Global Flavoured Tea Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Loose Leaf tea and CTC Tea.By Flavour;
Fruits, Flower, Herbs and Spices.By Distribution Channel;
Online and Offline.By Industry Vertical;
Food & Beverage and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Flavoured Tea Market (USD Million), 2021 - 2031
In the year 2024, the Global Flavoured Tea Market was valued at USD 15929.62 million. The size of this market is expected to increase to USD 23952.25 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 6.0%.
The global flavored tea market has experienced significant growth in recent years, driven by evolving consumer preferences towards healthier and more diverse beverage options. Flavored teas, which combine traditional tea leaves with various natural flavors such as fruits, herbs, and spices, offer a refreshing twist to the classic tea experience. This market trend reflects a growing demand for innovative and enjoyable alternatives to traditional beverages.
Key factors contributing to the expansion of the flavored tea market include increasing health consciousness among consumers, who seek beverages that offer both flavor and nutritional benefits. Additionally, the rise of specialty tea cafes and the popularity of tea culture worldwide have bolstered market growth, creating opportunities for both established brands and new entrants to innovate and expand their product offerings.
Regionally, Asia Pacific holds a dominant share in the flavored tea market, driven by countries like China and India, where tea consumption is deeply rooted in cultural traditions. North America and Europe also contribute significantly to market growth, propelled by a rising awareness of health benefits associated with tea consumption and a growing preference for natural and organic ingredients. As the market continues to evolve, companies are increasingly focusing on product innovation, sustainability, and meeting diverse consumer preferences to maintain their competitive edge in the global flavored tea market.
Global Flavoured Tea Market Recent Developments
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In June 2022, Tata Global Beverages, known for its Tetley brand, expanded its flavored tea offerings with a new line of fruit-infused teas. The new flavors include raspberry, blueberry, and peach, targeting younger, flavor-seeking tea drinkers.
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In March 2023, Unilever's Lipton launched a range of functional flavored teas aimed at boosting immunity and energy. The company introduced new flavors, such as citrus and ginger-infused tea, tapping into the growing health-conscious consumer segment.
Segment Analysis
The global flavored tea market is segmented by type into loose leaf tea and CTC (Crush, Tear, Curl) tea, both of which cater to different consumer preferences and brewing habits. Loose leaf tea is often preferred by consumers seeking a premium and authentic tea-drinking experience. This type of tea is typically associated with higher quality and a more complex flavor profile, as it consists of whole leaves that retain more of their essential oils and flavor compounds. Loose leaf tea is often marketed to tea connoisseurs or those who appreciate the art of tea brewing, and it is frequently found in specialty tea shops or premium retail outlets. On the other hand, CTC tea, which is made from smaller, broken tea leaves, is popular for its convenience and strong, bold flavor. It is more commonly found in mass-market offerings, such as tea bags, and appeals to consumers who prioritize quick preparation and strong, robust flavors. CTC tea is also favored for its consistency and is widely consumed in countries like India, where it is traditionally used in chai.
Flavors in the flavored tea market are segmented into fruits, flowers, herbs, and spices, each offering distinct sensory experiences. Fruit-flavored teas are increasingly popular due to their refreshing, sweet, and often tangy profiles, appealing to both younger consumers and those looking for healthier, natural beverage alternatives. Common fruit flavors like berry, citrus, and apple are widely used in both hot and iced tea formats, particularly in Western markets. Flower-flavored teas, such as jasmine, chamomile, and hibiscus, offer delicate, aromatic flavors that cater to those seeking a calming and soothing tea-drinking experience. Herb and spice-flavored teas, like mint, ginger, and cinnamon, are popular for their health benefits, including digestive support and stress relief. These segments reflect a growing consumer interest in functional beverages, where flavor is often paired with wellness benefits.
