Over the last decade, I have had the privilege of watching the US retail coffee market unfold and it has been quite a journey. Today, I invite you to sit back, relax and open a can of your favourite coffee as we reflect on where the market has been, where it is now and where it’s going next. 

RTD coffee was first introduced in the US in the 1950s but didn’t fully resonate with consumers until forty years later. In the mid-1990s, an icon was born: the Starbucks bottled Frappuccino. This sweet, creamy, indulgent coffee beverage set the tone for what would be the RTD coffee space for over two decades. 

The early 2000s saw a surge in the popularity of RTD coffee, with consumers increasingly interested in convenient on-the-go coffee options to fit busy lifestyles. Companies such as PepsiCo, Coca-Cola, and Nestlé began to invest heavily, launching products and acquiring existing brands. This helped the market nearly double from USD $450 million in 2001 to $850 million by 2005 (market size of canned and bottled RTD coffee from 2001 to 2015. Statista.com. 2017, February). 

By 2013, the market was valued at $1.5 billion (per Nielsen) and was still exhibiting decent growth rates. But change was in the air. Consumers were becoming more health conscious and seeking alternative canned or bottled coffees that offered less sugar, less dairy and more coffee-forward flavour. Enter cold brew. What many predicted to be a passing fad quickly exploded into a multi-million-dollar segment of the category that transformed the RTD coffee landscape. 

Cold brew has proven itself to be more than just a fad and has gained market share currently at over 20% of the total RTD coffee market. In just ten years it has gained nearly a quarter of an entire category. In fact, in recent years we have seen multiple variations: flavoured, nitro, dairy alternatives and most recently the explosive growth in multi-serve (32 ounces or above) cold brew coffee. 

What does the future hold? As consumers become increasingly educated about coffee and interest in new products grows, we expect to see impressive year-on-year growth and – importantly – increased opportunities for brands. Here are three trends I think you should keep an eye on: 

1. Multi-serve momentum carries on. Multi-serve coffee has been on the market for a decade, but its popularity exploded during the pandemic. As consumers have begun to realise they can get great coffee at an affordable price to enjoy at home, expect this segment to see even more growth in the coming years. 
2. Natural energy will continue to steal share. With younger consumers becoming increasingly proactive over their health and wellness, they are turning to more ‘natural’ products for cleaner ways to consume food and beverage. This creates an opportunity for more coffee-based ‘energy’ drinks to steal share from the traditional products in this market. 
3. Private label potential. Private label coffee is sometimes equated to lesser quality. Yet consumers have started to see the potential across categories in private label and coffee is no exception. As shoppers become increasingly cost-conscious and aware of the premiumisation of private label coffee, they will start to seek out these products to fill a gap as a cost-effective solution. 

• Stacy DeMars is marketing manager for Finlays Americas, a division of Finlays, a leading independent B2B manufacturer and supplier of tea, coffee and botanicals.

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A limited edition that will launch in time for festive celebrations and Dry January, the collaboration is back for the third year. MOMO X Orbit Beers Hops Kombucha is made with Hallertau Blanc and Nelson Sauvin hops that provide tropical fruit and gooseberry flavours, rounded out with a tart kombucha. Hops have a complex flavour base, mapping citrus tones and herbal, earthy notes, which make them a match for fully fermented tart kombucha like MOMO’s. A non-alcoholic option that beer drinkers can get truly excited about, says the company.

Co-founder of MOMO Kombucha, Josh Puddle, commented, “We could think of no better partner than Orbit Beers, we’ve admired their traditional method of making European beer with a modern twist down the road in South East London for many years. This traditional approach with a flavour focused modern spin felt like a natural fit for the way we brew. This is our third limited edition special, and we are so grateful to have partnered with Orbit. Their beers can regularly be found in our brewery fridge (for when a kombucha can’t quite cut it) and Orbit supply some of our favourite pubs and restaurants in London. Thanks also to our head brewer, Matt Canham, for the creation of this delicious kombucha – it could be our best yet.”

Robert Middleton, founder of Orbit Beers added, “We’ve admired MOMO’s traditional method of brewing kombucha down the road in South London for many years and love working with and sharing recipes and ideas with their team. Our first collaborative batch was brewed in January 2021. It was so well received, winning a Great Taste Award, that we decided to brew it for the third time, in time for Dry January 2024. One of the main reasons we fell in love with kombucha (apart from the delicious taste) is the benefits for our gut microbiome.”

For every bottle sold, MOMO will contribute 10p to Save the Children’s Gaza appeal, supporting children affected by the crisis in the region.

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Ferrarelle Società Benefit, one of the largest mineral water producers in Italy well-known for its unique naturally sparkling water properties, bottles “Boario”, “Vitasnella” and “Fonte Essenziale” mineral waters at its Boario plant. Vitasnella ‘Le Linfe’ combines the lightness of Acqua Vitasnella with the benefits of the natural ingredients, sugar-free and calorie-free.

Sidel supported Ferrarelle Società Benefit in installing its aseptic technology for its functional teas to ensure a high-end taste experience, product integrity and a long shelf-life, utilising its Predis dry preform decontamination solution – a safe, hygienic, cost-effective way of packaging a variety of sensitive beverages.

By installing Sidel’s Aseptic Combi Predis to produce Vitasnella ‘Le Linfe’ product range, the line is capable of handling two different formats, 0.5 litres and 1.25 litres, and achieves 18,000 bottles per hour.

“‘Le Linfe’ functional waters and tea ranges are extremely important for us and we wanted to avoid any potential risks,” said Nicola Tignonsini, operations director at Ferrarelle.

“As our only line producing sensitive beverages, it was crucial that we had an aseptic system that could ensure the highest level of product safety and integrity,” said Marcelo Astrini, plant director at Boario.

Find out more about Sidel’s Aseptic Combi Predis and how you can access this kind of support for your business on the Sidel website.

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The past few years have seen a steady rise in global demand in the functional and wellness tea market, and as consumers’ quest for health and vitality continues, market players expect this trend to kick into full gear.

The Covid-19 pandemic has become the biggest game-changer in the global market of functional drinks, according to analysts. “Following the Covid-19 pandemic, consumers face increased burnout due to a lack of separation between work and personal lives, leading to increased stress,” said Nathanael Lim, insights manager at Euromonitor International, a global market research firm. “At the same time, the pandemic has caused consumers to be more health conscious, looking after their own physical and mental wellbeing. This provides tea players an opportunity to launch functional ingredients in their tea products, appealing to consumer needs.”

According to the Whole Foods 2022 Trends predictions, functional drinks sales will continue to soar, doubling in the next decade. The analysts explained that consumers, especially those from Gen Z, are looking for healthier options than the traditional sodas their parents grew up on, and many are also interested in sober living.

Functional beverages include ingredients such as herbs, mushrooms, electrolytes, vitamins, minerals and probiotics. Some elements, like vitamins, consistently enjoy strong popularity, while others only start unravelling their potential.

In 2022, the retail value sales of immune support tea globally account for USD $2.7 billion globally. This is set to grow by 4 percent year on year, reaching USD $3.2 billion in 2027, Lim said. In Europe, retail value sales of immune support tea account for $77 million and are set to grow by 4 percent year on year, reaching $93 million by 2027, he added.

According to Market Research Future, another global market research firm, the functional and wellness tea industry has achieved a valuation of $7.2 billion as of 2022. Their projections indicate that by 2032, the industry is expected to reach a value of $12 billion.

“The demand for natural and organic production is rising, driven by concerns over synthetic additives and chemicals. The focus on preventive healthcare is increasing, with consumers taking proactive measures to maintain their health,” Market Research Future stated.

Science as a beacon

The list of functional ingredients available on the market today is long and diverse, but as an average customer grows more knowledgeable, businesses need to keep an eye on the science to make sure their products are appreciated by customers.

“Consumers are being more careful with how they spend their money, leading them to actively seek high-value ingredients – for 60 percent, this means those ingredients that are science-backed,” said John Kelly, strategy director for beverages with Kerry, an Irish food ingredients firm. He shared that “where immune health is concerned, this rises to 78 percent, while ‘clinically proven’ is the most sought-after claim for more than 80 percent of consumers. This echoes Kerry’s own research, which has found that 79 percent of consumers research ingredients for themselves.”

It is increasingly important to be able to provide high-quality research supporting the efficacy of the ingredients in your products, Kelly continued. Consumers are becoming much more discerning about which ‘healthy’ ingredients are actually supported by science. “Our own research last year showed that 79 percent of consumers say they conduct their own research into ingredients. Formulators need to ensure functional ingredients match expectations because, in the digital era, information travels fast,” he said.

Functional tea manufacturers agree that the science behind the offered functional ingredients remains the key to winning customers’ hearts.

Image: Smith Tea

“People are looking to improve their own health and well-being through the ever-increasing choices available in an expanding market,” commented Anish R Patel, a spokesperson for the UK-based functional tea manufacturer NutraTea Ltd. “Our NutraTea blends are created using only ingredients that have known health benefits, and nothing else.

The 8.8 percent increase in herbal tea consumption up to last year demonstrates that the market is on the rise, showing how the public is becoming more health conscious. This is especially true of the relaxation and pregnancy sectors where we have seen an evidential increase in demand for our products, Patel said.

