Global Instant Tea Premix Market - Forecast(2023 - 2028)

Global Instant Tea Premix Market Overview

Global Instant Tea Premix Market size is estimated to reach $2.1 billion by 2027, growing at a CAGR of 6.5% during the forecast period 2022-2027. Instant tea premix is nothing more than a readymade powder that is taken into account to prepare tea within a fraction of seconds. The skimmed milk powder, sugar, tea powder, cardamom pod powder, and dried ginger powder are the featured ingredients of instant tea premix. Also, the camellia plant is another common ingredient used in tea premix owing to its caffeine, L-theanine, and catechins that helps in boosting immunity. Besides cardamom, basil, masala, lemon, and black tea are other varieties of instant tea premixes. Many people around the globe remain skeptical of the side effects of caffeine; therefore, the demand for premixes prepared from tea leaves that are decaffeinated using methyl chloride is augmenting with time. Green tea and lemon tea premixes are most frequently used owing to their weight loss properties. The global instant tea premix market outlook is fairly fascinating as the demand for aromatic beverages like tea. Furthermore, rising disposable incomes, improving retail channels network, and other advantages linked with premixes like portability, less preparation time, better flavors, and health benefits are factors set to drive the growth of the Global Instant Tea Premix Market for the period 2022-2027.

Report Coverage

The report: “Global Instant Tea Premix Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Global Instant Tea Premix Market.

By Premix Type: Basil, Cardamom, Ginger, Lemon, Plain, and Others.
By Form: Powder, Paste, and Granules.
By Distribution Channel: Offline (Supermarket/Hypermarkets, Convenience stores, and Other Brick and Mortar stores) and Online Platforms.
By End User: Households, Corporate cafés, and Foodservice Providers.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).

Key Takeaways

• Geographically, the Asia-Pacific Instant Tea Premix Market accounted for the highest revenue share in 2021. The growth is owing to the humungous production and consumption of tea among Asian countries like India, China, Pakistan, and others. Furthermore, Asia-Pacific is poised to dominate the market over the period 2022-2027.
• The longer shelf life of the product, changing tastes and preferences, eventful lifestyles, rising disposable income, and proliferating stress complications are said to be preeminent drivers driving the growth of the Global Instant Tea Premix Market. Challenges posed by harsh climatic conditions, lack of awareness in impoverished areas, and deteriorated production activities are said to reduce market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Global Instant Tea Premix Market report.

Global Instant Tea Premix Market Segment Analysis-By Premix Type

The Global Instant Tea Premix Market based on the premix type can be further segmented into basil, cardamom, ginger, lemon, plain, and others. The cardamom segment held the largest share in 2021. The growth is owing to several health benefits associated with cardamom. Cardamom is one of those pod spices that streamline metabolism, ensure heart health, and help in weight loss. Moreover, the anti-inflammatory properties and aromatic nature of cardamom instant tea premix are driving the demand. Moreover, cardamom along with lemon and ginger tea mix segments is estimated to be the fastest-growing with a CAGR of 7.6% over the forecast period 2022-2027. This growth is owing to the growing adoption of lemon tea premix by obese people. Lemons are extremely rich in potassium, vitamin C, and vitamin B6 improves digestion, and reduce complications like acidity, stress, constipation, and repugnant skin. Moreover, ginger instant tea premix helps in keeping cold away in winters and eases the feeling of motion sickness.

Global Instant Tea Premix Market Segment Analysis-By End-User

The Global Instant Tea Premix Market based on end-user can be further segmented into households, corporate cafés, and food service providers. The households segment held the largest share in 2021. The growth is owing to the rising consumption and adoption of tea as a day starter drink. Millions of people around the globe have made tea an inextricable part of their lives. Moreover, tea is the most common drink served to guests in Asian households. Moreover, households along with foodservice providers are estimated to be the fastest-growing with a CAGR of 7.8% over the forecast period 2022-2027. This growth is owing to restarting of business operations by various food service providers in the wake of reducing infection rates and flexible restrictions. Hospitality venues like cafés offer an intimate atmosphere that generates potent triggers not among younger people but adults too. In addition to that, in this era of digitalization where people spend most of their time behind computer screens, cafés have become the most demanded place for spending time with loved ones and for hosting formal office meetings.

