Instant tea market: A forecast of 2024-2032 period

Have you ever wondered how the instant tea market will be in the upcoming years? If you are a tea manufacturer, you should not miss this report summary.

Contents

Introduction

Instant tea is becoming familiar in everyday life thanks to its convenience, delicious taste, and diversity. It is easier to come across a stick of instant tea at home, in offices, hotels, or restaurants. In this article, FGC will synthesize and bring useful information and outstanding characteristics of the instant tea market over 2024-2032.

Instant tea market overview

Instant tea premix is becoming increasingly popular as a convenient alternative to freshly brewed regular tea. In 2023, the global consumption value was recorded at about USD 1.44 billion. This upside trend is expected to continue in the next 9 years, with a compound annual growth rate (CAGR) of 6.8%. The popularity of instant tea consumption is believed to be thanks to its convenience, portability, and accessibility. As a result, instant tea premixes can be enjoyed anywhere, from home to offices and on travel.

Instant tea market drivers

The need for a quick and simple drink

With today’s hectic lifestyles, there is an increasing demand for quick and easy-to-prepare drinks. Besides, after the Covid-19 pandemic, working from home is becoming more common. Even though at home or the office, the need for a quick drink goes up, in order not to affect the workflow. Add water to the instant tea powder and stir well, then you will have a tasty beverage in a matter of seconds.

The growth of the retail industry

Instant tea products are distributed diversely, such as hypermarkets, supermarkets, convenience stores, and grocery stores, making it easier for customers to access them. The expansion of the retail market also contributes to the expansion of instant tea premix sales. Besides, the explosion of e-commerce has made purchasing easier than ever, becoming one of the largest consumption channels of instant tea.

Hectic lifestyles and retail industry growth are instant tea market drivers

Instant tea premix market opportunities

Increasing health consciousness

Along with the rise of busy lifestyles, people also raise their awareness of healthy food and beverages. They started to look for alternatives to sugary and carbonated drinks and replace them with nutritious and lower-calorie options. It is one of the opportunities for manufacturers to develop their products more healthily, keeping up with customers’ tastes.

Innovation in flavors and varieties

Players in the instant tea premix market have been constantly researching and updating their products, creating various flavors with beneficial properties. From fruity and flowery to spicy flowers, traditional green and black tea to exotic and unique blends, diverse flavors are launched to meet the demands of different customer groups. Besides, more healthy properties are added to the recipes, such as antioxidants, collagen, and vitamins, making instant tea not only a thirst-quenching but also a healthy drink.

In addition, the innovation in packaging sizes and designs is also an attractive point of instant tea. Small stick and sachet packages are suitable for personal uses or traveling. Meanwhile, the bigger bag option is useful when preparing for large groups of people or in the coffee and tea shop. Diverse options will help the business to reach a wider range of customers.

Instant tea premix market challenges

Concerns about the influence of additives and preservatives

Rising concerns about health issues of consumers can be both opportunities and restraints for manufacturers. Customers are becoming more conscious of the possible health risks, such as allergic reactions and chronic illnesses, that come with consuming synthetic substances. Therefore, they are usually more picky with pre-made products, including instant tea premix. Sales consumption of those that rely on additives and preservatives for flavor, hue, and shelf-life increase might be reduced; instead, that of natural and organic products can rise.

concerns about additives — Consumers are worried about additives and preservatives

Rising competition

The instant tea market has been populated by a variety of large and small businesses from all over the world. The competition among those companies keeps the market moving, so new products and promotional campaigns are constantly being launched. As a result, instant tea manufacturers should continuously update and develop to boost sales revenue.

Instant tea premix market analysis

Regional analysis

In terms of regional analysis, the instant tea premix consumption is divided into four segments, including North America, Europe, Asia-Pacific, and LAMEA.

The dominant in the global instant tea premix belongs to the North American area, which is expected to increase with a CAGR of 6.5% from 2024 to 2032. The United States is considered one of the largest markets for instant tea premixes worldwide. People in this region are leaning towards functional and healthier beverages, especially those that include beneficial herbs. While North America dominates this market, Asia-Pacific is projected to be the fastest-growing area, at about 9.0%. The increase in disposable income and health awareness are the main drivers to boost the market growth and open more opportunities for manufacturers.

Europe’s instant tea market is expected to develop with a CAGR of 6.6% over the forecast time. The predicted tendency in this region is towards organic and health-conscious products. Black tea is the most preferred type in European countries, while green and herbal tea also witness rising trends. The demand for nutritional and healthier premixes also happens in the LAMEA regions, including Latin America, the Middle East, and Africa.

Distribution channel analysis

From 2024 to 2032, the supermarkets/ hypermarkets category is predicted to remain the largest distribution channel of the instant tea market, with a CAGR of about 6.4%. Supermarkets and hypermarkets are large retail channels, providing a wide range of products, flavors, and brands to customers. Meanwhile, the convenience store is the segment with the highest growth rate thanks to its availability and accessibility. Besides, e-commerce is the platform that instant tea premix manufacturers should pay attention to. Especially after a long time of social distancing, online shopping habits have grown significantly.

Product type analysis

Based on product types, the instant tea market can be segmented into many categories, including cardamom, ginger, masala, lemon, and lemongrass tea premix. According to Strait Research and Global Market Insight, the dominant type is cardamom tea premix, with a 6.6% growth rate. Another study by Cognitive Market Research pointed out that masala tea premix is the market leader. However, both showed that consumers seemed to prefer those with healthy properties and additional functions.

Instant tea in powder form will remain the market leader during the forecast years. However, the rise in demand for tea granules is a point that producers should pay attention to. Because of the increasing concerns about health problems, the beneficial features of organic tea attract consumers, making it the major factor in the market’s growth. Besides, the on-the-go consumption habits and hectic lifestyles also boost the sales of conventional instant tea premixes.

product types analysis — Cardamom tea premix is the major segment (Source: GMI)

About Future Generation Co.,Ltd

Future Generation Company Limited is one of the largest beverage suppliers in Vietnam, with 27 years of experience in production and export. FGC is equipped with modern machines such as Hotfill PET and TetraPak, ensuring high-capacity production. FGC strives to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards such as ISO, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity.

FGC also provides Private Label Services. With this service, we can help customers in researching and formulating beverages, designing product label packaging, and creating their own brands. This is an ideal solution for small and medium enterprises. Moreover, FGC provides free samples for customers to test before bulk orders. We also ensure delivery as fast as possible.