Instant Tea Premix Market Report 2024

The instant tea premix market size has grown strongly in recent years. It will grow from $1.49 billion in 2023 to $1.6 billion in 2024 at a compound annual growth rate (CAGR) of 7.5%. The increase during the historical period can be credited to a rise in the popularity of low-calorie beverages, an upward trend in coffee consumption, fluctuating prices, higher disposable incomes, increased demand for ready-to-drink beverages, growing health awareness, and a surge in disposable incomes.

The instant tea premix market size is expected to see strong growth in the next few years. It will grow to $2.15 billion in 2028 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period is driven by increasing preference for ready-to-drink products, rising disposable incomes, growing health consciousness, greater focus on instant tea powder production, and increasing trends towards vegetarian and vegan diets. Key trends anticipated during this period include product innovation and differentiation, introduction of new flavors, advancements in packaging, rising demand for organic and natural ingredients, and innovation in flavor variations.

The growing preference for ready-to-drink beverages is poised to drive the expansion of the instant tea premix market. These beverages are packaged for immediate consumption, requiring no preparation, and are available in bottles, cans, or cartons at chilled or room temperature, providing instant refreshment on the go. This preference reflects a broader trend towards convenience, health-consciousness, and quality in consumer decision-making. Tea premixes play a crucial role in enhancing the ready-to-drink beverage market by offering a convenient, consistent, and adaptable base for creating a diverse range of tea-based drinks that meet consumer expectations for flavor, health benefits, and convenience. In December 2022, non-alcoholic beverage exports from the United States increased to $13.6 million, marking a 20% rise, according to the United States Department of Agriculture. Similarly, a report by the Distilled Spirits Council in September 2022 highlighted increased sales and volume of spirits-based ready-to-drink (RTD) beverages. Supplier revenue for premixed cocktails or spirits-based RTDs surged by 42.3% to $1.6 billion in 2021, with volume growing by 56%, selling 13.1 million more cases than in 2020. These trends underscore the rising demand for health and wellness products, which is a key driver for the instant tea premix market.

Leading companies in the instant tea premix market are developing health-conscious RTD options to meet consumer needs and preferences, including specific dietary requirements. For example, Tata Tea, an India-based consumer goods company, launched Tata Tea Gold Care in November 2023. This instant tea premix is enriched with Ayurvedic ingredients and essential vitamins D, B12, B6, and B9, offering additional nutritional benefits. This launch aims to provide consumers with a convenient and enjoyable way to incorporate essential vitamins into their daily routines, beyond traditional supplements.

In March 201, Harris Tea Company, a US-based tea powder manufacturer, acquired Tetley Harris Food Group from Tata Consumer Products in March 2021. This strategic acquisition enables Harris Tea to offer comprehensive services to food service clients, emphasizing innovation, consistent quality, and excellent customer service. Tetley Harris Food Group, based in the US, specializes in manufacturing specialty and blended premix teas.

Major companies operating in the instant tea premix market are Nestlé S.A., Tata Consumer Products Limited, Bigelow Tea, Dilmah Ceylon Tea Company PLC, Whittard of Chelsea, Typhoo Tea Ltd., Yogi Tea, Kusmi Tea, Clipper Teas, Society Tea, Lipton, Tetley, Dammann Frères, Mariage Frères, Wissotzky Tea, Tenzo Matcha, Wagh Bakri Tea Group, Ito En Ltd., TGL Co., Samaara Tea.

North America was the largest region in the instant tea premix market in 2023. The regions covered in the instant tea premix market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the instant tea premix market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Instant tea premixes are convenient powder or granule formulations designed for quick tea preparation by simply adding hot water. These premixes dissolve easily, ensuring a consistent tea flavor without the need for brewing tea leaves.

The main types of instant tea premix include cardamom, ginger, masala, lemon, plain, and lemongrass. Cardamom tea premixes combine tea powder or granules with ground cardamom for swift preparation of cardamom-flavored tea. They are available in various forms such as powder, paste, and granules, catering to both organic and conventional preferences. These products are distributed through channels such as hypermarkets, supermarkets, convenience stores, drug stores, specialty stores, traditional grocery stores, and online platforms, serving residential and commercial applications.

The instant tea premix market research report is one of a series of new reports that provides instant tea premix market statistics, including instant tea premix industry global market size, regional shares, competitors with an instant tea premix market share, detailed instant tea premix market segments, market trends, and opportunities, and any further data you may need to thrive in the instant tea premix industry. This instant tea premix market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The instant tea premix consists of sales of traditional tea blends, specialty tea blends, herbal tea blends, functional tea blends, and instant iced tea powders. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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