Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Ingredient SpotlightTea and Coffee

Premium tea ingredients leading the way in beverage development

Functional benefits help tea ingredients expand usage opportunities

By Barbara Harfmann
Spritz Sparkling Tea
Clean-label, low-calorie sparkling teas are resonating with consumers. Launched in December, Spritz Sparkling teas are softly sparkling, boldly flavored tea infusions that contain zero calories, zero caffeine and carbs, the company says. (Image courtesy of Spritz Beverages)
December 5, 2019

In the 1924 song “Tea for Two,” Doris Day sings, “Picture you upon my knee, just tea for two and two for tea, just me for you and you for me alone.” Although not the lyrics to an old-time song, beverage-makers and consumers alike are “singing the praises” of the healthful attributes of tea ingredients and revealing that there’s now more premium choices and categories utilizing these ingredients than ever before.

Black tea is No. 1 in the market, followed by green tea, but experts note that more premium tea ingredients like purple, herbal and tea blends are making bigger strides. Teas containing cannabidiol (CBD) and kombucha, fermented tea, also are on the rise.

READ MORE ABOUT

• Ingredient spotlight

• Tea

• Tea ingredients

• Black tea

• Green tea

According to the New York-based Tea Association of the USA Inc., tea is the most widely consumed beverage in the world next to water, and can be found in almost 80 percent of all U.S. households. On any given day, more than 159 million Americans are drinking hot or iced tea at a rate of more than 84 billion servings a year in 2018, the association states.

About 84 percent of tea consumed is black tea, followed by green tea at 15 percent, with oolong, white and dark teas consumed in smaller amounts, it adds.

Synergy Flavors’ Cynthia Bethscheider, a beverage technologist at the Wauconda, Ill.-based company, concurs that black tea is a mainstay for the U.S. marketplace, especially because new flavors like chai and profiles like floral and herbal notes are resonating with consumers.

“While we are also seeing an increase in white tea, green tea is seeing higher visibility due to the health attributes and country-of-origin claims. Persian Lime and Bulgarian Rose profiles are examples of how the country can play an important part of the overall tea experience,” Bethscheider says. “With increased interest in traceability, consumers like to know where the leaf or flavorings are coming from. It gives people a feeling of drinking a healthier, more sustainable beverage.”

The beverage marketplace is ripe with innovation as consumers thirst for familiarity with all things tea-related. For instance, in December, a Dublin, Ohio-based beverage startup launched Spritz Sparkling Tea locally and through an eCommerce platform. Available in 12-ounce slim cans, the brand’s first two flavors are a hibiscus tea with dragon fruit, guava and mango, and a green tea with pomegranate, peach and lemon.

 

Healthy functionali-tea

Tea extracts are being used in new formats such as sparkling, carbonated, or as a caffeine source in functional drinks promoting energy or health benefits, says Pam Everett, vice president of insights and product innovation for S&D Coffee & Tea, Concord, N.C.

Thaiwala teas.

Crafted with ethically sourced organic black tea from a 500-acre farm in northern Thailand, Thaiwala contain Thai herbs, pure cane sugar, organic caramel, natural vanilla, pure cocoa powder and beta-carotene from carrots. (Image courtesy of Thaiwala)

Emerging tea varietals such as white, oolong, hibiscus and herbal/botanical ingredients are performing well, Everett says. “Whether you prefer the taste of oolong over black tea, you can expect many of the same benefits across tea varietals, she explains. “Herbal/botanical ingredients can also introduce appealing colors when added to a tea blend. Hibiscus, for example, lends a pink/purple hue to the finished beverage.”

Nick Salza, vice president of leaf tea for Martin Bauer Inc., Secaucus, N.J., expresses similar sentiments: “As a whole, the demand for botanical ingredients in beverages is growing,” he says. “We see beverage-makers using numerous herbal teas — mint, hibiscus, cucumber, lavender, chamomile, jasmine, ginger and turmeric are just a few popular ones.”

Tea’s smell contributes to its appeal and may premium teas are formulated with tea essences, which enhance the natural aroma of tea in a finished beverage, according to Stacy DeMars, associate marketing manager for Lincoln, R.I.-based Finlays.

Experts also highlight the healthy attributes of tea ingredients. “Both green and black tea contain polyphenols, purple tea contains polyphenols and anthocyanins; all of which are antioxidants that may help boost the immune system,” says Nicole Toal, tea applications manager at Finlays. “Tea also contains an amino acid called L-Theanine, which is said to have a positive impact on overall relaxation and calmness.”

