At the same time, the modern world demands focus, whether when working, studying, or even during leisure activities like playing video games. How are people to square this need for focus with a world seemingly designed to take it away? In part, though a larger role for coffee and tea products specifically designed for focus-enhancement.

Caffeine: The Nootropic That Dare Not Speak Its Name

One of the most interesting things about the focus-enhancing segment is how very few products actually position themselves as such. There are a great many people who have been reaching for coffee or tea their whole lives when they feel their mind slipping yet may have never heard the term ‘nootropic’, which is technically the correct way to refer to products that boost cognitive abilities like focus.

Therefore, there is the odd situation where caffeine and L-theanine are the world’s most used nootropics yet they are almost never referred to as such. This is important because there is a wave of new products hitting the market that are being explicit with their focus-enhancing abilities, threatening to muscle in on turf that has traditionally been dominated by coffees and teas. To avoid this, coffee and tea will need to be louder about their naturally occurring focus enhancing abilities.

Coffee and Tea on the Defensive in a Focus-Hungry World

These newer focus products tend to highlight more exotic and unfamiliar ingredients like lion’s mane, ginkgo biloba, or creatine. There are certainly coffee and tea brands who work with such ingredients (Four Sigmatic being perhaps the best-known) but increasingly nootropics are being used in the soft drinks space, especially in energy drinks. The energy-drink segment is attempting to diversify its appeal to new occasions and demographics and is increasingly launching products specifically designed for cognitive uses.

This year, for example, Rockstar launched a new product line called Rockstar Focus with a more explicit cognitive positioning than has previously been seen in energy drinks. In the years ahead, energy drinks will offer increasingly tailored energy boosts for specific usages instead of the more general energy positioning the category rose to prominence with – and cognitive enhancement is likely to prove among the most important.

They are likely to highlight their unusual nootropic ingredients to distinguish themselves from coffee and tea although in practice caffeine will probably provide most of the actual cognitive boost. Energy drinks are almost certain to be the most important emergent category, though powder concentrates and functional waters have also been experimenting and should see more product launches in the years ahead. Regardless of what formats end up on top, they will move straight into territory traditionally held by coffee and tea.

That will leave two options for coffee and tea. One will be to make themselves into pseudo energy drinks through adding additional nootropic ingredients, using RTD or on-the-go formats, and using splashy marketing highlighting how different they are from traditional beverages. The other will be to
double down on what they have always done with some tweaks to the marketing message.

It is likely that the coming years will see plenty of both. Products fortified with nootropic ingredients or even just extra caffeine and L-theanine (which brands like Bigelow have been experimenting with) will become more common. More importantly, the coffee and tea industries in general will become louder in the promotion of their products as already ideal for focus, leveraging its inbuilt advantages: a proven track record, widespread availability, affordable price points, and naturally occurring focus enhancing ingredients.

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Based on a survey across major markets (including the US and Europe), the report analyzes preferences in personalized nutrition services and ingredients like probiotics and collagen. It identifies emerging trends and opportunities for tailored health solutions, such as reduced-carbohydrate products for women and metabolic support items for millennials. Additionally, the report underscores the importance of health claims on packaging in driving consumer purchase decisions, especially in Southern Europe and among younger consumers.

Read more here.

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A survey of 2,000 adults found that these stress headaches break down to three times a week and that respondents recalled having brain fog just as often. Reviewing their current stress levels, the survey found that 41% said they’re at their peak stress for the year so far. [Although the survey was among Americans, the symptoms and causes of stress are similar across many countries. For example, according to Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey 2021, globally, stress and anxiety now rank as the second most common health concern. Many of the other top reported issues, including sleeping problems and headaches, tend to be closely linked to high stress levels.]

Results of the new online survey – conducted by Talker Research for Traditional Medicinals between July and August 2024 – showed that while 30% are hopeful that their stress level will go down by the end of the year, a quarter of respondents think there’s a chance it’ll go up (26%). Yet, 45% have never taken a mental health day or sick day from work solely because of stress.

Comparing their stress levels to previous years, 38% of those surveyed said that 2024 has been more stressful than 2023, but less so than 2022 and the preceding years.

What is it about this year that is exacerbating their stress levels? Respondents are worried about their finances (35%), the economy (28%) and their physical health (25%). Others are troubled by the news landscape — particularly the 2024 presidential election (20%) and other world issues (19%), both of which I’m surprised are not higher percentages. In terms of how respondents are combatting these high-intensity moments, results showed that a majority feel overwhelmed during these times (58%).

What’s Stressing Americans Out?

1. Personal finances — 35%
2. The economy — 28%
3. Physical health — 25%
4. Family — 25%
5. Mental health — 24%
6. The 2024 presidential election — 20%
7. The news/world issues — 19%
8. Work — 16%
9. An unexpected life event — 15%
10. Romantic relationship — 13%

In an exclusive article for T&CTJ, “The caffeine paradox: sleep, anxiety and the endless rise in caffeine consumption,” Matthew Barry, insight manager, food & beverage, Euromonitor International, wrote, “Although consumers’ stress and anxiety levels remain high, their desire for caffeine has not waned. In fact, the demand for higher caffeine products is actually rising.”

How can these two clear trends coexist? Why are consumers eager to increase their caffeine consumption while also being concerned with their stress levels and sleep quality? Barry posited that the explanation is found in the caffeine paradox — higher levels of stress and sleep troubles lead, paradoxically, to higher demands for caffeine. “At the core of consumer stress is the desire to accomplish more. And this desire creates more stress, which leads to more caffeine consumption for sufficient energy.”

In the Traditional Medicinals survey, respondents shared that they know they’re stressed when they have trouble sleeping (42%), feel irritable (37%), fatigued (34%), have headaches (33%) or feel worried or paranoid (31%). Other respondents said their stress manifests through an inability to focus (30%), restlessness (29%), racing thoughts (27%), brain fog/mental unclarity (23%), or panic attacks (23%).

“With cold and flu season approaching, self-care and stress management are more important than ever,” said Kristel Corson, chief marketing officer at Traditional Medicinals. “Half of those surveyed believe that stress is often the main cause of them getting sick, and when asked what season is most stressful, the highest percentage of respondents (26%) said winter given seasonal changes and the holidays.”

