Once a beverage intended for at-home brewing, tea has seen opportunities open up through ready-to-drink (RTD) applications. As consumers continue to lead on-the-go lifestyles, requests for these products have climbed.
“The tea market as a whole is on the rise, thanks largely to increased activity in the RTD segment,” says Victoria Ward, marketing and consumer insights manager for Philadelphia-based David Michael & Co., part of the International Flavors & Fragrances (IFF) family. “Brands are responding to consumer demand for wellness, variety and premiumization in this category. Millennials are a significant driving force behind this growth as they consume tea frequently, are on the hunt for health benefits ‘on-the-go,’ and tend to be very experimental and adventurous when it comes to their beverage choices. While RTD is experiencing a boom, hot tea is also looking to premium options and flavor innovation in the hopes of reinvigorating retail sales.”