A new report from Canadean has revealed that the global consumption of iced and ready-to-drink (RTD) tea has steadily increased in the last year, driven by the growing demand of health-conscious consumers.
Iced tea consumption volumes are expected to reach over 37bn litres in 2015, with growth seen in all regions. The main factor for the increase of the category in North America and Europe is its association with the health and wellness trend, Canadean said. With the US consuming nearly 3bn litres more than all of Europe, second globally only to China, it remains the main driver for growth in the western markets.
The natural image of iced tea drinks lends itself as a good non-carbonated, lower sugar product as many consumers shift from traditional carbonates. For this reason, many of the larger iced tea players in Europe and North America have launched reduced-sugar variants such as Gold Peak from Coca-Cola, diet and unsweetened tea, as increased consumption warrants increased attention and investment in the category.
Producers are further building on the healthy image by adding herbal enhancements (often traditional to Asia) such as ginseng, matcha, and hibiscus, and putting the antioxidant and cleansing properties of tea at the forefront of the brand image and marketing.
Brands such as Ovvio have begun promoting cold brew tea, in combination with herbal enhancements, as cold brew tea is believed to better release antioxidants and have a more complex flavour without the bitter and tannic flavour of hot brewed tea.
“This fits the artisanal/craft trend seen in the West, as well as the health and wellness trend,” the market insights company added, “and has been well received by an initially niche consumer group.”
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