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2023

Tea Market

Tea Market Size, Share, Competitive Landscape and Trend Analysis Report by Type (Green Tea, Black Tea, Oolong Tea, Fruit/Herbal Tea, Others), by PACKAGING (Plastic Containers, Loose Tea, Paperboards, Aluminum Tins, Tea Bags), by Application (Residential, Commercial), by Distribution Channel (Supermarkets/ Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Others): Global Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Amit Jain | Roshan Deshmukh
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The global tea market size was valued at $49 billion in 2021, and is projected to reach $93.2 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

Tea is the most commonly consumed drink after water, with several health benefits. The aromatic beverage is made through processing and fermentation of Camellia Sinensis plant leaves. It contains potent antioxidants known as flavonoids, which stabilize harmful free radicals in the body. In addition, tea comprises vitamins C, K, B12, B6, & E; a trace amount of potassium, manganese, magnesium, & calcium minerals; and different amino acids such as L-theanine. Several studies and research on tea suggest that it prevents cancer, lowers cholesterol, facilitates weight loss, and enhances immunity. Primarily, tea can be categorized into black and green tea based on the degree of fermentation or oxidation.

Tea Market

 

The tea market size is projected to be fueled by health and wellness trends. In recent years, there has been a growing interest in health and wellness, and this has driven significant tea market growth. Tea is seen as a healthy beverage option, and many consumers are turning to it as a way to improve their overall health and well-being. Consumers are increasingly interested in teas that offer specific health benefits, such as reducing stress, improving digestion, boosting immunity, and aiding in weight loss. As a result, there has been a rise in functional teas that are formulated with specific ingredients to target these health concerns. Herbal teas have gained popularity due to their perceived health benefits. Many herbal teas are known to have anti-inflammatory and antioxidant properties, and some have been linked to improved sleep and digestion. As more people seek natural remedies for their health concerns, herbal teas have become a go-to option.

Moreover, health-conscious consumers are also seeking out teas that are free of artificial additives and preservatives. Organic and natural teas are seen as healthier alternatives to conventional tea products, and this has driven the demand for these types of products. Consumers are willing to pay more for teas that are perceived as high-quality and premium. This includes teas that are organic, fair trade, and sourced from sustainable farms. Premium teas are often marketed as being healthier and more beneficial than cheaper, mass-produced tea products. Tea companies are also capitalizing on health and wellness trends by introducing specialty teas that cater to specific health concerns. For example, some companies offer teas that are specifically designed to boost energy, aid in relaxation, or support mental clarity. Overall, health and wellness trends are driving the market, as more consumers seek tea products that offer specific health benefits and are perceived as healthier and more natural than other beverage options.

Additionally, convenience is a significant driver of the growth of the market. Tea is a quick and easy beverage to prepare, making it an ideal choice for busy lifestyles. Consumers can brew a cup of tea in just a few minutes, and some teas come in pre-packaged tea bags or pods, which further simplifies the process. Tea is a portable beverage that can be consumed on-the-go, whether it's in a travel mug, thermos, or pre-packaged bottle. This makes tea a convenient choice for people who need a quick pick-me-up while on-the-go. Tea is a versatile beverage that can be consumed hot or cold, with or without added flavors, and can be used as a base for other drinks, such as iced tea or tea lattes. This versatility makes tea a convenient choice for a variety of occasions. The growth of the ready-to-drink market has been driven by the convenience of these products. Consumers can purchase pre-bottled tea beverages at grocery stores, gas stations, and convenience stores, making it easy to enjoy tea on-the-go. Online tea retailers have made it easier than ever to purchase tea products from the comfort of your own home. This convenience has driven the growth of online tea sales, making it possible for consumers to access a wide variety of tea products without leaving their homes. Overall, convenience is a key driver of the growth of the market. The ease of preparation, portability, versatility, and availability of tea products have made it an increasingly popular choice for consumers with busy lifestyles.

