There is an increasing health awareness across the world. People across the globe are inclining towards clean label and health-conscious food choices. Consumption of tea has many health benefits associated with it. Furthermore, other beverages such as carbonated drinks and alcoholic drinks have numerous adverse health effects. The presence of health-centric nutrients such as flavonoids, antioxidants, and phytochemicals present in tea helps improve various functions of the human body. Furthermore, doctors prescribe patients suffering from combat arthritis, cardiovascular diseases, and high blood pressure to consume tea. Apart from these factors, the introduction of innovative varieties of tea will help the tea market to grow.
Tea Processing Industry: New Trends and Innovations
The tea processing industry is witnessing a shift towards wellness and functional teas, sustainability, and premiumization. The demand for clean-label and vegan food choices has also impacted the varieties of tea in the market. These factors have led to new developments in the tea processing sector. These newer innovations and developments in the industry are shaping innovations in cultivation, processing, and consumption methods of the tea.
Functional And Herbal Teas
When a particular herb is mixed with the tea to raise the nutritional value of the tea, the tea is termed ‘Herbal Teas’. These teas are especially designed to cure any illness. Functional Teas also contain herbs, but these are especially designed for enhanced taste, flavor, and color. However, apart from flavor and hydration, the functional teas also have many health benefits. Lipton Teas and Infusions, ADM, Finlay Tea Solutions, Dabur India Limited, Organic India Pvt. Ltd., and Sresta Natural Bioproducts Pvt. are the important tea companies that manufacture functional teas in the country.
Fruit And Botanical Blends
Increasing demand for the fruit and botanical blended teas has opened a new arena for the expansion of the tea market in India. Fruit-flavored teas are currently available in a wide array of blends. It combines tea leaves with fruits, flowers, and other ingredients. Some of the popular options include black tea with mango, passion fruit, or peach, green tea with mango, lemon, or berry, and rooibos with various fruit combinations. Such teas also come with herbal fruit infusions like hibiscus, rosehip, and cranberry tea are also available. Tata Tea, Wagh Bakri Tea Group, Brooke Bond, Alexa Tea, and Dharmsala Tea Company are some of the companies that deal in flavored tea.
Ready-to-Drink (RTD) and Cold Brew
There is an ever-increasing demand for Ready-to-Drink tea and cold brew. These convenient drinks do not need quick preparation and are easily available in a wide range of options and flavors. Aided by global fusion and experimental flavor combinations, these teas are emerging as popular beverage options. Nestle, Coca-Cola, Unilever, PepsiCo, and Ito En are popular companies operating in this segment.
Tea Processing Industry: National And International Regulations
FSSAI Regulations
The Food Safety and Standards Authority of India (FSSAI) is the nodal agency dealing with food safety in India, including processed tea.
Source
The agency defines Tea as tea other than Kangra tea obtained by acceptable processes. The tea may be obtained from the leaves, buds, and tender stems of the plant of the Camellia sinensis (L) O. Kuntze. The tea may be in the form of black or oolong tea.
Flavour and Odour
According to FSSAI, the product shall have a characteristic flavour free from any off odour, taint, and mustiness.
External Agents
FSSAI has prohibited the use of extraneous matter, added colouring matter, and harmful substances. Furthermore, the tea shall be free from living insects, moulds, dead insects, insect fragments, and rodent contamination visible to the naked eye (corrected if necessary for abnormal vision).
Labelling Requirements
FSSAI has provided some of the requirements for the processed tea containing flavours. According to the agency, Tea containing added flavour shall bear a proper label declaration as provided in regulation 2.4.5 (23) of the Food Safety and Standards (Packaging and Labelling) Regulations, 2011.
Addition of Enzymes
The agency sets a limit for the addition of the Pectinase enzyme in the tea. According to the regulations, it can be added up to a level of 0.2% during manufacture as a processing aid.
Other Requirements
According to FSSAI, the processed tea shall conform to the following requirements, in which all the figures given are expressed on the basis of the material oven-dried at 103±2 °C. Similarly, the agency provides specific safety standards for green tea, Kangra tea, and instant tea in solid form.
FDA Regulations
The US Food and Drug Administration (FDA) regulates processed tea products, including loose-leaf, bagged, and bottled tea. The agency is responsible for ensuring their safety, quality, and accurate labeling. It covers aspects like food safety, labeling, and health claims. The agency aims to prevent adulterated foods and ensure compliance with good manufacturing practices (GMPs).
Food Safety and Quality
The US-FDA is responsible for the regulation of tea processing facilities and preventing foodborne illnesses. It also requires preventive controls under the Food Safety Modernization Act (FSMA). The agency regulates additives, contaminants, and compliance with GMPs to ensure the tea is safe for consumption. The agency also establishes “Food Defect Action Levels,”. These are maximum levels of natural or unavoidable defects that are considered to pose no health hazard.
Labeling Requirements
The FDA requires the tea companies to comply with the labeling regulations. The labels must include the product name, net weight, and ingredients. The agency also regulates claims made about tea’s health benefits, requiring scientific evidence to substantiate such statements. Furthermore, the FDA also regulates the “healthy” nutrient content claim to help consumers identify foods that align with dietary recommendations. It has also updated the “healthy” designation label and Tea made from Camellia sinensis to have a healthy label.
Adulteration
The Food and Drug Administration (FDA) also regulates the packaging of tea. It also ensures that tea is not adulterated or misbranded.
Tea Processing Industry: Market Analysis and Trends, and Drivers
According to Grand View Research, the global tea market size was valued at USD 17.42 billion in 2024. The market will expand at a CAGR of 6.0% from 2025 to 2030. The main market driver for the tea sector is rising health consciousness among consumers who are increasingly aware of the health benefits of tea. It includes its ability to reduce inflammation and promote relaxation. Further, the demand for organic and premium teas is surging. The consumers are also seeking high-quality, specialty, and artisanal tea varieties. Rising health consciousness across the globe has led to rapid growth in green tea consumption, valued for its antioxidant properties, which continues to expand the market. Further, the demand for organic tea increased, driven by consumer demand for alternatives to natural and environmentally friendly products.
Way Forward
The advent of a large number of varieties in the tea segment has led to the expansion of the tea market. It has also boosted the consumption, especially after the introduction of different varieties of iced tea, brews, and flavoured tea in the Ready-to-Drink segment. These factors have culminated in the overall growth of the tea market manyfold, with prospects of a brighter future.