Tea Market

The global tea market size was valued at $55,144 million in 2019, and is projected to reach $68,950 million by 2027, registering a CAGR of 6.6% from 2020 to 2027. The green tea segment was the highest contributor to the market, with $16,362 million in 2019, and is estimated to reach $26,110 million by 2027, at a CAGR of 9.8% during the forecast period. China is one of the prominent regions in the market that accounted for a sizeable share of the total market in 2019. 

Tea is an aromatic beverage derived from Camellia Sinensis plant. It is one of the most consumed beverage in the world. Black tea and green tea are the most popular tea while herbal tea is gaining popularity. Tea is considered a healthy beverage owing to presence of a number of potent antioxidants, and minerals such as potassium, manganese, magnesium, & calcium. Regular consumption of tea helps reduce cell damage caused due to free radicals as well as lowers cholesterol levels and facilitates healthy weight loss. 

Tea has been very popular in the emerging market, owing to prevalence of tea culture. Furthermore, growth in health awareness and increase in the disposable income has aided the tea market growth. Moreover, introduction of additional healthy ingredients in tea by different market players are some other factors that drive the growth of the market. However, increase in trend of coffee consumption and fluctuating prices of raw materials caused by unpredictable climatic conditions act as the major restraint for this market. On the contrary, growth in demand for herbal tea and introduction of new flavor & variety of tea is anticipated to provide growth opportunities for the tea market.

The tea market has been segmented based on type, packaging, distribution channel, application, and Region. By type, the market is divided into green tea, black tea, oolong tea, fruit/herbal tea, and others. On the basis of packaging, it is fragmented into plastic containers, loose tea (packets & pouches), paperboards, aluminum tins, and tea bags. By distribution channel, the tea market is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. Applications covered in the study include residential and commercial. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Based on the tea market analysis, the black tea segment generated the highest revenue in 2018 and is expected to remain dominant throughout the forecast period. This can be attributed to rise in the number of tea drinkers worldwide. Furthermore, high concentration of antioxidants and polyphenols makes black tea very popular among health. However, the green tea segment is expected to grow at the highest CAGR throughout the forecast period. This can be attributed to rise in awareness about health and fitness and a rise in the number of educated tea consumers. Moreover, increase in the frequency of direct to customer advertisement and celebrity endorsements also boosts the growth of this segment in the tea market.

Based on the tea market forecast, the paperboards was the most prominent segment accounting for the highest share in the global tea market. This can be attributed to their remarkable design flexibility and excellent barrier properties. However, the tea bags segment is expected to witness the highest growth, owing to convenience it offers over loose or differently packaged tea as brewing tea with tea bags is very easy as well as disposal of the used tea bag is even more convenient.

Based on the distribution channel, Supermarket/Hypermarket was the most prominent segment accounting for the highest share in the tea market in 2019. This can be attributed to options such 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. However, the online segment of the global tea market is expected to witness the fastest growth, owing to increase in penetration of internet and increased use of smartphones for online shopping as it allows the consumer to compare products in real time and make informed decisions.

By application, the residential segment is the most prominent regional market. This can be attributed to the surge in consumption of caffeine beverages at home. However, commercial segment is expected to grow with the highest CAGR throughout the forecast period, owing to increased spending of the consumers on cafes and hotels as well as increasing tea and coffee availability at workplace.

By region, Asia-Pacific and Europe are the most prominent regional market. This can be attributed high consumption and production of tea in the region. China is expected to grow with the highest CAGR throughout the forecast period, owing to the prevalence of tea culture.

The players in the tea industry have adopted business expansion as their key development strategy to increase profitability, and to improve stance in the tea market share. The key players have also relied on product launch to improve their product portfolio and stay relevant in the global market. The key players profiled in the report include Associated British Foods Plc., Barry's Tea Limited, Hain Celestial Group, Inc, ITO EN, Ltd., Mcleod Russel India Limited, Nestle S.A., TaeTea, Tata Global Beverages, The Republic of Tea, Inc., And Unilever Group.

Key Benefits For Stakeholders

• The report provides a quantitative analysis of the current tea market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.

• Porter’s five forces analysis highlights the potency of the buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.

• In-depth analysis and the market size and segmentation assists in determining the prevailing tea market opportunities.

• The major countries in each region are mapped according to their revenue contribution to the global market. 

• The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the industry. 

 Tea Market Report Highlights