Tea is experiencing a resurgence across restaurant menus, with both hot and iced varieties showing impressive growth as consumers venture beyond traditional offerings toward more adventurous, globally-inspired options. A recent webinar from Datassential, “Coffee, Tea, & Other Non-Alc Beverage Trends,” revealed that tea is a beverage category in renaissance, driven by premiumization, functional benefits, and the desire for variety.
Hot Tea Heats Up with 6% Menu Growth
Hot tea offerings have expanded significantly, with items growing 6% across restaurant menus over the past 12 months. This growth story is particularly compelling in unexpected segments: fine dining establishments are leading the charge with 14% growth, perhaps with tea growing as an after-dinner option. Quick-service restaurants (QSR) are not far behind at 10% growth.
The expansion reflects a fundamental shift in consumer preferences. After years of sticking to familiar green and black teas—both of which are down -5% and -4%, respectively, over five years—diners are now exploring lesser-known varieties that were previously considered niche.
“Nearly every single variety that has had lesser or lower appeal in the past is gaining over the past five years,” said Renee Lee Wege, Trendologist, Senior Publications Manager at Datassential. “Consumers are branching out….Some of these lesser-known varieties are really gaining an appeal; so people are experimenting and looking towards those newer, unique items today.”
For example, energy tea and yerba mate have both gained 2% in consumer appeal over five years, with yerba mate notably flagged as a trend to watch heading into 2025. Other big examples of growth in tea types include matcha (+4%), Darjeeling (+3%), and flavors like hibiscus, jasmine, and ginger (+3%).
In fact, flavored hot tea is becoming increasingly preferred. Preferences for unflavored hot tea varieties declined -8% over the last five years, while a preference for flavored hot tea was up 10%. This shift toward flavor complexity is driving menu innovation across all restaurant segments.
Trending Hot Tea Flavors
The most dynamic growth in hot tea is occurring in unexpected flavor territories. Orange peel preparations are riding the broader orange trend sweeping the beverage industry, while oat milk additions reflect consumers' plant-based preferences extending into tea service.
Herbal innovations are equally compelling. Lemongrass, often paired with traditional chamomile, brings aromatic complexity that appeals to adventurous tea drinkers. Ginger continues its reign as a functional favorite, valued for both its warming properties and perceived health benefits.
Perhaps most intriguing are the "dirty" preparations—adding espresso shots to chai—that blur the lines between coffee and tea service.
Meanwhile, roasted flavor profiles are gaining traction through authentic preparations like Hojicha, roasted Japanese green tea, and Genmaicha, Japanese green tea mixed with roasted, popped brown rice.
Iced Tea's Impressive Expansion
Iced tea is matching hot tea's momentum with its own 6% menu growth over 12 months, led by fine dining (+14%), casual (+8%), fast casual (+7%), and midscale (+7%) restaurant segments.
Insert iced tea
“Something that is unique about the cold iced tea is we see that consumers are drinking more of it than most other beverages,” said Lee Wege.
According to the webinar, consumers drink more iced tea per occasion—1.7 cups away from home and 1.8 at home—compared to other beverages, creating multiple revenue opportunities throughout the day.
This higher consumption rate stems from iced tea's lighter caffeine content and refreshing nature, making it suitable for multiple servings and occasions, without the intensity associated with coffee-based drinks.
Flavor Innovation Drives Iced Tea Appeal
Similar to hot tea, iced tea's growth is powered by flavor innovation, with all varieties except unflavored regular tea (-9% over five years) gaining consumer appeal.
Dragon fruit additions tap into exotic fruit trends, while oat milk continues its cross-category dominance. Caffeine infusions are creating hybrid beverages that bridge the gap between tea and energy drinks.
A particularly noteworthy trend is the rise of puree additions, signaling a shift toward actual fruit content rather than artificial syrups. This premiumization reflects consumers' growing sophistication and willingness to pay for quality ingredients.
Fruit flavors have been especially growing over the last five years. Lemon, peach, and raspberry continue to dominate, while flavors like mango and hibiscus have shown +5% growth.
Gen Z is a Leading Demographic
Gen Z is having a big effect on what beverages are trending, especially on the iced side, as 71% of Gen Z prefer iced or cold beverages. So what iced tea beverages is this demographic loving most?
According to the webinar, boba or bubble tea is king, with this group over-indexing when compared to the general consumer on boba, bubble tea, and milk tea.
The data suggests tea is no longer a secondary beverage category but rather a dynamic segment experiencing genuine transformation. As consumers continue seeking more adventurous, flavorful, and socially shareable options, tea's renaissance appears positioned for sustained growth.
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