“What sets apart the ingredients in our ProActive Health portfolio is the quality and quantity of the science supporting them. For example, BC30 TM, our patented probiotic ingredient, is backed by over 25 published papers, with research showing that it can help support digestive health, immune health, and may support protein absorption. Similarly, Wellmune® is the only ingredient of its kind supported by over a dozen published, peer-reviewed clinical studies,” Kelly said.

Stress-relief & immune-boosting teas are top performers

Different market players focus on their own niches, but the general consensus is that functional tea helps mitigate stress and fortify the immune system.

Stress relief, sleep aid and immune boosting features are key trends in the functional tea market for the future, Lim pointed out.

“With the stresses of everyday life, consumers want an easy way to support their wellness goals, and the demand for wellness teas will continue to increase,” commented Niya Vatel, founder and CEO of Tea and I, who also underpins the importance of the science behind the offered products.

“Social media and technological integrations have played a pivotal role in propelling the industry forward, attracting a fresh wave of functional tea enthusiasts from a younger demographic. As a result, the market has experienced a significant boost. Influencer marketing has amplified the popularity of wellness teas beyond the detox and weight loss niche,” explained Vatel.

Covid-19 undoubtedly was the main factor driving the consumer demand in the functional beverage market. Although the pandemic is officially over, its aftermath is still present.

“The big ‘mega-trend’ is increasing consumer proactivity when it comes to health and an active interest in everyday beverages as the vehicle for benefits. This has undoubtedly been accelerated by Covid-19,” Kelly said.

One of the findings of Kerry’s most recent global consumer survey was the increased scale of the impact of the pandemic on the demand for everyday beverages with functional benefits. Teas benefit from this demand as teas have a traditional positioning as wellness beverages.

“Their benefits in areas like stress relief have been enjoyed by people for thousands of years and are supported by a wealth of science. This inherent ‘health halo’ makes tea a great fit for functional products because consumers are most likely to expect benefits in categories that are traditionally associated with health,” Kelly said.

The list of reasons why customers opt for functional drinks is long. One study by Kerry, for instance, discovered both men and women attribute beauty support as the top reason they consume beverages with high nutritional value and are willing to pay a premium even amid global inflation. Men and women are both drawn to gaining beauty support from fortified beverages.

Image: Kerry

Skin is the top concern, with 51 percent when it comes to purchasing beverages fortified with nutrients. Skin support was essential to 58 percent of women versus 44 percent of men globally, revealing a small gender gap regarding the interest in beauty support.

Immune support, adaptogenic teas, and functional herbal blends are currently the main segments in the functional tea market, according to tea and herbal supplier, Hälssen & Lyon. The German-based company stated that “consumers are seeking beverages that offer health benefits beyond hydration, making functional and wellness teas an appealing choice. As consumers look for ways to proactively manage their health, functional teas, which are attributed to various health benefits, such as immune system support or stress reduction, are in high demand. The ageing population also contributes to this but is more focused on maintaining health and vitality.”

Emerging segments

The functional tea market is also expected to evolve fast, especially as the science behind more ingredients becomes increasingly convincing.

Hälssen & Lyon, for instance, expects nootropic teas to be among the fastest-growing segments in the following years. Nootropics are substances believed to improve cognitive function and may be included in tea blends. Ingredients like ginkgo biloba, lion’s mane mushroom, and adaptogens may enhance mental clarity, focus, and memory.

In addition, the company anticipates strong demand for plant-based functional ingredients, and sustainability and regenerative agriculture will stay at the centre of public attention.

“Immune-boosting tea continues to remain relevant for consumers, especially with many unknown diseases expected in the future. With features such as vitamins and botanicals like ginger, this serves to strengthen consumer’s immune system and protect them from infections,” Lim said.

New technologies also let tea manufacturers explore new niches. Probiotics are a particularly exciting area, partly because of the growing awareness of their benefits but also because the emergence of spore-forming strains has created opportunities for tea manufacturers to create innovative new functional products, Kelly said.

Market Research Future reported that a collaboration between functional tea manufacturers, ingredient suppliers and retailers foster innovation and market expansion, noting these collaborations enable knowledge sharing, distribution network enhancement and the development of new product lines, ultimately benefiting both industry participants and consumers.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industry since 2012.

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Throat Coat Tea is a herbal tea blend that supports throat health and relieves irritation and discomfort. Crafted by a team of herbalists, chemists, and ethnobotanists, this tea harnesses the benefits of the slippery elm tree, which has played an important role in Native American herbal medicine for hundreds of years. Inspired by its traditional use, Traditional Medicinals has sourced slippery elm domestically for almost 50 years from Appalachia, where families collect the bark sustainably by hand to protect the trees for future generations. Featuring organic licquorice root alongside the organic slippery elm bark, this tea is silky, sweet, and caffeine-free, says the company.

“Warm liquids can be soothing, and this blend from Traditional Medicinals is designed to support throat health. It smells sweet and like licquorice. It’s also slightly woody. It’s organic, and the brand is B-corp certified,” said Good Housekeeping’s team of experts.

The team at Good Housekeeping spent months reviewing 300 kitchen, coffee, and tea products to determine the best of the best. The in-house team of Kitchen Appliance Lab analysts, Test Kitchen pros, and registered dieticians teamed up with judges Kaleena Teoh, the co-founder, and director of education at Coffee Project New York, and tea sommelier Gabrielle Jammal—plus more than 1,000 consumer testers—to find the most innovative, high-performing products on the market right now.

“We are thrilled that Throat Coat has received this well-deserved recognition. The dedicated experts at Good Housekeeping have wholeheartedly endorsed it as a warm, invigorating, and efficacious tea,” said Kristel Corson, Chief Marketing Officer of Traditional Medicinals. “Throat Coat has seamlessly woven itself into the daily rituals of countless individuals, be it as a soothing start to their mornings, a comforting companion to their bedtime routines, or an essential travel companion. Singers, announcers, podcasters, teachers, and a diverse range of professionals all rely on the soothing benefits of Throat Coat.”

Throat Coat tea is made with organic and non-GMO ingredients, free from synthetic pesticides, herbicides, and genetically modified organisms for a healthier and more sustainable choice. It is individually wrapped and requires just boiling water to steep a restorative and delicious cup of tea. The herbs are thoroughly tested from field to cup to ensure ingredient identity, purity, and composition at our local renewable energy-powered facility in Sebastopol, California.

*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

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With corporations beginning to grasp that sustainability and corporate social responsibility (CSR) are important to customers and for the long term future of businesses, company claims of achievements and action plans are everywhere, alongside, of course, accusations of greenwashing. Which is why it is increasingly important for businesses to have certifications against their claims, to enlist consumer and stakeholder trust. Whether it be Fairtrade, Rainforest Alliance, organic, B Corp, non-GMO or vegan, consumers and company partners are looking for the certification labels, especially within the tea and coffee industry.

Certifications are notably prolific in the tea and coffee value chains. With 17 percent of tea, globally, certified Fairtrade, organic or Rainforest Alliance, and 25 percent of global coffee certified by these or similar schemes, according to Ethical Consumer (ethicalconsumer.org). This may be due to the fact that many tea- and coffee-producing areas are in developing countries, as well as the way in which both products are marketed to consumers; the origin of the tea and coffee is often one of its main selling points and helps the consumers build a narrative of the product before deciding to make the purchase. By instilling this focus and painting a picture of where the tea or coffee grew and was farmed, it is natural for consumers to want to imagine it with fair working conditions, nature friendly processes and beneficial to its local area, socially and environmentally. Amanda Archila, executive director, Fairtrade America, explained, “Coffee and tea are two critical commodities for Fairtrade. Globally in 2021, Fairtrade worked with 872,916 coffee farmers, and 400,402 tea farmers and workers. Premiums earned across coffee and tea amounted to over USD $102 million. We partner with traders, roasters, brands, and retailers around the world to ensure Fairtrade is easily accessible to consumers.”

As one of the biggest players in the tea and coffee certification field, Fairtrade as an organisation facilitates equitable and sustainable trading for producers in developing countries, working with co-operatives, businesses and governments. It does this by enforcing a Fairtrade Minimum Price for when the market price drops, as a safety net for producers, as well as an additional fixed Premium payment to be paid on top of the market price, to be invested in producers’ local communities.

It is an organisation and certification that is seeing a lot of growth; “The number of certified tea farmers in the Fairtrade system has been gradually increasing over the past few years: up to 347,000 in 2021 compared with 319,500 in 2019, in diverse origins,” commented Amy Collis, senior sustainable sourcing manager, Fairtrade Foundation.

Archila added that recognition among consumers has also increased: “Since 2019, recognition of the Fairtrade label has jumped by 118 percent among US shoppers,” demonstrating the building consumer interest in certified products. Archila continued, “Gen-Z shoppers showed the highest increase in recognition of the Fairtrade label among all age groups: 18-24 year olds who recognised the mark jumped by 121 percent, from 33 percent in 2021 to 73 percent in 2023. And millennial shoppers (25-34) are the most frequent purchasers of Fairtrade products.”

