Fruit Tea Market | Global Overview and Forecast to 2025

Posted February 8, 2021 by taursuraj56

Fruit Tea Industry Global Information by Type (Lemon, Raspberry, Cranberry, Apple, Peach, Blends and others), Category (Conventional and Organic), Form
Market Insight

Fruit Tea Market 2020 can surpass the valuation of USD 662.7 Million by 2025, says MRFR (Market Research Future). Fruit Tea Industry size is also presumed to expand at a rate of 5.5% over the forecast period (2019 to 2025). We will provide COVID-19 impact analysis with the report, along with all the extensive key developments in the market post the coronavirus disease outbreak.

Top Boosters and Challenges

Millennials along with wellness enthusiasts that are quite selective regarding their dietary choices are constantly trying out new flavors and varieties of fruit teas, which could be favorable for the global Fruit Tea Industry. Also, daily as well as occasional tea consumers are increasingly opting for fruit-infused products, given their multiple health benefits. Fruit teas have become quite popular among the youth, with the rising preference for specialty beverages like fruit tea and green tea. In the past couple of years, consumers have become more focused on the origin of the ingredients in the tea, on account of rising awareness as well as health consciousness across the world. In view of this, manufacturers are striving to offer more detailed and informative packaging to draw in such customers.

By virtue of mounting awareness levels about plastic packaging’s toxic effects, consumers are now more inclined towards eco-friendly options. Considering this inclination towards environmental-friendly packaging, manufacturers such as R. Twining and Company Limited and Harney & Sons are introducing products that come in recycled packaging. Another trend picking up momentum among consumers includes fruit-flavored teas that have reduced caffeine content, which is giving a substantial boost to the global market. Speaking of trends, the fruit tea industry is also witnessing a growth in the consumers’ demand for customized tea gift sets combined with the increasing significance of a healthy lifestyle across countries. The latter can be attributed to the strong influence of the social media and constant advertisements conducted by leading brands leveraging the popularity of celebrities worldwide.

Vendors like TEABOX and Glenburn Tea Direct use online platforms for selling their fruit tea products. These players have an extensive business model, shipping unbranded items directly to global consumers sourced from manufacturers. These kinds of business models help bring down the overall transit time and preserve the product’s quality and freshness. Companies are also focused on bolstering their product offerings via innovations and new launches. For instance, in November 2020, The Stevens Point Brewery launched Runner Hard Iced Tea, primarily infused with flavors including peach and Tea Runner Original. The new fruit tea is unsweetened and has low calories that cater to health-conscious consumers, while also boasting of vibrant packaging. The company claims that the tea has natural ingredients and is gluten free.

Leading Competitors

Vorwerk TEMIAL GmbH (Germany), McLeod Russel India Ltd. (India), The London Tea Company (UK), Twining and Co. Ltd. (UK), DILMAH Ceylon Tea Company plc (Sri Lanka), Unilever plc (TAZO) (UK), Harney & Sons Fine Teas (US), Martin Bauer Group (Germany), Typhoo Tea Ltd. (UK), Bird & Blend Tea Co. (UK), CARSLAKE Tea Company (UK), The Hain Celestial Group Inc. (Celestial Seasonings)(US), True Tea Co. (UK), The Stash Tea Co. (US), Tata Global Beverages (Tetley) (India), are some of the top Fruit Tea Industry firms studied in the report.

Market Segmentation

Type, category, form, and distribution channel are the key Fruit Tea Industry segments analyzed in the MRFR study.

The types of Fruit Tea Industry available in Fruit Tea Market are peach, raspberry, lemon, apple, cranberry, blends and more. Blends are poised to be the fastest advancing segment during the evaluation period, thanks to the surge in health consciousness along with the escalating preference for natural energy sources.

Category-wise, the key segments are organic and conventional. Conventional type of fruit tea, in 2020, secured the leading position since they are more affordable and are easily accessible.

Fruit tea comes in a few forms, namely loose leaf, tea bags and others. Tea bags can procure the highest growth rate owing to their convenience both in out-of-home and household settings. Additionally, the introduction of several flavor variants along with appealing packaging styles also captures the consumers’ interest.

Distribution channels considered in the MRFR market report include store-based as well as non-store-based. Non-store-based channels are on track to achieve the higher CAGR over the coming period, since more and more consumers now prefer to purchase fruit tea products online via e-commerce portals.

Regional Insight

Asia Pacific or APAC, Europe, North America, and RoW or Rest of the World are the top regional markets for Fruit Tea Industry.

Since 2020, North America has remained the market leader, accounting as the biggest consumer of fruit tea. Burgeoning health-conscious consumers’ populace is prompting a rise in the demand for fruit tea, while the youth’s soaring inclination towards functional beverages also fuel fruit tea’s sales. Emerging trend of natural fruit-flavored beverages and declining preference for sweet and calorific drinks also catapult the market’s demand in the region. Mounting popularity of iced and ready to drink fruit-infused beverages can be another growth rendering trend in the North American market.

APAC is one of the fastest emerging markets for fruit tea, with China owning the biggest portion of the overall revenue. Over the years, consumers have become more willing to explore novel products like floral and fruit-infused drinks, pushing the regional market’s growth trajectory in the upward direction. The otherwise significant prevalence of traditional tea in APAC is gradually being replaced by the emerging premiumization trend. Besides, the surge in health awareness along with the rising western influence in India and other countries is encouraging the younger population to go for fruit teas.

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NOTE: Our Team of Researchers are Studying Covid19 and its Impact on Various Industry Verticals and wherever required we will be considering Covid19 Footprints for Better Analysis of Market and Industries. Cordially get in Touch for More Details.
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Last Updated February 8, 2021