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Craft Tea Market

Craft Tea Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type, by End User, by Distribution Channel : Global Opportunity Analysis and Industry Forecast, 2021-2031

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Author's: Raju Kale | Roshan Deshmukh
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Craft Tea Market Research, 2031

The global craft tea market size was valued at $331.7 million in 2021, and is projected to reach $465.3 million by 2031, growing at a CAGR of 3.5% from 2022 to 2031.

Craft tea is high quality tea made by small producers is small batches, usually slightly different from what's already on the market. Craft teas are now a widely available beverage at many shops and cafes. Craft teas prepared to order can be purchased in retail outlets as ready-to-drink bottled tea or at coffee and tea establishments.

Craft Tea Market

The craft tea market is segmented into Product Type, Distribution Channel, and End User.

The food & beverage industry as a whole had been growing at a significant growth rate prior to the COVID-19 outbreak, however, has experienced an anomaly in recent times, as consumers are being selective in their purchases. The disruption of the supply chain has further crippled the out-of-home consumption of food & beverages. Although the out-of-house consumption of food & beverages may have witnessed a standstill, the at-home consumption of food has significantly increased, thereby garnering a significant share in the global food & beverages market. Furthermore, the demand for staple and packaged food has seen an upward trend recently, which is attributed to the active lockdown, the absence of convenient home delivery options, and precautionary action taken by people to prevent getting infected by the coronavirus.

Many nations have identified lifestyle-related diseases as major problems in recent years, which has increased consumer awareness of health issues. In addition, Craft Tea Market Demand is being fueled globally by growing consumer knowledge of its health benefits. Craft tea, for instance, boosts levels of vitamin C, chromium, selenium, magnesium, and zinc while lowering cholesterol and blood sugar levels. It also promotes metabolism and detoxifies the body. In addition, the rise in the elderly population, the rise in life expectancy, and the worrisome rise in chronic illness incidence have altered consumer eating habits.  Further, customers are looking for healthy drinks that may directly give them the nourishment they need and improve their physical and mental wellness as a result of their busy lifestyles.

Currently, several substitutes of craft tea are available in the market, which includes white tea, oolong tea, and matcha tea. These substitute products available in the market offer a reasonably close benefit to craft tea and are most likely available at competitive prices. Thus, consumers can easily switch to these available substitutes. Therefore, the aforementioned fact acts as a potential threat of substitution for the industry, which is likely to hamper the Craft Tea Market Growth.

E-commerce, also known as online stores, is a huge industry that is expanding rapidly all over the world. Consumers of all generations, including those in generation X, millennials, and generation Z, like online retailers. This is explained by the fact that consumers find online purchasing to be more convenient than shopping in physical stores, thanks to the increase in businesses that are focusing on e-commerce. Additionally, it is anticipated that increased internet usage and a higher percentage of people who prefer to shop online will give craft tea producers the chance to sell both their classic and innovative products online, making them more accessible to customers and raising consumer awareness of their goods.

The craft tea market is categorized into product type, end user, distribution channel and region. By product type, it is classified into blooming craft tea, active craft tea, floating floss craft tea. on the basis of end user, it is fragmented into commercial and individual. Based on the distribution channel, the market is segmented into online and offline. Region wise, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, UK, Netherland, Italy, Belgium, Russia, France, Spain and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Pakistan, Indonesia, and rest of Asia-Pacific), and LAMEA (Brazil Argentina UAE, Saudi Arabia, Chile, Algeria, Nigeria, Egypt, South Africa, Rest Of LAMEA).  

Craft Tea Market
By Product Type
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Based on the product type, Blooming craft tea segment held the major share in the market. The blooming tea provides various health benefits, which help to increase consumption of the product.

By product type, the blooming craft tea held a major share of 37.1% in the market. Blooming tea is made up by dehydrating the flowers and adding flowers with dried tea leaves. The blooming tea is consumed by people who love to have different types of tea and different flavors of tea. Blooming tea consumption is found to be at an increasing level in the market.

Craft Tea Market by End User

Based on the end user, the commercial segment witnessed a major growth rate during the Craft Tea Market Forecast period. The commercial user is found to be beneficial to the growth of the product. Commercial user sales the product at a large level in expectation of good returns and tends to the growth of the product. The commercial user brings the availability of the products into the market. Craft tea is found to provide sensory delights, this special catering is provided by the commercial end user. The different opportunities are developed by the product variety available in the market. Commercial users of the product are supposed to have growth into the future, by looking after the increasing consumption of products.