To combat stress, 47% of respondents turn on some music, while another 39% look for comfort in their favourite TV shows and movies.

Food has its own calming effect, with nearly a fifth of respondents sharing that they have a snack (17%) or drink a cup of tea (14%) when they need to bring their stress down.

Seven in 10 agree that their overall mental health would be better if they were able to reduce their stress (71%), highlighting a need for self-care routines to be an important part of the stress solution.

However, incorporating self-care strategies into their daily life is a hurdle for one in seven Americans, leaving nearly half wishing for simple options that fit into their busy schedule (47%) as opposed to elaborate routines. When thinking about a “de-stressing regimen,” an equal percentage of respondents want long-term overall wellness and the ability to alleviate stress quickly (23% each).

“We believe in integrating ancient herbal wisdom with modern scientific advancements for a holistic approach to wellness,” said Corson. “Just 37% of survey respondents think that trendy stress relief options are successful, while nearly half felt confident in more traditional methods like yoga, meditation, or a calming tea.”

Given the conflict in the Middle East, the Russian/Ukraine war, inflation, high costs of goods, and in the US, back-to-back devasting hurricanes along with a contentious presidential election,

consumers’ stress will not likely abate anytime soon. Furthermore, high-caffeine product launches have not tempered while decaf sales remain sluggish, suggesting that the caffeine paradox, Barry highlighted in the April 2022 article will hold true for the foreseeable future.

Barry concluded the article, noting, “That leaves coffee and tea where they have always been — powerful tools in coping with the larger challenges of life. The underlying stressors of the modern world are beyond the power of the industry to solve. But manufacturers can offer a range of products to help alleviate possible burdens, from those who want as much caffeine as they can consume to those prioritising mindfulness and looking to cut back.”

Tea and coffee manufacturers have done just that. So go ahead and grab that 300+ caffeine RTD coffee, that iced ginseng wild apple mint tea, that lavender coffee latte, or chamomile lavender tea — whatever you fancy, as there’s really no choice.

• 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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In her article, “Gendered Teas: A Marketing Strategy or Women’s Reprieve?”, our associate editor, Kathryn Brand, discusses how the ‘wellness economy’ is still surging post Covid-19. Kathryn writes: “As this movement has matured, it has, by extension, expanded and brought to the forefront wellness teas specifically catered towards women. This, combined with a growing feeling of disempowerment of women’s health needs, has resulted in a strong market demand in the women’s wellness tea category.” 

But the question remains, are these teas legitimately offering women relief or are they gimmicks? 

The words ‘disempowerment of women’s health needs’ is a frustrating but oft-true reality that has been happening for far too long, and yet continues today. Not too long ago – when I was a reporter covering the retail industry – ‘PMS’ (premenstrual syndrome) was not a ‘real’ syndrome or even an ‘ailment’, it was something ‘in women’s heads’, scoffed at and therefore not legitimised (at the time there was one, maybe two PMS pain relievers on the market). But then (in my opinion) the pharmaceutical industry seemingly ‘did the math’ and acknowledged that nearly half the global population are women (today that number is 49.6%) and might suffer from PMS not only monthly, but for many years — and the money bells started ringing. Suddenly ‘PMS-relieving’ products started flooding the market coupled with major advertising campaigns. Forward to 2022 and the global PMS and menstrual health supplements market size was valued at USD $22.6 billion per Grand View Research. So, despite its auspicious beginning, PMS was eventually realised as a ‘syndrome’ most likely because of its strong revenue potential but a new category was created that does offer relief for a specifically female-related problem. 

Years later, women’s health claims and needs are still often discounted by doctors, leading them to often look for alternative methods for care and treatment, such as holistic medicine. However, there are also women who prefer natural solutions rather than medicinal when available. Women’s wellness teas go beyond the core functional areas of energy, concentration, relaxation, gut health, skin health, etc., to target needs of women during various life stages. Thus, there are products to support women during reproductive life – from menstruation, pregnancy, nursing – to perimenopause to menopause. But are these teas offering women relief or simply catering to women’s purchasing power in a previously untapped market? Perhaps a bit of both. 

While some brands may see the category as a new potentially strong revenue stream. Some of the brands highlighted in the story, are founded by women because they saw a problem and created a product to solve it. Bethan Thomas, co-founder of HotTea Mama, and a tea scientist, told T&CTJ the motivation for establishing the brand, “It wasn’t until I got pregnant that I realised the majority of the herbal blends that I was creating, weren’t suitable for pregnancy due to many of the ingredients inside. This triggered the idea for HotTea Mama, as my best friend [and I] went through motherhood and suffered with morning sickness, struggles breastfeeding and sleeping… We wanted to make teas that were suitable for this life stage, to be both delicious and supportive.” HotTea Mama has expanded its tea line to offer teas during women’s various life stages. 

Traditional Medicinals, the herbal and botanical tea company that is celebrating its 50th anniversary this year, says it is prioritising women’s health. In the article, Kristel Corson, chief marketing officer at Traditional Medicinals, said, “We believe in providing natural and effective support for women’s health concerns, from menstrual health to pregnancy and lactation support.” 

While I truly hope none of these are simply marketing ploys, there is nothing wrong with exploring a new avenue for revenue (as brands, companies and individuals have done for decades, even centuries), as long as they are legitimately offering some type of relief or support. Support is a key word as none of these women’s wellness teas are panaceas, they are supplementary products aiming to offer holistic solutions for women. And if, in fact, they are offering support, and the more accessible and reasonably priced they are, then female consumers will benefit, and kudos to the brands. 

I recommend reading Kathryn’s article, “Gendered Teas: A Marketing Strategy or Women’s Reprieve?”, which begins on page 30 in our June issue and is the highlighted feature in this week’s newsletter to learn more about this intriguing new category.

