The global fruit tea products market was valued at USD 8.7 billion in 2022 and is projected to expand at a CAGR of 10.4% from 2023 to 2030. The rising health consciousness among consumers has led to an increase in the demand for health beverages such as fruit tea. The growing popularity of natural beverages, along with the rising demand for fruit teas, is expected to drive the market growth during the forecast period. The growing trend of home-brewed tea and the increasing number of mergers and acquisitions among market participants are also expected to fuel the growth of the market.

Furthermore, the launch of new flavors is expected to boost the market growth during the forecast period. For instance, in February 2021, Twinings launched a new range of fruit tea, including Berry Hibiscus, Elderflower with Apple and Orange, and Peach and Apricot. Furthermore, the rising demand for iced fruit tea is influencing the growth of the market. For instance, in June 2021, Lipton launched a new range of iced fruit tea, which will be available in two flavors, Mango and Berry. The new product is expected to strengthen Lipton’s presence in the iced tea market.

The increasing number of convenience stores and supermarkets is expected to boost the market growth during the forecast period. For instance, in March 2021, Dunkin’ Donuts launched a range of ready-to-drink fruit teas, which will be sold in convenience stores and supermarkets. The product launch is expected to boost the company’s presence in the market. Furthermore, the rising millennial population is increasing the demand for products that are healthy, natural, and convenient. This is expected to drive the demand for fruit tea products during the forecast period.

The increasing trend of product innovation is expected to fuel the market growth during the forecast period. For instance, in June 2021, Starbucks launched a new range of cold fruit teas, which will be available in four flavors, including blueberry and mint, blackberry and lemon, raspberry and lime, and peach and honey. The product launch is expected to strengthen the company’s presence in the market. Furthermore, the increasing penetration of e-commerce is expected to drive the market growth during the forecast period. The availability of a wide variety of these products online is accelerating the demand. The e-commerce platform further provides various offers on these products, which is boosting online sales.

The herbal tea segment accounted for the largest market share in 2020, and is projected to continue its dominance during the forecast period. This is mainly due to the rising demand for natural and organic beverages, and the increasing number of health-conscious consumers. According to a survey conducted by the University of Salford, in April 2019, around 77% of consumers prefer consuming beverages with natural ingredients. Furthermore, the growing awareness of the health benefits of consuming herbal tea is also expected to drive the demand for herbal tea products over the forecast period.

The flavored tea segment is projected to expand at the fastest CAGR of 8.5% over the forecast period. This is primarily due to the increasing demand for flavored tea products among consumers, due to the availability of various flavors such as ginger, lemon, orange, and others. Additionally, the rising trend of bubble tea and the increasing number of bubble tea shops in developed and developing countries is further expected to drive the market for flavored tea.

The supermarkets and hypermarkets segment accounted for the largest market share in 2022, owing to the presence of a vast product portfolio in these stores. In addition, rising consumer inclination to visit supermarkets & hypermarkets and major presence of leading players in these stores are further driving the segment growth. For instance, in November 2020, Yogiberry, a brand of blended fruit tea and sparkling tea, launched its new product range in the Indian market through Hypercity, a major supermarket & hypermarket chain.

The online segment is anticipated to register the fastest growth rate during the forecast period. The internet has become an important tool for purchasing fruit tea products, with the majority of the population preferring online shopping due to its convenience and easy accessibility. In addition, manufacturers are also launching their products on online platforms to reach out to a larger customer base. For instance, in October 2020, Raspberry Lemonade Fruit Tea was launched by Ahmad Tea, a British tea company, on its online platform.

The packaged segment is expected to account for the largest revenue share of 65.2% in the year 2022. The convenience of use and longer shelf life of packaged fruit tea products are the major factors driving the market growth. The higher pricing of these products compared to loose fruit tea is also boosting the revenue generation of this segment. Furthermore, the increasing popularity of ready-to-drink (RTD) beverages among consumers due to their convenience and taste is driving the segment growth.

The loose segment is expected to expand at the highest CAGR of 10.3% over the forecast period. The availability of loose fruit tea in various flavors and varieties is creating a huge demand among consumers. Furthermore, the availability of organic and herbal options in this segment is driving the growth of this market. Moreover, with the growing number of health-conscious consumers, the need for loose fruit tea is expected to increase in the coming years.

Europe is expected to account for the largest revenue share in the global fruit tea products market. This growth can be attributed to the rising demand for healthy beverages in the region. The growing trend of ‘tea-toxing’ (detoxification through tea consumption) is expected to drive the market in the region. For instance, in June 2021, Twinings, a UK-based tea company, launched a range of fruit tea products.

Asia Pacific is expected to witness the fastest growth in the coming years. This can be attributed to the growing demand for fruit tea products in the region. The growing popularity of bubble tea in Asian countries is expected to drive the market in the region. For instance, in April 2021, Kirin Beverage Corporation launched a range of fruit tea products in Japan.

In this part of the fruit tea products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your fruit tea products. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a fruit tea products business comes from the sale of individual tea products, subscriptions, wholesale orders, and bulk orders. Other possible sources of profit include fundraising, the sale of merchandise, and leasing the place for parties and corporate events.

Projecting Expenses

In this section, all the regular expenses related to keeping the fruit tea products business running will be described. The list of operating expenses includes ingredients and packaging, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the Fruit Tea market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Twinings launched a range of fruit teas with real fruit pieces.

– In August 2022, The Republic of Tea launched the Superfruit Tea Collection.

– In October 2022, Lipton launched a range of fruit tea in a new packaging.

Some of the prominent players in the fruit tea market include:

– Twinings
– Lipton
– Tata Global Beverages
– The Republic of Tea
– Tetley
– Mighty Leaf Tea
– TAZO
– Celestial Seasonings
– Bigelow Tea
– Numi Organic Tea

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global fruit tea products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Flavored Fruit Teas
– Herbal Fruit Teas
– Iced Fruit Teas
– Organic Fruit Teas
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Key Drivers of the Fruit Tea Products Market?
[A]: The major drivers of the fruit tea products market are increasing consumer awareness about health benefits associated with fruit tea and rising demand for functional beverages. In addition, the rise in the number of working population, especially in developing countries such as India and China, is expected to drive the market growth. Additionally, advancements in technology and the introduction of innovative packaging are further expected to propel the market growth.

[Q]: What are the Key Trends in the Fruit Tea Products Market?
[A]: The major trends in the fruit tea products market include the introduction of natural ingredients, increasing demand for organic varieties, and increasing availability in different flavors. The increasing demand for natural and organic ingredients has resulted in an influx of new and innovative product launches. Furthermore, the growing demand for different flavors and aromas has led to an increase in the variety of fruit tea products.

[Q]: Who are the Leading Players in the Fruit Tea Products Market?
[A]: The leading players in the fruit tea products market include Unilever, Tata Global Beverages, Nestle, Unibev, and Harney & Sons. These companies are focusing on product innovation and advancements in order to gain a competitive edge in the market.

[Q]: What are the Opportunities for New Players in the Fruit Tea Products Market?
[A]: The increasing demand for natural and organic products, along with the increasing demand for different flavors, provides ample opportunities for new players in the fruit tea products market. In addition, the increasing demand from health-conscious consumers provides an opportunity for new players to gain a foothold in the market.

[Q]: What is the Regional Outlook of the Fruit Tea Products Market?
[A]: The fruit tea products market is highly fragmented in regions such as Europe, North America, Asia Pacific, and the Middle East & Africa. The Asia Pacific region is expected to hold a major share in the market owing to the rising demand for health and wellness products. The high availability of natural ingredients in the region is expected to further drive the regional market.