Archila agreed that “in the broader world of sustainability products, consumer awareness is definitely in the mainstream. Eighty-six percent of shoppers recalled seeing a sustainability or ethical label on a product while shopping. We also see this consumer connection to sustainable and ethical products growing stronger in the future.”

While the Fairtrade certification is seeing growth worldwide, Collis explained that the UK is currently the biggest market for Fairtrade tea, holding a share of 62 percent of Fairtrade tea sold globally. Collis said this was due to strong commitments from retail partners, “with Marks & Spencer, Waitrose and Co-op all having a 100 percent Fairtrade commitment on tea and coffee.”

Image: Kloth & Köhnken

Duncan Gray, head roaster and managing director, Bay Coffee Roasters, a west Wales, UK -based roastery, explained why the Fairtrade certification is important to his company: “Fairtrade is often far more than paying a good price to the farmer and also their workers, many of the Fairtrade cooperatives that we have worked with have community initiatives providing training and education for the families, health care and often other improvements to the local area.”

Consumers embrace organic

Bay Coffee Roasters’ other major certification that it champions, is organic, which often goes hand in hand with Fairtrade, with “over 50 percent of Fairtrade farmers [choosing] to go organic: tea, coffee, chocolate, bananas and cotton are among the products carrying dual Fairtrade and organic certification,” said Collis, as they both call for sustainable farming practices. “The nature of organic farming where farmers cannot rely on chemicals means that they generally have to care for their land, respecting its bio diversity and farming in a more sustainable way. Organic certification means that the farmers have to keep to their word,” said Gray. With organic farming, the emphasis is on techniques such as crop rotation, biological crop protection, green manuring and composting, and different regions have their own organic certifications, such as the EU and USDA Organic.

As discussed in ‘The Balance of Organic’ feature in the Tea & Coffee Trade Journal October 2023 issue, the organic market is seeing growth, with the tea market holding a value of USD $1.24 billion as of 2023, with a CAGR of 8 percent through 2033, while the organic coffee market estimates are even higher with a CAGR of 12.5 percent until 2028, according to market research companies FMI and Mordor Intelligence. Organic products are not only perceived as better for the environment and for the producers by the consumer, but they are also believed to be healthier, with less chemicals needed to grow and process them.

Gray added that they even have some customers who will buy only organic coffee, and whether that be for sustainability, ethical or health reasons, it is clear it is something that is important to many customers, or at a minimum regarded highly and as a bonus to their purchases.

Organic tea is something that it is ingrained in Kloth & Köhnken’s (K&K) identity, explained Sandra Nikolei, tea department/corporate social responsibility at K&K; “Organic farming can result in a better taste of a product as the plant grows slowly compared to most conventional products.”

Nikolei added that they are seeing much interest from their customers for organic products, but also for Rainforest Alliance-certified products. Rainforest Alliance, an even bigger scheme than Fairtrade and which now includes the UTZ label, is another non-profit organisation that promotes responsible business practices and strives to improve producer livelihoods and communities, especially in the face of the climate crisis. It does not do this with fixed pricing structures, but rather through policing production.

Image: Rainforest Alliance

“As we approach 2030 – a year experts mark as the potential point of no return – we must respond with unparalleled speed and scale to shift the course of sustainability transformation,” said Rainforest Alliance CEO, Santiago Gowland, “The hard truth is that the old sustainability models are good but not good enough.” The Rainforest Alliance certification has been going for 35 years, and, as of December 2022, has since achieved sustainability projects and certified farmers in 58 countries, worked with over 6,000 companies, and made Rainforest Alliance certified products available in 190 countries.

B Corp on the rise

Another major certification that is rising to the forefront of the tea and coffee industry, indeed most consumer industries as a whole, is B Corp. For a company to achieve B Corp certification, it must be verified by the ‘B Lab’ organisation, to “meet high standards of social and environmental performance, transparency and accountability,” B Lab explained. There are B Labs across the world, including UK Australia, East Africa, Europe, and North and South America, with 6,800 B Corp certified companies across 89 countries and 161 industries.

Duncan Gray that becoming a B-Corp is next on Bay Coffee’s agenda to achieve, joining the many tea and coffee companies certified as B Corps, such as Nespresso, Pact Coffee, English Tea Shop, Bigelow, and Pukka Herbs to name a few.

The cost of certifications

Many companies, including Bay Coffee and K&K, hold multiple certifications, particularly if they have a strong international presence as different certifications are more popular in different regions. K&K for one, lists Fairtrade, Fair Trade USA, Bio EU (organic), Bio Suisse organic, USDA Organic, Rainforest Alliance, FairBioTea, and kosher, among theirs.

Different certifications cover different areas and demand different requirements from companies, so perhaps the more the better, it could be argued. There is such a variety of certifications available, many much smaller than the ones listed here, and it comes down to a company’s specific operational practices, locations, and community needs as to what certifications will have the largest impact on its environmental and social undertakings. However, it is the big names such as Fairtrade, Rainforest Alliance, organic, and B Corp that seem to be major drivers of consumer and customer interest and purchases.

Image: Bay Coffee Roasters

But there are also a lot of conversations around certifications in relation to pricing and verification. Consumers realise that they will likely pay more for certified products than they do for those without certifications. “For a pound bag of coffee, shoppers said they were willing to pay a price premium of up to 35 percent more for certified coffee over uncertified. Nearly four in five consumers said they were willing to pay more for a product to ensure that producers received a fair price,” explained Archila.

While it is understandable that there must be additional costs to ensure the producer is receiving a fair price, it does mean the more price sensitive consumer may struggle to choose the ethical option when making their purchasing decisions. This allows the mass produced and possibly unethically sourced tea and coffee companies to keep a sizeable share of the market. Collis detailed that “Fairtrade-certified organisations sell only around 4 percent of their tea on Fairtrade terms – this means they don’t benefit from being certified to the extent that they could. When shoppers choose Fairtrade tea, tea producers can sell more of their product on Fairtrade terms.”

So, while there is growing demand for certified products, and a certain amount of consumer willingness to pay extra for them, there may not be enough for producers to justify the additional expense if it is not being bought from them at the certified price.

Certifications are costly for the producer as well as sometimes for the consumer. “Significant commitment is needed from producers to achieve and maintain compliance with the Fairtrade Standards: but it isn’t always feasible for producers who are facing other challenges, such as rising costs of inputs, low market prices and the effects of climate change,” said Collis. Likewise with organic, there is a conversion phase where anything grown cannot be sold under the organic title with the benefits that come with it, until the transition is complete, and no compensation is offered for the expense or yield loss.

K&K is proud of its certifications and recognises their value, but also their limitations; “Certifications are necessary to help to make the world a better place. But often they are too cost intensive and too difficult to implement, for farmers, small businesses and for start-ups. They should be less complicated and should focus on an easy way to make changes. Imposing the same requirements on everyone in this world and origin is, from our point of view, unfortunately very European and unidimensional. It should be more individually adaptable. Many certificates are too bureaucratic and rigid,” explained Nikolei.

Therefore, while they are an important mark of credibility and of good intentions to inform consumers, having certifications is not the only nor final step to sustainability and ethical business practices. “Certification can only ever form part of a company’s sustainability efforts,” articulated Collis, they do not “replace the duties of state or business actors with respect to human rights or sustainability.”

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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Jordan Moore, director, emerging beverages at market research firm, NIQ Consumer & Category Outlook, noted that, although inflation may be decelerating, prices are still trending higher. In fact, CPG inflation has been well above the general inflation average in the US. “Consumers are feeling the pinch, with buying power significantly eroded,” she said, adding that consumers are spending 33% more at the grocery in the past 3+ years.

Any growth is largely inflationary as dollar growth is slowing, and shipments are down, but costs are higher. Tea volumes have been affected by the double-digit price increases. “RTD tea is still outperforming packaged tea, both black and green, with green experiencing the largest drop,” said Moore.

Gary Hemphill, managing director of research at the Beverage Marketing Group, echoed Moore’s comments, explaining that after the pandemic, consumer confidence dropped sharply. “US beverage market growth has been soft in 2022 and 2023 after a pandemic-induced performance rebound in 2021. Revenues have generally outpaced volume growth — a trend that has accelerated since 2021 due mostly to high inflation.”

Refreshment beverages have outperformed the overall beverage market, but volume performance has been soft the last two years, with most refreshment beverage categories experiencing slower growth in 2023. Hemphill said that the total tea category has been soft in recent years as the overall category has experienced modest declines. RTD tea returned to volume losses in 2022 and 2023, after pandemic recovery-based growth in 2021, but he shared, “the category remains well-positioned from a health and wellness perspective.”

It’s not ‘new’ news to say that health and wellness are key market drivers. Hence, beverage categories with health wellness attributes are outperforming those without. “People want healthier refreshment; caloric intake from refreshment beverages has been steadily declining over the last decade,” Hemphill commented, noting that “the diet segment of RTD tea is one of the best developed in all liquid refreshment beverage categories because it also includes unsweetened product.”

