August 13, 2024 – A blend of traditions and modern values, tea is a staple beverage consumed across the globe. Global lifestyle changes continue to influence dietary preferences, with consumers looking for healthier options in tea. Innova’s 360 research into tea trends aims to identify the important drivers of tea consumption among consumers. Our findings highlight notable drivers in innovations and new product launches, with brands unlocking new opportunities for flavors and health-related claims.
Tea Product Launch and Sales Trends
Tea is the second leading subcategory within the hot drinks category, experiencing a 2% rise in launches over the past five years. This growth is driven by traditional claims, including handcrafted products, hand picked ingredients, and seasonal offerings like second harvest premium grade matcha, winter edition licorice tea, autumn edition pumpkin spice tea, and spring edition sakura themed tea.
Tea trends research reveals that there has also been a growth in tea product sales, averaging 8% over the past five years. Vegan and vegetarian choices, free-from ranges, and sugar-related claims align with varied consumer interests, further boosting the market.
Leading Regions in the Tea Market
Asia Pacific is the top region for tea launches and sales over the past four years, followed by Europe, the Middle East, and Africa. New product development caters to specific groups, such as children aged 5-12 with packaging featuring animated characters like Disney’s Mickey Mouse and Frozen, promoting overall health. Products for pregnant and breastfeeding women, featuring nutrient-dense ingredients and formulations with fresh herbs and fruits for relaxation, also sustain the market.
Over the past five years, Asia Pacific has dominated the global tea sales with an average of 65%. Tea trends research shows that different types of lemon-flavored teas are driving new product development. The region shows high innovation and value growth, while Europe exhibits high innovation but lower value growth. Innovative products like matcha green tea latte, milk tea latte, lotus leaf white tea, and oolong tea with a variety of flavors have improved Asia Pacific’s launches.
Top Companies and Brands in the Tea Market
Twining & Company is the leading company with 3% tea launches over the past year. Ayurvedic-based teas such as lemon, chamomile, tulsi, orange blossom herbal tea, rooibos, and lemongrass, add significant value to the company’s offerings. Other notable companies include Unilever, Teekanne, Lidl, Ahmad Tea, Dilmah, and Yogi Tea, all contributing to the dynamic and competitive global tea market.
Tea Claims and Positionings Trends
The top 5 positionings in the global tea market are organic, natural, indulgent and premium, traditional, and no additives or preservatives.
Claim preferences vary by region, reflecting diverse consumer demands. In Europe, there is a growing interest in seasonal claims, as well as gluten free options. Asia Pacific is seeking claims like energy or alertness, digestive health, and heart health. North America is exploring plant based, GMO free, sugar free claims. In Latin America, consumers are inclined towards gluten free, energy or alertness, and weight management claims. Meanwhile, in the Middle East and Africa, digestive and gut health, diabetic, and vegan claims are on the rise. These diverse preferences underscore the global demand for varied health benefits in the tea market.
Tea Flavor Trends
Ginger, lemon, chamomile, mint, and orange are the top 5 flavors. The flavor landscape of tea trends is evolving, with diverse regional preferences. In Asia Pacific, goji, ginseng, and osmanthus are gaining popularity. In Europe, red apple, passion flower, and honey are on the rise. This trend indicates that brands are actively launching different flavor profiles to cater to regional preferences and consumer demands, driving innovation and variety in the tea market.
What’s Next in the Global Tea Market?
Tea trends research displays higher sales than product launches across the globe. Asia Pacific is leading in global tea product launches and sales, with brands developing products like matcha green tea latte, milk tea latte, lotus leaf white tea, and oolong tea to gain consumers’ attention. Consumers are increasingly focused on the health benefits of tea products. Brands can capitalize on this trend by innovating products that support digestive, gut, and heart health.
Consumer preferences for natural ingredients, health benefits, and unique flavors are driving the global tea market toward a future of growth and diversification. Brands can develop unique flavors and health-oriented claims that demonstrate a reorientation toward more conscious consumption habits. Thus, future product innovations are likely to provide tea drinkers with a variety of options, enriching their experience of rich and flavorful teas.
This article is based on our report, “Overview of Tea – Global.” If you are interested in reading this report, feel free to request a demo.
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