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The main difference between loose teas and bagged teas is the size of the leaves. That's what effects the resulting cup of tea. Tea leaves contain chemicals and essential oils, which are the basis for the delightful flavor of tea. When the tea leaves are broken up, those oils can evaporate, leaving a dull and tasteless tea. Typical tea bags are filled with the tiniest pieces of broken leaves, called fannings. Loose teas are typically whole leaves or at least large pieces of leaves.
