From Trend to Teacup: Brewing Your Next Tea Flavor In Iced Tea, Tea Concentrates, Matcha Tea, and Wellness Teas

According to Mintel, 83% of US adults drink tea, and one-fifth of US millennial consumers also view tea as a satisfying alternative to alcohol. In the US, over half of tea drinkers are inclined to try new tea brands if they feature functional claims. Datassential named “Teatime is the New Happy Hour: The Evolution of the Low/No Alcohol Movement” as one of its 2026 drink trends. 29% of consumers are interested in a teatime-style or tea party-style happy hour featuring non-alcoholic teas. Gen Z is 50% more likely than other generations to be interested in a teatime-style or tea party-style happy hour featuring non-alcoholic teas. Gen Z is 23% more likely than Gen X (9%) and Boomers (9%) to drink tea or tea-based beverages at happy hour.

The US tea market is valued at $10.3 billion, per Mintel. According to Circana, the overall bag and loose-leaf tea market totaled $1.7 billion, a 2.6% increase, for the 52 weeks ending April 20, 2025. Refrigerated tea sales reached $1.7 billion, up 5.1%. Sales of canned and bottled tea remained flat, totaling $4.8 billion for the same period.

Like coffee, the younger demographics enjoy iced tea. According to Datassential, 71% of Gen Z prefer iced or cold beverages. Consumers drink more iced tea per occasion: 1.7 cups away from home and 1.8 at home, compared to other drinks. Innova Market Insights echoes this sentiment: the US iced tea market is triple the size of the US hot tea market. US consumers under 45 are the biggest cohort of iced tea drinkers, driving growth in the US tea market. Iced tea on menus has grown 6% in the last year, led by fine dining (+14%), casual (+8%), fast casual (+7%), and midscale (+7%) restaurants, per Datassential. Similarly, Technomic’s data showed that iced specialty teas are on 4.2% of menus, up more than 16% year over year. Tea categories especially active include matcha (+25%), green tea (+13%), and mango as a cold tea flavor (+12%).

According to Innova Market Insights, in the US and Canada, iced tea has grown 5% over the past five years. Furthermore, 23% of consumers in the US and Canada have increased their iced tea consumption, driven by variety and novelty. In terms of flavor trends, nearly half of consumers prefer lemon-flavored iced tea, which leads with 8% of launches in the past year. The top 5 iced tea flavors are lemon, peach, ginger, lemonade, and hibiscus.

Cool off and let your fresh ideas steep. Flavor Dynamics offers an extensive selection of specialty tea flavors for black, green, white, rooibos, and herbal teas. Contact us today to schedule a meeting to discuss your next iced tea project.

According to Fact.MR, the global tea concentrate market is valued at $2.85 billion in 2025 and is expected to reach $4.45 billion by 2035, with a CAGR of 4.6%. Global Growth Insights’ research found that tea concentrates account for 27% of the total flavored beverage segment globally. Over 69% of cafes and QSRs globally have integrated tea concentrates into their menu offerings. 59% of consumers try new beverages to check out new flavors, according to Keurig Dr Pepper State of Beverages 2025 Trend Report. In response to consumers’ interest in iced tea and new flavors, brands are launching liquid tea concentrates.

For example, Starbucks adds Refresher Concentrates to its consumer goods portfolio in three variants, including Lime Watermelon, Mango Dragonfruit, and Strawberry Açaí. The Lime Watermelon is new and not part of the standard in-store menu. Lipton launched Tea Concentrates, “an innovative way to enjoy iced tea.” It is offered in three fresh-brewed flavors: Black Tea with Lemon, Green Tea with Lemonade, and Southern Sweet Black Tea, sold exclusively at Walmart. British tea brand Twinings debuted Refreshers, its first-ever herbal tea instant beverage, designed to dissolve in cold water. The café-inspired iced refreshers are available in Peach Mango and Strawberry Raspberry. Yogi debuted a line of certified USDA Organic Herbal Tea Concentrates in two flavors: Elderberry Lemon Balm Immune Health and Hibiscus Ginger Digestive Health.