As consumers migrate to healthier options, they want more variety, and RTD tea offers that. The bulk of the RTD tea category is comprised of mainstream brands – PepsiCo/Lipton, Arizona and Coca-Cola are the leaders in the RTD tea category with the three combined accounting for more than half of the RTD category – however, both premium and specialty tea have made slight share gains in recent years, as more innovation is coming at the high end of the market.

“Innovations have played a key role in RTD tea, although much of the recent innovation has been in tea-adjacent categories,” Hemphill explained. “Much of the growth of RTD tea has been hived off into separate categories such as kombucha and mate/guayusa, but there are also other attempts at innovation such as cold brew and even herbal tea-based wellness soda.”

He noted that increasingly, there is an overlapping of alcohol and no-alcohol categories. “RTD tea is no exception, providing the foundation for alternative adult beverages such as hard teas and cannabis-infused tea drinks.”

Hemphill stressed that competition in refreshment beverages is fierce with innovation coming from within categories along with new categories emerging.

Beverage-wise, consumers have more than ever to choose from, so for RTD tea to successfully compete, brands must remain innovative and continue to meet consumers’ changing demands and needs.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Tea already has a ‘health halo’ with 54% of UK consumers believing that green tea has a positive impact on their health (per GlobalData Plc, 2022). Functional teas take this one step further and combine tea with botanicals and fortifications to offer a specific benefit and create products that deliver a compelling health proposition for consumers.

Super teas arrived in the UK in 2015 when Tetley brought out the first ever range of EFSA (European Food Safety Authority) backed Super Green and Super Fruit teas. This paved the way for other brands and supermarket own brands to capitalise with new products being put on the supermarket shelf at a faster rate than in any other tea sector.

And it’s not just physical health — post Covid, consumers are increasingly seeking products that promise psychological or emotional benefits too. Claims relating to sleep or stress management attract the most activity, with one in ten new products using these claims according to Mintel’s Tea and other Hot Drinks Report, 2022.

How can brands capitalise?

The key to capitalising on this trend is for retailers and brand owners to understand the top claims and flavours that appeal to consumers. The traditional black tea market is still significant with over 85% share, but consumers are seeking variety when shopping this category and have a higher preference for healthy beverages than ever before. With a slightly higher price premium than other ‘tea’ products, not only do functional teas add choice to the fixture, but they also help to drive value into the category.

What’s next for functional tea?

In my view, this is just the start of the super tea trend. As consumer tastes evolve and demand for functional food and beverage heightens, there is huge opportunity for retailers to increase sales by looking beyond what is happening now and asking what will happen next. Tea – with its health halo – will be a mainstay, as will botanical infusions… but inspiration can be found in other categories and markets, where emerging ingredients such as mushroom tea, protein tea and adaptogens like ashwaganda are increasingly popular.

The key, as ever, is to join forces with an expert partner, who can help you stay ahead of the curve and tap into the extremely exciting opportunities within the functional beverage space.

• Rebecca Coath, category manager at Finlay Beverages, analyses the rise of functional teas in the UK and where the trend might be going next.

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Convenience may be a catalyst for RTD tea sales, but the category in North America is also benefitting from continued innovation, expanding flavours and, of course, meeting consumer wellness demands for healthier options. By Shambhu Nath Jha

In 2023, the global market for ready-to-drink tea is assessed to hold a valuation of USD $34 billion, with a projected growth trajectory at a compounded annual growth rate (CAGR) of eight percent from 2023 to 2033. Rising consumer preference for convenient and on-the-go beverage options align with the hassle-free nature of ready-to-drink teas. As per global market research firm, FactMR, the market is segmented by product type (herbal, black tea, green tea, others), by sales channel (direct sales, indirect sales), and by region (North America, Europe, Latin America, South Asia and Oceania, Middle East, and Africa).

RTD tea sales in North America

In North America, the ready-to-drink tea market holds a significant portion of the total market share, amounting to 32.2 percent, and is projected to experience a CAGR of 5.6 percent. In North America, convenience and health-consciousness drive the demand, with consumers valuing portable, on-the-go options and seeking beverages with perceived wellness attributes.

Moreover, increasing awareness of health benefits associated with tea consumption, such as antioxidants and potential stress reduction, has driven health-conscious consumers towards these products. Besides this, innovations in flavours and packaging formats further attract a broader consumer base.

Ultimately, the trend towards natural and organic ingredients in beverages has led to the development of healthier ready-to-drink (RTD) tea options, appealing to a segment seeking more wholesome choices. The RTD market in North America has experienced substantial growth and continues to evolve due to other factors such as:

• Shift away from sugary beverages: Concerns about sugar consumption and its impact on health have led many consumers in North America to opt for RTD beverages as an alternative to sugary sodas and juices. Moreover, the rising rates of obesity in North America have drawn significant attention from healthcare professionals, policymakers, and the general public. Sugary beverages, including sodas and fruit juices, have been identified as a major contributor to excess sugar and calorie intake, making them a target for reduction.
• Diverse flavour profiles: North America October 2023 is a melting pot of cultures and ethnicities, and as such, it boasts a highly diverse population with varying taste preferences. People from different backgrounds have grown up with distinct flavour profiles and culinary traditions. RTD brands recognise this diversity and seek to tap into the various regional and cultural tastes prevalent in the market.
• Premiumisation is on the rise: The concept of premiumisation in the North American RTD beverage market refers to the growing trend where consumers are willing to pay a higher price for RTD options that are perceived as higher in quality, and uniqueness, and often associated with artisanal, small-batch, or organic production.

While TAZO is known for its hot tea offerings, it has also ventured into the RTD market. Image credit: Unilever

Forecast trends for North America

The evolving landscape of the RTD tea market in North America reflects consumer preferences for health, sustainability, personalisation, and diverse flavour experiences. It is important for businesses in this industry to stay attuned to these trends and adapt their strategies accordingly.

Consumers in North America are expected to seek out RTD teas that offer functional benefits, such as probiotics, adaptogens and added vitamins or minerals, to support overall health and wellness. Functional ingredients like probiotics for gut health, adaptogens for stress relief, and added vitamins or minerals for overall wellness are expected to be sought after.

Moreover, as the beverage landscape evolves, RTD teas may overlap with other categories like functional beverages, herbal tonics and wellness drinks. This trend suggests that consumers may have access to a wider range of beverage options with diverse health benefits. The boundary between traditional RTD teas and other beverage categories (functional drinks, herbal tonics, and wellness beverages) is expected to blur, leading to a greater variety of hybrid products.

RTD teas with specific health-enhancing properties, such as those promoting gut health, reducing stress or boosting immunity, are anticipated to gain popularity among consumers looking for functional and health- conscious beverage choices. Moreover, caffeine- free and low-caffeine options address the increasing demand for beverages that provide an energy boost without the stimulating effects of caffeine. RTD teas with low or no caffeine content cater to consumers seeking alternative options to high-caffeine beverages.

RTD tea companies are anticipated to introduce a wider range of unique and exotic flavours, as well as explore innovative brewing techniques and herbal infusions to cater to diverse consumer preferences. It lends into consumers’ desire for diverse and exciting taste experiences. Advancements in brewing techniques, including cold brew, nitro-infusion, and tea concentrates, are reshaping the RTD tea market by offering consumers a wider spectrum of taste experiences and product choices. These innovations cater to the evolving preferences of consumers who are seeking unique, high- quality, and customisable RTD tea options, contributing to the continued growth and diversification of the RTD tea industry.

The RTD tea market in North America, although growing, faces several challenges that industry players need to address to maintain and expand their market share. Some of the key challenges include:

• While RTD teas are often marketed as healthier alternatives to sugary soft drinks, they still face scrutiny over their sugar content, artificial additives and preservatives. Consumers are increasingly health-conscious, and brands must respond by offering low-sugar, natural ingredient options and transparent labelling.

• Environmental concerns, such as plastic waste and the carbon footprint of packaging and transportation, are critical challenges. RTD tea brands are under pressure to adopt sustainable packaging practices, reduce plastic usage, and implement eco-friendly distribution methods.
• Many consumers are not fully aware of the benefits of RTD teas, including the potential health benefits associated with certain types of teas (eg, green tea) and functional ingredients (eg, antioxidants). Brands must invest in consumer education to highlight the value and nutritional advantages of their products

Starbucks’ Teavana Craft Iced Tea line focuses on high- quality, handcrafted tea beverages. Image credit: Starbucks

An intensely competitive market

The RTD tea market in North America is characterised by intense competition among a diverse range of players. Established beverage giants, as well as smaller regional companies, vie for market share in this segment. Key companies in the market are Danone, Harney & Sons Fine Teas, Nestlé SA, Snapple Beverage Corp, Starbucks Corporation, Beam Suntory, Inc, Tata Consumer Products Ltd, The Coca-Cola Company, The Republic of Tea, and Unilever Plc.

