Fruit tea market to grow by $1b by 2028

It is driven by the increasing demand for premium fruit tea and new flavors. 

The global fruit tea market is projected to grow by $1b from 2024 to 2028, with an annual growth rate of 7.08%, according to Technavio. 

The growth is driven by the increasing demand for premium fruit tea and new flavors. 

Millennials and health-conscious consumers are also shifting the market from traditional to casual tea drinking. 

Additionally, online sales are rising as people seek healthier options through e-commerce and organised retailers. Key players like R. Twining and Company Ltd., Harney and Sons Fine Teas, and The Hain Celestial Group Inc. offer a wide range of flavors, including Spiced Apple, Vanilla with Passionflower, and Peach.

The fruit tea sector within the beverage industry is thriving, spurred by a growing preference for herbal teas blended with fruits. Consumers are increasingly seeking natural, flavorful, and convenient beverage options that offer health benefits such as antioxidants, vitamins, and minerals. Popular trends include tropical fruits and organic farming practices. Marketing efforts highlight the natural ingredients, taste, and convenience of fruit teas.

Ready-to-drink fruit teas and innovative flavors cater to busy lifestyles and the demand for portable options. The agriculture sector remains vital in supplying fresh fruits for these teas. Functional beverages, including iced fruit teas, are gaining traction for their immunity-boosting properties. The market also sees a growing preference for low-sugar or sugar-free options, reflecting consumer demand for healthier choices.

E-commerce and online retail channels have made fruit teas more accessible, with specialty stores and online portals offering a wide range of products to cater to health-conscious consumers. Innovations such as flavored fruit tea blends continue to attract diverse taste preferences, further driving the market’s expansion.

However, the marker is struggling with unstable raw material costs, particularly for specialty tea leaves and dried fruits. Prices for high-end teas like Darjeeling are rising, impacting final product costs and market growth.

Consumers want natural ingredients and real fruit, boosting demand for iced and innovative fruit teas. Still, coffee and sugary drinks remain strong competitors. The market must diversify with blends, tea bags, and ready-to-drink options whilst focusing on organic and sustainable products.

Berry flavors dominate the market, appealing to a broad audience with seasonal variations. Key sales channels include both store-based (supermarkets and hypermarkets) and non-store-based (e-commerce and direct-to-consumer) platforms. To succeed, the market must balance taste, health benefits, and sustainability while innovating and addressing diverse consumer preferences.