Global Bottled Tea Market: Expansion Strategies Set to Generate Substantial Revenue in the Near Futu

Published: Tue Dec 11 2018


The bottled tea market place has remained dynamic majorly due to altering consumer preference and beverage manufacturers’ efforts to meet the evolving demand. ‘New releases’ in terms of flavor, authenticity and packaging in the tea market has become a pervasive strategy among bottled tea brands, small or big.

  • Organic kombucha, a fermented bottled tea by Uncle Matt’s Organic brand was introduced in 2017. Available in a number of flavors, kombucha combines benefits of a green tea and natural prebiotics and organic acids.

  • In the first quarter of 2018, DanonWave-owned Brand Stok has launched a new range of cold brew beverages including Stok Yerba Mate Cold Brew Teas which are ready-to-drink bottled tea ranges.

  • Arcadia Beverage, in May 2018 launched Zumora, a new clean label beverage line including bottled tea.

  • In November 2017, Unilever Food Solution introduced the Pure Leaf Tea House Collection of hot and iced teas that are organic and flavored with fruit and herbs.

  • In October 2017, Argo Tea, a Chicago-based premium tea brand, launched a line of Single Estate Cold Brew Bottled Teas.


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Bottled Tea Supply through HORECA on the Rise

The hospitality industry or HORECA (Hotel, Restaurant and Café) has gained significant momentum in the past decade against the backdrop of increasing propensity of consumers for food offerings prepared outside the home. Growing interest of consumer packaged goods (CPG) industry in the HORECA to boost revenues has, in turn increased market revenues of bottled tea manufacturers.

Although bottled tea has successfully entered the online sales channel, in an attempt to explore new modes of distribution beyond conventional supply chain, online retailers are also entering HORECA to favor revenue generation. Further, new trends in the hospitality industry such as pop up restaurants, fast casual dining experiences, here-to-stay café and all-day breakfast are advocating the supply chain penetration of Bottled Tea Market in HORECA.

Clean Label Nature of Bottled Tea Fits Well in Demand for Safe RTD Beverages

In a bid to meet consumer demand for ingredient authenticity, tea brands have indulged in R&D efforts to develop tea formulations with authentic taste and aroma. Implementation of a ready-to-drink trend in processing and manufacturing has introduced a variety of teas that are bottled, chilled and commercialized– a perfect to-go beverage for consumers driving the clean label movement.

Aware of consumer sentiments for the clean label and low-sugar beverages, brands in the beverage industry have introduced multiple clean label tea-based formulations that are natural in origin and retains salutary benefits. Industry titans including Unilever, Englewood Cliffs, N.J., Nestle and DuPont Nutrition & Health and premium entrepreneurs such as DanoneWave, Uncle Matt and Sunup Inc. have ramped up their focus on clean label product offerings including bottled tea.

Demand for Functional Beverages Complementing Bottled Tea Market Growth

Consumer demand for functional ingredients is on the rise. Tea blends with functional ingredients are the most trending phenomena in the bottled tea. A meteoric rise in the popularity of green tea in the past decade as a healthy beverage is here to stay. Further, different types of tea sold as bottled tea are believed to be rich in polyphenols and antioxidants- healthful components.

Although, in recent past, bottled tea witnessed a downfall amid the rise of the low- or no-sugar trend, manufacturers’ attempts to meet health preferences of consumers have brought back bottled tea in the beverages market wherein retail shelves are currently superfluous with multiple brands of bottled tea.

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Bullish Tea Industry Outlook Fuelling Bottled Tea Market

As the most widely consumed beverage after water, the appetite for tea continues to expand across the globe. After Asian countries, greater affection for tea is observed among U.S. households. In addition, millennials’ liking for tea is set to propel the tea industry growth in future. Increasing demand for discrete flavors of tea and the availability of premium tea brands have exposed consumers to wider tea offerings including bottled tea. These industry dynamics are likely to maintain the bottled tea market sustainability in the future.

Competitive Landscape

The competitive landscape section of the bottled tea market report provides a dashboard view of the market players operating in the global marketplace of bottled tea. In addition, company profiles of key market players with a detailed information on product offerings, company share, regional presence and notable developments are included in the competitive landscape section.

Few of the profiled players in the bottled tea market include Suntory Holdings Ltd, Nestlé S.A, The Coca-Cola Company, Tsing Hsin International Group, PepsiCo Inc, Monster Beverage Company, Uni-President Enterprises, JDP Group, Arizona Beverage Company and OISHI GROUP.

Suntory Products Ltd. has announced at the beginning of 2018 that it will strengthen the PET bottle production facility of Haruna plant. The PET bottle products will be produced using aseptic packaging to stay ahead of the consumer trends such as health-consciousness and changing work style.

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