• 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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The post-Covid surge in the popularity of functional beverages is ongoing and has significantly bolstered the consumer spend and interest for such products, or rather ‘the wellness economy.’ As this movement has matured, it has, by extension, expanded and brought to the forefront wellness teas specifically catered towards women. This, combined with a growing feeling of disempowerment of women’s health needs, has resulted in a strong market demand in the women’s wellness tea category.
There is an ever growing group of companies that offer women’s wellness tea products, whether they are tea companies that have expanded their product portfolio to meet the demand, or companies which have founded themselves on the premise of supporting women through tea. HotTea Mama falls under the latter. Founded by Bethan Thomas and Kate Achilles, the brand offers consumers a selection of products to support different stages of women’s reproductive life, from menstruation, pregnancy, nursing, and menopause.

Thomas, co-founder and tea scientist at HotTea Mama, explained the premise behind the company’s founding, “It wasn’t until I got pregnant that I realised the majority of the herbal blends that I was creating, weren’t suitable for pregnancy due to many of the ingredients inside. This triggered the idea for HotTea Mama, as my best friend [and I] went through motherhood and suffered with morning sickness, struggles breastfeeding and sleeping… We wanted to make teas that were suitable for this life stage, to be both delicious and supportive. As we grew, our customers started to ask if any herbs or teas could support periods and perimenopause, and I used my tea biochemistry knowledge to create blends for this time of life too.”

Similarly, Poorvi Chordia, founder of Herbs & Kettles, which sells premium single-origin Indian teas, was inspired to create teas for women’s wellness due to personal and professional experience. “As a woman and a frontline physician, I experienced firsthand the importance of self-care and stress management, especially in the face of life’s challenges. Tea played a significant role in keeping me grounded and providing moments of solace during stressful times.”

Wollenhaupt offers a large variety of herbal teas, including a ‘Women’s Power’ blend. Image credit: Wollenhaupt

Meanwhile, Smith Tea recognised its high number of female-identifying customers and wanted to offer a product with health and wellness and “functional nourishment” as a priority, commented Sara Kaufman, product development manager and lead tea maker for Smith Tea’s Empower Mint blend, which was specifically designed with holistic women’s health in mind.

A demand for holistic wellness

Tea companies are noting and building on the idea of women as individual and important consumers with significant purchasing power. “Women’s health is a priority for Traditional Medicinals because we recognise the unique needs and experiences of women throughout their lives. We believe in providing natural and effective support for women’s health concerns, from menstrual health to pregnancy and lactation support,” shared Kristel Corson, chief marketing officer, Traditional Medicinals.

But why is it that women are turning to teas for their health needs in the age of modern medicine? It is part of the growing consensus that the Covid-19 global pandemic inspired, that self care and holistic wellness is something that should be prioritised and sought after in everyday products through functional food and drinks. “During the pandemic, we have learnt that many people have taken more time for themselves again […] People are living more consciously and paying more attention to their health and diet,” noted Michael Görres, head of product development at Wollenhaupt.

Smith Tea’s Kaufman added that “the pandemic highlighted a long-forgotten (or perhaps just overcomplicated) need for finding holistic wellness in our lives. From work-life balance to cleaner eating, the wellbeing economy supports wellness across the board and functional teas sit at the pinnacle of that.” At a time when people felt a need to have some control and agency over their health, a functional beverage market blossomed and remains a strong category even still.

But taking power and control over one’s own health, in the ways that one is able, is something particularly pertinent to women. Thomas explained that “women’s wellness and health has been hugely neglected in society and in medicine for a very long time, which has made women more open to looking at their health holistically.”

Smith Tea’s Empower Mint tea contains four herbs that cover systematic health for women of all ages and demographics. Image credit: Smith Tea

Some medical professionals cite concerns, however, that women are turning to alternative therapies “at the expense of engaging with proven medical approaches, and with conditions such as endometriosis affecting around one in ten women of reproductive age, this kind of marketing can be dangerous,” wrote Dr James Brown, senior lecturer in biology and biomedical sciences, Aston University, in a Guardian article titled “Women: beware teas with a gender agenda.”

However, this perspective overlooks the fact that many women do seek professional medical intervention, but use holistic healthcare, such as herbal teas, alongside it, or as a last resort when doctors are not able to help. “The truth is, that there is a huge medical gap in the UK, and all other countries. Women are often not recognised or heard by their doctors. Especially with conditions like endometriosis, PCOS (polycystic ovary syndrome) and adenomyosis — these are hard to diagnose and women on average have to wait 7.5 years for a diagnosis. In this time, they are forced to take charge of what they can in their diet and lifestyle to support,” added Thomas.

Studies and traditions

While it is true that women cannot necessarily expect a cure for their female-related ailments through wellness teas, there is a growing portfolio of scientific evidence and studies that show an amount of benefit can be seen from regular consumption. An example of this is an article titled “Herbal Infusions and Women’s Health: A Review of Findings with a Focus on Human Studies on Specific Infusions with Studies on Extracts to Evaluate Mechanisms,” by Gill Jenkins, Christopher John Etheridge and Pamela Mason, from the Journal of Nursing and Women’s Health sourced via Gavin Publishers. The paper demonstrated that German chamomile, rosehip and spearmint are all shown to give women health benefits in human trials. German chamomile was found to improve aspects of sleep in postnatal women, as well as being beneficial for pre-menstrual syndrome (PMS), anxiety, stress, and metabolic control.

Rose hip was associated with improved symptoms of menstrual pain, and spearmint improved hormone control. “These infusions contain a range of phytochemicals, including flavonoids, which help to explain their health outcomes. Most of the human studies indicated that 1-3 cups daily with brewing times of 5-15 minutes provided the health benefit in question,” the study noted.

Raspberry leaf, red clover, ginger and turmeric are also routinely favoured in women’s wellness tea offerings and are among those that have been used as herbal remedies stretching back generations. Companies endeavouring into women’s wellness teas have to choose how to balance verifiable scientific evidence with anecdotal and traditional uses. “We’re careful to only use ingredients that have historical use but are also backed up with research in more recent years. While the research studies are often small scale, we work with a technical agency to review new research regularly and ensure that there is as much evidence as possible to suggest that the majority of women will benefit,” said Thomas.

It is this deeply rooted historical practice that also may also be bolstering the attraction of wellness teas for women, observed Corson. “The appeal of these teas to women may be rooted in their historical connection to nature and traditional herbal practices that have long been passed down through generations of women.”

