After it was announced that Starbucks established its very first tea bar in New York City earlier this month, business experts concurred that beverage companies should jump on the immense market as there is growing demand for tea across the North American continent.
Starbucks apparently agrees with this as it’s betting on the $90 billion market with an array of tea bars. The next Starbucks tea outpost will be located in Seattle and will open its doors just before Thanksgiving. The coffee giant projects to open approximately 1,000 tea bars within the next five years.
Despite coffee dominating the hot beverage market, Kingsley Alagaratnam, a three-decade tea industry veteran, says beverage firms should modify their product portfolios and business plans that include tea. This could be very well correct as more consumers opt for a healthier choice in their hot drink consumption.
“The North American specialty tea market is growing at a rapid pace, and the innovative beverage companies that move early and effectively with tea will increase market share,” said Alagaratnam, the new senior vice president at QTrade Teas & Herbs, in a news release. “Multinational beverage brands are further realizing the big profit potential in the tea segment—and they are willing to invest. These brands see a strong future in tea with specialty tea as the fastest growing segment, rising at an estimated 8 to 10 percent annually. The key is to act quickly."
In the past 18 months, according to Alagaratnam’s research, investments, mergers and acquisitions related to the tea market have totaled $1 billion. This is part of the reason why this expert is encouraging the free market to initiate facilities, marketing initiatives and other business practices to capture a piece of the tea pie.
The Teanobi Tea Company is one company that has already embraced tea. This website offers a wide selection of tea products, whether it’s for beverages, baking, dessert, smoothie or lattes. One of its most popular products is the Matcha Latte, otherwise known as a green tea latte, an item that maintains a five-star review on its website.
As depicted on its website, it’s another example of how there is an aggressive market for tea and the sooner private companies act the better it will be for their bottom lines – don’t forget the tea drinkers too!