Global Tea Market 2016-2020
Outlook of the global tea market
Technavio’s analyst predicts that the global tea market is expected to grow steadily at a CAGR of more than 4% during the forecast period. The rising awareness of the several health benefits associated with tea will have a positive impact on the global tea market during the forecast period. Tea comprises bioactive compounds such as proteins, caffeine, amino acids, xanthines, and flavonoids. Polyphenols and flavonoids account for more than one-third the weight of tea leaves, and the majority of the health benefits of tea is attributed to tea flavonoids. Moreover, tea contains antioxidants which help in decreasing the damaging effects of aging and pollution and also aids in reducing the risk of stroke and heart attack by keeping the arteries clog-free. Furthermore, tea contains tannins and fluorides that help in keeping plaque at bay. Therefore, the extensive health benefits of tea, especially its role in protecting against cancer and controlling diabetes and obesity in people will propel the growth prospects of this market over the forecast period.
The consumer’s growing demand for flavored tea is expected to contribute to the growth of the global tea market in the coming years. Tea producing companies are actively experimenting with different flavor profiles by adding flavors varied flavors like chocolate, pomegranate, acai and turmeric to tea sachets. For instance, the turmeric tea launched by Numi in 2014 has gained considerable visibility in the market. Also, Teavana offers unique flavors of tea such as acai blueberry and watermelon mint. This recent shift in preference for experimenting with different flavors of tea will aid in the growth this market during the forecast period.
Segmentation by distribution channel and analysis of the tea market
- Supermarkets and hypermarkets
- Independent retailers
- Specialist retailers
- Convenience stores
During 2015, the hypermarkets and supermarkets segment dominated the global tea market with more than 67% of the market share. Factors like availability of a vast array of products at discounted prices and the emergence of organized retail will bolster the growth of this market segment until the end of 2020.
Geographical segmentation and analysis of the tea market
Globally, APAC dominated the tea market in 2015 and is expected to reach more than USD 29 billion by the end of 2020. Since tea is the most preferred hot beverage in APAC countries like India, China, and Japan, the growing demand from these countries is primarily responsible for the growth of this segment. Moreover, tea is considered healthier than other beverages, thereby encouraging health-conscious individuals to opt for tea instead for carbonated beverages. Furthermore, tea is also a traditional and social drink in most parts of Asia which will aid in the growth of this market in APAC.
Competitive landscape and key vendors
The global tea market is highly fragmented due to the presence of numerous small and large suppliers. These providers in the market compete on the basis of price, quality, innovation, service, reputation, and distribution. The report predicts that intense competition and declining profit margins constitute significant risk factors in the vendor’s operations.
Key vendors in the market are -
- Associated British Foods (ABF)
- Ito En
- Tata Global Beverages
Other prominent vendors in the market are Apeejay Tea, Barry’s Tea, Betty's and Taylors of Harrogate, Celestial Seasonings, Fukujuen, Harney and Sons, McLeod Russel, Mighty Leaf Tea, Numi, The Republic of Tea, Tazo Tea Company, and Teavana.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global tea market?
- What are the key market trends impacting the growth of the global tea market?
- What are the challenges to market growth?
- Who are the key vendors in the global tea market?
- What are the market opportunities and threats faced by the vendors in the global tea market?
- Trending factors influencing the market shares of the Americas, APAC, Europe, and MEA.
- What are the key outcomes of the five forces analysis of the global tea market?
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