Instant Tea Premix Consumption Market

Market Overview

The Total Addressable Market (TAM) for Instant Tea Premix Consumption was valued at USD 1.44 billion in 2021. It is expected to reach USD 2.56 billion by 2030, growing at a CAGR of 6.6% during the forecast period (2022–2030).

Consuming instant tea premix is one method of preparing tea quickly as an alternative to regular tea. Due to its simplicity in handling and preparation and its function in controlling blood sugar levels, this tea is highly preferred in offices. Instant tea premixes are quick-to-prepare beverages in powder form combined with milk or water to increase metabolism nationality and provide sustained hydration. In addition, urbanization, busy lifestyles, new product varieties, and rising health consciousness have contributed to instant tea premix consumption over the forecast period.

Market Dynamics

Global Instant Tea Premix Consumption Market Drivers

Increasing Focus on Calorie Reduction by Various Companies

People are becoming more conscious of their health thanks to the internet and television, which have made it easier to learn about the benefits of consuming healthier foods and drinks. Calorie reduction and the creation of wholesome, low-calorie premixes with added vitamins and proteins to speed metabolism are both heavily pursued by businesses. For instance, one of the major players in the beverage industry, Starbucks Corp., offers a wide range of VIA instant ready brew drinks, such as instant very berry hibiscus and vanilla latte, which only provide 50 calories of energy when consumed. Therefore, businesses' increased focus on low-calorie beverage production significantly aids in expanding the market.

Growth of the Retail Industry

The economic sector, known as the retail industry, consists of businesses and people selling goods and finished products to consumers. The expansion of the U.S. retail market has been facilitated by the country's low unemployment rate and stable electricity prices. Numerous retail outlets sell various tea and related products, including hypermarkets, supermarkets, convenience stores, discounters, forecourt retailers, and grocery stores. The instant tea premix industry's three fastest-growing retailers are online retailing, discounters, and convenience stores. These shops serve as a global marketing tool that helps a wide range of instant tea premix products increase brand exposure and create an impressive premium image. Therefore, a significant factor driving the market for instant tea premix consumption globally is the growth of the retail market.

Global Instant Tea Premix Consumption Market Restraints

Volatility in Raw Material Prices

The cost of the raw materials directly relates to the product's value. The cost of raw materials and commodities significantly impacts the food and beverage industry. Businesses remove a barrier called price volatility by raising customers' costs, which increases the final product cost. The price of tea has also increased due to rising labor costs and varying raw material availability. The labor-intensive tea industry sees a decline in crop yield and quality as plantations age. The quality and output of tea production are currently hampered by plant aging, soil depletion, and an increase in pest infections. The result is an increase in the price of tea offered by various players. This trend is anticipated to persist during the forecast period, which will probably limit the market growth.

Global Instant Tea Premix Consumption Market Opportunities

Untouched Emerging Markets

The Asia-Pacific market is anticipated to present lucrative opportunities for the players. The increased consumer awareness of instant tea premix products motivates significant players to introduce new flavors and varieties of instant tea premixes. Additionally, rising disposable income and increased adoption of western lifestyles among consumers in developing nations like South Africa, Russia, Brazil, and India are significant factors in the market's expansion. Due to the high prevalence of obesity in this region, nations in Latin America like Brazil, Chile, and Colombia will also present players with attractive business opportunities.

Introduction of New Flavors

To diversify their product offerings and increase sales, various players in the instant tea premix market are launching products like compound leaves, green tea, and fruit tea. A significant consumer base is attracted by the introduction of organic and herbal products, which is anticipated to boost the market growth. Examples include turmeric herbal instant tea, hibiscus instant tea, instant tulsi tea, and instant mint tea. These appeal to tea drinkers because of their excellent quality and delectable flavor. Additionally, the rise in tea lovers eager to try new tea varieties encourages companies to introduce new flavors of instant tea to boost sales.

Regional Analysis

By region, the global instant tea premix consumption market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant shareholder in the global instant tea premix consumption market and is expected to grow at a CAGR of 6.5% during the forecast period. Mexico, Canada, and the United States make up the North American instant tea premix consumption market. Due to the high prevalence of instant tea consumption and an increase in the variety of teas offered, and the number of customers, the region is predicted to grow fastest. Additionally, the region's consumers are drawn to its herbs due to their medicinal and health benefits. Tea has long been the most widely consumed beverage in North America. The United States is one of the world's biggest tea importers and the biggest instant tea premix market. Due to lifestyle changes, consumers in this region are more interested in health-conscious products like functional food and beverages. Consumers are more concerned about a sustainable food supply and healthier alternatives than alcoholic beverages. The demand for instant tea premixes has increased due to tea product consumption and a rapid increase in demand for instant tea premix for medicinal purposes is predicted.

Europe is expected to grow at a CAGR of 6.6%, generating USD 775.35 million during the forecast period. Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe are all analyzed in the Europe market. In this region, tea is the most widely consumed beverage, particularly in the UK, the Netherlands, Germany, Greece, and Ireland. As consumers' preferences for a diet free of pesticides have grown, more people are turning to organic products, which helps the market expand. One of the world's top tea consumers has historically been Europe. Increased demand for healthier food and beverage options significantly aids market expansion. In European nations, black tea predominates over all other varieties. Due to their alleged health advantages, green tea and herbal teas are becoming more and more well-liked in the European market.

