The global instant tea products market is projected to reach a value of USD 10.2 billion by 2030, expanding at a CAGR of 8.2% from 2023 to 2030. The growing popularity of convenience food and beverage products among consumers due to their busy lifestyles is a major factor driving the market. Furthermore, the growing popularity of functional food items among health-conscious consumers is expected to propel the growth of the instant tea products market in the coming years.

The demand for instant tea products is increasing due to the growing awareness of health benefits associated with tea consumption. Tea has long been renowned for its potential health benefits, including improved digestion, lower cholesterol levels, protection against cancer, and improved cardiovascular health. As such, consumers are willing to pay more for premium tea products with added health benefits, such as green tea and herbal teas.

Additionally, the rising trend of premiumization and the growing trend of organic and natural products are expected to contribute to the growth of the market. Many consumers are willing to pay more for premium instant tea products as they are perceived as healthier, natural, and more convenient. Furthermore, manufacturers are introducing new flavors and products to meet the changing consumer preferences. For instance, in August 2021, Nestlé launched a new range of premium instant tea called Nestlé NESCAFÉ Gold Dark Roast, which is made from premium Arabica beans.

The increasing number of collaborations and strategic partnerships among the key players is further propelling the growth of the market. For instance, in April 2021, Unilever and Nestlé signed a global strategic agreement to combine their tea businesses, which includes the Lipton, Brooke Bond, and PG Tips brands. This agreement is expected to expand the reach of these brands, as well as provide better product offerings to their customers.

Furthermore, the growing penetration of the internet and the increasing number of e-commerce platforms are driving the growth of the market. Online sales channels are becoming an important platform for the sale of these products. Moreover, the presence of a wide range of products on e-commerce sites is expected to further boost the market growth.

The instant tea segment led the market and accounted for a share of around 43.5% in 2022. The availability of a wide range of flavors, convenient packaging, and the growing demand for ready-to-drink beverages are some of the key factors driving the growth of the segment. Moreover, the introduction of new flavors and blends by leading manufacturers is further propelling the demand for instant tea products. According to a survey conducted by the Food and Agriculture Organization (FAO) in 2019, the majority of people prefer to consume tea in the form of instant tea.

The ready-to-drink (RTD) tea segment is expected to expand at the fastest CAGR of 9.8% over the forecast period. The growing preference for convenience, rising health consciousness among consumers, and the availability of a wide array of RTD tea products are some of the factors driving the growth of this segment. Furthermore, the introduction of innovative flavors and blends by leading manufacturers is further expected to bolster the demand for RTD tea products over the forecast period.

The supermarkets and hypermarkets segment held the major share of over 36.2% in 2022. Supermarkets and hypermarkets are the key distribution outlets for various food products, including instant tea products. Consumers generally prefer to buy instant tea products from supermarkets and hypermarkets as it offers them a vast selection of products, including organic and flavored products, at competitive prices. Moreover, supermarkets and hypermarkets provide convenience to shoppers and assist them in making quick purchasing decisions.

The online segment is likely to expand at a CAGR of 10.2% over the forecast period. The increasing proliferation of smartphones, along with the rising number of e-commerce websites, is motivating consumers to purchase food products from online stores. For instance, in April 2021, Unilever launched its flagship online store, which offers over 250 Unilever Food Solutions products, including instant tea products. The online store helps Unilever to strengthen its foothold in the online market and increase its brand visibility among consumers.

The powdered instant tea segment holds the largest revenue share of 74.4% in 2022. Powdered instant tea is the most preferred form of instant tea, as it is easier to store and use. It is available in various packaging sizes, from single-serve sachets to large, multi-serving cans. In addition, the convenience of the product and its affordability are the main factors driving its high demand. Furthermore, to increase the shelf life of powdered instant tea, various manufacturers are introducing preservatives such as ascorbic acid and sodium benzoate.

The liquid instant tea segment is expected to register the highest CAGR of 10.6% during the forecast period. The rising trend of health and wellness coupled with the large-scale production of liquid instant tea is driving the growth of the segment. Liquid instant tea is easy to use and store, and is available in a variety of flavors. It is a healthy alternative to traditional tea, and is gaining high popularity among consumers. Furthermore, several manufacturers are introducing innovative flavors, such as green tea and oolong tea, to increase their market share.

Asia Pacific is expected to witness the highest growth in the coming years. The growing demand for convenience beverages and increasing health consciousness among consumers are some of the key factors driving the market in this region. Moreover, the presence of numerous manufacturers, such as Nestle and Unilever, is expected to further drive the market in the region. For instance, in June 2021, Nestle launched its Nescafe Gold Instant Tea in India.

Europe is expected to witness significant growth over the forecast period. This can be attributed to the rising demand for healthy beverages, increasing awareness of new flavors, and rising disposable incomes in the region. For instance, in June 2021, Tetley launched its new range of instant teas in the UK, which includes classic and exotic flavors, such as Earl Grey, Green Tea & Jasmine, and Masala Chai.

In this part of the instant 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 instant tea products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for an instant tea products business comes from product sales, online sales, and wholesale orders. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and promotional activities.

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

Some of the key companies operating in the instant 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, Nestle India launched the Nestea instant tea range in India with a range of flavors.

– In August 2022, Lipton India launched the Lipton Instant Tea range with a range of flavors.

– In October 2022, Tetley India launched the Tetley Instant Tea range with a range of flavors.

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

– Nestle India
– Lipton India
– Tetley India
– Unilever India
– Yogi Tea Company
– The Republic of Tea
– Twinings
– PG Tips
– Tazo Tea
– Celestial Seasonings

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 instant tea products market based on product, distribution channel, type, and region:

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

– Traditional Instant Tea
– Flavored Instant Tea
– Herbal Instant Tea

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

– Supermarkets & Hypermarkets
– Online
– Others

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

– Hot
– Cold

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 in the Instant Tea Products market?
[A]: The key drivers in the Instant Tea Products market include the increasing demand for convenience and health foods, the rising popularity of specialty tea products, the growing demand for organic and natural products, and the increasing number of health-conscious consumers. Additionally, the rising adoption of tea as a hot beverage and the growing demand for instant tea products in developing countries are expected to drive the market growth.

[Q]: Who are some of the leading players in the Instant Tea Products market?
[A]: Some of the leading players in the Instant Tea Products market include Nestlé S.A., Unilever, Associated British Foods Plc, Ito En, Ltd., Tata Global Beverages, and TATA Global Beverages.

[Q]: What is the potential of product innovation in the Instant Tea Products market?
[A]: Product innovation is expected to be one of the most significant drivers of the Instant Tea Products market. Manufacturers are introducing new products with unique flavors, organic ingredients, and functional benefits to meet the changing consumer preferences.

[Q]: What are the key trends in the Instant Tea Products market?
[A]: Some of the key trends in the Instant Tea Products market include the increasing demand for organic and natural products, the increasing availability of flavored instant tea products, and the rising demand for ready-to-drink tea products.

[Q]: What are the major regions contributing to the growth of the Instant Tea Products market?
[A]: The major regions contributing to the growth of the Instant Tea Products market include North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to be the largest contributor to the market growth due to the increasing demand for convenience foods and health-conscious consumers.