Market Trends of Iced Tea Industry
Iced Tea as a Healthy Alternative for Daily Intake
The health benefits of consuming iced tea have persuaded many consumers to prefer it over carbonated drinks. Iced tea contains flavonoids and other components that can bind the cholesterol or bad fat in the blood and remove it from circulation. It is also rich in vitamins, minerals, and antioxidants, and its daily intake can help target nutrient deficiencies. Besides, manufacturers focus on introducing new and innovative fruit flavors. For instance, in July 2022, Teapigs launched iced teas in two new flavors: black tea with peach and superfruit. According to the company's claim, each flavor is craft brewed in the United Kingdom using top-quality tea pigs tea sourced by trained tea tasters. Manufacturers also emphasize organic and herbal teas to cater to changing customer preferences for healthier and diet-friendly tea. For instance, in March 2023, Eat the Change, the planet-friendly snack company, expanded its ready-to-drink organic iced tea line Just Iced Tea in three new varieties, including mango white tea, original black tea, and lemon ginger herbal tea.
Asia Pacific is the Largest Consumer of Iced Tea
China is the largest tea producer and iced tea consumer in Asia. Consumers are incorporating iced tea into their daily routines as a refreshing and healthy beverage option. The rising health consciousness among consumers has led several brands to offer sugar-free variants of iced tea. For instance, in 2022, Coca-Cola China strategically planned to enter the iced tea market by promoting its herbal tea Health Workshop in mainland China, emphasizing its health benefits, with natural sweeteners from Momordica fruit and no additives in the tea.
Japan is another major consumer, and with changing lifestyles and urbanization, consumers are increasingly drawn to iced tea due to its perceived health benefits, mainly when served unsweetened or with minimal sugar. Thus, the iced tea segment is anticipated to grow in the country and contribute to the overall market growth in the forecast period.
Traditional home-brewed tea contains varying amounts of caffeine depending on the type of tea leaves used and the amount of tea used, whereas iced tea mixes and RTD iced tea have consistent amounts of caffeine. Hence, consumers prefer ready-to-drink iced tea in Australia. The popularity of iced tea variations has increased, especially during the warmer months. Ready-to-drink formats appeal to busy-conscious consumers, offering instant refreshment without brewing or preparation.