• Key players often focus on product innovation and diversification, introducing new flavours, formulations, and packaging to cater to evolving consumer preferences. Moreover, new flavours and formulations cater to diverse consumer tastes, ensuring that the product portfolio remains fresh and appealing. Innovative packaging not only enhances product shelf appeal but also improves convenience, such as resealable bottles or eco-friendly packaging options.
• Competitors in the market focus on marketing strategies that include social media engagement, celebrity endorsements, and health-focused campaigns to differentiate brands and attract a wider audience. Given the growing consumer interest in health and wellness, many RTD tea brands emphasise the health benefits of their products through advertising campaigns. This includes highlighting ingredients like antioxidants, vitamins, and natural ingredients that promote well-being.
• Distribution networks also play a pivotal role, with companies leveraging both traditional retail channels and e-commerce platforms to ensure widespread availability. The rise of e-commerce has revolutionised the way consumers purchase beverages. Many RTD tea brands establish an online presence through their websites or partner with online retailers to provide easy access to their products. This is especially important for reaching consumers who prefer shopping online or those in areas with limited physical retail access.

Some examples of the leading brands in the North American market:

• Pure Leaf, owned by PepsiCo: offers a wide range of RTD tea products. It continuously introduces new flavours and blends, such as its Pure Leaf Herbal Iced Tea Collection, featuring unique herbal infusions like hibiscus, chamomile and peppermint.

• Teavana Craft Iced Tea (Starbucks): Starbucks’ Teavana Craft Iced Tea line focuses on high-quality, handcrafted tea beverages. It has introduced unique and innovative flavours, including Teavana Craft Iced Tea Pineapple Berry Blue Herbal Tea.
• Tradewinds (NestléWaters): Tradewinds, a brand under Nestlé Waters, specialises in specialty RTD teas. It has introduced unique flavour combinations like Tradewinds Slow Brewed Iced Tea with Honey and Ginseng.
• TAZO (Unilever): While TAZO is known for its hot tea offerings, it has also ventured into the RTD market. Its bottled TAZO Tea Latte range offers consumers a unique and convenient way to enjoy specialty tea beverages.

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While organic tea and coffee has been readily available on the market for some time, the category has seen, and is expected to see, continued growth as more consumers opt for products, they believe to be more sustainable and even healthier for them, and producers seek to improve their sustainability credentials and market positioning.

Nandini Roy Choudhury, client partner of food & beverages at global market research firm, Future Market Insights, writes in a report that the organic tea market holds a value of USD $1.24 billion in 2023, and is expected to reach a value of USD $2.69 billion by 2033, at a CAGR of 8 percent during the forecast period. Meanwhile, the organic coffee market has a projected CAGR even higher, at 12.5 cent for the forecast period 2023 to 2028, according to a report by Mordor Intelligence.

Consumer interest in organic tea and coffee has been gaining especial traction since the pandemic, when wellness became a priority, and organic is often believed to be a cleaner and healthier option over regular products, due to the lack of chemical fertilisers and pesticides. The sustainability benefits are also undeniable and consumers are seeking to make more mindful and conscious purchasing decision. Meanwhile, producers are heeding to this consumer pressure, and wanting to offer tangible sustainability claims to differentiate themselves from their competitors, and perhaps even justify a higher price point of their product.

Image: Equator Coffee

In terms of consumer demand and purchasing of organic tea and coffee, the geographical distribution is similar, with Europe dominating, particularly Germany, France, and the UK, according to FMI, and North America seeing similar figures in both organic tea and coffee. In organic tea specifically, parts of Asia, including China, are witnessing significant growth in consumption, said a spokesperson from Hälssen & Lyon. Whereas in organic coffee, global insights firm, Mordor Intelligence revealed Latin America is seeing the fastest growth.

Notably, the biggest producers of organic tea are similar to the biggest global producers of tea in general, countries such as China and India, however, the case is not the same for organic coffee. Samuel Klein, green coffee buyer, Partners Coffee, explained that, while Brazil produces a third of the world’s coffee, “Only a handful of Brazilian exporters are offering certified organic coffees.”

Ted Stachura, director of coffees, Equator Coffees, concurs; “Although there is some organic coffee cultivation in Brazil, Vietnam, and Colombia, the world’s largest coffee-producing countries are not typically associated with organic production.” This is largely due to growers in such countries producing coffee on a mass scale, and the farming methods necessary to do so. Smallholder farms using semi-forested coffee cultivation, are often organic by default, in countries such as Ethiopia, Peru and Mexico, said Stachura, as well as Honduras, Guatemala, Rwanda, Burundi, and Uganda, added Klein.

Organic farming is broader and more thorough than a lot of consumers realise; it is about more than just limiting or eliminating chemical fertilisers, herbicides and pesticides. “Consumers who support organic farming practices are voting to not support the petrochemical industry. Producing chemical-based fertiliser has a negative environmental impact,” detailed Stachura. “Shipping these fertilisers internationally, as coffee producing countries typically do not produce this kind of fertiliser, incurs added environmental costs. Handling chemicals poses potential health risks to farmers and, in situations where producers lack training, application of too much fertilisation may result in runoff of these chemicals making its way to water sources.” The soil itself benefits from the lack of chemicals in the long term, increasing its biodiversity, structure, fertility, and resilience to environmental influences, leading to healthier eco systems.

“Organic farming also has the potential to sequester carbon dioxide in the soil,” noted Hälssen & Lyon’s spokesperson, “This can contribute to mitigating climate change by reducing greenhouse gas emissions.”

Organic’s financial & health benefits

Choudhury stated that consumption of organic beverages can help to support farmers on a smaller scale, in addition, “Sales of organic tea are projected to have a higher price realisation thereby improving the socio-economic situation of tea producers.” The organic certification encourages and even necessitates fairer, safer and more equitable trading for the producer that supports the tea or coffee growing community.

Further, there are evolving beliefs, especially among consumers, that the lack of chemical agents in the process results in a healthier product. “The reduction in chemical residues in organic food may result on long-term health benefits by lowering the potential risks associated with pesticide exposure,” explained Hälssen & Lyon’s spokesperson.

Image: Partners Coffee

The health claims for organic produce are still evolving, especially within the tea segment, with Choudhury stating that “compared to traditional black tea, organically cultivated tea contains more catechins such as epicatechin gallate, epigallocatechin gallate, and epicatechin.”

Roadblocks to organic production

So, if there are all these benefits to the environment, to the producer, the consumer, then why aren’t more tea and coffee companies producing organic? As with such things, the reason is multifaceted. Broadly, it is more expensive, both for the producer and consequently the consumer. The requirements and inspections for the certification are demanding, and costly, and it is by no means a quick or simple switch.

Partners Coffee’s Klein explained, “It begins with a multiyear period where no prohibited fertilisers, fungicides, or pesticides may be used. During that time the farm must develop and implement a documented plan to fertilise and treat the plants with organic inputs.” Throughout this conversion phase, any coffee (or tea) that is grown and produced must still be sold without the organic title, as the transition is not fully complete, with no compensation for the expense of the process or of lost yields.

Spencer Turer, vice president, Coffee Enterprises, added, “when organically grown coffees are not able receive the premium prices for the certification and are sold as non-organic coffee due to quality issues or reduced demand, the expense of producing the organic certified coffee is changed from an actual return on investment ratio to an outright business expense for meeting the social, environmental, and ethical standards of the producer.”

Lower yields are a common side effect of organic farming, especially in the short term, “as organic practices may not provide the same level of nutrient supply or pest control,” said the spokesperson from Hälssen & Lyon, resulting in additional unit costs of production. However, she also suggested that there have been successes where organic sections of farms have outperformed conventional sections, four-to-one, because the soil was more nutrient-rich and microbiologically diverse. But this is a long-term result that doesn’t offer immediate help to farmers in the short-term making the switch.

The added expense of the initial reduced yield is only the beginning, revealed Klein, “After coffee is picked there are strict handling requirements at virtually every stage of production. Different milling and eventually roasting equipment, or costly purge batches, must be used, followed by meticulous cleaning practices. Coffee must be carefully separated and documented with every movement, then production records must be audited frequently to identify accidental contaminations.

“The outcome of all of this is that, in most situations, producing an organic-certified coffee requires more labour and greater expenses while introducing new risk in terms of yields and pest management.”

The higher risk and expense for the producers, translate to higher prices for the consumer, which serve as a barrier for many, especially the price conscientious, and especially when inflation and the cost of living is soaring in many parts of the world.

“Many consumers and businesses demanding certified organic coffees expect them to be price competitive with the cheapest conventional coffees, which is unrealistic. I think for some customers it’s easy to justify a higher price because the value add is more obvious, but unfortunately, I think it means the quality of organic coffees on the market generally tend to be lower to compensate for price sensitive customers,” argued Klein.

Image: Equator Coffee

However, despite organic teas and coffees generally having a higher price point, they are both growing markets with burgeoning consumer interest. Even if consumers do not fully understand the complexities of the organic certification undertaking, they know it is better environmentally, often in quality, and possibly for their health too, so they know there is additional benefits that they are paying that bit extra for. In Turer’s judgement, “the price barrier [only] exists when the quality of the organically certified coffee, specifically the flavour, does not meet the value expectations of the consumer.” In other words, if a consumer purchases organic coffee or tea, and they experience good quality and taste, as well as the moral and environmental associations, then there is value for the money.

Do the benefits outweigh the challenges?

