Global Tea Pods Market 2017-2021

Overview of the global tea pods market

Market research analysts at Technavio predict that the global tea pods market will grow steadily at a CAGR of close to 11% by 2021. This market research analysis identifies the convenience and time efficiency of single-serve tea pods and tea capsules to be one of the primary growth factors for this market. The expansion of urbanized population has led to the development of new habits and preferences for innovative and premium tea products. Additionally, the demand for the ready-to-eat (RTE) and ready-to-drink (RTD) packaged food and beverages is also growing due to increasing urbanized population base. As a result, various supermarkets and hypermarkets have started storing more convenient packaged food and beverages. In the case of tea, it has been noted that the convenient forms like tea pods and tea capsules are also becoming popular among consumers.

The increase in the use of compostable tea pods is one of the latest trends that will gain traction in the tea pods market in the coming years. Shifting consumer preferences and technological innovations have been encouraging vendors to come up with new product and packaging innovations such as compostable tea pods. For example, The Republic of Tea, a US-based hot beverages company, launched a range of environment-friendly single-serve tea pods under the brand name One Cuppa, in October 2013. The tea pods were 95% biodegradable and compatible with most tea-brewing and single-serve coffee machines.

Competitive landscape and key vendors

The global tea pods market is moderately fragmented because of the presence of a fewer number of large and small vendors. The vendors in the market compete on factors like price, quality, product differentiation, distribution, and promotion to gain an edge over their peers. Intense competition among vendors accompanied with rapid technological changes constitute significant risk factors to the operations of the vendors. Consequently, it becomes crucial for vendors in the market to differentiate their product and services through a unique and clear value proposition to survive and succeed in such an intensely competitive environment.

The leading vendors in the market are -

• Keurig Green Mountain
• Nestlé
• Tata Global Beverages
• Unilever

Few of the other prominent vendors in the market include Bigelow Tea, Cornish Tea, JACOBS DOUWE EGBERTS (JDE), Mother Parkers Tea & Coffee (MPTC), Red Diamond, Reily Foods Company (RFC), Starbucks Corporation, EEKANNE, The Republic of Tea, and VitaCup.

Segmentation by product type and analysis of the tea pods market

• Soft tea pods
• Tea capsules
• Hard tea pods

During 2016, the soft tea pods segment accounted for the major shares of this market. These tea pods are packed as loose un-pressed tea portions, which are primarily brewed in specially designed machines and mainly used for the long cup. Additionally, these pods are lighter in weight and give flexibility when used in brewers with tight clearance; thereby, contributing to the growth of this industry segment in the coming years.

Geographical segmentation and analysis of the tea pods market

• Americas
• APAC
• EMEA

This market study estimates that in terms of geographic regions, EMEA will be the major revenue contributor to the market by 2021 owing to factors like growing premiumization and the need for convenient food and beverage products. Additionally, many consumers are opting to have breakfast at home rather than in cafés and restaurants in countries like Spain and Portugal; as a result of which, the demand for tea pods is growing.  

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global tea pods market?
• What are the key market trends impacting the growth of the global tea pods market?
• What are the challenges to market growth?
• Who are the key vendors in the global tea pods market?
• What are the market opportunities and threats faced by the vendors in the global tea pods market?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the global tea pods market?

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