The distribution channels for flavored tea are divided into online and offline segments, with each channel playing a vital role in expanding market reach. Offline channels, such as supermarkets, specialty tea stores, and retail outlets, continue to dominate the market, offering consumers the ability to physically inspect and select tea products. These channels are especially important for loose leaf tea and premium offerings, where consumers may want to sample the product before purchasing. However, online channels are growing rapidly due to the convenience they offer, especially for tea enthusiasts who prefer purchasing from the comfort of their homes. E-commerce platforms allow consumers to explore a wide range of flavored teas, often with detailed product descriptions and reviews, which help in making informed purchasing decisions. In terms of industry verticals, the food and beverage sector is the largest consumer of flavored tea, as it is used in ready-to-drink (RTD) beverages, cafes, and tea-based beverages in restaurants and hotels. The "others" category includes uses such as in cosmetics, wellness products, and pharmaceutical applications, where flavored tea extracts may be used for their therapeutic or aromatic properties. The segmentation of the flavored tea market highlights a dynamic and diverse industry that caters to evolving consumer preferences for flavor, convenience, and wellness.
Global Flavoured Tea Segment Analysis
In this report, the Global Flavoured Tea Market has been segmented by Type, Flavour, Distribution Channel, Industry Vertical, and Geography.
Global Flavoured Tea Market, Segmentation by Type
The Global Flavoured Tea Market has been segmented by Type into Loose Leaf tea and CTC Tea.
The global flavored tea market has embraced segmentation by type, distinguishing between Loose Leaf tea and CTC (Crush, Tear, Curl) Tea, each catering to distinct consumer preferences and market dynamics. Loose Leaf tea, renowned for its whole, unbroken leaves, appeals to tea enthusiasts seeking a premium, aromatic experience characterized by nuanced flavors and refined brewing methods. This segment emphasizes quality and craftsmanship, often attracting connoisseurs and those valuing traditional tea-drinking rituals.
CTC Tea stands out for its granular texture, achieved through a mechanized processing method that crushes, tears, and curls tea leaves into small particles. This type of tea is prized for its robust flavor profile, quick infusion times, and suitability for large-scale production, making it a popular choice in tea bags and blends aimed at delivering consistent taste and convenience. CTC Tea's versatility extends across various tea blends, including flavored options that cater to a broader consumer base seeking accessible and flavorful tea experiences.
The segmentation by type in the flavored tea market underscores the industry's commitment to offering diverse choices that cater to both traditionalists and modern consumers seeking convenience without compromising on taste. As consumer preferences continue to evolve towards healthier and more indulgent beverage options, manufacturers and retailers are leveraging these distinct tea types to innovate, differentiate their product offerings, and capture a larger share of the global flavored tea market.
Global Flavoured Tea Market, Segmentation by Flavour
The Global Flavoured Tea Market has been segmented by Flavour into Fruits, Flower, Herbs and Spices.
The global flavored tea market is segmented by flavor into fruits, flowers, herbs, and spices, each offering distinct taste experiences and appealing to different consumer preferences. Fruit-flavored teas are particularly popular due to their refreshing and sweet profiles, making them widely consumed both hot and iced. Flavors like berry, citrus, mango, and apple are commonly used to create vibrant, fruity infusions that appeal to a broad consumer base. Fruit-flavored teas are especially popular among younger consumers and those looking for a healthier alternative to sugary beverages, as they provide a natural, refreshing taste without added calories. The growing trend of wellness and health-conscious living is also driving the popularity of fruit-based teas, which are often marketed as being rich in antioxidants and vitamins.
Flower-flavored teas, including those infused with jasmine, chamomile, and hibiscus, offer a more delicate and aromatic experience, appealing to consumers who enjoy more subtle and fragrant infusions. Floral teas are often associated with relaxation and well-being, making them particularly popular in wellness-focused markets. Jasmine tea, for example, is a staple in many Asian cultures, while chamomile is known for its calming properties. These floral varieties are gaining traction in markets around the world, especially as consumers continue to explore herbal and caffeine-free options for relaxation or stress relief. The demand for flower-flavored teas is further supported by the growing interest in herbal and natural ingredients, as consumers seek more soothing, natural alternatives to traditional caffeinated beverages.