Chordia also noted that women tend to be more open to “an integrative approach towards health.” She added that “they are also more [receptive to] trying Eastern medicine which has a multitude of health benefits and often functional teas and tinctures play an important role in these alternative approaches. Women more often form communities that empower each other, and that often helps them take charge or ownership of their health and wellbeing than men.”

HotTea Mama offers a range of wellness teas for different stages of women’s reproductive life. Image credits: HotTea Mama

While many companies stress that their wellness teas can benefit both men and women, they are overwhelmingly finding that their consumer base is dominated by women and as such, are marketing their teas with this in mind. However, some view gendering teas as a marketing strategy in itself. Görres explained, “In the herbal tea sector, it can make sense to develop gender-specific teas for the respective needs and with a target-group orientated approach.”

On the whole, people tend to drink herbal teas for their health benefits as well as just their flavour, and since men- and women-identifying individuals often have different wellness needs, especially in relation to reproductive health, it makes sense for teas to be targeted in this way. Corson noted that this must be done with some care; “gendering teas can be a marketing strategy to target specific demographics and highlight the relevance of certain products to their unique needs. However, it’s essential to ensure that gendered marketing does not reinforce stereotypes or exclude potential consumers. Ultimately, the effectiveness of marketing strategies depends on the authenticity of the brand’s message and its ability to resonate with consumers’ values and experiences.”

Market movements

With herbal tea market sales expected to grow at a CAGR of 7.3 percent to USD $7,693.5 million between 2023 to 2033, according to market research company, Future Market Insights, there is no doubt a driver of this is consumers’ search for products to improve their health and play a functional role in their beverage consumption. The trend for customisation is expected to influence this market with consumers wanting tea formulations for their specific health concerns, including women’s wellness. These are also anticipated to grow in the organic and ‘natural’ space as “people are making a conscious decision to drink better quality teas that are organic, directly sourced and fresh, farm to cup,” said Chordia.

While some may consider women’s wellness teas a trend or marketing gimmick, and for some companies that may be true, but there are equally companies that are investing in the research and utilising centuries old traditions of herbal remedies to give women comfort, relief, relaxation, or even just a moment of pause to enjoy a delicious cup of tea. And with the functional market and ‘wellbeing economy’ ever-growing, this category is not expected to go away any time in the foreseeable future.

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing 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.

The post Gendered teas: a marketing strategy or women’s reprieve? appeared first on Tea & Coffee Trade Journal.

Many consider matcha, like other natural tea and botanical infusions, to be beneficial to health when consumed, and as such this can be used as a draw for consumers. One such company is UK-based OMGTea, a specialist matcha green tea company.

Its founder, Katherine Swift, firmly believes “regular consumption of quality matcha is a simple way to do something positive for your health and wellbeing that will have both short and long-term benefits.”

Swift commented: “This is the season in Japan, known as ‘Ichibancha’, when the very best Japanese green tea is harvested. But many people in the UK don’t yet realise just how special these precious, top quality tea leaves can be.

“For example, matcha green tea has been drunk by Buddhist monks for centuries and is known to help to still and focus the mind – it is regarded as a drink of meditation. This practice is now widespread in Japan which is one of the healthiest countries in the world and is renowned for its longevity.

“Samurai traditionally consumed matcha before battle, whereas Buddhist monks drank it for relaxation and to achieve a sense of Zen. In today’s fast-paced world, many individuals facing challenges at work and home could benefit from tapping into their inner samurai or Zen. A good cup of matcha is a great way to start.”

In support of this philosophy, OMGTea runs a ‘Matcha Challenge’ every January/February, where participants consume quality matcha every day for 21 days. At the end of which they complete a survey, answering questions about their health and wellbeing, the results of which are used to assess the impact of daily matcha consumption on the participants lives.

Out of 126 respondents, 46% consumed their matcha in tea form, 64% as a latte, and 5% in a smoothie. Of this group, 88% experienced an increase in energy, likely supported by the on average 70mg of caffeine a cup of matcha contains, more than green tea but less than coffee. Accordingly, 83% said they also noted an improvement in their focus, and a further 52% felt when they were exercising that they could do more than usual, and 77% felt more “present in the moment.”

As well as improving energy and focus, the survey also found that it promoted healthier living and wellness in its participants; 98% said drinking matcha regularly made them feel like they wanted to live a healthier lifestyle, 55% found it helped curb cravings and snacking, and 46% noticed a clearer or brighter complexion to their skin.

While this was a small brand-led survey, it certainly indicates that benefits can be had from consuming matcha regularly. Katherine Swift emphasised, however, that the quality is very important to reap the most benefits from matcha.

“The quality of matcha can significantly influence its health impact due to variations in the levels of nutrients, antioxidants and L-theanine. High quality matcha contains more catechins, particularly epigallocatechin gallate (EGCG), which is a powerful antioxidant.

“Premium or high grade matcha typically comes from the first harvest younger leaves and has a higher chlorophyll content than lower grades. High chlorophyll is what gives quality matcha its bright green colour and acts as a natural detoxifier.

“Higher grade matcha also has more L-theanine. L-theanine is an amino acid that reduces stress and promotes relaxation, whilst also helping to improve focus and cognitive function. Essentially it is the L-theanine that gives you that Zen feeling when you drink quality matcha.”

So if consumers are wanting to try matcha and incorporate it into their daily lives, Swift shared some tips for starting out.

1. As mentioned, quality is essential. Colour and texture are the best ways to assess the quality of the matcha.
2. Look for the origin – “Matcha means powdered leaf in Japanese and authentic matcha is Japanese origin only. The Japanese have been producing quality matcha for more than 800 years, with the skills for doing so passed down from generation to generation.”
3. You get what you pay for when it comes to matcha. Anything cheaper than £20-£45 for a 30 gram tin of high grade matcha will likely be in the lower quality range. Cheaper matcha will be more bitter, less palatable and less “healthful,” explained Swift.

Where this price point may be off putting or inaccessible for many consumers, Swift does say that benefits can still be had from lower grade matcha, especially when blended into lattes or smoothies to hold up to the stronger flavour.

With wellness trends continuing to be on the rise since Covid-19, matcha is becoming less of a niche segment and more into the mainstream market, with trendy concoctions such as matcha lattes and alcoholic drinks becoming more prevalent, especially attractive due to the product’s distinctive shade of green.

• 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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In recent years, lavender has been rapidly building a fan base among coffee lovers around the world, and market players believe this trend is only just gaining traction.

Best known for its calming effects, lavender has historically been highly valued in herbal medicine for its health benefits, including antioxidant, anti-inflammatory and antibacterial properties. There is scientific evidence that lavender aromatherapy may help reduce stress, promote better sleep, lower blood pressure, and even relieve some pain. Research also shows that inhaling lavender can help reduce anxiety and depression.

The word lavender comes from the Latin word lavare, which means “to wash.” In many ancient cultures, including Greece, Persia, and Rome, lavender was believed to purify the body and mind. In Roman times, the blossoms were sold for about the same amount as a farm worker’s monthly salary. Fortunately, lavender is much more affordable today.

Tea & lavender: an ideal union

Over the years, this herb has gained a foothold in the tea industry, where it is appreciated for its pleasant taste and potential calming benefits. “Flowers are widely perceived to lift people’s moods and are also a popular choice of gift when trying to cheer someone up. Here is where floral teas can step in and raise their game in the mental wellbeing area,” said David Faulkner, associate director with Mintel Food & Drink.

According to Faulkner, in an increasingly chaotic world, relaxation is the top priority for tea drinkers. Already the leading category for stress and relaxation claims, tea is uniquely positioned to further develop this role in the coming years.

“Brands innovating around floral teas should actively target stress relief and good mood – the benefits commonly associated with ‘real’ flowers. Beyond ‘good night’, there is room for ‘good day’ mood-boosting teas.”

Tea is the leading category for innovation in this context. As estimated by Mintel, while Asia Pacific leads launch activity, remarkable growth can be seen in North America, where floral flavours doubled within the past five years.

The rise in popularity of lavender in the tea industry is absolutely in line with the existing trends of consumers becoming more health and wellness-focused, as well as the growing desire for more exotic flavours, especially among younger consumers, commented Niya Vatel, owner of Tea and I, a US-based tea company. She added that the general increase in the use of herbal and botanical ingredients is also contributing to the rising popularity of lavender.

Furthermore, “people are willing to pay a premium for a sensory experience and potential health benefits,” Vatel indicated. And perhaps more importantly in today’s world, lavender is now among the products that “ride the social media wave, being cherished by celebrities and influencers, which proves to be a catalyst for its booming popularity.

“We must also remember the influence of social media marketing. When lavender-infused beverages are showcased in visually appealing ‘Instagrammable’ ways, it can lead to faster widespread adoption,” Vatel said. What is additionally important, she continued, “is that the health benefits of lavender aren’t folklore: it’s backed by science, so it’s great for consumers looking for that reassurance and interest in organic, natural, clean-label products.”

A perfect blended paradox

While lavender has already become a common part of tea culture, it is still an emerging trend in the coffee industry.

Paul Rooke, executive director of the British Coffee Association, commented, “For several years, there has been innovation around the use of flavours and aromas in coffee, so it’s no surprise that lavender would be part of that development.”

In general, the rise in lavender’s popularity is partly linked to the young generation’s constant desire to experiment with flavours and tastes. “Coffee as a beverage readily lends itself to being combined with a wide range of different ingredients, and we see more of that as new generations of coffee drinkers explore these opportunities,” Rooke explained. “It is clear that the use of herbal and botanical ingredients as a part of that innovative exploration is fast becoming a staple part of the UK’s hot beverage scene.”

Analysts say that some customers may want to add lavender to their coffee, seeking a more balanced beverage. Coffee can make some people feel anxious and negatively impact their sleep, while lavender can calm and, in theory, counter those effects. Coffee companies are rushing to capitalise on the growing purple trend.

“We have noticed an increase in the request for lavender beverages,” said Megan Jackman, manager with Keweenaw Coffee Works. “Usually, lavender is a popular ingredient in the spring, and would mainly only show up on our spring seasonal menu. However, lavender has become so popular that we now offer lavender beverages as part of our ‘signature’ beverage menu, which is available year-round,” Jackman said.

The growth in popularity of lavender has become so evident that Keweenaw Coffee Works has also shifted to making its own lavender syrup in-house. “Because so many customers want lavender drinks, it is important that our lavender syrup is of high quality. A lot of the lavender-flavoured syrups available on the market have an artificial flavour or smell to them, so we made the decision over a year ago to make our own lavender syrup using lavender buds and simple syrup,” Jackman explained.

Gretchen Hashemi-Rad, beverage category manager for Caribou Coffee, has also observed a surge in consumer interest in lavender coffee. “In recent years we have noticed an increased demand for customisation, including the desire for plant-based milks.” She added that “this surge in popularity led us to the decision to offer free non-dairy customisation when ordering via the app. We also believe Gen Z and millennial customers are driving these beverage trends including lavender. The popularity of social networks and influencers has made a significant impact on these trends as well.”

Hannah Holmes, a spokesperson for flavours and ingredients supplier, Finlays, said the company “has certainly noticed a rise in lavender – and other floral flavours over the past few years.” She explained that several factors are driving its popularity, such as consumer demand for ‘adult’ soft beverages that offer an alternative to sweet carbonated soft drinks and alcoholic beverages. Holmes shared that lavender creates a more unconventional and sophisticated flavour profile, appealing to consumers seeking distinctive, artisanal and craft beverages.

“There’s also a health angle – as consumers typically associate lavender with relaxation and calming – as evidenced by its frequent usage in the health and beauty space in products such as bath soaks,” she said.

Additionally, the soft purple hue creates visual appeal, which is increasingly important for beverages gaining traction on social media, Holmes stated, adding that the new Starbucks Iced Lavender Cream Oatmilk Matcha is a great example of a distinctive beverage, drawing on the sweet floral notes and visual impact of purple and green from the matcha and lavender.

