The global instant tea premix consumption market size was valued at $1.4 billion in 2019, and is projected to reach $2.1 billion by 2027, registering a CAGR of 6.8% from 2021 to 2027.Instant tea premix serves an alternative to regular tea, and is frequently used to prepare tea within a short duration. This type of tea is highly preferred in offices due to the ease of handling and preparation, and its role in the regulation of blood sugar levels. Instant tea premixes are easily prepared drinks in powdered form, which are mixed with milk or water to boost the overall metabolism, improve functionality, and provide long-lasting hydration.
These premixes are widely available in the form of paste, powder, and granules, which contain edible acids, vegetable extracts, vitamins, aromatizing agents, and fruit powders. They are available in the form of sugar-based and sugar-free beverages. Moreover, due to longer shelf life and cheaper costs, the instant tea premixes are in huge demand across the globe and are expected to witness significant growth especially in developing economies during the forecast period.
Rise in concerns related to obesity is the major factor that drives the growth of the global instant tea premix consumption market. One of the most widely used instant tea premixes is green tea, which offers several health benefits such as efficient glucose regulation and weight loss.
In addition, increase in demand for ready-mixed drinks results in rapid adoption of instant tea premixes, especially in the corporate sector, which fuels the growth of the market. Moreover, changes in lifestyle of consumers have considerably altered the food habits, thus leading to an escalating demand for instant tea premixes across the globe, which is anticipated to boost the growth of the market.
Instant tea premix has been popular in emerging markets, owing to the prevalence of tea culture. Furthermore, increase in health awareness and surge in the disposable income have driven the instant tea premix consumption market growth. Moreover, introduction of additional healthy ingredients in instant tea premix by different market players contribute toward the growth of the market. However, increase in trend of coffee consumption and fluctuating prices of raw materials caused by unpredictable climatic conditions act as the major restraints of this market. On the contrary, rise in demand for herbal tea and introduction of new flavors & varieties of instant tea premix are anticipated to provide growth opportunities for the market.
Moreover, the key players in the industry adopted a marginal pricing strategy, which is anticipated to hamper the overall market growth. Limited awareness about instant tea premixes is further anticipated to impede the market growth. Innovations in marketing strategies are expected to popularize instant tea premixes in the coming years. In addition, enhanced access to products through retail websites and significant efforts by market players in consolidating retail chains, especially in the emerging markets are projected to provide lucrative opportunities for the market.
Tea is a popular beverage consumed by a large number of people all around the world, due to its superior taste and associated health benefits. It falls in the category of products that is consumed daily. Hence, the demand for such product remains consistent among consumers. However, the outbreak of the novel coronavirus has significantly affected the growth of the instant tea premix market.
This decline in growth in the instant tea premix consumption market can be attributed to disruption in the supply chain. Moreover, halt in the production of tea and its processing due to lockdown and social distancing being practiced all around the world have adversely affected the growth of this industry. The instant tea premix market on the other hand has not experienced a steep down trend, in terms of demand, as it remains somewhat similar prior to the virus outbreak, being a daily consumable item. This disparity in the availability of product and its demand is expected foster quick recovery of the instant tea premix consumption market once the pandemic ends.
The instant tea premix consumption market is segmented into form, product type, distribution channel, and region. On the basis of type, the market is classified into powder, paste and granules. Based on product type, the market is classified into cardamom tea premix, ginger tea premix, masala tea premix, lemon tea premix, lemon grass tea premix, and other tea premix. Depending on distribution channel, it is fragmented into supermarket/hypermarket, specialty stores, discount stores, convenience stores, e-commerce, and others. Region wise, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA
The Paste segment would witness the fastest growth, registering a CAGR of 7.7% during the forecast period.
According to the instant tea premix consumption market analysis on the basis of form, the powder segment accounted for the maximum instant tea premix consumption market share in the 2019. Manufacturers are increasingly focused on producing instant tea powder, as consumers are shifting toward it, as it is easy to prepare. In addition, rise in consumer demand for healthy and ready-to-drink products propels the demand for instant tea powder. Moreover, increase in awareness among consumers regarding the health benefits of instant tea powder such as it strengthens the immune system and helps in relieving stress drives the growth of the market. Brands offering instant tea powder include Nestle, Nectar Valley, Society Daily, and Lipton.
By Product Type
E-Lemon grass tea premix segment would witness the fastest growth, registering a CAGR of 7.4% during the forecast period.
Based on product type, Cardamom instant tea premix is likely to gain a major demand from the consumer in the forecast period. Cardamom tea premix includes dietary fiber, vitamins, and minerals, which help to strengthen the immune system. In addition, it possesses anti-inflammatory properties, which help to lower blood pressure.
By Distribution Channel
E-commerce segment would witness the fastest growth, registering a CAGR of 7.5% during the forecast period.
By distribution channel, Supermarkets/hypermarkets are gaining popularity due to the availability of broad range of consumer goods under a single roof, in addition to ample parking space and convenient operation timings. Moreover, these retail formats serve as a one-stop solution, which makes them a popular option for shopping. In addition, products are arranged nearby, which aids buyers for easy comparison among similar products, thereby helping consumers to decide which product to buy.
North America would witness the largest segment registering a major share of 37.5% during the forecast period.
Region wise, North America held the major share of 37.1% in the instant tea premix consumption market market in 2019, owing to positive economic trends, rise in import, and increase in consumption of instant tea premix. Consumers in this area more interested in health-conscious products, such as functional food & beverages, as a result of lifestyle changes. In comparison to alcohol-based drinks, consumers are more concerned about a sustainable food supply and healthier alternatives. This has resulted in an increase in tea product consumption, which has fueled the demand for instant tea premixes.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current instant tea premix consumption market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assist to determine the prevailing instant tea premix consumption market opportunities.
- Drivers and restraints are analyzed depending on type in the instant tea premix consumption market.
Instant Tea Premix Consumption Market Report Highlights
By Product Type
By Distribution Channel
Key Market Players
THE REPUBLIC OF TEA INC., KEURIG GREEN MOUNTAIN INC., THE COCA COLA COMPANY, Unilever, ITO EN LTD., Wagh Bakri Tea Group, NESTLE S.A., PEPSICO INC., TATA GLOBAL BEVERAGES, DUNKIN BRANDS GROUP INC.
Based on the insights of various CXOs’ of leading companies, health, fitness, and habit are three key factors that determine the growth of the instant tea premix market. At present, consumers’ interest is shifting toward instant tea premix, as it serves as a rich source of diverse nutrients and offers numerous health benefits.
For instance, instant tea premixes are high in antioxidants and help to trigger weight loss since they are low in calories. Moreover, increase in demand for instant tea premixes products in corporate, real estate, and other commercial offices is likely to augment the growth off the market. The CXOs further added that the launch of instant tea premixes such as herbal instant tea, tulsi instant tea, and mint instant tea are gaining high traction in the global market.