Fruit Tea Market 2020 and Forecast 2021-2027

                                          
Report Overview: Fruit Tea Market


The global fruit tea market size was valued at USD 1.3 billion in 2020 and is expected to expand at a CAGR of 8.5% over the forecast period 2021-2027. The growing popularity of fruit-flavored tea products with low caffeine content among health-conscious consumers is expected to remain a key driving factor for the industry. Furthermore, shifting consumer preference toward customized tea gift sets along with the growing importance of a healthy lifestyle is expected to increase the demand for fruit teas across the world.
Millennials and wellness enthusiasts, who have become selective about their dietetic choices, constantly explore new varieties and flavors of fruit tea products, which is expected to have a positive impact on the market. Furthermore, both occasional and daily tea consumers are gradually shifting toward fruit-infused products owing to their numerous health benefits.

Fruit teas are more popular among the young population as they are likely to prefer specialty beverages such as green tea and fruit tea as compared to the old age population. Over the past few years, the buyers have become concerned about the origins of products’ ingredients owing to increasing awareness and consciousness among consumers across the globe. As a result, the manufacturers are focusing on more informative and detailed packaging to attract such customers.
In addition, with growing awareness about the harmful effects of plastic packaging, consumers now prefer more environment-friendly packaging options. Considering this shifting inclination toward eco-friendly packaging, the manufacturers of this industry, including Harney & Sons and R. Twining and Company Limited, have introduced products in recycled packaging options.

Product Insights: Fruit Tea Market

The conventional product segment lead the market with more than 80% of the total fruit tea sales in 2019. Factors such as easy accessibility and affordability of conventional products are playing an critical role in maintaining the segment’s market position. On the other hand, the demand for organic products is increasing remarkably across the world owing to the growing concerns of consumers regarding health. Consumers are considering organic products as a healthier option as they do not contain any chemicals, fertilizers, pesticides, herbicides, or fungicides.
Organic products are generally grown on small-scale biodiverse farms, whereas conventional products are cultivated with mono-cropped and large-scale plantation methods. As a result, organic products are more expensive than conventional ones. However, health-conscious consumers are willing to pay a high price in order to avoid harmful chemicals. In September 2016, Coca-Cola Great Britain introduced a range of organic teas under the brand name Honest. This range includes different fruit flavors such as lemon, orange, mango, pomegranate, and blueberry.

Distribution Channel Insights: Fruit Tea Market

The offline distribution channel held the largest share of the market in 2019 and contributed to over 80% of the total revenue. This segment includes supermarkets, discount stores, department stores, teahouse, grocery stores, and health food stores where the consumer can taste the fruit tea flavors and make an informed purchase. Among these offline stores, supermarkets and discount stores account for the majority of the market sale. In addition, the exclusive availability of teas in these stores also explains their dominant position. Over the past few years, specialist retailers or teahouses are gaining popularity, especially among millennials, who seek authentic teas with unique flavors.

Online channel is anticipated to expand at the fastest growth rate, registering a CAGR of 09.5% from 2021 to 2027. Companies such as Glenburn Tea Direct and Teabox are using online platforms to supply fruit tea products. These firms have established a business model, where they ship unbranded products directly to the international consumers sourced from the manufacturers. Implementation of this business model results in the reduction of transit time and preserving the product’s freshness.

Regional Insights: Fruit Tea Market

Asia Pacific lead the global fruit tea market in 2019 with more than 35% share of the total revenue. China is the largest producer and consumer of fruit tea in the world. Over the past few years, consumers in the region have been exploring fruit and floral-infused beverages due to which the demand for the product has witnessed significant growth in the region.

North America is expected to expand at the fastest CAGR of 09.4% from 2020 to 2027 owing to shifting preference of consumers toward naturally healthy fruit-flavored beverages from calorific and sweet drinks. According to TeaUSA, premium specialty tea has grown by 4 to 6% in the U.S. in 2017. Similarly, as per the report published by the Government of Canada in 2019, the fruit or herbal tea has witnessed a CAGR of more than 40% from 2013 to 2017. Furthermore, the growing popularity of ready to drink and iced fruit-infused beverages is expected to increase the market growth in the region.
Fruit Tea Market Share Insights
Key manufacturers of this industry include

 	
Harney & Sons Fine Teas
 	
R. Twining and Company Limited
 	
Tata Consumer Products
 	
Hain Celestial
 	
Unilever
 	
The Bigelow Tea Company
 	
Dilmah Ceylon Tea Company PLC
 	
TIESTA TEA
 	
Bettys & Taylors of Harrogate Ltd.

Companies are expanding their product line through product innovation and introduction. For instance, in 2018, Harney & Sons launched four new flavors of loose-leaf tea- mulled plum cider, berry young, heirloom barlett pear, and venetian tiramisu, whereas R. Twining and Company introduced its Superblends range, with natural flavors and quality ingredients blended in green tea.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the global fruit tea market report based on product, distribution channel, and region.

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Conventional
 	
Organic

Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

 	
Offline
 	
Online