A new report by Canadean reveals that the global consumption of iced/ready to drink (RTD) tea continues to steadily increase, with volumes expected to reach over 37 billion litres in 2015 and growth seen in all regions.

The main factor for the increase of the category is its association with the health and wellness trend.

The natural image of iced/RTD tea drinks lends itself as a good non carbonated, lower sugar product as many consumers shift from traditional carbonates. For this reason, many of the larger iced tea players have launched reduced sugar variants, as increased consumption warrants increased attention and investment in this category.

According to Canadean, the most popular flavours remain lemon, plain tea and peach, although there have been many launches of new flavour variations such as lime, orange/mango and yumberry. Increasing numbers of unsweetened, organic and diet variants have been observed, in response to the influx of consumers searching for healthier alternatives.

Producers are further building on the healthy image by adding herbal enhancements (often traditional to Asia), such as ginseng, matcha and hibiscus, and putting the antioxidant and cleansing properties of tea at the forefront of the brand image and marketing.

Brands have also started to promote cold brew tea, in combination with herbal enhancements, as it is believed to better release antioxidants and have a more complex flavour without the bitter and tannic flavour of hot brewed tea.

Though this kind of innovation is keeping interest fresh and products interesting, traditional peach and lemon flavours remain firm iced tea favourites, and the traditional international companies making them remain the driving force for the categorys global growth. Niche brands and products are addressing the demand for increasingly healthier drinks, though normal iced/RTD tea drinks continue to tick the health box enough for many consumers.