Katie Ferren, vice president of sales and marketing for Blue California, highlights the abundance of science and functionality behind green tea extracts.

“Green tea extracts are high in antioxidants, may promote heart health, [are] good for brain health, help support healthy blood sugar levels, and can help with weight loss,” she explains. “There is some evidence that the catechins in green tea extracts may benefit liver function, be good for skin health, as well as immune support. Another benefit less widely known is that green tea extracts may support exercise performance and recovery.”

The Rancho Santa Margarita, Calif., company suggests adding L-Theanine as a functional food ingredient can help “promote a focus and relaxation claim.” It offers a green tea extract containing 50 percent epigallocatechin gallate (EGCG), 95 percent polyphenols and 80 percent catechins that could help with several other claims, Ferren says.

 

Follow the ‘rising tide’

As some consumers have moved away from carbonated soft drinks, some have migrated to healthier alternatives like tea. This has led to a “rising tide” that has helped propel virtually every tea brand and catapulted demand for ready-to-drink (RTD) and powder tea beverages, says Philip Caputo, marketing and consumer insights manager, Virginia Dare, Brooklyn, N.Y.

“Across the board, tea has been increasing due to higher demand for RTD and powder tea beverages,” Caputo says. “… Now consumers are looking to experience tea in different ways. A lot of new growth in the tea realm is attributed to consumers wanting a more premium tea. Things like single origin RTD beverages and unsweetened artisanal/herbal teas are in high demand as opposed to the traditional sugar-sweetened, fruit-flavored iced teas where the tea impact was slighter/less relevant.

“Now, consumers want to be able to taste the different tea flavors and distinguish the differences between the premium beverages,” Caputo continues. “… There are many different kinds of black teas that bring different taste characteristics to beverages, opening opportunities for a broad range of products with unique and distinguishable taste.”

Herbal tea ingredients also promote a healthy halo. For example, chamomile is associated with relaxation, while yerba mate is a natural source of caffeine for energy and focus, Martin Bauer’s Salza says. “Turmeric is known to aid digestion. Ginger is known to aid digestion and have anti-inflammatory benefits. Rosehips, elderberry and sea buckhorn naturally contain vitamin C and antioxidants,” he says.

 

Thirs-tea for tea

Tea and tea ingredients continue to garner interest from ingredient suppliers. In fact, in its May “U.S. Beverage Market Outlook 2019” report, Rockville, Md.-based Packaged Facts estimates total retail dollar sales of the U.S. tea and RTD tea market at $8.3 billion in 2018, with sales increasing at a compound annual growth rate (CAGR) of 3.8 percent since 2013.

However, volume sales were nearly flat during the period, indicating that higher-priced, premium products were driving dollar sales, the report states.

“Overall growth of tea has been driven by convenient RTD teas, particularly refrigerated varieties (including kombucha), that have a more healthful aura than shelf-stable products,” it states. “Tea has also benefited from consumers’ ongoing recognition of its healthy properties, especially compared to sugary carbonated beverages.

Better Booch teas.

Premium, higher-priced teas like kombucha are leading growth in the beverage market as consumers are interested in the fermented tea product to support their digestive health, experts note. (Image courtesy of Better Booch)

“However growth stalled in the last few years as concerns over the health effects of sugar have increased, resulting in decreasing consumption of sweet, high calorie beverages like some RTD teas,” the report continues. “Increased competition from other ‘better-for-you’ beverages has also affected tea.”

Yet, tea continues to gain ground across all categories, according to Ross McDonald, commercial lead of brewed tea extracts at Finlays, who points out that “the U.S. has overtaken the U.K. in tea imports for the first time and is now ranked third globally.”

Premium, higher-priced teas will lead growth, driven by new products that have reduced or no sugar, or that provide additional health benefits, Packaged Facts’ report states. “Kombucha will be a significant growth driver as its sales continue to rise due to increasing consumer interest in gut health and probiotics,” it states.

Los Angeles-based Better Booch offers eight flavors of its self-titled, premium small-batch kombucha. The sparkling probiotic beverage is vegan, kosher, non-GMO and contains no juice, powders, chemicals or concentrates, the company says.

 

Harmonizing with hemp

As tea ingredient trends proliferate, S&D Coffee & Tea’s Everett expects to see cold-brew tea and sparkling iced tea take up more shelf space.

