Tea is a flavourful drink made from the Camellia Sinensis plant. It is among the most popular drinks in the world. The most popular types of tea are black and green tea, while herbal tea is becoming more and more popular. Due to the inclusion of numerous powerful antioxidants and minerals like potassium, manganese, magnesium, and calcium, tea is regarded as a healthy beverage. Regular tea consumption decreases cholesterol levels, promotes healthy weight loss, and aids in reducing the harm free radicals do to cells.
Due to the pervasiveness of tea culture, tea has become quite popular in the rising market. The tea market has also grown as a result of rising health consciousness and disposable cash. The introduction of new healthful ingredients into tea by various market participants is another aspect that contributes to the market’s expansion. The primary restraints on this market, however, are the rising trend in coffee consumption and fluctuating raw material prices brought on by erratic meteorological circumstances. On the other hand, it is projected that the market for tea will expand as demand for herbal tea increases and new flavours and varieties are introduced.
Market Overview
Over the projection period, it is expected that the worldwide tea market will grow at a CAGR of 5.7%. (2021 – 2026).
Since consumers are actively seeking products that are healthy, natural, and act as immunity boosters, the current COVID-19 outbreak has created a strong foundation for different types of tea, including herbal tea. This has boosted trade internationally and increased tea consumption. Additionally, the market under study in 2020 has been touched by different trade restrictions and fiction throughout the supply chain.
Agitating Factors
The desire for fresh non-alcoholic beverages by consumers, as opposed to fruit juices and carbonated beverages, is the main driver of tea consumption.
Due to its bagged version’s greater convenience, consumers are growing fond of tea, which offers an appropriate, practical, and healthful substitute to beverages and carbonates. When we talk about healthy hydration, we’re talking about tea’s capacity to deliver immediate cooling and somewhat stimulating effects without being deemed harmful, which isn’t the scenario with coffee as well as other energy beverages.
Manufacturers can develop alongside the healthier patterns that have recently been resonating more strongly in North American and European markets because to tea’s organoleptic adaptability. In the market, the association amongst tea and its health benefits is still very strong. The market for tea is being driven by its reputation for being healthy, as well as the availability of many herbal varieties, different pack sizes, and organic options.
The Image of tea as a natural, eco-friendly product made from a renewable resource is widespread. It is a cool beverage that is devoid of sodium and fat. Any tea beverage’s primary beneficial hydration qualities demonstrate both its capacity to maintain a healthy fluid balance within the body and its capacity to regulate metabolism.
In addition to offering wholesome hydration, tea can provide a variety of other advantages that are anticipated to drive sustainable global sales.
Hindering Factors
The availability of alternatives to tea, such coffee, is anticipated to limit market expansion. This can be ascribed to shifting consumer tastes and preferences because consumers in Britain strongly prefer coffee to tea. Additionally, young people are choosing instant coffee when and wherever they like, along with self-service, in keeping with today’s fast-paced lifestyle.
Unpredictable climatic circumstances are causing the price of raw materials to fluctuate, which is causing a gap between supply and demand. Over the anticipated time, this issue is anticipated to impede the market expansion of tea.
Market Opportunities
Over the projected period, there are expected to be significant growth prospects due to the expanding availability of tea in a variety of forms. For instance, Cha Bar, an Indian tea lounge, provides its customers 133 different types of tea, including fruit tea, herbal tea, and flavoured tea. Ayurveda, green tea, and organic tea are a few of the additional flavours they’ve added to their menu. Therefore, the introduction of numerous tea variations is anticipated to fuel the market expansion of tea in the coming years.
Over the projected period, it is anticipated that the culture of tea cafes and lounges would spread more widely, particularly across North America. Additionally, rising American tea consumption is anticipated to fuel market expansion. In 2019, Americans drank more than 84 billion servings, or more than 3.8 billion gallons, of tea, based on the Tea Association of the USA Inc. The majority of tea consumed—about 84%—was black, 15% was green, and only a minor quantity was oolong, white, or dark tea.
According to type, Black tea will hold a 42.31% market share in terms of revenue on the global tea market in 2020, followed by Green tea and Oolong tea, respectively.
Between 2021 and 2027, the black tea market, currently valued at US$7,371.20 million, is anticipated to expand at a CAGR of 5.10%.
Market Segmentation Analysis
The tea market is divided into segments based on Form (Leaf Tea and CTC Tea), Product Type (Black Tea, Green Tea, Herbal Tea, and Other Product Types), Distribution Channel (Supermarkets/Hypermarkets, Specialist Retailers, Convenience Stores, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The market size and estimates for the aforementioned segments are provided in the study in US dollars million.
- On Form
- Leaf tea
- CTC tea
- Product Type
- Black tea
- Green tea
- Herbal tea
- Other Product Types
- Distribution Channel
- Supermarkets/Hypermarkets
- Specialist Retailers
- Convenience Stores
- Other Distribution Channels
- Geography
- North America
- Europe
- Asia-Pacific
- South America
- Middle-East and Africa
Key Players in the Market
- TATA Group
- Associated British Foods plc
- RC Bigelow Inc
- Apeejay Surrendra Group
- Unilever plc
- Starbucks Corporation
- Wissotzky Tea
- Associated British Foods
- Nestle S.A.
- Akbar Brothers Ltd.
- The Republic of Tea
- DAVIDs Tea
Strong rivals with a diverse product line dominate the global tea market, making for fierce competition among the sector’s established companies. The key players in the tea industry have a pronounced presence in the area. These businesses benefit from consumer brand loyalty, which gives them the upper hand.
Customers in the market are hankering after fresh and cutting-edge goods to fit their daily lives. Companies are continuously working to provide consumers new and creative releases while also precisely catering to their needs in order to capitalise on trends and possibilities.
Key firms have aggressively started the industry consolidation process by utilising existing distribution networks, forming alliances with regional distributors, particularly in developing nations, and creating new products.