“Lavender is the perfect flavour to transition us from the winter season into spring,” said Patrick Penny, Starbucks beverage developer in a company-issued press release. “Its soft sweetness, light floral notes and beautiful colour ignite feelings of rejuvenation and awakening associated with the change of seasons.” The new Iced Lavender Cream Oatmilk Matcha features matcha and oatmilk served over ice, and topped with lavender cream cold foam, which creates sweet and subtle floral notes. “When creating the new Iced Lavender Cream Oatmilk Matcha, we wanted to capture the uplifting energy of spring in a cup,” Penny shared. “The vibrant green matcha topped with lavender-hued cold foam delivers a delightfully colourful and unexpectedly delicious flavour combination.” Starbucks’ spring beverage menu also includes an Iced Lavender Oatmilk Latte.

Herbal & botanical revolution

“The underlying trends for adult soft drinks, relaxation and visual appeal are key drivers of consumer behaviour so we expect lavender to remain popular for several years, but with key developments [such as] the distinction of ‘French lavender’ or the trend expanding to include other floral teas and botanicals [like] Darjeeling or peony,” Holmes shared.

However, the soaring popularity of lavender might be only the tip of the iceberg. There is a more powerful trend underneath, which is raising consumer interest in herbals and botanicals, including in coffee beverages.

“In seeking natural ingredients, consumers are driving the popularity of herbals and botanicals – there are several angles to this, health and perceived functionality; the visual impact of botanicals, eg, hibiscus; and the desire for new and innovative flavours,” Holmes said.

“Coffee is such an innovative space,” Hashemi-Rad pointed out. “Like with lavender, more herbal and botanical ingredients may end up having a bigger impact on the beverage industry in the future. While an unwavering love of specialty coffee is at the core of what we do every single day, our guests’ wants and needs are always evolving.”

Holmes suggested that businesses need to be innovative and forward-looking to ensure they are reactive to changing consumer preferences, which is obviously a major challenge with the fast-moving nature of trends. “At Finlays, we employ several tactics to stay ahead of the curve, including being highly active on #DrinkTok, using predictive AI to forecast trending flavours and ingredients and looking outside of the beverage category – for example into health and beauty – to understand the wider consumer landscape. This enables us to support customers in capturing pockets of high growth in the large and mature categories in which they operate,” Holmes said.

“Today’s consumers are informed and conscious about the health benefits of what they consume, so it’s unsurprising that companies are taking note and popularising botanical ingredients,” agreed Tea and I’s Vatel. “Consumers want the best of both worlds: beverages that taste great and are good for them. The boost in lavender use aligns with that growing trend of taste exploration and health-conscious consumption, and I don’t see it going anywhere any time soon.”

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

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Lipids are a diverse collection of natural substances that share the property of being insoluble in water. They include all of the fats and oils that are common constituents of many foods, but they have generally not been examined as significant components of teas.

The Hokkaido team selected four teas for their initial analysis: dokudami (Houttuynia cordata, fish mint), kumazasa (Sasa veitchii), sugina (Equisetum arvense, common horsetail) and yomogi (Artemisia princeps, Japanese mugwort).

“These herbs are native to Japan and have been widely consumed as tea from ancient times due to their medicinal properties,” said Gowda. The medicinal benefits attributed to these and other herbal teas include antioxidant, antiglycation, anti-inflammatory, antibacterial, antiviral, anti-allergic, anticarcinogenic, antithrombotic, vasodilatory, antimutagenic, and anti-aging effects.

The lipids in the teas were separated and identified by combining two modern analytical techniques called high-performance liquid chromatography and linear ion trap-Orbitrap mass spectrometry.

The analysis revealed significant variations in the lipids in the four types of tea, with each type containing some known bioactive lipids. These included a distinct category of lipids called short-chain fatty acid esters of hydroxy fatty acids (SFAHFAs), some of which had never previously been found in plants. SFAHFAs detected in tea could be a novel source of short-chain fatty acids, which are essential metabolites for maintaining gut health.

“The discovery of these novel SFAHFAs opens new avenues for research,” commented Hui, adding that the lipid concentrations found in the teas are at levels that could be expected to have significant nutritional and medical effects in consumers.

The lipids discovered also included α-linolenic acid, already known for its anti-inflammatory properties, and arachidonic acid which has been associated with a variety of health benefits. These two compounds are examples of a range of poly-unsaturated fatty acids found in the teas, a category of lipids that are well-known for their nutritional benefits.

“Our initial study paves the way for further exploration of the role of lipids in herbal teas and their broad implications for human health and nutrition,” Gowda concluded. “We now want to expand our research to characterise the lipids in more than 40 types of herbal tea in the near future.”

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“Grounds for Health is an exemplary choice for our Charity of the Year due to their significant impact on improving the health of women in coffee-growing communities,” said Robert Carter, president, Coffee Association of Canada. “Grounds for Health’s concrete actions and compassionate dedication to women in coffee-producing countries has had real-life, lifesaving effects on one of the most marginalised groups in our industry.”

Women are vital members of coffee communities and the specialty coffee industry. They provide labour on coffee farms, at washing stations and wet mills; they raise children and ensure they have access to clean water, healthcare and education, and they play critical roles in climate adaptation and climate resilience. To date, Grounds for Health has screened and treated over 215,000 women to prevent cervical cancer. Through its high impact work protecting women’s health, Grounds for Health is also protecting the health and wellbeing of the community, environment and coffee industry as a whole.

“We are delighted to be named the first Charity of the Year by CAC,” said Kyle Engelman, executive director, Grounds for Health. “Many CAC members are supporters of Grounds for Health, inspiring us every day with their commitment to the farmers and women who make this industry possible. Thank you for this honour – we promise to continue our high impact work alongside you.”

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It’s not ‘new news’ that caffeine can assist in weight loss (caffeine may help burn more calories and cause a decrease in body fat) and that coffee has a variety of health benefits, but according to a study by Harvard TH Chan School of Public Health (HSPH) researchers, drinking four cups of coffee daily could reduce body fat by about 4%.

The finding comes from a 24-week investigation in which 126 overweight, non-insulin sensitive adults drank daily either four cups of regular coffee or four cups of a coffee-like placebo beverage. The intent of the study was to determine if coffee consumption reduces the risk of developing type 2 diabetes.

The researchers noted that previous observational studies have linked drinking coffee with a lower risk of type 2 diabetes but coffee’s effects on blood sugar metabolism have not been well defined. With the current study, researchers did not find evidence that coffee affected the participants’ sensitivity to insulin — the hormone that regulates sugar levels in the blood.