Global Instant Tea Premix Market Segment Analysis-By Geography

The Global Instant Tea Premix Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held the largest share with 36% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of countries that are deemed amongst the biggest tea producers. For instance, India, Vietnam, China, Indonesia, and others are some of the biggest tea-producing countries in the world. Unlike other parts of the world, Asian countries have a special connection with tea. In South Asian countries, it is a sort of norm to serve tea to guests and commence daily routines with a cup of tea. Furthermore, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to the adoption of advanced agricultural and processing techniques. Also, rising obesity complications because of sedentary habits, expanding disposable incomes, flourishing corporate culture because of rapid industrialization, and spreading popularity of tea premixes are the factors providing growth prospects.

Global Instant Tea Premix Market Drivers

The expanding number of obese people and ascending purchasing power are anticipated to boost market demand

Owing to prolonged sittings or little to no physical activity because of extensive mechanization is the core reason behind rising incidences of obesity and heart problems. Rather than working in fields, jobs today require hours of sittings and staring at computer screens. For instance, according to a report, over 36 percent of the US adult population is obese as of 2022. Also, several South-Pacific nations such as Nauru, Samoa, Tonga, and others have an average body mass index of 32 which shows a heavy prevalence of class 1 obesity. In addition to that, the digestive disease has come into the limelight in recent years, especially in high-income countries such as the US. According to a report published in 2021, there were nearly 62 million people in the US afflicted with digestive complications. As a result, the demand for instant tea premixes is enlarging day after day.

Busy lifestyles and Proliferating tea production is expected to boost market demand

The technological breakthroughs have brought such agricultural tools and techniques into existence which have made farming much easier in today's world. As a result, the overall tea production among developing countries is improving year after year. For instance, China’s tea production has reached nearly 2,400,000 tons, whereas, India has over 900,000 tons of annual production. In addition to that, eventful lifestyles of people have gravitated them toward such contemporary alternatives which save a lot of time and possess higher shelf life.

Global Instant Tea Premix Market Challenges

Inattentiveness among people living in deprived areas, extreme weather anomalies, and negatively affected production activities are anticipated to hamper the market growth

People residing in remote parts of the world possess a lack of awareness regarding the existence of such products and it may challenge the growth of the aforementioned market. Also, extreme weather anomalies owing to climate change, global warming, and widespread pollution are anticipated to reduce the yield of the tea crops in foreseeable future. According to NASA's temperature record, Earth in 2021 was about 1.9 degrees Fahrenheit (or about 1.1 degrees Celsius) warmer than the late 19th-century average, the start of the industrial revolution. Last but not least crippled production activities have resulted in a wide gap between demand and supply chains which is derailing the steady growth of the global instant tea premix market.

Global Instant Tea Premix Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Global Instant Tea Premix market top 10 companies include-

1. Ajinomoto General Foods
2. Tata Global Beverages
3. Keurig Green Mountain
4. PepsiCo Inc.
5. Coca-Cola
6. Nestle Inc.
7. Wash Bakri Tea
8. ITO
9. The Republic of Tea
10. Dunkin Brands

Recent Developments

• On November 1, 2021, Georgia, United States-based beverage company Coca-Cola publicized the successful acquisition of the American sports drink company “Bodyarmor SuperDrink.” The beverage giant Coca has made a payment of $5.6 billion to bring the acquisition to a close. Furthermore, the move will help Coca-Cola to seize a noteworthy market share in the sports drink market and compete with firms like PepsiCo acquiring 65-70 percent of the market share alone.
• On July 27, 2021, Kolkata, India-based renowned tea company “Tata Tea” publicized that it has successfully acquired a London, United Kingdom-based tea company “Tetley” by making use of leveraged buyout. Moreover, Tata Tea had made a payment of $450 million in order to bring the acquisition to a close.
• On July 15, 2019, New York, United States-based prominent beverage company “PepsiCo” announced that it has successfully acquired Cape Town, South Africa-based Pioneer Foods (a company that operates in food and beverage production) for a lucrative total of $1.70 billion. The transaction has added brands such as Sasko, Ceres, and Safari to PepsiCo’s portfolio.

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