Dilmah Premium Iced Tea – learn about the key market trends

As consumer palates continue to become more sophisticated, expectations are increasingly turning towards higher quality, specialty beverage brands. Shaking up the Iced Tea category, new Dilmah Iced Tea captures a full authentic flavor using 100% hand-picked Ceylon Tea leaves, extracted within hours.

As we approach a new year, what changes can we expect to see in the world of iced tea in 2021 and beyond? And how can BPI’s new offering, Dilmah Elixir of Ceylon Iced Tea range, help to meet bottler and consumer touchpoints in a rapidly moving market?

Finding favor with flavor

Firstly, flavor. Exciting flavor combinations and high-quality artisan ingredients are a priority for today’s consumers, who want new brands that can offer them something different – outside of the ‘usual suspects’ within the soft drink category. 


As in Dilmah’s well-established hot tea offering, the Elixir of Ceylon Iced Tea range is made from hand-picked, traditional loose tea leaves, meaning it brings the full flavor and antioxidants of brewed tea to the Iced Tea category. High quality ingredients are synonymous with the Dilmah brand, with the natural sweetness of Dilmah Iced Tea coming from combination of honey, cane sugar and stevia. 


With demand for craft beverages growing across the world, Dilmah’s iced tea provides a unique offering that plays into consumer demand for personalized products. Building on traditional iced tea, the Elixir of Ceylon Iced Tea range comes in delicious fruit flavors such as peach, ginger & apple, rose & vanilla, mango and others, blended with hand-picked Sri Lankan tea leaf blends to create perfectly matched flavor combinations.

Meeting Wellness Needs

A second change has, of course, been the rapid spread of coronavirus, which has been a key factor affecting all markets in 2020. The effect of government-mandated lockdowns, combined with a general economic slowdown due to the outbreak, have inevitably led to a decline in the functional drinks market growth rate. The functional beverages market is expected to decrease from $128.66 billion in 2019 to $125.39 billion in 2020 at a rate of -2.5%, according to a recent report by The Business Research Company.


However, COVID-19 has also elevated consumer consciousness of the importance of wellness in their food and beverage choices. They are increasingly looking for healthy alternatives that can boost immunity and decrease chances of contracting the virus. Interest in functional beverages has therefore increased since the pandemic began, with products offering a high nutritional and health and wellness value proving ever more popular. Within the iced tea category, this means that hand-crafted, high quality beverages like Dilmah Iced Tea, which harness the wellness power of Ceylon tea’s many natural health benefits, will be perfectly positioned to tap into demand for functional beverages that both taste good, and are good for you. Tea contains bioactive compounds and powerful natural antioxidants which can protect regular drinkers from many degenerative diseases, as well as help to maintain good oral health.

Ethics and Sustainability

Market research agency Mintel identified sustainable consumption and the health of the planet as a key consumer trend is set to span the next ten years. “In the next decade, consumers will be hungry for leadership and demonstrable change on environmental issues, ethical business practices, public health, and other important causes,” said Alex Beckett, associate director, Mintel Food & Drink. “Consumers will reward brands that take action and improve important societal issues.”


Dilmah’s core values are supported throughout the entire production process, from hand-picked Sri Lankan tea leaves to high-quality end product. Like all Dilmah products, the Elixir of Ceylon Iced Tea range is sustainable and all natural, and puts social responsibility at the heart of its business. Dilmah prioritizes protecting and respecting the environment, growing only the finest ingredients to maintain its commitment to great taste. Using Ceylon tea that is hand-picked, garden fresh and of the finest quality, Dilmah supports restoration and conservation of ecosystems, species conservation, climate change research and adaptation, and environmental education and advocacy.


Shaking up the Iced Tea category for a new and discerning audience, Dilmah Elixir of Ceylon Iced Tea brings a new lease of life to traditional Iced Tea, combining hand-picked Sri Lankan tea leaf blends with delicious fruit flavors.


  • 100% hand-picked, traditional loose Ceylon tea leaves
  • Sustainable and all natural
  • Social responsibility is a key foundation 
  • Tea contains bioactive compounds and powerful natural antioxidants
  • Flavors include ginger & apple, rose & vanilla, almond & others

Watch FOODBEV Interview with Moshy Cohen, CEO of Beverage Partners International. If you are a Bottler or a Distributor, we invite you to contact BPI and join us for a unique opportunity to revolutionize your beverage business.

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