Global Fruit and Herbal Tea Market– Industry Trends and Forecast to 2029

Fruit and Herbal Tea Market Analysis and Size

Tea is a popular beverage made by boiling the leaves and buds of the camellia sinensis plant. Tea is a refreshing drink that aids in stress reduction and is widely consumed around the world. Fruit and herbal tea contains a lot of antioxidants and flavonoids. They are thought to have anti-cancer and anti-aging properties, making them a healthier option. People's changing lifestyles are gradually increasing the importance of herbal tea, and a sizable portion of the population now prefers herbal tea to caffeinated forms of tea. This is an important aspect for market growth and is expected to ensure a consistent customer base for the market in the coming years.

Data Bridge Market Research analyses that the fruit and herbal tea market which was valued at USD 3.63 billion in 2021 is expected to reach the value of USD 6.67 billion by 2029, at a CAGR of 7.90% during the forecast period of 2022 to 2029. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, patent analysis and consumer behaviour.

Market Definition

Herbal tea is a beverage that contains no synthetic materials such as chemical fertilisers, herbicides, pesticides, or fungicides. It relies on natural processing methods while fruit teas are beverages that are made by fermenting or decocting herbs, spices, fruits, or other plant material in hot water. Fruit tea contains a high level of antioxidants, and it is similar to any fruit-containing food.

Fruit and Herbal Tea Market Scope and Segmentation

Fruit and Herbal tea Market Dynamics

Drivers:

• Shifting consumers preference for chemical free consumables.

One of the most important factors driving market growth is the growing consumer preference for safe, chemical-free, and healthy consumables. Furthermore, fruit and herbal tea farming is based on ecological processes, biodiversity, and cycles tailored to local conditions, keeping the soil rich and fertile and promoting plant biodiversity. This, combined with rising initiatives undertaken by governing bodies in various countries to encourage the adoption of sustainable agricultural practises through various incentives and subsidies, contributes to market growth.

• Shift in the lifestyle as well as growing demand from the personal care industry

Some of the factors expected to fuel global market growth during the forecast period include an increasing working population, rising demand for ready-to-use products, and expanding retail markets. The increasing use of tea as a natural ingredient in the personal care industry is expected to drive growth in the global tea capsule market. Furthermore, rising disposable income levels, rising food and beverage expenditure, and rising consumer awareness of healthy lifestyles are some of the other factors expected to drive fruit and herbal tea market growth.

Opportunity

Several manufacturers are developing tea bags with compostable and biodegradable outer packaging to reduce their carbon footprint. They are also introducing ready-to-drink variants in order to broaden their product portfolio and boost overall sales. Furthermore, they are investing in innovative marketing strategies and celebrity endorsements, which are expected to boost market growth in the coming years.

Restraints

The major restraints of this market are an increase in the trend of coffee consumption and fluctuating raw material prices caused by unpredictable climatic conditions. On the contrary, the market is expected to grow due to increased demand for herbal tea and new flavours and varieties of Fruit and Herbal tea. Furthermore, the industry's key players have adopted a marginal pricing strategy, which is expected to stifle overall market growth. The market's growth is also expected to be hampered by a lack of awareness about Fruit and Herbal teas.

This fruit and herbal tea market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the fruit and herbal tea market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Fruit and Herbal tea Market

COVID 19 contributed to an increase in the fruit and herbal tea market. People preferred to use the non-store-based segment for getting their products at home because they were not leaving their homes because of the governments' precautionary instructions for COVID; the store-based segment was not widely preferred at the time. COVID has still resulted in the market and its key players doing well during the lockdown months. Furthermore, once the situation was stabilised, the store-based distribution channel segment resumed its normal sales rate. However, the impact on the manufacturing unit was significant in the early months of 2020. Because of the high demand, the supply rate could not keep up.

Recent Development

• March of 2022 Irish Distillers recently released a limited-edition lineup of single pot still whiskeys aged in unusual Japanese casks. The series includes three single pot-still whiskeys, including a 33-Year-Old aged three years in Japanese Mizunara oak casks and two other expressions aged for more than a year in Japanese Chestnut and Japanese Cedarwood casks. The cedar logs are sourced from the Kyushu region of southern Japan, where the warm, damp climate produces a fragrant and porous wood that contributes to the whiskey's depth of flavour of herbal tea, clove spice, caraway seeds, and a fruit finish.
• March of 2022 Starbucks has launched a limited-edition series of six iced tea drinks in Singapore. Starbucks locations in the city-state offer a selection of six iced tea drinks made from various tea varieties, including black, oolong, and hibiscus. Starbucks began selling beverages made with its tea brand, Teavana, in over 6,2000 locations across Asia in 2016. According to Nikkei Asia, the concoctions are "more complicated" than the herbal and green tea-based cocktails popular in the United States.

Global Fruit and Herbal tea Market Scope

The fruit and herbal tea market is segmented on the basis of nature, product, raw material, flavour, packaging and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Nature

• Convectional
• Fruit
• Herbal

Product

• Syrups
• Premixes
• Powdered ready to drink
• Liquid ready to drink

Raw material

• Green Tea
• Black Tea
• Yellow Tea

Flavour

• Chamomile
• Ginger
• Hibiscus
• Fruit
• Lemon grass
• Peppermint

Packaging type

• Loose Tea
• Paper Pouches
• Tea Bags
• Carton Packs
• Can Packing

Distribution channel

• Offline
• Online
• Supermarkets & Hypermarkets
• Convenience Stores

Fruit and Herbal tea Market Regional Analysis/Insights

The fruit and herbal tea market is analysed and market size insights and trends are provided by country, nature, product, raw material, flavour, packaging and distribution channel as referenced above.

The countries covered in the fruit and herbal tea market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, UAE, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

Asia-Pacific fruit and herbal tea market is expected to account for a significant revenue share of the target market. Growing production and sales of tea in the region's countries China, Japan, and India, owing to the products' anti-aging and detoxifying properties, as well as rising tea consumption among people of all ages and genders is expected to drive market growth in Asia-Pacific. Another factor expected to drive target market growth is an increase in the number of tea retail outlets. The North America market is expected to grow at a faster rate due to increased demand and consumption of green tea, as well as higher per capita tea consumption in the region, which is expected to be a major factor driving North America tea capsule market growth.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Fruit and Herbal tea Market Share Analysis

The fruit and herbal tea market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to fruit and herbal tea market.

Some of the major players operating in the fruit and herbal tea market are:

• Tata Consumer Products Limited (India)
• Unilever (U.K.)
• Associated British Foods plc (U.K.)
• Vahdam (India)
• Celestial Seasonings, (U.S.)
• The Bombay Burmah Trading Corporation Limited (India)
• Stash Tea (U.S.)
• Bigelow Tea (U.S.)
• Shangri-la Tea (U.S.)
• Yogi (U.S.)
• Republic of Tea (U.S.)
• Mighty Leaf Tea (Canada)
• Numi, Inc. P.B.C (U.S.)

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