Flavored Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Dried Leaves, Powder, CTC Tea), By Product Type (Black Tea, Green Tea, White Tea, Others), By Flavor (Fruits, Flowers, Herbs & Spices, Others), By Packaging Type (Tea Bags, Loose Tea), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Departmental Stores, Online Stores, Others (Direct Sales, Distributor & Dealer Sales, etc.)), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.83 Billion
CAGR (2026-2031)	6.09%
Fastest Growing Segment	Green Tea
Largest Market	North America
Market Size (2031)	USD 5.46 Billion

Market Overview

The Global Flavored Tea Market will grow from USD 3.83 Billion in 2025 to USD 5.46 Billion by 2031 at a 6.09% CAGR. Flavored tea is defined as a beverage prepared by infusing cured tea leaves with distinct ingredients such as dried fruits, flowers, spices, or natural extracts to enhance the sensory profile of the drink. The market is primarily driven by a shifting consumer preference toward healthier and low sugar alternatives to carbonated soft drinks alongside the rising demand for convenient ready to drink formats. Furthermore, increasing awareness regarding the functional benefits of botanical inclusions supports the continued expansion of this sector across global regions.

However, the industry faces a significant challenge regarding supply chain instability caused by climate impact on tea cultivation which frequently leads to fluctuating raw material costs. This volatility can hinder consistent production and impede broad market distribution. Illustrating the economic magnitude of these convenient products, according to the Tea Association of the U.S.A., in 2024, the canned and bottled tea segment generated approximately $4.6 billion in sales within the United States market. This data highlights the substantial consumer demand for flavored tea variations in major economies.

Key Market Drivers

Rapid expansion of the Ready-to-Drink (RTD) tea sector is acting as a primary catalyst for the global flavored tea market, driven by consumer demand for convenience and on-the-go hydration options. This format allows manufacturers to deliver complex flavor profiles in accessible packaging, catering to busy lifestyles where traditional brewing is less feasible. The economic impact of this segment is evident in the financial performance of major bottlers who are capitalizing on the still beverage category, which heavily features iced teas. According to Coca-Cola Consolidated, Inc., February 2025, in the 'Fourth Quarter and Fiscal Year 2024 Results', net sales for the still bottle and can category, which includes their tea portfolio, increased by 3.6% to reach $2.2 billion for the fiscal year. This growth underscores the substantial commercial viability of pre-packaged tea products in maintaining market momentum.

Simultaneously, the rising demand for exotic, fruit, and floral flavor innovations is elevating the market's value proposition as consumers increasingly seek unique sensory experiences over conventional varieties. Manufacturers are responding by introducing premium blends that incorporate ingredients like hibiscus, jasmine, and tropical fruits, which appeal to younger demographics and wellness-conscious buyers. This shift towards distinct flavor profiles is quantifiable in global trade flows. According to the China Agricultural Tea Industry Promotion Association, March 2025, in the '2024 China Tea Import and Export Trade Analysis Report', the export value of flower tea increased by 5.11% in 2024, distinguishing it as the only category to achieve value growth among major tea types. This trend is further supported by changing consumer habits in Western markets; according to the UK Tea & Infusions Association, in 2025, 16% of consumers reported a primary preference for herbal infusions, surpassing the popularity of traditional green tea.

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Key Market Challenges

Supply chain instability arising from climate-induced disruptions in tea cultivation represents a formidable barrier to the growth of the global flavored tea market. Since flavored tea products rely heavily on a consistent supply of quality cured leaves as a base, erratic weather patterns—ranging from prolonged droughts to excessive rainfall—directly compromise crop yields and leaf quality. This environmental volatility creates unpredictability in raw material availability, forcing manufacturers to grapple with fluctuating procurement costs. Consequently, producers often struggle to maintain stable pricing structures, which can erode profit margins and impede the mass production of convenient ready-to-drink formats that require steady industrial inputs.

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

Key Market Trends

The global flavored tea market is increasingly shaped by the adoption of sustainable and compostable packaging solutions, driven by regulatory pressure and consumer demand for environmentally responsible products. Companies are aggressively transitioning away from plastic-lined tea bags and non-recyclable wrappers toward biodegradable plant-based materials and circular packaging models to minimize waste. This operational pivot is quantifiable in the progress of major industry players committed to reducing their environmental footprint. According to Tata Consumer Products, May 2025, in the 'Business Responsibility and Sustainability Report FY25', the company achieved a milestone where 72% of its packaging materials were classified as recyclable or compostable, marking a significant step toward its net-zero waste targets.

