US functional tea specialist Caraway Tea Company has released a statement calling out the widening gap between products marketed as "functional teas" and those manufactured under certified supplement standards.
As the functional beverage market continues to grow rapidly, brands and consumers are facing a key issue. The manufacturing standards behind products entering the market often vary significantly.
"There's a fundamental difference between adding ingredients to a tea and manufacturing a product under supplement-grade conditions," said Gina Caraway, CEO of Caraway Tea Company.
That distinction is not always visible to the consumer, but it matters for quality, consistency and compliance.
The term "functional tea" is commonly used in the industry, but it does not adhere to a specific manufacturing standard.
Consequently, products labelled as functional may be produced in environments that do not meet the requirements for dietary supplements.
This can lead to issues such as inconsistent dosing, limited traceability and the absence of validated processes.
As consumers and regulators place greater emphasis on transparency and compliance, this gap is becoming harder for brands to overlook.
The Caraway Tea Company emphasises that supplement-grade manufacturing is based on structured systems that ensure product integrity.
These systems typically include the following:
- documented quality management procedures
- full ingredient traceability
- validated and repeatable production processes
- third-party audited certification programmes.
For example, the Caraway Tea Company operates under the SQF Level 2 Code 31 (Dietary Supplements), a globally recognised standard that governs the manufacturing of dietary supplement products.
Evolving market expectations
As the functional beverage category evolves, expectations from consumers, retailers and regulators are shifting, with increased focus on product manufacturing rather than just ingredients.
"Brands entering the functional space need to think beyond formulation," Caraway added.
Manufacturing standards are becoming just as important as the ingredients themselves.
Caraway Tea Company said it believes companies that align product development with certified manufacturing systems will be better positioned to scale, maintain consistency and meet evolving market expectations.