Flavored Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Flavored Tea Market is projected to expand from USD 3.83 Billion in 2025 to USD 5.46 Billion by 2031, registering a CAGR of 6.09%. Flavored tea is characterized as a beverage created by infusing cured tea leaves with distinctive ingredients, such as dried fruits, flowers, spices, or natural extracts, to elevate the drink's sensory profile. This market growth is primarily fueled by a consumer shift toward healthier, low-sugar alternatives to carbonated soft drinks, alongside rising demand for convenient ready-to-drink formats and increasing awareness regarding the functional benefits offered by botanical inclusions.

However, the industry encounters significant hurdles related to supply chain instability resulting from climate impacts on tea cultivation, which frequently leads to volatile raw material costs. This volatility can disrupt consistent production and limit broad market distribution. Demonstrating the economic significance of these convenient products, the Tea Association of the U.S.A. reported that the canned and bottled tea segment generated approximately $4.6 billion in sales within the United States in 2024, underscoring the substantial consumer demand for flavored tea variations in major economies.

Market Drivers

The rapid expansion of the Ready-to-Drink (RTD) tea sector serves as a primary catalyst for the global flavored tea market, spurred by consumer needs for convenience and on-the-go hydration. This format enables manufacturers to deliver complex flavor profiles in accessible packaging, catering to busy lifestyles where traditional brewing is impractical. The sector's economic impact is highlighted by the financial results of major bottlers focusing on still beverages; according to Coca-Cola Consolidated, Inc.'s 'Fourth Quarter and Fiscal Year 2024 Results' from February 2025, net sales for the still bottle and can category, which comprises their tea portfolio, rose by 3.6% to $2.2 billion for the fiscal year, confirming the commercial viability of pre-packaged tea products.

Concurrently, increasing demand for exotic, fruit, and floral flavor innovations is boosting the market's value proposition as consumers prioritize unique sensory experiences over traditional varieties. Manufacturers are responding by launching premium blends featuring ingredients like hibiscus, jasmine, and tropical fruits to attract younger demographics and wellness-conscious buyers. This trend is evident in global trade flows; the China Agricultural Tea Industry Promotion Association's '2024 China Tea Import and Export Trade Analysis Report', published in March 2025, noted that flower tea export value grew by 5.11% in 2024, making it the sole category among major tea types to achieve value growth. Furthermore, according to the UK Tea & Infusions Association in 2025, 16% of consumers identified herbal infusions as their primary preference, exceeding the popularity of traditional green tea.

Market Challenges

Supply chain instability caused by climate-induced disruptions in tea cultivation constitutes a significant barrier to the global flavored tea market's growth. Because flavored tea products depend heavily on a consistent supply of high-quality cured leaves, erratic weather patterns - ranging from prolonged droughts to excessive rainfall - directly compromise crop yields and leaf quality. This environmental volatility leads to unpredictability in raw material availability, compelling manufacturers to manage fluctuating procurement costs; consequently, producers often struggle to sustain stable pricing structures, which can diminish profit margins and hinder the mass production of convenient ready-to-drink formats that necessitate steady industrial inputs.

The severity of this supply contraction is highlighted by recent industry statistics. According to the Tea Association of India, the industry projected a production shortfall of approximately 160 million kilograms in 2024, attributed specifically to adverse weather conditions and pest infestations in key growing regions. Such a marked decline in output from a major production hub tightens global supply, inevitably driving up input costs and limiting the market's ability to expand consistently in response to rising consumer demand.

Market Trends

The global flavored tea market is increasingly defined by the adoption of sustainable and compostable packaging solutions, driven by regulatory pressure and consumer demand for environmentally responsible products. Companies are aggressively moving away from plastic-lined tea bags and non-recyclable wrappers in favor of biodegradable plant-based materials and circular packaging models to reduce waste. This operational pivot is measurable in the advancements of major industry players; according to Tata Consumer Products' 'Business Responsibility and Sustainability Report FY25' released in May 2025, the company achieved a milestone where 72% of its packaging materials were classified as recyclable or compostable, representing a significant stride toward its net-zero waste targets.

Simultaneously, the market is experiencing a distinct surge in adaptogenic and functional wellness blends, driven by consumers seeking beverages that provide targeted medicinal benefits beyond general health. Unlike standard herbal infusions selected primarily for flavor, these products utilize potent ingredients such as ashwagandha, turmeric, and probiotics, specifically formulated to address issues like stress, sleep, or digestion. This trend reflects a growing consumer reliance on tea as a holistic health supplement, which translates into strong financial performance for specialized brands; according to a July 2025 article in Cardinal News titled 'Herbal tea company set to break ground in Franklin County', Traditional Medicinals reported a 15% revenue increase for the fiscal year 2024, reaching $170 million in sales due to the heightened demand for its wellness-focused tea portfolio.

Key Players Profiled in the Flavored Tea Market

• Unilever PLC
• Associated British Foods PLC
• Tata Consumer Products Limited
• ITO EN, LTD.
• Dilmah Ceylon Tea Company PLC
• R.C. Bigelow, Inc.
• The Hain Celestial Group, Inc.
• Harney And Sons Fine Teas
• The Republic of Tea, Inc.
• Numi Organic Tea

Report Scope

In this report, the Global Flavored Tea Market has been segmented into the following categories:

Flavored Tea Market, by Type:

• Dried Leaves
• Powder
• CTC Tea

Flavored Tea Market, by Product Type:

• Black Tea
• Green Tea
• White Tea
• Others

Flavored Tea Market, by Flavor:

• Fruits
• Flowers
• Herbs & Spices
• Others

Flavored Tea Market, by Packaging Type:

• Tea Bags
• Loose Tea

Flavored Tea Market, by Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Departmental Stores
• Online Stores
• Others (Direct Sales
• Distributor & Dealer Sales
• etc.)

Flavored Tea Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Flavored Tea Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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