When it comes to CBD, however, Everett believes it comes down to personal preference. “Many consumers are curious and interested in consuming this ingredient in many different forms of beverages, while many consumers in fully legal states are not necessarily interested,” she explains. “The end product still needs to satisfy the consumers’ taste preferences for the beverage. CBD, like any other ingredient, has viability as long as the beverage is executed well.”

Focusing on CBD’s rise across food, beverage and nutrition categories, Synergy Flavors’ Bethscheider suggests that it now is a “more acceptable ingredient than ever before.”

“I have seen new brands launching complete lines of teas infused with hemp or CBD,” she explains “With its earthy notes complementing the tea profile, it is understandable why people may gravitate toward CBD-containing RTD teas. There are now pop-up sections in stores dedicated to CBD oil and products containing the ingredient. I think it is an ingredient we will continue to see growth in across many categories.”

Mood33 lineup of six herbal teas.

More brands are launching herbal teas containing full-spectrum hemp extract. Mood33 released a lineup of six herbal teas infused with organic, American-grown, full-spectrum hemp extract, premium botanicals and real fruit juices. (Image courtesy of mood33)

Santa Monica, Calif.-based mood33 recently released six herbal teas infused with organic, American-grown, full-spectrum hemp extract, premium botanicals and real fruit juices. With 33mg of hemp-derived cannabinoids, the herbal teas feature such flavors as peach and yerba mate (Joy), lavender and chamomile (Calm), and raspberry lemon and guayusa (Energy).

RTD teas of all types are capturing consumers’ attention, but experts suggest the alcohol space offers growth potential for tea usage.

“A push for alcoholic beverages with lower ABV opens the door for tea in malt-based and/or canned cocktails,” Finlays’ Noal says. “Tea plus beer in the form of a radler or shandy has been gaining traction as a trend in the market. Hard kombuchas are new to the alcohol space, but given the success of standard kombucha, we expect this category to grow.”

Virginia Dare’s Caputo highlights the success of lower-proof offerings like Twisted Tea to higher-proof products like Firefly. “In fact, the high-proof, tea-flavored space saw a huge increase after the introduction of Firefly with many brands joining the market, but demand seems to have waned a little over the last few years,” he says.

When it comes to formulating with tea ingredients, beverage manufacturers should be mindful that tea contains caffeine and can be sensitive to its environment. “Acidic conditions, quality of water and addition of other ingredients can impact the tea. Due to this, tea should be dissolved in water before any other ingredients are added,” Finlays’ Toal says.

As a versatile, delicate ingredient, “tea can provide different organoleptic profiles depending on water quality, pH, types of acid, buffering system and process condition,” Martin Bauer’s Salza says. “Other challenges may include stability, solubility, sedimentation [as] organoleptic properties of botanicals can impact the end product.”

Botanical ingredients, native to different parts of the world, may have limited availability, which could affect cost, sourcing and supply. Martin Bauer offers a portfolio of more than 200 organic and conventional tea and botanical ingredients for beverage applications, he adds.

Eyeing the future, Packaged Facts projects retail dollar sales of the U.S. tea and the RTD tea market will be $9.5 billion by 2023, increasing at a CAGR of 2.8 percent from 2018.

Hybridization trends — or combining two or more categories or flavor profiles — is becoming the norm, Synergy Flavors’ Bethscheider says. To help its customers understand the versatility of tea, Synergy launched its Inspiring Beverage Segment for Tea designed to take “you on a journey through the tea market, from unsweetened black tea to full on tea hybrids containing functional ingredients, alcohol, juice and carbonation,” she says. “It really showcases the versatility and varying drinking occasions of tea … for refreshment, relaxation or re-energizing.” BI

KEYWORDS: black tea CBD (Cannabidiol) clean label green tea kombucha tea tea ingredients

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Barbara h200x200

Barbara Harfmann, managing editor of Beverage Industry, visits beverage companies for cover stories and facility tours, and writes and edits for the magazine’s print and online components. She also represents the magazine at trade shows and events. She earned a Bachelor of Science in Mass Communications and Public Relations from Illinois State University.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Wine & Spirits
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Celsius Fizz Free

CELSIUS launches new Fizz-Free flavors

PepsiCo.jpg

PepsiCo advances AI agenda

Narragansett Beer 1975 cans

Narragansett Beer celebrates 50 years of ‘Jaws’

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Purity Organic Logo

    Purity Organic acquires Dunn’s River Brands

    See More
  • Beverage R&D News

    Blue Pacific Flavors, McCormick & Co. collaborate on new flavor technology

    See More
  • Kombucha Heal-In

    Kombucha Brewers International unveils give back program

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing