The iced and ready-to-drink tea categories accounted for only 7.5% of the global soft drinks industry, despite “rising levels of interest in recent years”, according to a market research group.
But Innova Market Insights acknowledged that the launch of more sophisticated products in established markets and more mainstream initiatives in underperforming markets was helping to drive growth in the sector. The growth can be attributed to a growing base of consumers seeking alternatives to sugar-rich carbonated beverages, according to Innova’s director of innovation.
Lu Ann Williams said: “Over 62% of global iced tea launches made at least one health claim of some kind, rising to over 88% in the US. Tea’s use as an added flavour or functional ingredient has also become increasingly common in other soft drinks, such as fruit drinks and enhanced waters, raising awareness and drawing new consumers into the market.”
Innova also claimed that the market was being split by the Atlantic – with differing performances in Europe and North America. The ready-to-drink tea market has long been established in the US but is still emerging in continental Europe, driven by performance in key markets such as Germany.
Innova added: “Elsewhere on the market, there is also a focus on calorie reduction, featuring low-calorie and reduced-sugar launches… Matcha and Kombucha are also increasingly in evidence, while a number of bubble tea drinks featuring green teas and fruit teas were also introduced.”
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