Market Overview
The global Fruit Tea Industry is expected to cross USD 662.7 Million by 2025 at a CAGR of 5.5% during the forecast period of 2019 to 2025. Fruit tea is prepared by infusing various fruits or its extracts along with herbs, spices, and earthy teas. The health benefits associated with the consumption of fruit tea are driving the growth of the market. Additionally, the increasing demand for functional and flavored tea for weight loss and beauty and skin treatments is significantly contributing to the growth of the market. The demand for fruit tea in emerging countries such as India and China is high owing to the growing popularity, expansion of specialty and functional tea retailers, and launch of innovative products by market players. However, the increasing consumption of other beverages such as coffee may affect the fruit tea market growth. The launch of innovative blends of fruit teas with health benefits offers players in the global tea market lucrative growth opportunities.
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Competitive Landscape
- Twining and Co. Ltd. (UK)
- Martin Bauer Group (Germany)
- Tata Global Beverages (Tetley) (India)
- The London Tea Company (UK)
- Unilever plc (Tazo) (UK)
- Dilmah Ceylon Tea Company plc (Sri Lanka)
- The Hain Celestial Group Inc. (Celestial Seasonings)(US)
- Typhoo Tea Ltd. (UK)
- Harney & Sons Fine Teas (US)
- McLeod Russel India Ltd. (India)
Market Segmentation
- Blends: This segment is poised to be the fastest-growing during the forecast period. Increasing health consciousness and a demand for natural energy sources is driving the growth of the segment. In addition, the rising demand for new and innovative flavors provides opportunities to fruit tea manufacturers.
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Regional Analysis
- Growth of e-commerce platforms: While store-based distribution channels dominated the fruit tea market in 2018, the expansion of e-commerce platforms is expected to drive the growth of the non-store-based distribution channel segment at the higher CAGR during the forecast period. This growth can be attributed to the ease of home shopping and availability of choices along with attractive offers.
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