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Beverage Industry Trends: Is The Coffee And Tea Market Growing Or Shrinking?

sahil singh

The global coffee and tea market is abuzz with new flavours, innovative products, and evolving consumer preferences. Beverage industry trends as predicted by experts indicate phenomenal growth in the coming years. Despite the Covid-19 impact, the global coffee and team market surged by 4.6 percent in 2019-20. Now that the worst phase of the pandemic is behind us, a solid growth rate of 8 to 9 percent is being deduced by top data analysts, at least for the next three years. 

Coffee and Tea Innovation

Owing to the increasing health-consciousness in the wake of Covid-19, there is a conscious shift of consumers from unhealthy soft drinks to wellness-inducing tea and coffee variants. For the discerning consumer, there is a lot to explore in this dynamic market. Soothing flavors, exotic additions, clean labels, immunity add-ons, and ready-to-drink options are just the tip of the iceberg. Both coffee and tea have evolved way past the conventional ‘hot beverage’ bracket.

Top Beverage Industry Trends in the Coffee and Tea Sector

  • Beverages incorporating coffee with healthy add-ons are in high demand. Organic coffee, fermented coffee, mushroom coffee, vitamin-fortified coffee, and Arabica dark-roast are some of the prime examples. The market for vegan coffee creamers has also witnessed phenomenal growth. As opposed to regular cream, low-fat soy creamers, collagen-based creamers, and vegan butter-based creamers (like almond and cashew butter) are much-coveted options for the health-conscious consumer.
  • Both cold-brew coffee and snap-chilled coffee are extremely popular amongst millennials today. While the former involves regular cooling and copious use of ice for a mild-flavoured brew, the latter implements rapid cooling for a more robust flavour. Furthermore, the Covid-19 situation has ushered in the need for the pick-me-up canned/bottled coffee. It is ready to drink and doesn’t involve the drive-in/wait time for regular coffee.
  • One noteworthy trend that has taken the coffee industry by storm is that of nitro-infused coffee. Owing to the frothy, creamy texture of nitrogen-infused coffee, the need to add sugar, cream, and milk is considerably reduced. The foamy mouth quality of this coffee variant has appealed to health enthusiasts worldwide.
  • As a beverage, tea has always been hailed for its therapeutic benefits. The wellness and immunity trend have further diversified this trend. The addition of immunity-boosting spices and herbs in tea is being hailed by consumers worldwide. So you have interesting variants like turmeric tea, ginseng tea, black pepper tea, cinnamon tea, ginger tea, lemongrass tea, and so on. In many countries, even the use of mild cannabis-infused tea is being promoted for pain relief.
  • As is the case with coffee, millennials are no longer satisfied with drinking tea in its pristine form. If you consult any food and beverage advanced analytics company, the major insights they will give you on tea variants today include fruity flavours, herbal formulations, soothing add-ons, exotic add additions, and green tea infusions. Iced tea, canned tea, and ready-to-drink tea packages are spot on as per the latest consumer demands.
  • There is a lot of experimentation happening in the realm of tea and cocktails. In the quest for healthier cocktails, brands are eyeing the benefits of green tea in particular. Cucumber-Green Tea Cocktails, Green Tea and Sake Cocktails, Green Tea and Lychee Cocktails, Green Tea Martinis, and Green Tea Smoothies are being relished by connoisseurs and fitness enthusiasts worldwide. 


If you plan to invest in a tea or coffee business, consulting a food and beverage advanced analytics company is a good idea. While the market growth estimate is high and the prospects are quite alluring, seasoned data analysts will help you capitalize on specific, lucrative trends. A data-driven approach can help you take flight as a beverage business!

sahil singh

An aspiring and enthusiastic blogger and reader who has been in the digital marketing industry for 5 years. 

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