It could be argued that governing bodies ought to be doing more to support organic farming, to take some of the risk and cost off of producers and subsidise the products for consumers. Stachura believes that “governments in affluent coffee-consuming nations have the capacity to play a significant role in supporting and advancing regenerative organic farming practices,” and, perhaps, have the responsibility to do so if their country is the big consumer of that product in particular.

Klein feels, however, the argument that “economic stability and mobility for smallholder farmers is more urgent. I would like to see the two things promoted and supported in tandem.” He continued, “If organic production can support and increase farmers’ livelihoods, it’s absolutely a win. But if it reinforces an exploitative price structure, or expects farmers to bear unsustainable levels of risk, I think that’s a problem that needs to be confronted.”

While there is no doubt that organic farming is beneficial in so many ways, there must be support and incentives for tea and coffee farmers to make that switch for it to be viable to more than just the larger, commercial producers. But there are ways in which this can be mitigated. “Collaboration and innovation in the entire supply chain is key for helping to make organic tea more accessible and affordable for everyone involved,” explained the spokesperson from Hälssen & Lyon.

Not only can farms share knowledge and best practices, but share the costs of certification, particularly for smaller coffee or tea producers, among nearby farms. Klein also added that this challenge presents the opportunity for agricultural innovations. “People [are] learning new techniques of soil management or crop diversification specific to their farms which can improve yields with no or few synthetic inputs. If that innovation continues and expands, we might see significant improvements in the quality of organically produced coffees.”

There may still be challenges for organic farming, but they are seemingly worth confronting as the market reports demonstrate there is clear consumer demand for organic tea and coffee. Consumers may even be willing to pay that bit more for the certified products as it allows them to have a small part of environmental agency and responsibility over the way in which the products they buy are grown and produced. Stachura concluded, “As the world’s population grows, and the demand for food, including coffee, embracing organic and regenerative farming practices becomes imperative for human survival.” Therefore, we must continue to look for ways in which it can be remunerative, accessible, and equitable.

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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There were ample exhibitors from across the speciality food and beverage sphere, from chocolate, cheese, spirits, and of course a sprinkling of speciality tea and coffee companies.

The ground floor was largely made up of more established companies, such as the English Tea Shop, a partner of the event, which, like almost all the companies exhibiting, had samples on hand for inquisitive visitors. Venturing upstairs I came across a couple of coffee roasters: Wales-based Bay Coffee Roasters had a great selection of its coffees on display, including project specific blends and roasts, and Rounton Coffee Roasters, who were sporting recent Great Taste Awards for six of its specialty coffee products, including two stars for Sparkling Water Decaf Coffee and Colombian Wilton Benitez Pink Bourbon Coffee.

It was also a pleasure to meet some of the many smaller, newer companies at the show many of which were part of The Start-Up Village, comprising companies trading under two years. QuirkyMonkey was launched only in November 2022, and came to the Speciality & Fine Food Fair to display its nootropic mushroom coffees, as well as its recently introduced mushroom hot chocolate. Darwin Fletcher, QuirkyMonkey’s founder, developed the idea for the company after discovering how nootropic drinks could support his focus throughout the day with his neurodiversity. The show presented a great opportunity for new companies, such as QuirkyMonkey, to place themselves in front of possible buyers and collaborators.

There was certainly a theme of health benefits and functionality at the show, and not just across tea and coffee. Functionality, sustainability and ethical production seem to be a necessity for specialty products, as customers are seeking more from their purchases than just a great taste; if they are going to pay that bit extra, they want the extra benefits, whether that be to their health or to the environment. Consumers want to feel that they are using their money for a good cause, and specialty producers are rising to meet this demand, with a tide of Fairtrade, organic, and B-Corp certifications flooding the packaging, and frequently more wellness claims of improved sleep or mood, calmness, better digestion and pretty much anything else you could want.

While some more budget and commercial products may still be able to get away with dodging sustainability pressures for now, as they have the price point advantage, consumers seeking more premium and specialty products do not withhold such demands from their purchasing choices. The array of projects and efforts on display at the Speciality & Fine Food Fair were a credit to this.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Tea has been enjoying its fair share of popularity since the last several decades – centuries, even – so much so that there are people whose day does not start in the true sense without taking a sip of hot tea. Plus, tea is known as a good antioxidant. 

With regard to flavoured tea, the very concept springs from the fact that ‘variety is the spice of life.’ Breaking the monotonous rut is what humankind cares the most about. Tea has come a long way over the last few years in terms of flavours and the way they are being devised and marketed. Starting with fruits, the flavours have made a beeline to flowers, alcohols, and several chemical compounds. For instance, amyl acetate, which gives banana flavour, is distilled from real bananas. The mixture of amyl alcohol and vinegar also gives banana flavour, but then it won’t be termed as ‘natural. Likewise, strawberry flavour could be devised naturally as well as artificially. 

The best part about tea leaves is that most are receptive to flavours. It has been found that green and black tea leaves go well with almost every type of flavour. Dry flavours do well with loose teas, whereas liquid ones work for the teabags.  

There are several variants regarding tea flavours as follows:  

• Natural Extracts: These flavours come from extracts of the essential oils of the blossoms, fruits, leaves, roots, and likewise. The basic function of these extracts is that of contributing to fragrance of teas.  
• Natural Granules: These granules, as the name suggests, come from natural essence that is spread on tea leaves all through. The mixing happens till blending with leaves happens. Most flavours come from granules comprising blossom, herb, and fruit extracts. Also, herbal infusions come as inclusions, which are solid particles of fruits, herbs, spices, and blossoms mixed with tea leaves on direct basis — when steeped, the right taste is obtained. 

• Nature-Close Flavours: These are the flavours extracted through chemical processes. There is not much difference between natural and nature-close flavours except for the extraction process. Preserving turns out to be simpler as compared to natural processes and cost-effective. It needs to be noted that here the extraction is artificial, not the flavour. 
• Artificial Flavours: The name is self-explanatory. The flavours are created artificially to make stronger and better blends. 

Another variety is that of scented tea. It is obtained from flowers like jasmine. Also, smoked tea is popular, which is processed around cypress or pine wood fires.  

Medical benefits of flavoured tea 

Tea has many healthy attributes such as being ‘chock full’ of antioxidants, polyphenols, and catechins, but there are also many medical benefits associated with various teas. 

Earl Grey tea, for example, is a popular flavour that is formed by blending bergamot oil and tea leaves. The medical benefits include improvement in dental health, reduction of anxiety, helping in digestion, increasing energy levels, and body detox. Elderflower tea, a flavoured tea that is especially popular in Europe, is derived from a cream-coloured flower (elderflower) of the elderberry plant. This tea is a rich source of vitamin A, C and several essential nutrients. Apart from Europe, North America is the other major consumer of elderflower tea. In terms of medical benefits, elderflower tea relieves from fever, cough, headache, and cold. The respiratory disorders like tonsillitis, asthma, laryngitis, and others could also be relieved by drinking elderflower tea. 

Though its origins could be traced to China, green tea’s popularity is unmatched across now. Japanese green teas are inclusive of hojicha, genmaicha, tencha, matcha, kabusecha, gyokuro, and sencha. Green tea is available in the form of iced green tea, green tea instant mixes, and green tea bags. The flavours include jasmine, wild berry, cinnamon, vanilla, lemon, and aloe vera. It helps in prevention of loads of ailments like tooth decay, diabetes, cancer, heart disorders by ascertain maintenance of proper blood level and cholesterol all over the body. 

The least processed leaves on the part of Camellia sinensis produce white tea. It comprises juvenile buds. The floral-fruity flavour finds its applications in various industries like pharmaceuticals and cosmetics. It does possess anti-microbial properties and acts as an excellent antioxidant. 

Those vying for clean label products will sync with detox tea, which is conventional as well as organic. Detox tea, as the name suggests, helps in intestinal detox, liver detox, cardiac detox, and likewise. 

Delving into flavoured tea 

By type, bubble tea could be categorised as chocolate, fruits and berries, mixed/blend flavours, and honey. It is popular in the Asia Pacific, India, in particular. The latest offerings include fresh ingredients like fresh fruit, organic cream, green tea, and soy milk. 

Amongst the instant tea mixes, encapsulated tea is trending in certain regions at the moment. Encapsulation is a technique to protect or entrap fragrance and flavours within a coating material. Encapsulated tea reduces the preparation time for the drink. The flavours available include cranberry, raspberry, mango, and lemonade. These flavours are captured by entrapping them within the tea leaves. 

As far as alcoholic tea is concerned, it comes in a wide range of flavours including coconut, mint, peach, cucumber, lime, sweet apricot, mango, and berries.  

In a nutshell, flavoured tea will continue to evolve as the taste buds of consumers will ask for more variations and there would be no stoppage to research being conducted therein. 

• Divakar Kolhe is a tech blogger, is a seasoned digital marketing professional, having worked for numerous online firms in his distinguished career. He believes in continuous learning, considering that the digital marketing sector’s rapidly evolving nature. His forte is analysing the commercial viability of a new breakthrough. 

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The new flavour features high-quality ingredients that are familiar, making Bigelow Benefits Throat Defense a good-for-you addition for throat care needs, according to the company. The product is caffeine-free, non-GMO project verified, throat-calming with immune-support ingredients, including ginger, lemon and honey, combined with licorice root and marshmallow root, known for their ability to help provide soothing comfort.

