In this article, you’ll learn:
- How private label tea manufacturers help you launch your own tea brand
- How working with an RTD tea partner saves time, money, and regulatory headaches
- Why private label solutions offer a faster, lower-risk path to market entry
The tea industry is growing at a staggering rate, making it an increasingly viable opportunity for drinks businesses. According to Statista, global revenue in the tea segment is expected to reach $247 billion by 2025, with RTD tea showing one of the fastest growth rates. In the first half of 2024 alone, tea accounted for 22.9% of all beverage sales in the US. However, entering this market – particularly with ready-to-drink (RTD) solutions – requires extensive research and investment.
For this reason, working with private label tea manufacturers can keep your costs down. These strategic partnerships also streamline production and crucially accelerate go-to-market timelines. For companies seeking a more efficient route without compromising on quality or identity, private labelling is a compelling value proposition.
To learn more about the role and importance of private label tea manufacturers, I spoke to Soni Singh. She is the Senior Sales Consultant at Kajah Tea, which produces private label loose leaf tea. Read on for her insight.
What does a private label tea manufacturer do?
At their core, private label tea manufacturers produce tea products – whether it’s tea bags, loose leaf tea, or RTD drinks – for clients. “It’s about transforming a brand’s vision into a market-ready product, without the need for internal manufacturing infrastructure,” Soni explains.
This is a multi-step process that goes through several stages. It begins with developing the concept and blend for the product. “We work closely with the client to define the tea type, flavour profile, and desired characteristics,” Soni says. “We formulate unique blends or source specific grades that align with their vision.”
Once you’ve established flavours and characteristics, your private label tea manufacturer will prepare it accordingly. This stage involves a lot of communication, with rounds of testing to ensure the product is not only compliant with food safety standards but also aligned with the intended flavour. For Hardtank’s RTD teas, you have up to three rounds of feedback to tweak the drink to your preferences.
Private labelling also supports brand storytelling. Unlike white labelling, which typically involves minimal differentiation between products, private label solutions allow for custom blend creation. This ensures that the final product is unique to the client, reinforcing brand identity and customer loyalty. Equally, manufacturers like Hardtank give you ownership over your custom RTD formulation, meaning you can freely replicate it in the future.
Often, private label manufacturers also help to package the tea product. “Beyond the tea itself, the packaging is the brand’s handshake with the consumer,” she explains. “We assist with material selection, design, and branding elements to ensure the final product is visually compelling and functionally sound.”
Crucially, private label manufacturers offer scalable production. This means brands can test new SKUs in small batches or fulfil large-scale retail orders as demand grows. All of this is done without needing to invest capital into warehouses or equipment that would otherwise be required to scale in-house.
How private label tea manufacturing helps you cut costs and scale
As previously mentioned, cost savings are the main benefit of working with private label tea manufacturers. “Reduced capital expenditure is arguably the biggest saving,” Soni says.
“Businesses avoid the massive upfront investment in manufacturing facilities, specialised machinery, warehousing, and extensive raw tea inventory. They also bypass ongoing operational costs like factory maintenance, utilities, and a large manufacturing workforce.”
These savings do more than just preserve your bottom line – they also help you to maximise profits. Keeping your SKUs at a competitive price, while saving so much money on in-house production facilities, can be hugely beneficial for your income.
Equally, Soni explains that this can benefit consumers, too. “This bulk purchasing power translates into significantly lower unit costs than an individual brand could achieve – savings which are often passed on.” Amid the rising cost of living, consumers are increasingly attracted to cheaper drinks, too. As such, those cheaper unit prices may also attract new customers.
Cost predictability is another major advantage of working with a private label tea manufacturer. After the consultation process, your partner will provide a quote including an established price per unit and defined production timelines. Clients can therefore forecast expenses with greater accuracy, reducing the likelihood of budget overruns and unexpected delays.
Beyond the financial savings lie another benefit: speed. Normally, businesses need to go through product testing, food safety certifications, and export regulations before bringing a product to market. With a private label manufacturer, what might otherwise take months or years to build internally can be executed in a matter of weeks.