Herbs and spices are another key category within the flavored tea market, with teas infused with ingredients like peppermint, ginger, cinnamon, and lemongrass becoming increasingly popular. Herb and spice-flavored teas often cater to consumers seeking more functional or medicinal benefits, such as digestive aid, immunity boosts, or relaxation. Ginger and turmeric-based teas, for example, have gained widespread popularity for their potential anti-inflammatory and digestive benefits, aligning with the growing trend toward functional foods and beverages. Spices like cinnamon and cardamom also add warmth and depth to teas, making them popular in colder climates or during the fall and winter seasons. Overall, the segmentation by flavor in the flavored tea market reflects a diverse range of consumer preferences, from the light and fruity to the fragrant and soothing, and the health-conscious choices that are increasingly defining the global tea market.
Global Flavoured Tea Market, Segmentation by Distribution Channel
The Global Flavoured Tea Market has been segmented by Distribution Channel into Online and Offline.
The segmentation of the global flavored tea market by distribution channel highlights two primary avenues: online and offline, each playing a crucial role in reaching and engaging consumers across diverse geographical regions. Online distribution channels have surged in popularity, driven by the rapid growth of e-commerce platforms and the convenience they offer consumers to explore and purchase a wide variety of flavored tea products from the comfort of their homes. This channel not only provides access to global and niche brands but also facilitates personalized shopping experiences through detailed product descriptions, reviews, and recommendations, enhancing consumer convenience and satisfaction.
Offline distribution channels, comprising traditional retail outlets such as supermarkets, specialty tea shops, and convenience stores, continue to serve as foundational pillars in the distribution of flavored teas. These channels offer tangible benefits such as immediate product availability, personalized customer service, and the opportunity for consumers to physically engage with products before making a purchase. Additionally, offline channels play a vital role in building brand visibility and trust through in-store promotions, tastings, and partnerships with retailers, thereby bolstering consumer loyalty and market penetration.
The segmentation by distribution channel underscores the industry's strategic focus on omnichannel strategies to maximize market reach and cater to diverse consumer preferences. By leveraging both online and offline channels, manufacturers and retailers can optimize their distribution networks, streamline inventory management, and adapt to evolving market dynamics and consumer behaviors. As the flavored tea market continues to expand globally, businesses are increasingly investing in digital marketing initiatives, logistical efficiencies, and seamless customer experiences across all touchpoints to maintain competitive advantage and foster sustained growth.
Global Flavoured Tea Market, Segmentation by Industry Vertical
The Global Flavoured Tea Market has been segmented by Industry Vertical into Food & Beverage and Others.
The segmentation of the global flavored tea market by industry vertical highlights two primary sectors: Food & Beverage and Others, each playing distinct roles in shaping market dynamics and consumer preferences. Within the Food & Beverage industry vertical, flavored teas are positioned as a popular choice among consumers seeking innovative and health-conscious beverage options. These products are crafted with natural flavors such as fruits, herbs, and spices, offering a refreshing alternative to traditional tea varieties. The sector's emphasis on flavor diversity, nutritional benefits, and premium quality underscores its appeal to a broad demographic, from tea enthusiasts to casual consumers looking for both taste and wellness benefits.
Beyond Food & Beverage, flavored teas find applications across various industry verticals, including hospitality, wellness, and personal care. In the hospitality sector, flavored teas are featured in hotel amenities, specialty tea menus, and catering services, enhancing guest experiences with distinctive flavors and presentations. Within wellness, the antioxidant properties and soothing qualities of flavored teas contribute to their integration into spa treatments, health retreats, and holistic wellness programs, aligning with consumer preferences for natural and therapeutic products.
The segmentation by industry vertical reflects the market's evolution towards multifaceted applications of flavored teas, driven by changing consumer lifestyles and preferences for functional and enjoyable products. Manufacturers and retailers are leveraging these trends to innovate product offerings, forge strategic partnerships, and expand market presence across diverse verticals. As flavored teas continue to gain traction globally, businesses are poised to capitalize on opportunities in both traditional and emerging sectors, positioning themselves for sustained growth and market leadership in the dynamic flavored tea market.