“Over the past few years, we’ve seen a tremendous demand and expansion for products that support a healthy lifestyle,” says Cindi Bigelow, president and CEO of third generation family-owned Bigelow Tea. “With new Bigelow Benefits Throat Defense Ginger Honey Lemon, we created, as a wellness solution for every day, a soothing cup of herbal tea that features the sweet flavour of honey, superfood ginger plus essential ingredient lemon, and other familiar everyday herbs and ingredients, a perfect addition to our masterfully blended range of Bigelow Benefits wellness teas. Healthy never tasted so good!”

Featuring all natural green, black and herbal teas with herbs, flowers and fruits, each ingredient in the Bigelow Benefits range of teas is selected to provide specific natural good-for-you benefits that help support each tea drinker’s well-being. Additionally, each package now has a refreshed look to highlight the beneficial ingredients in each blend.

Bigelow Tea introduced its first specialty tea in 1945 with the creation of its signature flavour, “Constant Comment.” Since that time, Bigelow Tea has continued to create functional teas that enhance consumers’ day-to-day lives.

The Bigelow Benefits newest flavor Throat Defense Ginger Honey Lemon Herbal Tea is available for purchase in stores and online on the Bigelow Tea company website and other select online retailers. The average suggested SRP is $3.49.

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Both the Tea Association of the USA, Inc., and the Tea Council of the USA have been working for the last three DGAC cycles leveraging the healthfulness of tea, to influence tea being incorporated into the DGA. The DGAC is using data analysis, food pattern modeling, and systematic reviews to examine a list of prioritised scientific questions. The questions about dietary patterns reference the effect of beverages on growth, body composition, risk of obesity and risk of type 2 diabetes. Tea, as well as dairy and coffee, are included specifically as these questions are being reviewed. 

This is a significant achievement for tea Peter F. Goggi, president of the Tea Association of the USA said, explaining that “tea has been discussed by the DGAC in the past but has never made it to the final recommendations.” 

The DGAC uses three scientific approaches to examine the evidence: data analysis, food pattern modeling, and systematic reviews. In an email alert to its members, the Tea Association and Tea Council of the USA offered updates on DGAC activities to date in 2023, which included key points discussed at the second DGAC Meeting (the next meeting has not yet been scheduled). 

According to the update, sustainability is an area of interest for the DGA 2025 to better understand how sustainability intersects with food systems, diet, nutrition, and health, highlighting that “information we can provide about the sustainability of tea should be included in our comments.” The DGAC is viewing the 2025 guidelines through a ‘health equity lens’ and they are considering diverse racial, ethnic, socioeconomic, and cultural backgrounds.  

Furthermore, in his letter to members, Goggi said the DGAC committee is looking to recognise that American consumer’s frustration with choosing healthy foods runs deep and is rooted in individual daily battles. The DGAC looks to consider factors such as economic and social aspects of obstacles to food access, health, and healthcare, and works on ways to remove barriers. 

The relationship between beverage consumption and type 2 diabetes is being examined by the committee. The DGAC notes that as beverages are consumed throughout the day, the effect of beverages on blood sugar levels is important to consider. 

The DGAC is also exploring the relationship between coffee and/or tea consumption and growth, body composition and risk of obesity. 

The 2025 Dietary Guidelines Advisory Committee is examining a list of prioritised scientific questions informed by the proposed list of scientific questions identified by Health and Human Services (HHS) and USDA. The full list of questions, including the beverage-focused ones, may be viewed here. 

Louise Pollock, president, Pollock Communications, which represents the Tea Council of the USA, and has been working with both organisations to promote research findings that tout the many healthy attributes of tea as well as to leverage the healthfulness of tea over the last three DGAC cycles in order to influence tea being incorporated into the DGA, said the [tea] organisations plan to address the research on tea and obesity and diabetes in their comments in late 2023 or early 2024. 

“The Tea Council of the USA will do this by sending written comments to the Dietary Guidelines Committee citing [published] research,” said Pollock. “Additionally, we will work with a highly respected researcher to provide in-person comments, if selected, about the health benefits of tea directly to the Committee.”

The Tea Association and Tea Council will continue to monitor the activities of the DGAC and will offer input when comments are requested, and T&CTJ will continue to provide updates as they become available. 

While on the topic of tea and sustainability, just a quick reminder that T&CTJ’s tea sustainability survey deadline has been extended to 30 June. Please voice your opinion on this critically important topic. Access the survey here. 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Matchado – Unsweetened Yame Matcha offers several benefits and versatile uses:

• Abundant in antioxidants: Matcha is renowned for its high antioxidant content, particularly catechins like epigallocatechin gallate (EGCG). These antioxidants help protect the body against harmful free radicals, which may contribute to various health issues.
• Enhances energy and focus: Matchado contains a moderate amount of caffeine, which provides a gentle and sustained energy boost without the jitters often associated with coffee. Additionally, it contains L-theanine, an amino acid that promotes relaxation and mental clarity, leading to increased focus and concentration.
• Supports metabolism and weight management: Studies suggest that matcha can boost metabolism and promote fat oxidation, potentially aiding in weight management. However, it is important to note that matcha should be part of a balanced lifestyle that includes a healthy diet and regular exercise.
• Promotes relaxation and reduces stress: Matchado’s L-theanine content induces a sense of calmness and relaxation without causing drowsiness. This combination of L-theanine and caffeine creates a unique state of alert relaxation, making matcha a popular choice for meditation and stress reduction.
• Versatile culinary ingredient: Ideal for various culinary creations. It adds a vibrant green hue and a distinct flavour to beverages like lattes, smoothies, and iced teas. Additionally, it can be incorporated into baked goods, providing a delightful twist to cakes, cookies, and desserts.

The high-quality Matchado – Unsweetened Yame Matcha, is sourced from the Yame region and known for its exceptional matcha production. The organic nature of Matchado ensures that the tea leaves are cultivated without synthetic fertilizers or pesticides, maintaining the purity and integrity of the product.

To prepare matcha, traditionally a bamboo whisk called a chasen is used to whisk the powder with hot water until frothy. However, matcha can also be prepared using a spoon.

Matchado – Unsweetened Yame Matcha offers a range of potential health benefits, including antioxidant support, enhanced energy and focus, metabolism support, relaxation, and versatile culinary applications. By incorporating this high-quality matcha into your daily routine, you can enjoy its delightful flavour while reaping its potential health benefits.

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Different from iced tea that is made by steeping tea bags in hot water and then letting it cool, Bigelow Botanicals create a herbal infusion by using real fruit and herbs steeped in cold water in order to extract each blend’s light flavour.

Bigelow Botanicals Cold Water Infusions are a healthy alternative to sugary drinks with zero calories, no caffeine, and no artificial anything. The convenience of only adding cold water allows the drinks to be incorporated into a daily routine to help reach your water intake – each individually wrapped bag ensures freshness and allows for portability to enjoy by the glass or take it on-the-go.

• Botanicals Cold Water Infusion Blood Orange Tangerine – Sweet blood orange fruit is blended with tangerine, creating a citrus infusion with a slightly sweet berry taste.
• Botanicals Cold Water Infusion Pineapple Coconut Mango – A tropical infusion of pineapple with coconut and a hint of mango. This unique twist on drinking plain water transforms your glass into a hydrating tropical adventure.

“We know that staying hydrated is essential for overall health and wellbeing,” says Cindi Bigelow, president and CEO of family-owned Bigelow Tea. “In support of our consumers who are focusing on living a healthy lifestyle, we created these two new beautiful cold water infusion flavours to enhance each wellness routine. These exceptional flavours are truly a new way to love your water and help each of us reach our daily hydration goals.”

Each blend from the line of Bigelow Botanical Cold Water Infusions allows consumers to create their own botanical infused water either by the glass or on-the-go. Bigelow Tea uses high quality ingredients that slowly come alive once cold water is added, according to the company. We know consumers are still thirsty for healthy refreshment.

The Bigelow Botanicals Cold Water Infusion range of flavours are now available for purchase in stores and online on the Bigelow Tea company website and other select online retailers. The average suggested SRP is USD $3.99.

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The new flavour has been created to deliver bold citrus notes and, like the rest of their range, it is light, fizzy and refreshing. Remedy Kombucha Orange Squeeze is a healthier alternative to traditional sugary or artificially sweetened orange soft drinks. Remedy’s kombucha contains live cultures and organic acids to support gut health, and it is also free from sugar and contains only natural ingredients.

Remedy Orange Squeeze is made using Remedy’s 30-day, small-batch brewing process, which creates strong live cultures and complex flavour notes, says the company. This long-age ferment also removes all sugar, creating a shelf-stable, 100% plant-powered kombucha.

Launched in Australia in 2012 by husband-and-wife, Sarah and Emmet Condon, Remedy Kombucha has grown rapidly to become the UK’s most popular kombucha brand, sold in UK retailers such as Tesco, Ocado, Morrisons, Holland & Barrett, Starbucks, M&S, WHSmith, Amazon – and now Sainsbury’s.

