Fruit Tea Market by Type and Geography - Forecast and Analysis 2022-2026

The fruit tea market share is expected to increase by USD 1.07 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 7.51%.

This fruit tea market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers fruit tea market segmentation by type (conventional fruit tea and organic fruit tea) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The fruit tea market report also offers information on several market vendors, including adagio teas, Ahmad Tea Ltd., Alokozay International Ltd., Barrys Tea, Bettys and Taylors Group Ltd., Bigelow Tea Co., Dilmah Ceylon Tea Co. Plc, Harney and Sons Fine Teas, Hong Kong Oriental Tea Co. Ltd., londonfruitandherb, MB-Holding GmbH and Co. KG, R. Twining and Co. Ltd., Riston Inc., Starbucks Coffee Co., Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Republic of Tea, The Stash Tea Co., Tiesta Tea Co., and Unilever PLC among others.

What will the Fruit Tea Market Size be During the Forecast Period?

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Fruit Tea Market: Key Drivers, Trends, and Challenges

The increasing demand for premium fruit tea is notably driving the fruit tea market growth, although factors such as volatility in prices of raw materials may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the fruit tea industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Fruit Tea Market Driver

The increasing demand for premium fruit tea is one of the key drivers supporting the fruit tea market growth. Consumers are paying premium prices to purchase specialty tea products, such as herbal tea and fruit tea. As a result, vendors are shifting their focus toward premium product ranges. Fruit tea products are comparatively priced higher than plain tea owing to the addition of blended ingredients. For instance, Unilever group's Lipton plain black tea (tea bag) costs $0.06 per count, whereas its Lipton fruit tea (tea bag) costs $0.13 per count. Moreover, consumers from both the developed and developing regions are seeking premium options in the global fruit tea market. Thus, the growing demand for premium fruit tea products is expected to drive the global fruit tea market during the forecast period.

Key Fruit Tea Market Trend

Rising focus toward new fruit tea flavors is one of the key trends contributing to the fruit tea market growth. Different varieties of fruit tea products are witnessing increased online purchases from pure-play retailers, online retailers, and websites of traditional tea retailers. Wellness enthusiasts seek healthier options while purchasing their fruit tea products through online retail platforms. Moreover, the growth in organized retailing, especially hypermarkets and supermarkets, is a key contributing factor for the rising sales of fruit tea products across diverse geographies. For instance, under the Celestial Seasonings brand, the vendor provides fruit tea in different flavors such as black cherry, citrus sunrise, country peach passion, and cranberry apple passion. Therefore, the increasing demand for flavored varieties is expected to drive the demand for fruit tea during the forecast period.

Key Fruit Tea Market Challenge

Volatility in prices of raw materials is one of the factors hindering the fruit tea market growth. The market prices of various raw materials for fruit tea products are highly volatile as they are dependent mainly on tea prices. It becomes tedious for vendors to keep the overall costs under control owing to the fluctuating raw material prices. Some of the key raw materials used in fruit tea production are processed tea leaves, dried fruits and nuts, herbs and spices, botanical extracts, and other flavoring agents. Fluctuating prices of tea and other botanical raw materials affect the final prices of the end-products. The prices of natural flavoring agents are directly or indirectly affected as they are derivatives of plant-based products. In addition, any changes in raw material prices are ultimately passed on to the consumers. Such factors are expected to negatively impact the market during the forecast period.

This fruit tea market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global fruit tea market as a part of the global packaged foods and meats market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the fruit tea market during the forecast period.

Who are the Major Fruit Tea Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• adagio teas
• Ahmad Tea Ltd.
• Alokozay International Ltd.
• Barrys Tea
• Bettys and Taylors Group Ltd.
• Bigelow Tea Co.
• Dilmah Ceylon Tea Co. Plc
• Harney and Sons Fine Teas
• Hong Kong Oriental Tea Co. Ltd.
• londonfruitandherb
• MB-Holding GmbH and Co. KG
• R. Twining and Co. Ltd.
• Riston Inc.
• Starbucks Coffee Co.
• Tata Consumer Products Ltd.
• The Hain Celestial Group Inc.
• The Republic of Tea
• The Stash Tea Co.
• Tiesta Tea Co.
• Unilever PLC

 

This statistical study of the fruit tea market encompasses successful business strategies deployed by the key vendors. The fruit tea market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Adagio teas - Under tea segment, the company offers different types of tea such as green tea, iced-tea, and various blends. 
• Adagio teas - The company offers fruit tea under the brand name of Fruit Medley. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The fruit tea market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Fruit Tea Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the fruit tea market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Fruit Tea Market?

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33% of the market's growth will originate from North America during the forecast period. The US and Canada are the key markets for fruit tea market in North America. Market growth in this region will be faster than the growth of the market in Europe.

The increasing preference for specialty tea, such as fruit tea, herbal tea, and instant tea, among tea drinkers will facilitate the fruit tea market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic in 2020 led to supply chain disruptions, the closure of manufacturing plans, and a shortage of raw materials and workforce in the tea industry of North America. However, the development in expat population settlement, particularly in Canada and the US, has boosted the appeal of tea, which is propelling the growth of the North American tea market. Thus, the regional fruit tea market is expected to grow during the forecast period.

What are the Revenue-generating Type Segments in the Fruit Tea Market?

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The fruit tea market share growth by the conventional fruit tea segment will be significant during the forecast period. The increasing influence of online retailing is expected to have a positive impact on the conventional fruit tea segment and contribute to its growth during the forecast period.  The consumer base, ranging from mid-class to high-class, with varying spending power, can avail conventional fruit tea products. These products are comparatively affordable than other certified fruit tea products, including organic fruit tea. Therefore, the increasing demand for affordable and easily accessible fruit tea products is expected to drive the global conventional fruit tea market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the fruit tea market size and actionable market insights on post COVID-19 impact on each segment.

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Functional Tea- The market share is expected to increase to USD 3.13 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.27%.

 

Fruit Tea Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 7.51%
Market growth 2022-2026	$ 1.07 billion
Market structure	Fragmented
YoY growth (%)	6.8
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 33%
Key consumer countries	US, Canada, China, UK, and France
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	adagio teas, Ahmad Tea Ltd., Alokozay International Ltd., Barrys Tea, Bettys and Taylors Group Ltd., Bigelow Tea Co., Dilmah Ceylon Tea Co. Plc, Harney and Sons Fine Teas, Hong Kong Oriental Tea Co. Ltd., londonfruitandherb, MB-Holding GmbH and Co. KG, R. Twining and Co. Ltd., Riston Inc., Starbucks Coffee Co., Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Republic of Tea, The Stash Tea Co., Tiesta Tea Co., and Unilever PLC
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Fruit Tea Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive fruit tea market growth during the next five years
• Precise estimation of the fruit tea market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the fruit tea industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of fruit tea market vendors

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