However, the study did yield an unexpected result: drinking coffee was associated with a modest loss of body fat. Those who drank four cups of caffeinated coffee per day over six months saw a nearly 4% drop in overall body fat.

Derrick Alperet, a study co-author and research fellow in the HSPH Department of Nutrition, said in a HealthDay News article that he and colleagues think that the fat loss may be due to the caffeine in coffee increasing the drinker’s metabolism. He said it suggests that “this loss in fat mass was not likely to be due to changes in lifestyle, namely diet and physical activity.” Rather, Alperet and his colleagues think that coffee-fuelled fat loss may be the result of a ‘metabolic reaction’, in which caffeine causes the drinker’s metabolic process to ramp up. The end result, he said, is the burning of more calories and a notable drop in body fat.

The Singapore experiment lasted six months, during which time half of the study participants – who were all Chinese, Malay or Asian-Indian, per HealthDay News – were randomly instructed to drink four cups of caffeinated instant coffee on a daily basis. The other half drank a beverage that simulated coffee’s taste but was neither coffee nor caffeinated.

Alperet and his fellow researchers concluded that more research is needed, explaining that additional trials with more comprehensive assessments of body composition are needed to confirm their findings.

Some nutritionists in the HealthDay News article questioned the amount of coffee, believing the four cups daily to be “on the high side of intake.” However, scientists at the United States Food & Drug Administration (FDA), have asserted that caffeine can be part of a healthy diet for most people, For healthy adults, the FDA has cited 400 milligrams a day – that’s about four or five cups of coffee – as an amount not generally associated with dangerous, negative effects.

In December 2020, the Dietary Guidelines for Americans reaffirmed that coffee can be part of healthy diets. The National Coffee Association of the USA has long been touting the many health benefits associated with drinking coffee. For example, on the coffee and health section of its website the NCA notes that “In a review of 21 prospective studies totaling over 10 million participants, drinking one cup of coffee (whether decaf or with caffeine) per day was associated with a 3% reduced risk of death, and drinking three cups of coffee was associated with a 13% reduced risk of death.”

Additionally, per the NCA, “a study of over 500,000 people, spanning a decade, found that drinking coffee, whether caffeinated or decaffeinated, was inversely associated with mortality, including among those drinking eight or more cups per day.”

So, do not actually dump the dumbbell or abandon your cardiovascular routine, but do continue to confidently enjoy your daily cuppa Joe — and if you are not a coffee drinker, perhaps this is a good reason to become one…

• 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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By strict definition, tea is a beverage made by brewing tea leaves in near-boiling water. Whether the tea is black, green, white or oolong, these leaves come from the same plant: Camellia sinensis. Technically, anything not made from this plant should not be called tea.

The history of mixing Camellia sinensis leaves with those from other plants to get new taste and aroma traces its roots to ancient times. Over the years, some additives and alternative plants have started to be consumed independently from Camellia sinensis leaves. This emerging segment is frequently referred to as ‘new teas’, and according to market players, it has a bright future.

The Covid-19 pandemic was certainly good for the herbal tea category, commented Matthew Barry, insight manager, food & beverage research with Euromonitor International, an international think tank.

“Many herbal teas have strong functional positionings that were in demand in 2020, including immune support, anxiety relief, and treatment of Covid symptoms like coughs and sore throats,” Barry said. Growth has been slower since then, but it is notable in itself that the category did not shrink in 2021 the way so many other food and beverage categories did once the pandemic eased, and people’s shopping habits started to return to normal, he added.

In recent years, yerba mate tea, one of the prominent segments of the new teas, enjoyed a strong growth in popularity, commented Amelia Quelas, president of the newly established American Yerba Mate Association (AYMA).

Up until a couple of years ago, the yerba mate business was restricted to those who brought the custom and tradition to consume it from their homelands, specifically South America, including countries like Argentina, Uruguay, Paraguay, and Brazil, and the Middle East, and was sold in small markets and delis that catered to those communities, Quelas said.

“Slowly but steadily, a couple of companies started producing yerba mate-based carbonated drinks and entered the market through larger chains of food supply. Also, stars like Lionel Messi and teammates in the soccer world have spoken about their commitment to using yerba mate for stamina, energy and resilience,” Quelas added.

The emergence of new ‘teas’

Other types of new teas are performing similarly well. The moringa tea market, for one, has been growing steadily in the past several years, commented Clarissa Akakpo, CEO of the Accra-based moringa tea manufacturer, Aguma Tea.

“My tea business is primarily in West Africa, and there is a certain level of local knowledge that the moringa leaf is a great source of nutrients and can aid the symptoms of a variety of ailments,” Akakpo said.

In general, there used to be a perception that moringa is a tea to be consumed when sick or dealing with some form of health condition. The pandemic, however, was a game-changer for the moringa tea market.

“With the Covid-19 outbreak at the beginning of 2020, there was an increase of enquiries for moringa tea globally,” Akakpo shared, explaining that customers were looking to strengthen their immune systems and alleviate some of the symptoms. “This developed an increased general knowledge about the benefits of moringa tea,” she said, emphasizing that the impetus started by the pandemic to the moringa sector had not winded down even when the worst period ended.

Occasional reports indicated that purple tea, another type of the new tea segment, also enjoyed a rise in popularity, although it is twice the price of traditional black tea. Companies working in this niche also emphasize the health benefits of their product.

For example, Summer Tea, a prominent Kenyan purple tea manufacturer, lists high antioxidant content, weight management and improved heart health as the key benefits customers can get from consuming purple tea.

Capitalising on health habits

The Covid-19 pandemic undoubtedly boosted the popularity of at least some new teas, but there is more to it than that. As growing numbers of consumers continued to pursue healthier choices, new teas continue to come into the spotlight. Tea continues to benefit from consumers’ focus on health and wellness in a post-Covid-19 world, said Tan Heng Hong, senior food & drink analyst with Mintel, an international consultancy.

Additionally, Hong suggested that brands can deliver stronger messaging, provide more eco-friendly options, and deliver greater transparency to ensure tea’s continued relevance among sustainability-minded consumers.

