Global Mango Tea Market Size (2023 - 2030)

In 2022, the Global Mango tea Market was valued at USD 28.7 Billion and is projected to reach a market size of USD 47.86 Billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 6.6%.

Industry Overview:

The Mango Tea is an iced tea beverage which is consumed by the people. There has been a growing trend in the consumption of Mango Tea with the increasing demand for fresh iced tea around the world. These iced teas can be of various flavours such as peach, mango, rose etc. These beverages freshen up the individual and have good taste. These beverages are convenient to drink and come under ready-to-drink categories. These can be easily found in the local grocery shops, convenience stores, superstores etc. According to a recent report, bottled tea was found out to be the major contributor to overall tea consumption. It was reportedly half of the total tea consumption or USD 5.2 bn. The total value of the industry has grown 15X in the last decade. The growth in the sector is bringing major healthy food companies to invest in this sector. Various places like hotels, universities and gyms are now stocking Mango Tea in their isles. These initiatives have increased awareness regarding the iced tea category. In America, tea drinking is celebrated and there is a National Ice Tea day on June 10. Mainly countries like China only indulged in hot tea drinking but this trending is changing quickly, and people are now shifting to iced tea beverages. Moreover, tea is a healthy beverage which can be consumed at any time of the day whether hot or cold. A report showed that in 2016, 37 bn litres of tea was consumed worldwide. There have been various medical reports which show that drinking tea can lower the risks of many heart diseases. Due to this reason many health-conscious people are making a switch from coffee to tea. Tea also contains lesser amount of caffeine than coffee. In countries like UK the consumer behaviour regarding beverage consumption is quickly changing. Younger generations, especially Gen Z are more favourable to drinking cold beverages. They are more open to experimenting different beverages. But the millennials compose of the largest share of the market, hence the companies making cold beverages like iced tea are targeting them mainly.

COVID-19 Impact:

COVID-19 caused ripples in the Mango Tea industry. The first harvest suffered a lot due to unavailability of labour. There was reverse migration caused by COVID-19 and workers working in cities were returning to their rural areas. This also put these places at an increased risk of getting infected. The lockdown caused major disruptions in both supply and demand. The demand of the Mango Tea was reduced due to people not going out for shopping groceries. During lockdown, people were apprehensive to get out of their home. They were practising social distancing when going outside to prevent the spread of the virus. The retail industry took a major hit due to these changing consumer behaviours. This ultimately led to a decrease in the demand of the tea products. On the other hand, the supply of these products also decreased as vendors were having lesser incentives to harvest the tea. After the lockdowns were lifted, the Mango Tea market has revived and has picked up demand again.

MARKET DRIVERS

Increasing demand for ready to drink beverages is driving the growth in Mango Tea Market

Due to busy timetables and schedules the healthy eating habits of consumers living in urban cities are getting compromised. The consumers are adapting to the quickly changing lifestyle by incorporating food and beverages which are easy and quick to make. This has given major push to the ready-to-drink market worldwide especially in the developed countries. With the paucity of time, people prefer Iced teas such as Mango Tea to drink compared to other drinks. Hence, it is a major driving force behind the growth of the Mango Tea Market.

Increasing consumer awareness is driving the growth in Mango Tea Market

The consumers are now more aware about the composition and health effects of the food and beverages they consumer. Iced teas such as Mango tea is considered good for health. There are many studies published by medical experts stating the benefits of Mango tea on heart. It reduces risk of an individual getting various heart diseases. Due to this many people are shifting from unhealthy drinks such as sugary drinks and soft drinks to healthy drinks such as mango tea. This is also a major driving force behind the growth in the industry.

MARKET RESTRAINTS

Presence of alternate beverages is restraining the growth in the Mango Tea Market

Due to presence of alternate beverages such as coffee, carbonated drinks, juices etc in the market can split the consumers. This is not good for the Mango Tea market as it will gradually lose market share. The alternate markets need to be provided good competition by the Mango Tea market. Also, the alternatives are cheaper than the Mango Tea, such as Diet coke and natural juice. Hence, the presence of alternate beverages is restraining the growth in the Mango Tea Market.

Marginal cost-based pricing is restraining the growth in the Mango Tea Market

Many companies have employed cost-based pricing which is stifling the growth of the overall industry. This pricing strategy is not working in favour of all the competitors because the amount of revenue generated is very low. The industry will not be able to thrive using this minimal revenue, hence it will have to set their prices above, use value and premium based pricing to increase revenue which will help the industry grow in the coming years. Hence, marginal cost-based pricing is restraining the growth in the Mango Tea market.

MANGO TEA MARKET REPORT COVERAGE:

This research report on the global Mango Tea Market has been segmented and sub-segmented based on form, distribution channel and region.

Mango Tea Market segmentation – By Form

• Powder
• Paste
• Granules

In terms of form Mango tea can be divided mainly into three categories, these are Powder, Paste and Granules. The powder form of mango tea is present in powdered form. Powdered form can be easily dissolved in water because of the smaller size of the tea particles. Mango tea is also present in the form of a Paste, this paste can then be used to make Mango tea. The last category in which tea can be dispensed is the granular form. Small granules of tea are used to make mango tea with Granules.

Mango Tea Market segmentation – By Distribution Channel

• Offline
• Online

In terms of distribution channel, the Mango tea market can be divided into offline and online retail. The offline retail stores include superstores, grocery shops, convenience stores, drug stores etc which keep a stock of Mango tea. These products are received by the retail outlets from wholesalers. Due to pandemic the retail industry took a back step as people were not shopping often. Due to this, other channels of distribution such as E-commerce picked up sales. The e-commerce platforms provide a virtual market where sellers can list their inventory on the website and the buyers can easily buy it with just a click. E-commerce platforms, due to its lower cost of operations are able to offer higher discounts which is creating a consumer split. Now, more consumers are getting attracted to online platforms.

Mango Tea Market segmentation – By Region

• North America

• Europe
• Asia-Pacific
• Rest of the World
• Middle East and Africa

In North America majority of the tea consumption is in the category if iced tea. The ready-to-drinks market is also growing well in the region. The consumer spending is higher in North America which makes it a big market. Additionally, changing consumer behaviours are also facilitating growth in the market. Asia-Pacific and Europe has also seen a significant growth in the past years but have faced difficulties in precuring raw materials due to supply chain issues during the pandemic. The raw materials’ prices also increased in these regions due to fluctuating crude oil prices.

Mango Tea Market segmentation – By Company

1. The Coffee Bean & Tea Leaf
2. Unilever
3. Gourmesso
4. Harney & Sons Fine Teas
5. Dualit
6. Nestlé SA
7. Dilmah Ceylon Tea Company PLC
8. Ippodo Tea Co. Ltd.
9. Tranquini
10. Chillbev
11. Som Sleep
12. Phi Drinks, Inc.
13. BevNet.com

Unilever and nestle are one of the major companies in the Mango Tea market. In India, the growth of FMCG sector has declined due to increase in inflation. The pandemic caused an income disparity in the population which has been a major reason behind the stagnant growth in the FMCG sector. Mango Tea market is expected to pick up growth when the issues relating to supply chain and inflation will be resolved.

NOTABLE HAPPENINGS IN THE MANGO TEA MARKET IN THE RECENT PAST:

• In September 2022, founders of Honest tea have returned in the iced tea market with the launch of their new product Just Ice Tea. The company has also launched planet friendly snacks to save the environment
• In September 2022, Mother Earth Vinegar introduced apple cider vinegar superfood tea pods to enter the iced tea market. These products will be available in the retail stores all over USA such as Costco. The pods will come in six different flavours.