruity blend supports a beauty regime and helps protect the skin. Most floral teas have ingredients such as lemon balm, chamomile, and rose to help calm frayed nerves.

Based on distribution channel, the global functional tea market has been classified as store-based and non-store-based. The store-based segment is further bifurcated as supermarkets & hypermarkets, convenience stores, specialty stores, and others. The store-based segment accounted for the larger market share in 2021 in terms of value. Consumers prefer store-based channels as they provide a one-stop shopping experience. Supermarkets play a key role in the growth of the market. Supermarkets & hypermarkets are the largest sub-segment due to the increase in population, and the availability of a wide variety of products under a single roof has fueled the growth of store-based distribution channels.

Regional Analysis

Geographically, the global functional tea market has been categorized as North America, Europe, Asia-Pacific, and the rest of the world. As per MRFR analysis, Europe dominated the market, accounting for the largest share in 2021. Asia-Pacific functional tea market is projected to register the highest CAGR of 6.44% during the forecast period.

Key Players

Market Research Future recognizes Tata Global Beverages Limited (India), Unilever PLC (UK), The Hain Celestial Group, Inc. (US), Dilmah Ceylon Tea Company PLC (India), Associated British Foods PLC (UK), Organic India Pvt. Ltd (India), Barry's Tea (Ireland), Harney & Sons (US), Numi Inc. (US), and Godrej Group (India) as the Key Players in the Global Functional Tea Market.

Key Findings of the Study

• Global Functional Tea Market is projected to register a growth rate of 6.15% from 2021 to 2030. The launch of innovative flavors followed by high demand for functional beverages is projected to propel the growth of the global functional tea market.


• The green tea segment is estimated to retain its prominent share by 2030, and the same segment is anticipated to register a growth rate of 6.25% during the forecast period.


• The loose leaves segment is estimated to retain its prominent share by 2030 whereas, the bags segment is anticipated to register a growth rate of 6.37% during the forecast period.


• The multifunctional segment is estimated to retain its prominent share by 2030, and the same segment is anticipated to register a growth rate of 6.28% during the forecast period.


• The store-based segment accounted for the largest market share in 2021 and is expected to grow at a rate of 6.07% during the forecast period.