How new generations perceive tea: What do they drink?

Welcome to our blog post about the new generation of tea lovers. We will explore what types and flavors of tea attract younger consumers.
In China, Generation Z has more choices than any other generation. Growing up in relative affluence compared to previous generations, Starbucks outlets are multiplying in China like rabbits. Interestingly, although Chinese youth have discovered coffee, the nation has not experienced a decline in tea consumption.

According to Coffee Intelligence, while China is undergoing a “coffee revolution,” which is completely new, “they are also at the forefront of new and innovative ways of preparing tea, many of which deviate from centuries-old traditions. This includes products that have since received global recognition, such as bubble tea."

"It's becoming harder to get young people to drink a bag of black tea," said a marketing director at a large international tea company - "They like variety."

 "Estimates show that Gen Z accounts for 71% of 'new' tea drinking experiences, which include bubble tea and fruit tea. Fruit tea is at the top of surveys for Chinese consumers' favorite type of tea. Matcha tea has also become incredibly trendy."

Sarah Christine Leonard, president of the Japan Tea Club, agrees that sweet drinks like matcha lattes or boba are in a different category: "I love these drinks, but they are in a different mindset than traditional tea."

Iced tea is the hottest thing in the tea industry. Emeric Harney, one of the owners of Harney & Sons Fine Teas, definitely sees an increase in matcha consumption. That's what strikes me the most!", he says. "Often the sweet notes and wide range of flavors give young people an immediate ability to appreciate what's happening in their cup and increase tea consumption – and once it becomes a habit, it's a matter of building more variety into that routine if they want to continue developing their taste."

According to Adi Baker, Communications Coordinator for the Tea and Herbal Association of Canada, the most commonly consumed tea beverages by Gen Z (over a 6-month period) in Canada include: hot black tea (including flavored); hot herbal tea (including flavored); hot green tea (including flavored); ready-to-drink iced tea; bubble tea; and homemade iced tea.

Most young people already consume a large amount of iced tea, with large beverage companies entering this space with "ready-to-drink" (RTD) iced tea options. However, companies are actively reducing sugar content in response to changing tastes.

The Tea & Coffee Trade Journal states that "as more consumers prioritize health and wellness, to attract and retain ready-to-drink tea consumers, brands must continue to launch low-sugar and functional options, along with new flavor profiles and new ingredients, while emphasizing the natural health benefits of tea."

Coca-Cola's experiment with Honest Tea in the US was one such venture; after the product was discontinued in that market, the company partnered with Luxmi Estates in India to revive the brand using whole-leaf, high-altitude tea grown at Makaibari Estate. Coca-Cola continued with an unsweetened version of the sweet tea brand Gold Peak. PepsiCo is also in this segment, having launched Pure Leaf Iced Tea, which is unsweetened black tea. Recently, Luxmi also developed a tea-based mix called Zero Proof, which is unsweetened and contains only organic and natural herbs for flavoring, other than tea. It will initially be launched in Makaibari stores in India, but Luxmi Estates has a global outlook for the product line.

Luxmi Tea Estates India reinvents the cold tea beverage.
Labels like "organic" and "fair trade" are very important to young consumers, as found in Kerry Proprietary Research's 2023 Sustainability Report, which concluded that more than three out of four people aged 18-25 agree that environmental damage is permanent, compared to about half of consumers overall, reflecting their propensity to procure sustainably produced foods.

As a tea merchant, Little also observes much of the same. "We continue to see customers gravitate towards more sustainable options, both in a sense of global responsibility and personal well-being," says Little. "Young people are aware of this."