Simultaneously, the market is witnessing a distinct surge in adaptogenic and functional wellness blends, where consumers seek beverages that offer targeted medicinal benefits beyond general health. Unlike standard herbal infusions chosen primarily for flavor, these products incorporate potent ingredients such as ashwagandha, turmeric, and probiotics specifically formulated to address stress, sleep, or digestion. This trend reflects a deepening consumer reliance on tea as a holistic health supplement, directly translating into robust financial performance for specialized herbal brands. According to Cardinal News, July 2025, in the article 'Herbal tea company set to break ground in Franklin County', Traditional Medicinals reported a 15% increase in revenue for the fiscal year 2024, reaching $170 million in sales due to the heightened demand for its wellness-focused tea portfolio.

Segmental Insights

The Green Tea segment currently represents the fastest-growing category within the Global Flavored Tea Market, driven principally by a structural shift toward functional, health-oriented beverages. Consumers are increasingly prioritizing products rich in bioactive compounds, such as catechins and polyphenols, which are widely recognized for supporting metabolic health and weight management. Manufacturers have successfully addressed traditional palatability barriers by infusing green tea with natural fruit and floral notes, thereby expanding its appeal to a broader demographic. Furthermore, the validation of these antioxidant properties by major institutions, including the European Food Safety Authority, reinforces consumer confidence and accelerates market adoption.

Regional Insights

North America leads the global flavored tea market primarily due to the rising consumer inclination toward healthy hydration alternatives over sugary carbonated drinks. This region exhibits a strong demand for ready-to-drink tea formats, facilitated by an extensive retail network and established distribution channels. Additionally, the United States Food and Drug Administration enforces strict labeling standards that ensure ingredient transparency, fostering consumer confidence in natural fruit and herbal infusions. Consequently, manufacturers frequently launch innovative product lines in this market, solidifying its status as the top revenue generator globally.

Recent Developments

• In August 2025, the tea chain Heytea engaged in a strategic collaboration with the Japanese anime franchise Chiikawa to launch a series of co-branded products in China. This partnership involved the release of themed tea beverages, including a Crème Brûlée Oolong Ice, alongside limited-edition merchandise such as character badges and stickers. The campaign generated substantial consumer engagement, resulting in a surge of orders and extended wait times at retail locations immediately following the launch. This initiative was part of the company's broader strategy to leverage popular intellectual property to enhance brand visibility and appeal to younger demographics.
• In July 2025, Lipton introduced two innovative product lines in the United States to address evolving consumer demand for convenience and wellness. The brand launched its first collection of Tea Concentrates, which were released in varieties such as Black Tea with Lemon and Green Tea with Lemonade, allowing consumers to customize their beverages by mixing the concentrate with water or other liquids. Concurrently, Lipton unveiled a Fruit & Herbal Tea line featuring blends like Golden Chamomile and Peach Paradise. These launches were intended to provide versatile, high-quality tea options suitable for both hydration and relaxation at various times of the day.
• In September 2024, Twinings expanded its presence in the cold beverage category by launching a new range of ready-to-drink Sparkling Teas in the United Kingdom. The product line featured three distinct flavors—Refresh, Defence, and Boost—which combined tea infusions with fruit juices and sparkling water. To cater to health-conscious consumers, the company fortified these beverages with vitamins and minerals, such as Vitamin C, zinc, and magnesium. The launch emphasized a clean label approach, with the drinks containing no artificial sweeteners or colors and offering a low-calorie alternative to traditional soft drinks.
• In March 2024, the organic beverage brand Just Ice Tea, operated by Eat the Change, expanded its product portfolio by launching a new line of ready-to-drink teas in aluminum cans. The initial rollout included three chef-crafted flavors: Lemon Tea, Raspberry Tea, and Dragon Green Tea, all of which were sourced from organic and fair-trade tea gardens. This move into the canned format was designed to increase accessibility for on-the-go consumers and reduce plastic packaging use. The company made the new products available through major natural grocery retailers, building upon its existing glass-bottled tea offerings.

Key Market Players

• 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

By Type	By Product Type	By Flavor	By Packaging Type	By Distribution Channel	By Region
Dried Leaves Powder CTC Tea	Black Tea Green Tea White Tea Others	Fruits Flowers Herbs & Spices Others	Tea Bags Loose Tea	Supermarkets/Hypermarkets Convenience Stores Departmental Stores Online Stores Others (Direct Sales, Distributor & Dealer Sales, etc.)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Flavored Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE