Tea's resurgence on restaurant menus

Tea is experiencing a resurgence in restaurant menus, with both hot and cold varieties showing impressive growth as consumers venture beyond traditional offerings to more adventurous, world-inspired options. The desire for variety is increasingly observed.

Hot tea is growing with a 6% menu increase.
Hot tea offerings have expanded significantly, with items on restaurant menus growing by 6% in the last 12 months.

After years of sticking to familiar green and black teas – both of which have declined by 5% and 4% respectively over five years – diners are now seeking out lesser-known varieties such as Matcha, mate, Darjeeling, hibiscus. Some of these lesser-known varieties are indeed gaining appeal; so people are experimenting and gravitating towards these newer, unique products today.

Flavored hot tea has increased by 10%. This shift towards flavor complexity is a driving force in menus across all restaurant segments.

Lemongrass, often paired with traditional chamomile, brings an aromatic complexity that appeals to adventurous tea lovers. Ginger continues its reign as a functional favorite, valued for both its warming properties and its alleged health benefits.

Iced tea – the new leader in the tea industry

In recent years, iced tea has emerged as one of the most dynamically developing categories in the world of soft drinks. Data from a recent industry webinar shows that consumers prefer iced tea not only at home (an average of 1.8 cups daily) but also when out (1.7 cups), which is significantly more than many other beverages. This makes it a golden opportunity for establishments, shops, and brands to expand their offerings throughout the day.

Refreshing, light, and versatile

What lies behind this popularity? Iced tea has several key advantages over traditional coffee beverages and other caffeinated alternatives. It contains less caffeine but retains an energizing effect, making it suitable for consumption at any time – morning, afternoon, or even evening. Furthermore, its refreshing profile makes it ideal for hot seasons and for repeated consumption throughout the day.

Flavor is everything: innovations that attract

As with many other fast-growing categories, the growth of iced tea is driven by flavor innovations. While unflavored plain tea has seen a 9% decline over the past five years, all other varieties are growing. This includes exotic offerings such as dragon fruit iced tea, which aligns with the trend of tropical flavors sought by young consumers.

Oat milk, which has conquered numerous categories in the industry, also finds its place in iced teas, adding a creamy texture and additional nutritional value. And caffeinated infusions create a new hybrid segment – between tea and energy drink – which appeals to those seeking efficiency without excessive stimulation.

Generation Z has a huge influence on which beverages are trending, especially concerning iced drinks, as 71% of Gen Z prefer iced or cold drinks. Among the most preferred are bubble tea, and milk tea.

Business opportunities

Increased consumption frequency, diverse flavor profiles, and customization options make iced tea extremely attractive for brands and entrepreneurs. Whether it's bottled products, drinks for bars and cafes, or innovative recipes at home, iced tea offers a platform for creativity and growth.

Iced tea is no longer just a seasonal alternative – it is a major player on the soft drink scene. With the growing need for healthy, refreshing, and delicious solutions, it has the potential to continue its ascent and reshape the way consumers think about tea in their daily lives.