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Along with increasing popularity of different flavors in the global tea market, a rising consumer base has led to the introduction of new tea flavors. This is expected to spur the growth of the global market for flavored tea, according to Transparency Market Research.
Health and flavor attract consumers, with herbal teas such as chamomile, hibiscus and peppermint leading the way. While flavored tea receives special attention in modern times because of its added and enhanced taste, a major growth factor for flavored tea is its easy availability worldwide. This is resulting in the surge in demand for flavored tea across the globe.
The recent shift toward flavored tea from traditional tea is another driver for the global market for flavored tea.
Yet, high prices of flavored teas are restraining the market in some areas. Increasing demand in the countries of North America and Europe is a major growth opportunity for the global flavored tea market.
Online retailing is the current trend that has spurred the development prospects of the global flavored tea market in recent years. Although, more conventional retail channels still remain important for revenue generation.
Loose Leaf Forecast
For this forecast, the global flavored tea market has been segmented on the basis of type, flavor, distribution channel and region. Based on type, the market has been segregated into leaf tea and CTC tea.
The leaf tea segment held a major market share in 2016 and the trend is anticipated to continue throughout the forecast period. This segment is also anticipated to witness rapid growth during the forecast period, 2017-25. This is attributable to the health benefits that leaf tea offers.
The leaf tea segment is subdivided into black tea, white tea and green tea. The black tea segment held a major market share in 2016 and the trend is anticipated to continue throughout the forecast period.
The green tea segment is expected to witness rapid growth during the forecast period. This growth 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.
Flavored Tea Forecast
Based on flavor, the global flavored tea market has been segregated into chamomile, earl grey, mint, oolong, cinnamon, jasmine and others.
The chamomile tea segment held a major market share in 2016 and the trend is projected to continue during the forecast period.
The cinnamon tea segment is expected to witness rapid growth during the forecast period, which is attributable to the property of cinnamon that can support cholesterol and blood sugar concerns. Consumers are gaining awareness about the benefits of cinnamon tea.
Wholesale and Retail Tea Drivers
Based on distribution channel, the global flavored tea market has been segregated into wholesale and retail.
The retail segment accounted for a leading market share in 2016 and is estimated to expand at an exponential rate from 2017 to 2025. This is owing to direct contact of the retail channel with consumers, which results in higher revenue generation.
The retail distribution channel segment has been further divided into online, supermarket/hypermarket, specialty retail stores and others. The supermarket/hypermarket subsegment held a leading market share in 2016 and the trend is expected to continue throughout the forecast period. This is because of the wide range of choices that supermarkets/hypermarkets offer to consumers. They also offer a wide range of price choices to consumers. This makes retail a desired distribution channel. The retail segment is expected to witness rapid growth during the forecast period.
Flavored Tea Players
Geographically, the global tea market has been divided into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The Asia Pacific region held a major market share in 2016 and the trend is estimated to continue during the forecast period. Europe is expected to witness rapid growth between 2017 and 2025.
Major players operating in the global flavored tea market include Associated British Foods plc (Twinnings) (U.K.), Apeejay Surrendra Group (Typhoo Tea) (India), Tata Global Beverages Ltd. (India), Goodricke Group Ltd. (India), and Golden Tips Tea, Co. Pvt. Ltd. (India).
Source: Transparency Market Research