Craft Tea Market by Distribution Channel

By distribution channel, offline segment held the major Craft Tea Market Share in the market. The offline segment includes brand outlets, supermarket & hypermarket, specialty stores, among others. Brand outlets are stores that are entirely or partially owned by the original manufacturer of the brand, and offer primarily obsolete, irregular, excess, and other items at a reduced price. Moreover, these outlets sell the most recent as well as other irregular items at a discount to clear the stock and maintain capital cash-flow rotation. Furthermore, specialty stores are retail outlets that are engaged in a business of selling particular range of associated products.

Craft Tea Market by Region

By region, North America dominates the craft tea industry and is likely to remain the same during the forecast period. North America is found to be an adaptive market for new products. There are tea manufacturers at an increasing number in the region, moreover, this turns up for increasing the demand for craft tea. Developed countries like U.S. and Canada are known to be mature markets for providing premium experience goods as some craft tea provides a premium experience becomes a good opportunity for the product. Craft tea comes with a various types of flavor which makes easier for consumers to have the tea according to their tastes and choices. In this region the tea crafted with fruits and herbs are found to be in recent trends.

The key players profiled in the report include are LUPICIA CO., LTD, COFCO, Teasenz, California tea house, Panella Foods and Beverages Private Limited, Bettys & Taylors Group Ltd, FMS Consumer Products Pvt Ltd, Bharat Group, VAHDAM, and Stash Tea.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the craft tea market analysis from 2021 to 2031 to identify the prevailing craft tea market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the craft tea market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global craft tea market trends, key players, market segments, application areas, and market growth strategies.

Craft Tea Market Report Highlights

Aspects Details
Market Size By 2031

USD 465.3 million

Growth Rate

CAGR of 3.5%

Forecast period

2021 - 2031

Report Pages


By Distribution Channel
  • Online
  • Offline
    • sub type
      • Supermarkets and Hypermarkets
      • Specialty Stores
      • Convenience Stores
      • Others
By Product Type
  • Blooming craft tea
  • Active craft tea
  • Floating floss craft tea
By End User
  • Commercial
  • Individual
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, UK, Netherlands, Italy, Belgium, Russia, France, Spain, Rest Of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Thailand, Pakistan, Indonesia, Rest Of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, UAE, Saudi Arabia, Chile, Algeria, Nigeria, Egypt, South Africa, Rest Of LAMEA)
Key Market Players

FMS Consumer Products Pvt Ltd, Stash Tea, BHARAT GROUP, Teasenz, Panella Foods and Beverages Private Limited, LUPICIA CO., LTD, VAHDAM, CALIFORNIA TEA HOUSE, COFCO, Bettys and Taylors Group Ltd

Analyst Review

Various CXOs from leading companies perceive that health, fitness, and habit are three important factors that determine the growth of the craft tea market. At present, consumers’ interest is shifting toward green tea & fruit/herbal tea, owing to presence of diverse nutrients and numerous health benefits offered by it. The various nutrients present in tea include different types of vitamins, amino acids, flavonoids, and trace minerals leading to stronger immunity, improved metabolism, lower cholesterol, cancer prevention, and other health benefits.

Thus, new launches of specialty tea products such as herbal/fruit tea, different types of green tea, and the ones consisting of the black & green leaves combination have been witnessed. The above factors indicate high growth opportunities for the aforementioned tea products during the forecast period. 

Author Name(s) : Raju Kale | Roshan Deshmukh
Frequently Asked Questions?

increase in health-related concerns of people, rise in café culture, growth in disposable income, change in tastes of people, and introduction of additional healthy ingredients in tea by different market players are the upcoming trends of Craft Tea Market in the world.

Individual is the leading end user of Craft Tea Market.

North America is the largest regional market for Craft Tea.

The craft tea market was valued at $331.7 million in 2021, and is projected to reach $465.3 million by 2031, registering a CAGR of 3.5%.

The key players in the Craft tea market are LUPICIA CO., LTD, COFCO, Teasenz, California Tea House, Panella Foods and Beverages Private Limited, Bettys & Taylors Group Ltd, FMS Consumer Products Pvt Ltd, Bharat Group, VAHDAM, and Stash Tea.

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Craft Tea Market

Global Opportunity Analysis and Industry Forecast, 2021-2031