Thriving Tea Segment Means Opportunities for Beverage Developers

 In Blog, Food & Beverage Trends

The demand for health and wellness has contributed to the tremendous proliferation we’re witnessing within the tea segment.

  • The global RTD tea market is expected to hit $116 billion by 2024.
  • Growth is expected in the $20 billion foodservice tea market
  • The matcha tea market is expected to grow at a CAGR of 5.5% through 2022
  • Kombucha sales were up 41% in 2016, to reach $534 million.

The health benefits of tea vary depending on the type of tea, but the list is vast. Benefits include being rich in flavonoids, an antioxidant, which are good for the heart and are thought to reduce the risk of cancer. There is a lot of research that suggests tea can protect everything from your bones to your immune system.

Here are a few tea trends we wanted to make sure you knew about:

  1. RTD Kombucha. Expect more botanical inspired flavors like humm kombucha’s blueberry mint, Kevita’s Dragonfruit Lemongrass Master Brew Kombucha, Booch’s Chaga Chai, and Kombucha Wonder Drink’s Essence of Juniper Berry, Spearmint & Lemon Myrtle.

  2. Coffee/Tea combos. There are consumers who have an appreciation for both, so expect to see more of these hybrids hit the shelves. Current players include Stumptown Coffee Roasters & Slings Coffee Co’s Cold Brew Coffee & Cascara Tea, and Blue Island Coffee Kombucha.

  3. Matcha. The interest is likely driven by consumer acceptance of global ingredients and a focus on health – especially cognitive health. Matcha is known to be rich in the amino acid, L-Theanine, which is associated with increased learning and memory. Innovations to take note of: Matchaah! Shots, B-Sweet Coffee Co Nitro Matcha Green Tea, and MatchaBar NYC.

  4. Tea cocktails & mixers. The fact that consumers want value added to their beverages also applies to alcoholic beverages. Tea infused cocktails and mixers may be perceived as better for you, which is currently a strategic position. Kombrewcha leaves the alcohol in their fermented tea and Owl’s Brew offers several tea-based cocktail mixers. (Tea cocktails on current bar menus: Platza Service with black tea at Sable, Chicago; Too Long Oolong at Roku, Los Angeles; The Secret Garden at Wink and Nod, Boston)

  5. More brands are calling out the brew method to position their products as more premium. Fogdog Cold Brew Tea, Mak’s Ginbao Longbrew,  Pure Leaf Real Brewed.

Honorable mentions:

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