Functional teas are beverages which contain active compounds to boost health. Green and black teas manufactured contain phytonutrients giving plants their aroma, color and flavor. Teas range from energy to bedtime blends giving customers a plethora of options to choose from. The global functional tea market report by Market Research Future (MRFR) covering price analysis, supply chain, and analysis of drivers and challenges for the period between 2020 to 2026 (forecast period).

Market Scope

The global functional tea market is expected to perform exceptionally during the aforementioned period owing to the high consumption of beverages. Introduction of new flavors, new aromas, and ingredients from manufacturers can lead to a steady demand during the forecast period. The setup of new manufacturing bases into developed economies of China and India can bode well for the market. Awareness of the health benefits of these beverages can trigger the demand in the global functional tea market.

The growing health consciousness among consumers as well as the demand for teas with healthy ingredients can drive the global functional tea market trends. Herbs and other ingredients present in these beverages can boost immunity levels and help with digestion. For instance, hibiscus tea is flavonoid-rich and helps in improving digestion and keeping sugar levels in check.

Approval of these products by regulatory bodies such as the United States Department of Agriculture (USDA) to ensure their safe consumption can drive sales exponentially.

Competition Outlook

HerbatySzlachetne Sp. Z O.O., Godrej Tea, Organic India, Tata Tea Limited, Wuhan z-Micro Unite ST Co., Ltd., Guangzhou LohasBiological Technology Co., Ltd, and The Mate Factor are major producers in the global functional tea market.

Segmentation

Functional tea market has been segmented on the basis of type which includes fruit tea, herbal tea, longjing tea, flower tea and others. Herbal tea holds the major market share and it is growing at moderate rate due to increasing demand of beverages with health benefits.

By form, it is segmented into broken tea, loose tea, instant tea powder and others. Instant tea powder is growing at higher rate compare to other forms of tea

The global functional tea market has been segmented on the basis of function which includes heart health, weight loss, detox and others.

Functional tea market has been segmented on the basis of packaging which includes can, bag, bottle, sachet and others.

Regional Analysis

The functional tea market is segmented into North America, Europe, Asia Pacific (APAC), and Rest-of-the-World (ROW).

APAC is expected to exhibit the highest growth rate during the forecast period due to preference of tea among the denizens and tradition of consuming the beverage during occasions. Vendors are expanding their footprint by partnering with online channels to ensure constant sales. Celebrity endorsements and Ads on social media that target customers by region and language are bound to attract consumer and influence their purchase decisions.

North America can witness huge demand due to the rising wave of health-consciousness and preference of natural ingredients. The trend of veganism can also play a huge role in influencing the market. Turmeric has made itself vital for consumption in the diet of American consumers due to its benefit of an adaptogen. The variation among the demographics from athletes to the elderly can beckon a huge need for functional teas.

The MEA region can contribute to market growth due to market players shifting to the region. Marketers have decided to project their products to reach customers by shifting to nutritive sweeteners. Consumption of such beverages among adults working in urban regions to students moving away from carbonated drinks can be a new opportunity for growth in the region.

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