Market Forecast

The Global Fruit Tea Market is expected to cross USD 662.7 Million by 2025 at a CAGR of 5.5% during the forecast period of 2019 to 2025. Fruit tea is prepared by infusing various fruits or its extracts along with herbs, spices, and earthy teas. The health benefits associated with the consumption of fruit tea are driving the growth of the market. Additionally, the increasing demand for functional and flavored tea for weight loss and beauty and skin treatments is significantly contributing to the growth of the market. The demand for fruit tea market in emerging countries such as India and China is high owing to the growing popularity, expansion of specialty and functional tea retailers, and launch of innovative products by market players. However, the increasing consumption of other beverages such as coffee may affect the fruit tea market growth. The launch of innovative blends of fruit teas with health benefits offers players in the global tea market lucrative growth opportunities.

Market USP

Increasing demand for functional beverages

Growth Opportunities in the Market

• Launch of innovative tea blends: Increasing health consciousness and a demand for natural energy sources are driving the growth of the segment. In addition, consumers are increasingly looking for high-value specialty teas such as functional or condition-specific tea. They want a unique and authentic experience and convenience in one product thus opening new avenues for fruit tea manufacturers in the future.

• Growing demand for organic fruit tea: Increasing health awareness among consumers across the globe is resulting in the rising demand for organic products. Moreover, governments and allied organizations are promoting organic farming practices for sustainable growth, leading to an opportunistic market for organic fruit tea manufacturers.

• Dominance of tea bags in the market: By form, the tea bags segment dominated the global fruit tea industry in 2018 and this trend is expected to continue during the forecast period. The convenience and attractive packaging formats such as string and tag and pyramid are driving the growth of the segment.

• Growth of e-commerce platforms: While store-based distribution channels dominated the fruit tea market in 2018, the expansion of e-commerce platforms is expected to drive the growth of the non-store-based distribution channel segment at the higher CAGR during the forecast period. This growth can be attributed to the ease of home shopping and availability of choices along with attractive offers.

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)

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