Bottled tea rises in popularity
Products such as Starbucks' Teavana are rising in popularity
Global consumption of bottled tea is expected to surpass 41m litres in 2018, seeing YOY growth of 3.4% in 2018 over 2017.
Overall growth of the bottled tea market can be attributed to:
- Increasing appetite for specialty teas and their easier availability
- Health conscious consumer’s preference for healthful tea beverages
- Younger consumers’ developing palate for different RTD bottled tea flavours
- Accessibility of bottled tea across various sales channels
“The bottled tea marketplace is heavily impacted by evolving consumer sentiments wherein vendor revenues dwindled half a decade ago on the back of a contagious low- or no-sugar beverage trend. As manufacturers ramped up the production of no-sugar tea varieties, the bottled tea market has surpassed US$ 47bn in 2017 and the status quo is highly likely to continue in 2018,” said a senior analyst at Fact.MR.
The study opines that the consumption of still bottled teas will rise to 35m litres globally in 2018. However, sparkling tea revenues are set to grow at a 6% YOY in 2018 over 2017. This rapid expansion can be attributed to growing demand among younger consumers for sparkling tea, in particular, sparkling iced tea. The bottled tea marketplace is witnessing manufacturer investments in introducing new varieties of sparkling iced tea.
Conventional bottled tea has remained the primary choice among tea lovers, accounting for around 80% of total consumption. Organic teas are growing in popularity, with consumption increasing by 4m litres in 2018 over 2017.
The study found that 30% of bottled tea is made of black tea in 2018, while a quarter is green tea. Black tea continues to remain the highly popular tea blends and is consumed for its potential health benefits.
Globally, the bottled tea consumption remains concentrated in the APEJ region. With the region’s populous nature and its significant younger population, APEJ accounted for two-fifths (40%) of the global bottled tea consumption in 2017. The report estimates that Greater China consumed nearly 43% of the APEJ bottled tea consumption. According to the study, the popularity of black tea in the region has significantly contributed to the steady rising bottled tea consumption.
The bottled tea market growth will continue its upwards steady trend on the back of increasing preference for ready-to-eat beverages and consumer-driven product innovations.
The report tracks the bottled tea market for the period 2018-2027. According to the report, the bottled tea market is projected to grow at nearly 4% CAGR through 2027.