“Manufacturers handle these certifications and compliance requirements, saving businesses considerable legal, auditing, and operational expenses,” Soni adds. “Otherwise, navigating complex international food safety standards and export regulations can be incredibly costly and time-consuming.”
Moreover, the responsibility for compliance, export requirements, and inventory management lies with the manufacturer, not the brand. Instead, you can lean on your partner’s expertise, safe in the knowledge that you won’t encounter any administrative slip-ups.
Why private label RTD tea is a smart strategy for beverage brands
While Kajah Tea’s expertise lies in loose-leaf and packaged tea manufacturing, the same cost-saving principles apply to ready-to-drink formats, such as Hardtank’s RTD private label solutions.
Hardtank’s proprietary brewing and canning technology allows brands to develop cold brew teas and other functional beverages with high repeatability and minimal in-house investment. These services include both private label and custom formulation options, helping businesses already working in the beverage industry to easily launch new products.
“By offloading the complexities of tea processing, packaging, and supply chain management, businesses can reallocate their resources and energy towards their core strengths,” Soni explains. They include “marketing, sales, customer engagement, and innovation – ultimately driving revenue and brand loyalty.”
Furthermore, private label solutions are an easy route to entering new markets. The RTD industry in particular is expanding rapidly, currently valued at over $766 billion globally. If you’re a business already working across similar industries, it is a major growth channel for brands looking to diversify.
With younger consumers prioritising convenience and sustainability, canned teas and functional beverages are increasingly popular. Hardtank’s aluminium can formats tap directly into this trend, providing an eco-friendly and consumer-preferred form factor.
Ultimately, integrating a private label model with an experienced RTD partner like Hardtank allows for product innovation without the overhead. It reduces the logistical burden of manufacturing, eliminates costly production bottlenecks, and allows you to respond quickly to market trends.
Private label tea manufacturing – whether loose leaf or RTD – goes beyond the outsourcing of labour and production. It’s just as beneficial for creating scalable, appealing products that align with your existing identity.
As Soni puts it, “private label manufacturing allows businesses to access world-class tea products and supply chain efficiency without incurring the heavy fixed costs and operational complexities of becoming a tea manufacturer themselves. It transforms potential liabilities into scalable, manageable costs.”
Combined with Hardtank’s RTD manufacturing capabilities, businesses can create a vertically integrated production model – meaning you can manage everything from recipe development to canning and packaging with a single partner. It reduces costs, shortens development cycles, and allows them to quickly react to market changes.
Whether you’re a specialty grocer, beverage startup, or established FMCG brand, the takeaway is clear. Partnering with private label tea manufacturers is a smarter, leaner way to scale.
Private label tea: Key takeaways for brands and buyers:
- Private label tea manufacturers help you reduce costs by avoiding investments in production facilities, machinery, and operational expenses.
- You can launch a tea product much faster thanks to your partner’s established expertise and infrastructure.
- Consumer demand for convenience in beverages is rising, so RTD teas are a path to accessing this sector.
- You also have more budget predictability as your partner will provide a clear quote and establish definitive timelines.
Ready to launch a line of RTD teas?
Check out our private label services page or schedule a free consultation with our team.
Private label tea FAQs: Costs, benefits, and process
What do private label tea manufacturers do?
Private label tea manufacturers prepare custom blends, packaging, and units for your business. For tea in particular, they can involve RTD preparation or loose leaf tea solutions.
Can I order small batches to test the market?
Yes. Most private label manufacturers, including Hardtank, offer flexible MOQ options – ideal for piloting new SKUs without overspending.
What are the benefits of working with private label tea manufacturers?
Private label partners provide the infrastructure and expertise to prepare products to your specification. This means you don’t need to heavily invest in equipment, research, or compliance before launching a product. Instead, you can focus on branding and sales for the product’s launch.
How much does private label tea production cost?
Costs vary based on volume, formulation, and packaging. However, you can generally expect lower per-unit costs compared to formulating RTD teas yourself. Speak to your private label manufacturer to determine a quote.
Want to learn more about private label RTDs?
- Discover more: Learn about our private label RTD process and how it works here.
- See real-world results: Find out how European Coffee Trip benefited from our private label solutions.
- Book time with an RTD specialist: Have questions or want to discuss a partnership? Schedule a free appointment.