Anna Dominey, UK general manager of Remedy Drinks, commented, “We’re delighted to be launching in Sainsbury’s with Orange Squeeze, our exciting new flavour. In partnering with Sainsbury’s, we’re looking forward to continuing to expand Remedy’s audience and surprising customers with just how delicious our sugar-free, all-natural kombucha is!”

Launching into Sainsbury’s with multipacks of 4 x 330ml cans (RRP: £5.50), Remedy Kombucha Orange Squeeze will also roll out within Holland & Barrett from July, in individual 250ml cans (from £1.99). The new flavour is also available now online at Remedydrinks.co.uk. Sainsbury’s will also stock multipacks of 4 x 330ml cans of Remedy Wild Berry Kombucha.

To find out more about Remedy Kombucha, visit Remedydrinks.co.uk.

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Bigelow Tea brings new takes to Black tea and Herbal tea blends with the below new flavours:

Peak Energy Black Tea plus extra L-Theanine and Caffeine

A robust black tea with an earthy balanced aroma; this recipe combines tea leaves with an extra boost of L-theanine and caffeine to help provide sustained energy throughout the day.

L-theanine, a compound naturally found in tea, works with caffeine, studies say, to benefit the brain and mood by supporting sustained clarity and focus. This tea has been blended for a morning or midday pick-me-up minus the jitters that may accompany coffee alone.

Whispering Wildflowers Herbal Tea plus L-Theanine

This caffeine-free herbal tea has been designed to engage multiple senses with its bright purple colour, and a taste blend of lavender, rose, passionflower, and butterfly pea flower that finishes with a hint of sweetness. L-theanine has been added to florals to create a comforting cup of tea that helps reduce stress and encourage relaxation.

L-theanine is thought to promote a calming effect that may boost mood and help to manage stress and anxiety.

Ginger Honey Herbal Tea plus Zinc

Expanding on Bigelow’s Blackberry Citrus plus Zinc herbal tea, is the Ginger Honey Herbal Tea plus Zinc which is a spicy, zesty, ginger forward caffeine free herbal tea with a subtle honey flavour.

Ginger is thought to offer many benefits including support for a healthy digestive system, and in this blend it is combined with zinc, a trace mineral and essential nutrient to supports healing.

“Tea has always been a source of comfort and well-being,” said Cindi Bigelow, president and CEO of family-owned Bigelow Tea. “Knowing this, I am excited to announce the expansion of the Bigelow Tea Signature Line with three new teas that provide not only uncompromising exceptional flavour our consumers have grown to rely on, but also include ingredients and nutrients with functional benefits that help support a healthy lifestyle.”

Bigelow Tea offers over 150 teas. These newly launched teas from the Bigelow Signature line are now available for purchase in US stores and online from the Bigelow Tea company website and other select online retailers. The average suggested SRP is $3.49.

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“Music artists have been using Throat Coat tea for years as part of their voice care, including Dave Matthews,” said Traditional Medicinals chief marketing officer, Kristel Corson. “We found an opportunity to harness this fan base to expand the visibility for our top Throat Coat brand into new occasions. Our ‘Voices are for Using, Not Losing’ campaign celebrates expression and how our Throat Coat brand has championed voices for almost 50 years, with a soothing cup of tea or now lozenges that can be used while on-the-go.”

Traditional Medicinals’ campaign demonstrates how Throat Coat products can be used to support voices, such as at concerts or sports events. As a user of Throat Coat and with a penchant for environmental causes, Dave Matthews and Traditional Medicinals also found alignment advocating for the health of the planet.

Traditional Medicinals’ business is rooted in plants, and it’s a business imperative that the company care for the ecosystems where these plants live and thrive. Traditional Medicinals believes that everything is interconnected, which means supporting the ecosystems, farmers, and collectors who harvest and gather their herbs.

Traditional Maedicinals’ products are certified organic and use non-GMO ingredients and renewable energy, in order to uphold its so called three pillars of sustainability: environmental protection, social equity and economic viability.

Traditional Medicinals’ classic Throat Coat’s original formula launched almost 50 years ago, and since the company has been sourcing their slippery elm bark from Appalachia, where wildcrafters harvest the bark sustainably by hand to protect the trees for future generations.

As part of the REVERB Eco-Village activation, Traditional Medicinals will be donating up to $20,000 to nonprofit Appalachian Sustainable Development (ASD), which works towards building a thriving regional food and agriculture system that creates healthy communities, respects the planet, and cultivates profitable opportunities for Appalachians.

“We’re looking forward to having Traditional Medicinals as our Eco-Village partner on this year’s Dave Matthews Band tour,” said REVERB’s director of projects Lara Seaver. “Their work to support agricultural sustainability practices and the communities where they source aligns perfectly with our mission. This year’s Eco-Village will also include opportunities for fans to learn about electric vehicles, participate in research about sustainable concert travel, register to vote, and connect with The Nature Conservancy.”

The Throat Coat family includes:

• Throat Coat Original: Sweet with a distinct liquorice taste. Organic Throat Coat tea supports mucous membrane health while creating a relaxed, healthy feeling in the throat and respiratory system.
• Throat Coat Lemon Echinacea: Using wild liquorice from Central Asia, this formula blends marshmallow root and liquorice with echinacea.
• Throat Coat Eucalyptus: This tea delivers throat-soothing support and respiratory wellness. Understanding that two of the most common seasonal challenges come paired together, it combines marshmallow root, slippery elm, and liquorice, with eucalyptus.
• Throat Coat Lozenges: These provide on-the-go support when you need to soothe a sore throat or relieve a cough. Available in Eucalyptus Mint, Lemon Echinacea, and Sweet Orange Fennel.

Throat Coat Tea and Lozenges are available at retailers nationwide and online at traditionalmedicinals.com.

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1.       Consumer demand for natural and organic has accelerated

Consumers are drinking more natural and organic beverages, Finlays research shows, compared to two years ago. It seems that these mainstream trends continue to grow in appeal and have not reached saturation point, with one in ten 25–35-year-olds further increasing their already high consumption of natural and organic beverages.

“Consumers are seeking ‘clean label products’ such as those containing organic ingredients (18%), and free of artificial flavours or sweeteners (15%)”, Sian Edwards, group insights manager at Finlays, explains. “Beverage brand owners can tap into this trend by choosing ingredients that consumers perceive as naturally beneficial for their health, such as green tea, which contains naturally occurring antioxidants and catechins.”

2.     Boost for natural caffeine

This demand for natural beverages is driving major shifts in where consumers are looking for an energy boost. A third (33%) of Europeans are drinking more traditional sources of caffeine, such as tea and coffee, demonstrating the opportunity for these ingredients within the ‘clean energy’ movement. “It’s really interesting to see, from our research, that consumers are as likely to drink tea for an energy boost, as they are to drink energy drinks,” Edwards notes.

“Supply shortages of synthetic caffeine from China, the world’s largest exporter, has driven demand for natural sources of caffeine from tea and coffee,” explains Edwards. “The ‘health halo’ around coffee and the rising interest in its health properties are paving the way for beverage brands to innovate. For example, utilising cold brew coffee, a natural source of caffeine, and quality tea extracts, rich in naturally-derived antioxidants, to provide additional benefits.”

3.     ‘Hydration-Plus’ becomes major trend

Half of European consumers (48.4%) are drinking more water than they did pre-pandemic. But consumers are seeking more than just hydration, with one in five consumers (20.2%) looking for drinks with more than one benefit, increasing to nearly a quarter (24.1%) of consumers aged 35-55.

However, brand owners have to balance this with the need for good-tasting products – 16.8% of consumers are looking for healthy drinks without compromising on flavour. “Great taste is a major factor in encouraging that repeat-purchase”, Edwards explains.

4.     Functional beverages continue to gain momentum

Six in ten European consumers are more conscious of their physical health than pre-pandemic. “This is a major acceleration of the already well-established health and wellbeing trend,” Edwards explains, “and interestingly, this is even higher for older generations, demonstrating the broad appeal of products that tap into the health and wellbeing space.”

Consumers are looking for a wide range of functional benefits from their beverages, including energy-boosting (34%), relaxation (22%) and mood-boosting (22.6%). “This shows the huge scope for innovation in the beverage industry, relating to both physical and mental wellbeing,” Edwards adds. “Tea and coffee are well-established with consumers as natural ingredients that can be positioned as energising or relaxing.”

5.     Consumers willing to pay more for sustainability

Another major trend accelerated by the pandemic, over one in ten (13.3%) consumers have changed their drinking habits because they are more aware of the environmental impact of beverages, compared to before the pandemic. Consumers are looking for sustainably-sourced beverages with a minimal impact on the planet.

This trend is also a major value driver, as more than 75% of European consumers are willing to pay more for sustainable products.

Edwards concludes, “the staying-power of mega trends such as health and sustainability has been tested over the last few years, but consumers have only been more engaged in these trends since the pandemic. We’ve also seen some major shifts, as consumers look for a wider range of functional benefits delivered by natural ingredients such as tea and coffee. In an increasingly competitive marketplace, offering natural, sustainable products that tap into health trends, without compromising on taste, is essential to attract modern consumers who want it all.

To find out how Finlays can support the potential of natural beverages visit finlays.net.

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