However, competition from other beverages is one of the key factors that is hampering the growth of the tea industry. As consumer preferences and tastes change, they may shift away from tea and towards other beverages, such as coffee or energy drinks. This can lead to a decline in tea sales and market share. Coffee, soft drinks, and energy drinks offer a wider variety of flavors and formulations than tea. This can make it difficult for tea to compete with these products, particularly among younger consumers who may be more interested in trying new and innovative flavors. Coffee and energy drinks are often seen as a more potent sources of caffeine than tea, which can make them more appealing to consumers looking for an energy boost. Other beverage companies may have stronger marketing and branding strategies than tea companies, making it more difficult for tea to capture consumer attention and market share. Other beverages may be more widely available and accessible than tea, particularly in convenience stores, vending machines, and other on-the-go settings. This can limit the growth of the market in certain regions. Overall, competition from other beverages is a significant factor that is hampering the growth of the market.

    SEGMENTAL ANALYSIS 

    The tea market forecast is segmented on the basis of type, packaging, application, distribution channel, and region. By type, the market is divided into green tea, black tea, oolong tea, dark tea, and others. By packaging, it is fragmented into plastic containers, loose tea, paperboard, aluminum tins, and tea bags. Applications covered in the study include residential and commercial. By distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

    BY TYPE

    Tea Market by Type

    By type, the market is divided into green tea, black tea, oolong tea, dark tea, and others. The green tea segment accounted for a major tea market share in 2021 and is expected to grow at a significant CAGR during the forecast period. The green tea segment is expected to witness exponential growth during the forecast period. This can be attributed to a rise in awareness about health and fitness and a rise in the number of educated tea consumers. Moreover, the increase in the frequency of direct-to-customer advertisements and celebrity endorsements also boosts the growth of this segment in the market.

    BY PACKAGING

    Tea Market by PACKAGING

    By packaging, the market is fragmented into plastic containers, loose tea, paperboard, aluminum tins, and tea bags. The paperboard segment accounted for a major tea market share in 2021 and is expected to grow at a significant CAGR during the forecast period. Paperboards are usually treated, coated, laminated, or impregnated with materials such as waxes, resins, or lacquers to improve their functional and protection properties. Metal boxes are also used for frozen food packaging due to their high barrier property. As metal boxes are expensive and highly prone to impact damage, they are being replaced by rigid plastic boxes and paperboard. These boxes have been gaining popularity due to their remarkable design flexibility and excellent barrier properties. The use of these boxes for packaging improves the brand appeal of frozen food and helps attract new consumers. Boxes are typically used for packaging frozen food products such as pizza, and pasta, but other products such as snacks and branded tea are also packed in such paperboards for visual appeal.

    BY APPLICATION

    Tea Market by Application

    Based on application, the tea market demand is fragmented into residential and commercial. The residential segment accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. The surge in the consumption of caffeine beverages at home boosts the market growth in the residential segment. Moreover, a rise in consumer awareness toward the health benefits of tea and extensive marketing & advertising by leading brands have shifted the consumer preference toward drinking tea, which drives the growth of the residential segment in the tea market.

    BY DISTRIBUTION

    Tea Market by Distribution Channel

    Based on distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. The supermarkets/hypermarkets accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. The growth of the supermarket/hypermarket segment in the tea market is attributed to the increase in adoption of supermarket and hypermarket in both the mature and emerging markets. Moreover, the one stop solution provided by these retail formats makes it a very popular option for shopping for consumers. Furthermore, these retail formats offer a wide range of products at a competitive price to customers and are usually located at easily accessible areas. Consumers are able to satisfy all their shopping needs at these destinations, which also saves their time which further adds to the attractiveness of this segment.

    BY REGION

    Tea Market by Region

    Based on region, the tea market revenue is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. In Asia-Pacific, tea market is growing significantly, owing to highly prevalent tea culture in countries like China, India, and Japan. Black tea is anticipated to gain maximum demand in the region, compared to other segment, due to high popularity and low price. Consumers have become health conscious and are attracted toward healthy products, which is also expected to boost the market for tea. Innovation in packaging and in the taste and flavor is anticipated to unfold new business opportunities for the market in the region.

    COMPETITION LANDSCAPE

    The major players operating in the tea industry focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have been also focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the tea market include Associated British Foods plc, BARRY'S TEA, HAIN CELESTIAL GROUP, INC., ITO EN, LTD., Mcleod Russel India limited, Nestle S.A., TAETEA, Tata Global Beverages, The Republic of Tea, INC., UNILEVER GROUP.