Flavor Dynamics is a tea industry leader with diverse flavor systems, ideal for hot, cold, and RTD applications. Let us concentrate on the flavors, so your next tea concentrate is anything but diluted. Reach out today.

According to Polaris Market Research, the global matcha tea market is projected to grow from $4.28 billion in 2024 to $9.03 billion in 2034 at a CAGR of 7.8%. With its bright green color, health benefits, and versatile uses, matcha went viral on social media, resulting in a shortage in Japan. Consumption “reached a record high last year,” says Fumi Ueki, chief of the Leaf Brand Group. Social conversations about matcha have increased by 60.79% over the past year, per Tastewise.

Yelp’s 2026 Food & Drink Trend Forecast identified matcha as having “a creative culinary renaissance” with traditional ceremonial matcha up 210%. Additionally, online searches for “matchatini,” a matcha cocktail, rose 1,036%. Similarly, Grubhub’s 2025 Delivered Report revealed that matcha orders jumped 34% “as it shifted from a niche wellness drink to a staple energy source.” Brightfield Group’s data showed that matcha tea/latte powder usage grew by 11.1% yoy, with 64.1% of users being Gen Z and Millennials. Interestingly, social shares surged 49.2%.

Brands are launching a variety of matcha drinks. Dutch Bros added Lavender Matcha Latte, Raspberry Matcha Latte, and Paradise Matcha Lemonade to its menu. Starbucks’ Strawberry Matcha was number two on the brand’s most viral drinks of 2025. CHUH, a canned beverage brand, features Blueberry Oat Milk Matcha Latte and Spiced Vanilla Matcha Latte. DIY matcha beer is trending. In Japan, Kizakura Sake Brewing Co. offers a Kyoto Matcha IPA Kizakura craft beer. Notably, in 2025, over 87 US-based craft distilleries released at least one matcha-forward spirit. Not a beverage, but a novel product is Wild & Fruitful’s collaboration with Amazon on the limited-edition To-Matcha Ketchup.

Flavor Dynamics, Inc. offers a contemporary range of matcha tea flavors, such as Pistachio, Rose, Strawberry, Vanilla, White Chocolate, and Yuzu. Whisk away and contact us today for your next project!

According to the Global Wellness Economy Monitor 2025, the global wellness economy hit $6.8 trillion and is forecast to reach $9.8 trillion by 2029. Tea has a healthy halo, known for its anti-inflammatory and antioxidant properties. The World Tea News’ 2025 State of the Industry Survey revealed that 25.1% of respondents believe functional/wellness teas are the biggest consumer trend, driven by a 26.3% interest in health and wellness. Premium and specialty loose-leaf teas (15%) and flavored teas (14%) are the most popular products. Innova Market Insights found that Gen Z and Millennials seek healthier tea products with lower sugar and added functional ingredients and nutrients. The top beverage subcategories with health claims are Energy Drinks (15%), Tea (12%), and Yogurt/Fermented Beverages (11%) between July 2024 and June 2025. Additionally, beverage launches featuring hot drinks with health claims saw a 17% CAGR from July 2020 to June 2025.

Black tea (29.6%), green tea (14.5%), and functional/wellness teas (11.2%) are the top three types identified by World Tea News. Brands recognize consumers’ growing interest in wellness and are launching a variety of flavors. Lipton launched a four SKU line of Fruit & Herbal teas “to bring comfort and calm to daily routines.” The line is available in Golden Chamomile, Peach Paradise, Lemon Ginger Refresh, and Smooth Mint flavors. Celestial Seasonings introduced the Anytime Wellness Teas collection of functional blends “designed to meet the needs of today’s wellness-minded customers.” The caffeine-free teas include Detox Blend Dandelion, Good Vibes Lemon Mint, and She-Well Raspberry Leaf (for menstrual cycle). Bigelow Tea’s Butterfly Pea Flower line, Sapphire Bay and Vanilla, launched nationwide.

