Allied Market Research

North America Green Tea Leaves Market Expected to Reach $1,519.9 Million by 2027—Allied Market Research


Report Code : A06633

quote Green tea is well-known for its health benefits; thus, consumers in North America are increasingly adopting this beverage to stay fit and maintain healthy body composition quote

Shankar Bhandalkar – Team Lead – Food & Beverage

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According to a new report published by Allied Market Research, titled, “North America Green Tea Leaves Market by Type, Nature, and Distribution Channel: Opportunity Analysis and Industry Forecast, 2019–2027,” the North America green tea leaves market size was valued at $1,191.1 million in 2019 and is projected to grow at a CAGR of 6.8% from 2020 to 2027 to reach the market value of $1,519.9 million by 2027. By type, the Matcha segment in the green tea leaves market was the most prominent segment accounting for the highest share in 2019, and is expected to remain the dominant segment throughout the forecast period.

Green tea is one of the most popular beverages, usually made via brewing or boiling of dried Camellia Sinensis plant leaves. The green tea though is more common in Asian countries, but has found its way in the North American market owing to various health benefits that it offers. Green tea care & husbandry management comprises proper site selection and several carefully maintained steps, which include permanent source of water, proper shelter, free draining soil with pH ranging from 5 to 5.8, and stringent regulations toward the amount of pesticides applied on plantations.

The growth of the green tea leaves market is driven by health benefits associated with consuming tea and rise in fitness concerns among people in different regions. The additional facts that support the growth of the market include increase in café culture, rise in disposable income, change in tastes of people, and innovation of tea by introducing additional healthy ingredients. However, increase in cost of raw materials due to unpredictable weather, high cost of production, and increase in trend of coffee consumption are expected to hamper the growth of the market during the forecast period. Rise in tea demand from health-conscious young population and frequent introduction of new flavors & variety are expected to provide numerous opportunities for the North America green tea leaves market growth.

The report segments the green tea leaves market based on type, nature, distribution channel, and region. By type, the market is divided into Matcha, Sencha, Gyokuro, Longjing, and others. On the basis of nature, it is fragmented into organic and conventional. By distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, food service, and others. Country wise, the North America green tea leaves market is analyzed across the U.S., Canada, and Mexico.

On the basis of type, matcha was the most prominent segment in 2019, growing at the highest CAGR of 7.4%. The Sencha segment in the North America green tea leaves market is expected to grow at a notable CAGR throughout the forecast period, reaching the market size of $397.3 million in 2027.

Based on the North America green tea leaves market analysis by nature, the conventional segment accounted for the largest share in the North America green tea leaves market, and is expected to remain dominant during the forecast period. However, the organic segment is expected to garner the highest CAGR throughout the forecast.

Based on the North America green tea leaves market forecast by distribution channel, the hypermarkets/supermarkets segment was the leading distribution channel with a major market share in 2019. This is attributed to increase in business of retail sales in different countries and availability of large shelf space for maximum sales.

The major strategies adopted by key players in the North America green tea leaves industry to expand their business include new product launch and business expansion. The key players profiled in the report are Harney And Sons, Matchabar, Chacha Matcha, Matchaful, Mizubatea Co., Aiya Matcha, Encha, Kettl Tea, ITO-EN, Hibiki-An, In Pursuit Of Tea, Mariage Freres, and Rishi Tea.

Key findings of the study

  • Matcha segment is projected to witness the highest CAGR of 7.4% in revenue terms during the forecast period.
  • On the basis of nature, the conventional segment is expected to dominate the market in 2027. 
  • Supermarket/hypermarket segment occupied maximum value share in 2019, and is expected to grow at the significant CAGR during the forecast period.
  • U.S. is the largest country in terms of demand and production of tea in the North America green tea leaves market.
  • Gyokuro is anticipated to witness the second highest CAGR of 7.1% from 2020 to 2027, in value terms.

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quote North America Green Tea Leaves Market by Type (Matcha, Sencha, Gyokuro, Longjing, and Others), Nature (Organic and Conventional), and Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Food Service, and Others): Opportunity Analysis and Industry Forecast, 2020–2027 quote

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