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The Rise of Loose-Leaf Tea in the U.S. Coffee Market

Coffee menus are expanding! As specialty cafés chase flavor, wellness & customization, premium loose-leaf tea is earning equal shelf space beside espresso.

INDIANAPOLIS, IN, UNITED STATES, January 12, 2026 /EINPresswire.com/ — As the US coffee culture keeps evolving, tea is quietly claiming more menu real estate. Specialty cafés built on espresso are now making room for tea flights, matcha lattes, and chilled infusions that feel as intentional as a single-origin pour-over.

The shift is not about replacing coffee — it’s about meeting customers who want variety, control over caffeine, and flavor that can swing from bright and floral to deep and malty.

It’s not surprising, really. Coffee is already part of most people’s routine, so cafés have to stand out in other ways. A well-run loose-leaf tea program helps a shop serve the same customer at a different moment of the day, especially when they want something lighter, less acidic, or simply different from espresso.

Demand is showing up fast with younger customers, and it’s showing up on the menu as matcha, iced teas, and tea-based lattes. Operators are seeing more demand for tea-based beverages, especially matcha and layered iced drinks that photograph well and travel well. From a café’s point of view, it’s a smart add. You catch customers who skip coffee, and you have a reason for people to come back in the afternoon.

Loose leaf tea is benefiting from a renewed interest in ritual and technique. Whole leaf formats brew differently than bags, opening up room for measured steep times, water temperature control, and repeatable recipes behind the bar. That approach mirrors what specialty coffee taught customers to appreciate: process matters, and the details show up in the cup.

Retail numbers support the idea that tea has momentum in the US beverage aisle, not just in cafés. Growth in combined bag and loose tea sales suggests consumers are buying more tea for home, and that familiarity translates into confidence when they see tea offered on a coffee menu. It also supports higher margins, since tea service is fast, consistent, and easy to batch for peak rushes.

For brands built around craftsmanship, this is a natural moment to show up in coffee spaces. Nelson’s Tea focuses on small-batch, handcrafted blends and supports both wholesale and online retail. Their lineup includes signature blends and standalone herbs and spices, so cafés can roll out seasonal drinks or test new recipes without juggling extra suppliers.

That flexibility is why more coffee operators are treating loose-leaf tea as an ingredient, not an afterthought. Cold-steeped black tea can anchor a dairy-free latte, green tea can add freshness to citrus-forward spritzes, and herbal options can carry evening service when espresso is not the right fit. When tea is handled with the same care as coffee, customers notice.

The rise of loose-leaf tea inside the US coffee market is really the rise of choice. Cafés that offer a thoughtful tea lineup keep more guests in-house, serve more dayparts, and give regulars a reason to come back for something new.

About Nelson’s Tea

Based in Indianapolis, Nelson’s Tea began in 2012 and launched in January 2016. We’re here to make loose-leaf tea easier to love, with blends that feel modern, flavorful, and anything but boring. Our mission is simple: help modernize the tea experience by creating blends that feel exciting, approachable, and easy to enjoy, whether you’re a business building a menu or someone stocking your kitchen at home.

Over the years, Nelson’s Tea has stayed committed to crafting blends that are fun, flavorful, and made with care. With a range of infusions designed for all kinds of tastes, Nelson’s Tea serves tea lovers near and far, from first-timers to longtime enthusiasts.

Team Nelson’s Tea
Nelson’s Tea
+1 317-759-4746
clientservices@nelsonstea.com

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