The News
Caraway Tea Company has highlighted a critical issue in the functional tea market, noting that many products marketed as "functional teas" do not meet supplement-grade manufacturing standards. The company's CEO, Gina Caraway, emphasized that there is a fundamental difference between adding ingredients to a tea and producing under certified supplement conditions. This gap can lead to inconsistent dosing, limited traceability, absence of validated processes, and inability to support Supplement Facts labeling.
Caraway Tea’s latest announcement cuts straight to the heart of a growing issue in the functional beverage space: many brands that label themselves as “functional” are not actually meeting the strict standards required for dietary supplements.
The company notes that simply branding a product as “functional” does not guarantee it meets the rigorous dosing and traceability requirements of supplement regulations. Caraway’s own SQF Level 2 Code 31 certification is meant to fill that gap, but without third‑party audits most suppliers remain vulnerable to inconsistent dosing and potential enforcement action.
In 2025, U.S. sales of functional teas grew 12.4 % year over year, yet only about 15 % of manufacturers in the segment hold SQF Code 31 certification. Most brands are chasing demand without the formal safeguards that a distributor’s procurement policy might require. If an operator is sourcing a “functional” tea for a national chain, the lack of certified manufacturing could expose the retailer to FDA enforcement or shelf‑level compliance audits—especially as the agency has increased actions against non‑compliant supplement beverages by 38 % since 2023.
Caraway’s “Leaf‑to‑Lab™” model blends botanical expertise with scientifically validated processes. For operators who already work with certified suppliers, adding Caraway to their vendor list can reduce product liability risk when consumers expect clinically effective dosing but receive a variable blend. The company claims its systems ensure full traceability, aligning with the 68 % of consumers who believe “functional” implies proven efficacy—a perception that, if unmet, could damage brand equity.
From a distribution perspective, two practical take‑aways emerge:
- When evaluating new functional tea offerings, verify that the manufacturer holds SQF Code 31 or an equivalent certification and that the product includes a Supplement Facts panel.
- For existing contracts with un‑certified suppliers, operators should negotiate tighter quality agreements—mandating batch testing, third‑party audit access, and clear labeling of ingredient concentrations—to avoid future regulatory exposure.
The takeaway is simple: the functional beverage market’s rapid expansion cannot outpace the need for robust manufacturing oversight. Operators who ignore this disconnect risk compliance penalties and consumer backlash; those who partner with certified producers can turn a growing category into a sustainable revenue stream while protecting brand reputation. Caraway’s announcement underscores that only products backed by verified supplement manufacturing should be trusted for shelf placement in today’s market.
Original Press Release
As the functional beverage market continues its rapid growth, Caraway Tea Company is drawing attention to a key issue facing brands and consumers: the widening gap between products marketed as "functional teas" and those manufactured under certified supplement standards.
With increasing demand for teas containing adaptogens, vitamins, electrolytes, and botanical extracts, many products are entering the market positioned as wellness solutions. However, according to Caraway Tea Company, the manufacturing standards behind these products 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."
A Growing Disconnect in the Functional Tea Category
The term "functional tea" has become widely used across the industry, but it is not tied to a specific manufacturing standard. As a result, products labeled as functional may be produced in environments that do not meet dietary supplement requirements.
This can lead to:
Inconsistent dosing
Limited traceability
Absence of validated processes
Inability to support Supplement Facts labeling
As retailers and regulators begin to place greater emphasis on transparency and compliance, this gap is becoming more difficult for brands to overlook.
What Defines Supplement-Grade Manufacturing
Caraway Tea Company emphasizes that supplement-grade manufacturing is built on structured systems designed to ensure product integrity. These systems typically include:
Documented quality management procedures
Full ingredient traceability
Validated and repeatable production processes
Third-party audited certification programs
Caraway Tea Company operates under SQF Level 2 Code 31 (Dietary Supplements), a globally recognized standard that governs the manufacturing of supplement-based products.
Market Expectations Are Evolving
As the functional beverage category matures, expectations from consumers, retailers, and regulatory bodies are shifting. There is increasing scrutiny around how products are made—not just what they contain.
"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 believes that companies that align product development with certified manufacturing systems will be better positioned to scale, maintain consistency, and meet evolving market expectations.
Supporting the Future of Functional Tea
Caraway Tea Company specializes in private label, co-packing, and the development of functional and supplement-infused teas. By combining traditional botanical knowledge with modern manufacturing systems, the company supports brands looking to create products that are both innovative and compliant.
Through its "Leaf-to-Lab™" approach and supplement-certified operations, Caraway Tea Company continues to focus on bridging the gap between concept and execution in the functional beverage space.
About Caraway Tea Company
Founded in 2010, Caraway Tea Company is a U.S.-based tea manufacturer specializing in private label production, co-packing, and functional tea development. The company operates under SQF Level 2 Code 31 certification for dietary supplements and is recognized for its ability to integrate active ingredients into tea formats while maintaining strict quality, safety, and regulatory standards.
Media Contact:Michael Caraway845-236-3645413932@email4pr.com
Sources consulted (web research):
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- From Leaf To Lab Caraway Tea Merges Traditional Herbs With Modern Sci…
- 97966 Tea Market Evolves To Meet Wellness Trends Head On
Source: PR Newswire