Flavor Dynamics offers an innovative encapsulated Flavorcoat® line featuring remarkably shelf-stable flavors for hot tea. Our flavor particles can withstand the tea-bag filling process. Stay well and have a cuppa tea with us today.

Consumers seek functional Ingredients like mushrooms and adaptogens. Adaptogens are natural, super-herbs known for their restorative properties, often used in herbal medicine and Ayurvedic practices to help the body and mind adapt to stress. Yelp highlighted “Mushrooms are having a moment” as a defining trend for 2026. Yelp searches for “mushroom drink” increased 501% versus last year, and “mushroom tea” rose 10%. Energy is another functional benefit consumers seek. Energy tea and yerba mate have both gained 2% in consumer appeal over five years, per Datassential.

Brands are incorporating mushrooms and adaptogens into their tea. For example, Kroger added Organic Instant Mushroom Tea in Black and Chai blends to its Simple Truth private label line. Bigelow Tea introduced Golden Turmeric Honey Herbal Tea plus Adaptogens to its Signature Line. Numi released a line of five Premium Organic Latte Powders featuring ethically sourced teas and spices with functional ingredients and adaptogens. The caffeine-free Cocoa Coconut Latte contains organic cacao and adaptogenic mushrooms, including reishi, lion’s mane, and chaga. Turmeric Spice Latte (Caffeine-Free) blends organic turmeric, spices, and black pepper to aid absorption. Rooibos Chai Latte (Caffeine-Free) highlights organic rooibos and classic chai spices like cinnamon, ginger, and clove.

Yerba mate, the traditional South American tea known for its natural caffeine and energizing properties, is gaining popularity in America. Mateina is a premium yerba mate beverage made with organic fruit juices and extracts, sweetened with stevia, and now available at Whole Foods Market. The flavors are Lemon Original, Peach Passion, Mango Key Lime, Mint Limeade, and Raspberry Yuzu. Uncle Matt’s Organic Yerba Mate Energy Tea joined the brand’s portfolio.

Flavor Dynamics’ extensive array of specialty tea flavors is available in natural, natural/artificial blends, and organic certified formulas. Our flavors are vegan, GMO-free, and kosher. Contact us for your next functional tea project.

Tea will continue to meet consumers’ needs for functional beverages as their health and wellness journey evolves. Like coffee, the younger demographics are fond of iced tea and cold beverages. Tea concentrates are a convenient and easy way to flavor iced tea and other drinks. As Gen Z shy away from alcohol and seek connection, teatime-style or tea party-style happy hours featuring non-alcoholic teas will trend. With its vibrant hue and instagrammable appeal, matcha is social media’s current darling. Consumers’ increasing interest in wellness and their expectations for tea to provide more than just hydration are driving innovation in unique flavors and ingredients. Mushrooms, adaptogens, and energy-boosting ingredients are key components in functional tea formulations.

Hojicha, a roasted Japanese green tea, is emerging as an alternative green tea. A Taste of Home indicates it could be the next big thing in tea. Datassential suggests Ataya tea, a Senegalese tea made with gunpowder green tea leaves, sugar, and mint with a foamy top, as an up-and-coming tea to watch in 2026. 44% of consumers are interested in trying it and 5% have already tried it. 22% of US consumers purchase food and beverages with calming, de-stressing, or relaxing benefits. The increasing focus on mental health fuels interest in flavor trends that promote emotional well-being, according to Innova Market Insights. Tea is a mainstay in consumers’ continually changing behavior.

Flavor Dynamics offers unmatched, comprehensive expertise in the tea industry. We provide diverse flavor systems, including liquid and dry tea flavors available in water and oil-soluble formats. Contact us to spill the tea.

If tea isn’t your bag, see what’s brewing in coffee, such as decadent dessert inspiration, hard coffee, and coffee experiences.