Global Flavoured Tea Market, Segmentation by Geography
In this report, the Global Flavoured Tea Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Flavoured Tea Market Share (%), by Geographical Region, 2024
North America represents a significant market for flavored teas, driven by a growing trend towards health-conscious beverage choices and the popularity of gourmet and specialty tea varieties. Consumer demand for natural ingredients and innovative flavors continues to fuel market growth, with manufacturers and retailers responding with a variety of product offerings tailored to regional tastes and preferences.
Europe, known for its strong tea-drinking traditions and burgeoning interest in premium and artisanal teas, constitutes another key market segment. Flavored teas in this region cater to sophisticated palates seeking authentic flavors and sustainable sourcing practices. The market benefits from a robust retail infrastructure and increasing consumer awareness of the health benefits associated with tea consumption, fostering steady growth across various segments of the flavored tea industry.
Asia Pacific stands as the largest and fastest-growing regional market for flavored teas, driven by historical tea consumption habits in countries like China, India, and Japan. These nations not only produce a significant portion of the world's tea but also exhibit a strong cultural affinity for tea drinking. Flavored teas in Asia Pacific capitalize on local flavors and medicinal herbs, catering to diverse consumer preferences and dietary traditions while expanding into new product innovations and distribution channels.
Middle East and Africa, characterized by a growing middle class and increasing disposable incomes, present emerging opportunities for flavored tea manufacturers. The region's market growth is supported by rising urbanization, changing lifestyles, and a burgeoning cafe culture that favors premium tea experiences. Flavored teas are gaining traction as refreshing alternatives to traditional beverages, appealing to a younger demographic seeking trendy and health-oriented choices.
Latin America, with its rich coffee culture, is also witnessing a rising interest in flavored teas, particularly among health-conscious consumers and those seeking diverse beverage options. The market is characterized by a blend of traditional tea consumption habits and an evolving taste for new flavors and premium tea blends. Manufacturers are capitalizing on these trends by introducing innovative products and expanding distribution networks to reach a broader audience across the region.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Flavoured Tea Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Health consciousness
- Flavor innovation
- Premiumization
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E-commerce growth - The growth of e-commerce has profoundly influenced the global flavored tea market, reshaping consumer behavior and market dynamics. E-commerce platforms have revolutionized how consumers discover, purchase, and engage with flavored teas, offering convenience, variety, and accessibility that traditional retail channels often struggle to match. This shift has empowered consumers to explore a diverse range of products, compare prices, read reviews, and make informed decisions from the comfort of their homes or on mobile devices, significantly expanding market reach and customer engagement.
For flavored tea manufacturers and retailers, e-commerce represents a strategic avenue to capitalize on the growing trend towards online shopping. It enables brands to bypass geographical limitations, reach global audiences, and tailor marketing strategies to specific consumer segments. Moreover, the direct-to-consumer model facilitated by e-commerce allows for greater control over brand image, customer relationships, and product innovation cycles, fostering agility and responsiveness to market demands and trends.
As e-commerce continues to evolve, fueled by advancements in technology, logistics, and payment solutions, flavored tea companies are increasingly investing in digital marketing, user-friendly websites, and seamless purchasing experiences to enhance customer satisfaction and loyalty. This digital transformation not only enhances market penetration but also provides valuable insights into consumer preferences and behaviors, enabling companies to adapt strategies, optimize product offerings, and capitalize on emerging opportunities in the dynamic global flavored tea market.
Restraints:
- High competition
- Fluctuating raw material prices
- Regulatory challenges
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Sustainability concerns - Sustainability concerns have emerged as a critical factor influencing the global flavored tea market, driven by growing consumer awareness and regulatory pressures to mitigate environmental impact throughout the supply chain. As consumers become more conscientious about their purchasing decisions, they increasingly seek products that align with sustainable practices, including tea production methods that promote biodiversity conservation, minimize carbon footprint, and support ethical labor practices.