    Key strategic moves and developments:-

    • In September 2021, Twinings, a tea brand of Associated British Foods plc, announced the creation of a new foodservice exclusive range which include 11 tea blends specially made for the foodservice industry.
    • In February 2022, Twinings, a tea brand of Associated British Foods plc, announced the creation of a new series of tea blends called Superblends range which includes five different types of tea blends named Sleep, Calm, Digest, Focus and Glow with the aim of improving health and wellbeing.
    • In September 2021, Tetley, a tea brand of Tata Consumer Products, announced the launch of a limited trial tin can for its tea bags along with Tesco and Loop in order to reduce waste caused by disposable containers
    • In July 2021, Tata Consumer Products inaugurated its new tea packaging plant in Gopalpur Industrial Park by Tata Steel Special Economic Zone, which will help increase the volume of teas and tea bags produced.

     

    Key Benefits For Stakeholders

    • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the tea market analysis from 2021 to 2031 to identify the prevailing 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 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 tea market trends, key players, market segments, application areas, and market growth strategies.

    Tea Market Report Highlights

    Aspects Details
    Market Size By 2031
    Market Size By 2031

    USD 93.2 billion

    Growth Rate
    Growth Rate

    CAGR of 6.7%

    Forecast period
    Forecast period

    2021 - 2031

    Report Pages
    Report Pages

    555

    Tea Market By Type
    By Type
    • Green Tea
    • Black Tea
    • Oolong Tea
    • Fruit/Herbal Tea
    • Others
    Tea Market By PACKAGING
    By PACKAGING
    • Plastic Containers
    • Loose Tea
    • Paperboards
    • Aluminum Tins
    • Tea Bags
    Tea Market By Application
    By Application
    • Residential
    • Commercial
    Tea Market By Distribution Channel
    By Distribution Channel
    • Supermarkets/ Hypermarkets
    • Specialty Stores
    • Convenience Stores
    • Online Stores
    • Others
    Tea Market By Region
    By Region
    • North America  (U.S., Canada, Mexico)
    • Europe  (UK, Germany, France, Italy, Spain, Russia, Rest of Europe)
    • Asia-Pacific  (China, India, Japan, South Korea, Australia, Singapore, Rest of Asia-Pacific)
    • LAMEA  (Brazil, South Africa, Turkey, Saudi Arabia, Egypt, Rest of LAMEA)
    Key Market Players
    Key Market Players

    Associated British Foods plc, The Republic of Tea, Inc., ITO EN, LTD., Barrys Tea, Nestle S.A., R.C. Bigelow, Inc., HAIN CELESTIAL GROUP, INC., Tata Consumer Products Limited, Mcleod Russel India Limited, Unilever PLC

    Analyst Review

    According to the insights of the CXOs, the global tea market is expected to witness robust growth during the forecast period. This is attributed to several factors such as the increasing focus on health and wellness, the rising popularity of specialty teas, the convenience of tea products, and the growing demand for tea in emerging economies. Additionally, the market is being driven by innovation and new product development, geographic expansion, e-commerce and online sales channels, and sustainability initiatives.

    CXOs further added key players in the tea market have the opportunity to capitalize on these trends by diversifying their product portfolio, targeting new markets, and investing in research and development to create new and innovative tea products that cater to changing consumer preferences. Despite challenges such as price competition and supply chain issues, the tea market is expected to continue to grow due to its appeal to a wide range of consumers and its adaptability to changing market trends.

    Author Name(s) : Amit Jain | Roshan Deshmukh
    Frequently Asked Questions?

    The global tea market was valued at $49 billion in 2021, and is projected to reach $93.2 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

    The global Tea market registered a CAGR of 6.7% from 2022 to 2031.

    Raise the query and paste the link of the specific report and our sales executive will revert with the sample.

    The forecast period in the Tea market report is from 2022 to 2031.

    The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have been also focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the tea market include Associated British Foods plc, BARRY'S TEA, HAIN CELESTIAL GROUP, INC., ITO EN, LTD., Mcleod Russel India limited, Nestle S.A., TAETEA, Tata Global Beverages, The Republic of Tea, INC., UNILEVER GROUP.

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    Tea Market

    Global Opportunity Analysis and Industry Forecast, 2022-2031