In the coming years, the new teas market is poised for exceptional growth in sales, largely owing to a low-base effect. “Teas are recognised as having health benefits, and yerba mate, also has many health benefits, but because it was consumed by a much smaller population than traditional teas, it is coming a little late to the party in the US but [has staying power],” Quelas said.

With regard to herbals, Euromonitor’s Barry said there is not one specific factor behind the growth, “there are a number of things. One is simply a restlessness we find among younger consumers across many beverage categories. Younger people are abandoning sodas for waters, lagers for ready-to-drink (RTD) cocktails, etc.”

According to Barry, another reason for the rising popularity of herbal tea is the interest in functionality. Herbals have done a really good job of speaking to the functional space with a wide array of targeted products, he said, adding that in his opinion, black tea has not touted its own health benefits enough. “Regular consumption of teas from Camellia sinensis is linked to all sorts of positive health benefits, yet black tea is not really thought of as a health drink.”

Akakpo also said that the moringa tea business is growing, and the demand is increasing with the rise in interest in preventative health and well-being techniques. “I have observed that consumers want to incorporate new natural remedies into their everyday diet, and moringa is one of them,” Akakpo said.

A place on the infinite shelf

New teas offer excellent opportunities for tea companies looking to diversity their product range.

“We have been gradually increasing our range of herbal infusions over the last few years for those looking to avoid caffeine as well as to increase the range of flavour profiles,” said Holly Grinstead, a marketing manager for Edinburgh-based tea company, Rare Tea Co.

“The East-to-West cultural exchange will create demand for more tea varieties and new ways to consume it. Tea can increasingly take inspiration from energy drinks and other energizing beverages as consumers look for more natural sources of energy,” Hong added.

“If you have a market where black tea has been dominant for a long time, it’s not surprising to see millennials and Gen Z instinctively want something else,” Barry explained, adding that there is a lot of room for experimentation because of all the different ingredients you can use, and consumers these days are very interested in trying new and unusual beverages.

He noted that the internet has played a key role in this. “Even the most well-stocked tea retail outlet can only have so many options, but online, you have the ‘infinite shelf’. Tea out-performs in e-commerce compared to other food and beverage categories, and I think the variety available is a key reason.” Barry explained that people only want so many kinds of peanut butter or toothpaste to choose from before it becomes too much, but when it comes to tea and herbal teas specifically, they really do seem to want a massive selection.

Market players also continuously study various options for mixing new teas in different blends.

“Business has been good for us in the value addition space,” commented Sahil Radia, CEO and co-founder of Kenyan tea manufacturer, Bahari Teas, which focuses on purple tea, among other things. “We find there’s a lot of focus on tracing the tea from farm to cup and ensuring the tea is planted and produced at optimum standards. organic, Fair Trade, non-GMO tea are even more important now, but commitment to quality and sustainable packaging is also key,” Radia added.

Social media plays an essential role in the growth of the popularity of new teas. “Some health commentators on social media platforms have shared that moringa forms part of the cuisine in India; for example, in some villages, moringa leaves are put into curries and used as a herb; this was also a common practice in many parts of West Africa where moringa leaves and stems would be used as a vegetable in soups and stews,” said Akakpo. “This conversation has led to different types of enquiries. As a result, I have had requests for whole leaf moringa.”

The product range of new teas, as well as the number of market players working in this field, is likely to keep growing for the time being.

“The yerba mate business is still in its infancy, and one of the targets of the American Yerba Mate Association is to help those companies that are already in the market, those that are interested in selling yerba mate products in the US, and also those that are ready to enter the market such as Matea, a new concept out of Boise, Idaho, which is producing a yerba mate matcha energy drink in different flavours,” Quelas indicated.

In general, analysts remain optimistic about the future of the new teas. Barry, for example, pointed to the fact that a lot of the underlying drivers boosting growth are strong and that there is little reason to believe that there will be a reversal anytime soon.

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

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Following recent successful launches into major outlets including Tesco, Sainsbury’s, Starbucks, WHSmith, BP Garages, Wasabi and Fullers Pubs, this new listing signifies the growing demand for kombucha in the UK, with the category growing at 33.3% RSV (retail sales value) year on year and Remedy taking the lead above any other kombucha brand with 77% growth.  

The addition of Remedy provides a healthier soft drink option for Waitrose supermarket shoppers, with the kombucha being free from sugar and artificial sweeteners, and also containing live cultures (good bacteria), organic acids and antioxidants that are widely reported to support gut health.  

Remedy is the kombucha market leader in the UK, selling £3.6m+ comparatively to last year, with a can or bottle sold every three seconds in UK grocery and multipacks now growing at more than 77% year-on-year due.  

Recent research from Remedy showed that 37% of Brits are addicted to sugar, with a further 8% ‘completely’ addicted. Retailers are responding to the growing desire for customers to improve their overall health and sugar consumption and are opting for healthier food and drink alternatives to offer customers. Remedy’s kombucha is low in calories, with just nine calories in a 330ml can.

Ian Hadley, commercial director at Remedy Drinks UK, said, “In January, we saw the biggest ever lift in sales across the kombucha category, with this continued growth bringing about even greater demand for Remedy.  

“We’re delighted that Remedy has become the first no-sugar kombucha to launch into Waitrose in multipack format and are grateful for the ongoing support from all our retail partners. This support is helping us to realise Remedy’s ambition of shaking up fizzy drinks for good, putting something good out into the world!” 

Tesco recently released stats on how sales of kombucha have increased by 65% in the past two years. Kombucha has enjoyed such a boost in popularity that Tesco recently added Remedy to its Meal Deal. Tesco shared that, since lockdown, there has been a general uplift in shoppers looking for functional food and drink, which supported the decision to make kombucha more widely available to its customers. This has, in turn, helped boost their sales. 

As a result of Remedy’s success, growth and the strength of the brand and product within the UK market, Remedy is also embarking on a programme of marketing initiatives for 2024 and beyond, with activity including a forthcoming sponsorship of The Doctor’s Kitchen podcast and sampling at events including Food & Drink Expo and the Taste of London Food Festival. Further launches and retail expansion will also be announced over the coming weeks. 

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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.

The post In praise of RTD coffee  appeared first on Tea & Coffee Trade Journal.

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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