Mango Tea Market Size (2024 - 2030)

As of 2023, the Mango Tea Market demonstrated a valuation of USD 30.59 Billion and is anticipated to attain a market size of USD 47.85 Billion by 2030. Projected across the forecast period of 2024-2030, the market is poised to register a Compound Annual Growth Rate (CAGR) of 6.6%.

MANGO

Industry Overview:

Mango Tea represents a popular iced tea variant consumed globally. The market witnesses an upward trajectory owing to the escalating demand for fresh iced tea worldwide. Mango Tea, among other flavors like peach and rose, is favored for its refreshing taste and convenience, falling under the category of ready-to-drink beverages. Widely available in local grocery shops, convenience stores, and superstores, bottled tea emerges as a significant contributor to overall tea consumption, accounting for approximately half of the total tea consumption or USD 5.2 billion. Notably, the industry has experienced a notable 15-fold growth over the past decade, attracting substantial investments from prominent healthy food companies. Mango Tea is increasingly becoming available in various establishments including hotels, universities, and gyms, contributing to heightened awareness surrounding the iced tea segment. Notably, the cultural shift towards iced tea consumption is evident, with countries like the United States commemorating National Ice Tea Day on June 10. While traditional tea-drinking nations like China primarily favored hot tea, the trend is swiftly evolving, with a growing preference for iced tea beverages. Furthermore, recognized for its health benefits, tea consumption, whether hot or cold, is associated with reduced risks of numerous heart diseases, prompting health-conscious individuals to opt for tea over coffee, given its lower caffeine content. Evolving consumer behaviors, particularly among younger demographics such as Gen Z, indicate a preference for cold beverages, with millennials comprising a significant market share, thereby drawing the focus of cold beverage manufacturers towards this demographic.

COVID-19 Impact:

The Mango Tea industry witnessed substantial disruptions amid the COVID-19 pandemic. The initial harvest suffered due to labor shortages stemming from reverse migration as workers relocated from urban to rural areas to mitigate the risks associated with the virus. Lockdown measures led to disruptions in both supply and demand, with reduced foot traffic impacting the retail sector and subsequently diminishing the demand for tea products. Additionally, apprehension surrounding social distancing and limited outdoor activities further curtailed the consumption of Mango Tea. However, post-lockdown, the market exhibited signs of recovery, with demand gradually rebounding.

MARKET DRIVERS

Escalating demand for ready-to-drink beverages fuels growth in the Mango Tea Market:

In light of increasingly hectic urban lifestyles, consumers prioritize convenience, driving the demand for ready-to-drink beverages globally, particularly in developed countries. Mango Tea, recognized for its ease of consumption, emerges as a preferred choice among consumers seeking quick and healthy refreshments, thereby propelling the growth of the Mango Tea Market.

Rising consumer awareness propels growth in the Mango Tea Market:

Growing consumer awareness regarding the nutritional composition and health benefits of food and beverages drives the shift towards healthier alternatives. Backed by medical studies highlighting the cardiovascular benefits of Mango Tea, consumers are making a transition from sugary and carbonated beverages to healthier options like Mango Tea, thus bolstering market growth.

MARKET RESTRAINTS

The presence of alternative beverages hinders Mango Tea Market growth:

The availability of various alternative beverages, including coffee, carbonated drinks, and juices, poses a challenge to the Mango Tea Market by potentially diverting consumer preferences. Moreover, the competitive pricing of alternatives, such as diet Coke and natural juices, presents further hurdles, limiting the market share of Mango Tea.

Marginal cost-based pricing restricts Mango Tea Market growth:

The prevalence of cost-based pricing strategies within the industry impedes overall market growth by limiting revenue generation potential. To foster industry growth, players must explore value-based pricing strategies to enhance revenue streams, thereby overcoming the constraints posed by marginal cost-based pricing.

Segmentation of the Mango Tea Market – Based on Form

• Powder
• Paste
• Granules

Regarding form, Mango tea can be categorized into three primary types: Powder, Paste, and Granules. Powdered mango tea is available in a powdered form, easily soluble in water due to the fine tea particle size. Additionally, Mango tea is offered in a Paste form, utilized for brewing Mango tea. The final dispensation category is Granules, comprising small granules used in the preparation of mango tea.

Segmentation of the Mango Tea Market – Based on Distribution Channel

• Offline
• Online

Concerning distribution channels, the Mango tea market can be segmented into offline and online retail. Offline retail encompasses superstores, grocery shops, convenience stores, and drug stores, which stock Mango tea received from wholesalers. During the pandemic, the retail sector experienced a slowdown, prompting increased sales through e-commerce channels. E-commerce platforms, benefiting from lower operational costs, offer higher discounts, attracting more consumers towards online purchasing.

Segmentation of the Mango Tea Market – Based on Region

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

In North America, iced tea dominates the tea consumption landscape, with the ready-to-drink market also flourishing. The region's higher consumer spending contributes to its significant market size. Conversely, Asia-Pacific and Europe encountered challenges in raw material procurement due to pandemic-induced supply chain disruptions and fluctuating crude oil prices.

Segmentation of the Mango Tea Market – Based on Companies

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

Key players like Unilever and Nestlé wield substantial influence in the Mango Tea market. In India, the FMCG sector experienced a decline due to inflationary pressures, exacerbating income disparities caused by the pandemic and resulting in stagnant growth. The Mango Tea market is anticipated to regain momentum post-resolution of supply chain and inflationary challenges.

Recent Developments in the Mango Tea Market:

• In September 2022, the founders of Honest Tea reentered the iced tea market with the launch of their new product, Just Ice Tea, along with planet-friendly snacks to promote environmental conservation.

Mother Earth Vinegar introduced apple cider vinegar superfood tea pods in September 2022 to enter the iced tea market, available in various flavors at retail stores across the USA, including Costco.