In response to these concerns, flavored tea manufacturers and suppliers are implementing sustainability initiatives across various stages of production, from sourcing raw materials to packaging and distribution. This includes adopting organic farming practices, promoting fair trade certifications, and implementing water and energy-efficient manufacturing processes. By embracing sustainable practices, companies not only enhance their brand reputation but also appeal to environmentally conscious consumers who prioritize products that contribute positively to ecological stewardship.
Sustainability will continue to shape the flavored tea market, influencing consumer preferences, regulatory landscapes, and industry standards. Companies that proactively integrate sustainability into their business strategies stand to gain a competitive advantage by meeting market expectations, reducing operational risks, and driving innovation towards a more sustainable and resilient flavored tea industry.
Opportunities:
- Functional teas (wellness)
- Sustainable practices
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Product diversification - Product diversification plays a pivotal role in shaping the competitive landscape of the global flavored tea market, offering manufacturers opportunities to cater to evolving consumer preferences and expand market share. Diversifying product offerings allows companies to introduce new flavors, blends, and formulations that appeal to a broader demographic, including health-conscious consumers, flavor enthusiasts, and those seeking unique tea experiences. This strategy not only helps differentiate brands from competitors but also enhances customer loyalty by offering a wider range of choices to meet varying tastes and preferences.
In response to consumer demand for innovative and functional beverages, flavored tea manufacturers are increasingly exploring product diversification beyond traditional offerings. This includes incorporating exotic fruits, herbs, spices, and botanical extracts into tea blends to create distinct flavor profiles and enhance nutritional benefits. Functional teas, such as those promoting relaxation, energy boost, or immune support, are gaining popularity, driving the expansion of flavored tea product lines tailored to specific health and wellness needs.
Continued investment in product diversification will be essential for flavored tea manufacturers seeking sustained growth and relevance in a rapidly evolving marketplace. By anticipating consumer trends, harnessing culinary creativity, and leveraging sustainable sourcing practices, companies can effectively meet diverse consumer needs while staying ahead of competitors and driving long-term success in the flavored tea industry.
Competitive Landscape Analysis
Key players in Global Flavoured Tea Market include:
- Tata Global Beverages
- Unilever
- Tazo Tea Company (owned by Starbucks)
- The Republic of Tea
- Celestial Seasonings (owned by Hain Celestial Group)
- Twining Tea Company
- Bigelow Tea Company
- Dilmah
- Numi Organic Tea
- Harney & Sons Fine Teas
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Flavour
- Market Snapshot, By Distribution Channel
- Market Snapshot, By Industry Vertical
- Market Snapshot, By Region
- Global Flavoured Tea Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Health consciousness
- Flavor innovation
- Premiumization
- E-commerce growth
- Restraints
- High competition
- Fluctuating raw material prices
- Regulatory challenges
- Sustainability concerns
- Opportunities
- Functional teas (wellness)
- Sustainable practices
- Product diversification
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Flavoured Tea Market, By Type, 2021 - 2031 (USD Million)
- Loose Leaf tea
- CTC Tea
- Global Flavoured Tea Market, By Flavour, 2021 - 2031 (USD Million)
- Fruits
- Flower
- Herbs
- Spices
- Global Flavoured Tea Market, By Distribution Channel, 2021 - 2031 (USD Million)
- Online
- Offline
- Global Flavoured Tea Market, By Industry Vertical, 2021 - 2031 (USD Million)
- Food & Beverage
- Others
- Global Flavoured Tea Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Flavoured Tea Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Tata Global Beverages
- Unilever
- Tazo Tea Company (owned by Starbucks)
- The Republic of Tea
- Celestial Seasonings (owned by Hain Celestial Group)
- Twining Tea Company
- Bigelow Tea Company
- Dilmah
- Numi Organic Tea
- Harney & Sons Fine Teas
- Company Profiles
- Analyst Views
- Future Outlook of the Market