Tea is the most consumed hot beverage in the world, with approximately 1,500 types of tea to choose from. Black tea holds the major market share in Europe with herbal tea not far behind. Due to the sugar taxation, consumers are looking at healthier options. Health conscious consumers including Gen Y and early Gen Z are turning to functional teas looking for nutrition rich drinks with medicinal advantages. Europe has a major growth opportunity in the flavoured tea market, with teas such as chamomile, hibiscus and peppermint leading the way. Younger consumers encourage growth from this category seeking new and unusual flavour combinations.
The green tea segment is expected to witness rapid growth. This trend is attributable to increased demand for green tea from consumers that are fitness-conscious, especially the urban consumers. Antioxidant and weight-loss properties of green tea are resulting in the surge in demand for green tea worldwide. EGCG (epigallocatechin gallate) is the popular polyphenol found in green tea as well as matcha, which is known for lowering cancer rates, promoting brain health, anti-inflammatory effects, liver and skin health. It is noted that matcha has 137 times the amount of antioxidants than found in green tea.
RTD tea’s popularity continues to rise with forecasted growth of 4.1% between 2016-2021. This is due to the need for convenience and concerns of sugar levels in other beverages. Consumers are also looking for functional teas. RTD teas are becoming more popular in healthy young consumers as an alternative to soda. Kombucha is predicted to accelerate with a CAGR of 25.25%. It is proving popular in West Europe and is expected to rise in the French Market powered by new innovations, flavours and consumer demand for natural soft drink alternatives.
Tea is reinventing itself with younger consumers. Here are some of the categories we are seeing more of:
Bubble tea made with tapioca balls - The market is set for a CAGR of 7.3% during 2017-2023, according to Market Research Future.
Cold brew teas - Sales show growth rising 450 % in two years according to Mintel. They are now being served through cafes in the UK.
Sparkling RTD teas – These are on the increase, with interesting flavour combinations such as ginger and basil becoming more popular.
Iced tea - There is 110% growth in iced tea craft launches globally from 2015-2016.
- Craft teas - 241% growth in craft tea launches globally from 2016-2017.
There is also plenty of opportunity for the category of beverages with herbs and spices to reach maturity, whether it’s spicing up hot teas with black pepper, cinnamon, nutmeg or adding floral tones such as lavender, rose and orange blossom to sparkling ready to drink teas.
The traceability of tea has also become an important factor when purchasing. Consumers are now driven more by health, social and environmental concerns regarding tea production.
How we can help?
Here at Treatt we have a team of Tea Sommeliers who bring unrivalled expertise to the industry. We provide a wide range of tea products including: a wide range of Black Teas, Oolong Tea, Darjeeling, Rooibos, Green Tea and TrueTaste® Tea Concentrates. Whatever your project, our innovative tea offerings serve the different tastes around the world. Please email
firstname.lastname@example.org to find out more how we can support you.