Asia-Pacific is expected to grow significantly over the forecast period. China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific are all included in the Asia-Pacific instant tea premix consumption market analysis. As consumer tastes and preferences changed, organic products gained popularity in the region. Tea has consistently been the beverage with the highest global consumption, particularly in the Asia-Pacific region. Due to a change in consumption habits, tea has been grown and marketed in this region. China is the world's largest producer and consumer of tea products. Market growth in the region is anticipated to be driven by rising consumer interest in changing their eating and drinking habits and increased consumer awareness of health issues. Additionally, consumers demand transparent ingredient sourcing from sustainable sources and high-quality manufacturing practices, which is expected to drive the instant tea premix consumption market.

Latin America, the Middle East, and Africa are included in the LAMEA instant tea premix consumption market analysis. The high availability and rising demand for nutritional premixes primarily drive the market for instant tea premixes in LAMEA. Major corporations like Coca-Cola Co. and Monster Beverage Corporation use natural ingredients to make instant tea premix healthier and meet consumer demand in this region. Due to increased urbanization and altered dietary practices, Latin America has significantly changed consumer lifestyles. As a result, the urban population's drinking preferences have changed, shifting toward healthier and healthy options, increasing the demand for instant tea premixes. In addition, tea is typically offered to visitors as a gesture of welcome. In LAMEA, there is a demand for fresh flavors and ingredients with a contemporary twist.

Segmental Analysis

The global instant tea premix consumption market is segmented by foam, product type, and distribution channel.

On the Basis of Foam

Based on foam, the global market is bifurcated into powder, paste, and granules.

The power segment is the highest contributor to the market and is expected to grow at a CAGR of 6.5% during the forecast period. The most convenient form of tea, instant tea powder, has many advantages. For instance, it helps reduce inflammation, strengthens the immune system, and relieves stress by reducing stress hormones. Tea extract powder can be diluted with water, milk powder, flavorings, and sugar. Since instant tea powder is quick and straightforward, manufacturers concentrate more on producing it. The demand for instant tea powder is also driven by increased consumer demand for healthy and ready-to-drink products. The market is expanding due to consumers' growing awareness of the health advantages of instant tea powder, such as how it boosts immunity and reduces stress.

Tea leaves are crushed to create the granule form of instant tea. Its demand is likely to rise significantly among consumers who prefer to add flavors and tastes to suit their needs and preferences, even though its consumption is currently low. Due to an increase in demand, the granular form of instant tea is predicted to dominate the market in the upcoming years. This is explained by the fact that granules make it most practically possible for consumers to make tea. The addition of additional healthy ingredients in granular tea form is also a factor in the market expansion. Tata Tea, Lipton, Celestial Seasonings, Red Label, and Society Tea are market players selling this product.

On the Basis of Product Type

Based on product type, the global market is bifurcated into cardamom tea premix, ginger tea premix, masala tea premix, lemon tea premix, and lemon grass tea premix.

The cardamom tea premix segment owns the highest market share and is expected to grow at a CAGR of 6.6% during the forecast period. An herbal tea with a reviving cardamom flavor, cardamom tea is made from cardamom seeds. Dietary fiber, vitamins, and minerals in cardamom tea premix support a more robust immune system. It also has anti-inflammatory qualities that can help lower blood pressure. Due to the high demand for cardamom tea among consumers as a remedy for digestive issues, including ulcers, manufacturers are concentrating more on making it. Cardamom tea also prevents cavities and treats bad breath. The demand for cardamom tea is fueled by consumers switching to healthier products, and the beverage has antioxidant and diuretic properties.

The gingerols in ginger tea premix have a variety of biological advantages. The ability of ginger tea to relieve digestive problems and treat headaches and migraines makes it particularly well-known. It also eases the pain associated with arthritis and muscle aches. Most people drink ginger tea to relieve digestive discomfort. Due to the high demand for ginger tea among health-conscious consumers and its ability to help with weight loss, manufacturers are concentrating on producing it. The taste and aroma of ginger tea are its main selling points. Thus, the market growth is boosted by the soothing qualities of ginger tea, which are popular with consumers. Tetley, Girnar, Taj Mahal, and the Indian Chai are among the companies that sell premixed ginger tea.

On the Basis of Distribution Channel

Based on the distribution channel, the global market is bifurcated into supermarkets/Hypermarkets, specialty stores, discount stores, convenience stores, and e-commerce.

The supermarkets/hypermarkets segment is the highest contributor to the market and is expected to grow at a CAGR of 6.4% during the forecast period. Most instant tea premix consumption products are bought in large retail settings like supermarkets and hypermarkets. Supermarkets are big, self-serve grocery stores with a wide selection of food and household goods. They are more significant than regular grocery stores but more minor and have a smaller selection of goods than hypermarkets or big-box markets.

E-commerce is the activity of buying or selling goods and services online. The high internet adoption rate has led to the macro trend currently online shopping. Customers buy instant tea products online to benefit from customer reviews. These online platforms are popular places to buy instant tea premixes because of their simple accessibility and generous discounts and offers. Additionally, it has been the most practical method of product acquisition because customers do not need to travel and ask for products in stores. It also offers customers higher-quality services and knowledgeable advice.

Recent Developments

• October 2022- The purchase of Seattle's Best Coffee brand from Starbucks by Nestlé was announced in a joint statement by Starbucks and Nestlé. This transaction strengthened the Global Coffee Alliance by enabling both businesses to concentrate on their core competencies. This transaction is part of Nestlé's focus on fostering sustained profitable growth in the coffee category.
• November 2022- Layn Natural Ingredients launched an “instant tea” extract. A straightforward water extraction process is used to create the tea extract powders, helping preserve flavor and functionality.