Fruit Tea Market Trends

Global Fruit Tea Market Scenario

Fruit Tea Market is expected to cross USD 2.34 Billion by 2030 at a CAGR of 8.10% during the forecast period of 2020-2030 The market is fragmented with the presence of numerous active sellers catering to the increasing and ever-changing consumer demand. The market is governed by several regional and local players recognized through their prominent brands. For instance, Dilmah Ceylon Tea Company PLC, a subsidiary of MJF Teas (Private) Limited, provides fruit tea in Sri Lanka and other countries under the brand name Dilmah. Market players are focusing on product development by investing in R&D and establishing strategic partnerships with distributors to strengthen and expand their distribution networks.

Fruit Tea Market Synopsis

Fruit tea is a type of functional beverage that contains real fruit juice or infuses the sweetness of exotic fruits with herb, spices, and earthy teas. It is consumed as an alternative to sugary and caffeinated drinks. The global fruit tea market is expected to grow at a moderate pace. It accounted for around 28% of the global functional tea market, which was valued at nearly USD 1.67 billion in 2020. The growing demand for functional beverages has boosted the sales of fruit tea, which offers various health benefits due to the presence of polyphenols acting as antioxidants, as well as vitamins, minerals, and amino acids. The consumption of fruit tea helps boost immunity, reduce cholesterol, and increase metabolism. Rising awareness of the health benefits associated with fruit tea is influencing market growth. Moreover, iced fruit tea is seen as a healthy alternative to sugary, caffeinated cold drinks, which is driving the demand for fruit tea. The expansion of specialty and functional tea retailers and launch of innovative products are also propelling the growth of the market. However, the widespread consumption of beverages such as coffee and high prices of fruit tea as compared to regular tea are impeding the global fruit tea market growth.

Market USP

Widespread availability of flavor variants and attractive packaging

Market Drivers

• Demand for innovative flavors: The health benefits of ingredients such as fruits, herbs, spices, and nuts present in fruit tea are boosting its popularity among tea drinkers. This has encouraged manufacturers to offer new varieties of tea with a focus on flavor. The demand for innovative fruit tea flavors is high, especially among the youth. The rising focus on new fruit tea flavors has been identified as one of the critical fruit tea market trends.

• Rising awareness of health benefits associated with fruit tea

• Growing popularity of organic fruit tea

Market Restraints

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  Increasing consumption of other beverages such as coffee

  
  

Segmentation

By Type

• Lemon

• Raspberry

• Cranberry

• Apple

• Peach

• Blends: This segment is poised to be the fastest-growing during the forecast period. Increasing health consciousness and a demand for natural energy sources is driving the growth of the segment. In addition, the rising demand for new and innovative flavors provides opportunities to fruit tea manufacturers.

• Others

By Category

• Conventional: In 2018, the segment accounted for the larger fruit tea market share. The increasing demand for affordable and easily accessible fruit tea products is a significant factor driving the growth of the conventional segment of the fruit tea market.

• Organic

By Form

• Tea Bags: The segment is expected to be the fastest-growing due to the convenience offered by tea bags both for household and out-of-home purposes. Moreover, the availability of different flavor variants and attractive packaging is driving consumer demand for fruit tea bags.

• Loose Leaf

• Others

By Distribution Channel

• Store-Based: This segment has been divided into hypermarkets and supermarkets, specialty stores, and other retail stores.

• Non-Store-Based: Consumers prefer to buy fruit tea online through e-commerce portals as they provide product and brand variety along with attractive offers. Hence, the segment is expected to register a higher CAGR during the review period.

By Region

• North America: In 2018, North America held the largest regional fruit tea market share. Increasing health consciousness has led to a rise in the consumption of fruit tea in the region. In addition, the youth in the region is inclined toward functional beverages such as fruit tea, fueling sales in the region.


• Europe

• Asia-Pacific

• Rest of the World

Key Players

• Twining and Co. Ltd. (UK)


• Martin Bauer Group (Germany)


• Tata Global Beverages (Tetley) (India)


• The London Tea Company (UK)


• Unilever plc (Tazo) (UK)


• Dilmah Ceylon Tea Company plc (Sri Lanka)


• The Hain Celestial Group Inc. (Celestial Seasonings)(US)


• Typhoo Tea Ltd. (UK)


• Harney & Sons Fine Teas (US)


• McLeod Russel India Ltd. (India)


• The Stash Tea Co. (US)


• Vorwerk Temial GmbH (Germany)


• Bird & Blend Tea Co. (UK)


• Carslake Tea Company (UK)


• True Tea Co. (UK)