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The green tea market size is projected to increase by USD 7.72 billion, at a CAGR of 7.22% between 2023 and 2028.
The Asia-Pacific (APAC) market is experiencing rapid growth, primarily driven by increasing consumer demand in countries like India, China, and Japan. This expansion is fueled by the convenience offered by organized retail outlets and the appeal of new product launches with innovative flavors. The global market analysis forecasts continued growth as more consumers recognize the benefits and diverse flavors of green tea. Arbor Teas, for example, offers a variety of green teas such as organic bancha green tea, organic ceylon green tea, organic cherry sencha green tea, and organic chun mee green tea, catering to the evolving preferences of consumers in the region.
The market shows an Accelerated CAGR during the forecast period.
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Increasing demand for natural and functional beverages is the key factor driving the market. The health benefits of green tea, enriched with antioxidants and other bioactive compounds, make it an attractive choice for consumers aiming to enhance their diets. Particularly for the aging population, there's a heightened need for immune support, digestive health, and cognitive enhancement. Functional beverages like green tea serve as proactive solutions for maintaining health and preventing illnesses in this demographic. This drives demand for natural and functional beverages, especially green tea. Furthermore, the rising preference for products containing natural ingredients with minimal processing amplifies the demand for green tea.
Moreover, concerns over the health risks associated with excessive sugar consumption, such as obesity, diabetes, and heart disease, prompt consumers to seek healthier alternatives like natural and functional beverages. Consequently, there's a surge in demand for such beverages, fostering market growth. Additionally, factors such as millennials' increasing interest in health-conscious choices, backed by scientific research on the health benefits of tea and other nutrients, contribute to this growth. This trend drives changes in the supply chain and trade activities to accommodate the growing demand for natural and functional beverages. Addressing lifestyle-related health conditions and promoting overall health, these antioxidant-rich foods align with consumer concerns regarding immunity and well-being. Hence, such factors are driving the market growth during the forecast period.
The introduction of innovative flavor combinations is the primary market trend shaping the growth market players have been trying to innovate products with new ingredients and flavors to provide more differentiated products to their customers. To fulfill the growing demand for products and cater to the changing taste styles and consumer preferences, companies have started launching variants with innovative combinations. Besides, many beverage companies have included flavors such as mint, pineapple, apple, strawberry, chocolate, and peach, which a few years back were not available in the market.
Moreover, by introducing unique and novel flavor profiles, market players attract new consumers and cater to diverse taste preferences. Moreover, innovative flavor combinations to enhance diverse cultural preferences and culinary traditions. By incorporating flavors inspired by different cuisines, cultures, and ingredients, green tea brands can attract consumers from various demographic segments and geographic regions. Therefore, such factors drive the growth of the market during the forecast period.
Side-effects of excessive consumption are a challenge that affects the market expansion. Green tea has gained prominence in many parts of the world due to its medicinal benefits, such as promoting weight loss by boosting the body's capability to metabolize fats at a faster rate. However, one of the major components present is caffeine, which at times can be highly addictive as it is both fat and water-soluble and can penetrate the blood-brain barrier by dissolving into the bloodstream of a person. Moreover, the excessive consumption or concentrated consumption of extract has been associated with liver toxicity, liver damage, or liver injury.
Moreover, green tea contains catechins, which may inhibit the absorption of non-heme iron (plant-based iron) from food sources when consumed simultaneously. Some individuals may experience gastrointestinal side effects such as stomach upset, nausea, diarrhea, or constipation after consuming, particularly in the case of excess consumption on an empty stomach. Such side effects and the growing awareness of such side effects decline the growth of the market during the forecast period.
The offline segment of the market refers to the distribution and sales through physical retail channels such as brick-and-mortar stores, supermarkets, specialty shops, and health food stores. Furthermore, customers can interact with knowledgeable store staff who can provide guidance on product selection, brewing techniques, and the health benefits associated with different options. This personalized assistance enhances the overall customer experience. The offline segment remains an essential part of the market, as it caters to consumers who prefer traditional shopping experiences, value in-person interactions, and appreciate the sensory aspects of purchasing such products. Therefore, the offline segment is expected to grow in the market during the forecast period.
The market share by the flavored green tea segment will be significant during the forecast period. Flavors are mostly preferred by consumers due to the refreshing flavors that added flavoring agents and sweeteners bring to the product. The most common flavors incorporated in different variants include citrus, honey, lemon, mango, ginger, and ginseng. Besides, some of the flavor combinations also enhance the medicinal value. For example, ginger is a rich source of antioxidants and helps aid digestion and weight loss. The main focus of the market players is the millennial population, which has displayed a high inclination to try out new flavors.
The flavored green tea segment was valued at USD 11.60 billion in 2018.
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Additionally, the growing population of millennials and the increasing number of companies launching products featuring innovative flavors are major drivers that would drive the growth of the market during the forecast period. Another key influential factor is the rising number of organized retailing outlets in developing countries such as India, China, Brazil, Russia, and Turkey, which is making such products easily available to consumers. Therefore, such factors are expected to drive the growth of the segment in the market during the forecast period.
APAC is estimated to contribute 41% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The region consists of several prominent companies. Some of the major market players operating in APAC included ITO EN, Tata Global Beverages, Akbar Brothers, Hangzhou Wahaha Group, Unilever, Nestle, Kirin Holdings, and others. Rapid urbanization and evolving lifestyles are leading to a greater emphasis on health and wellness among the residents of the region.
Furthermore, as consumers become more health conscious, they increasingly invest in healthier beverage options. Besides, China is one of the major producers and consumers. In addition, increasing awareness among consumers about the health-promoting benefits and the increasing trend of consumption of green tea as a part of weight management is expected to propel the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
AriZona Beverages USA LLC, Davidsons Organics, Equal Exchange, Fortnum and Mason, Heavenly Tea Inc., ITO EN Ltd., John Swire and Sons Ltd., MARIAGE FRERES, MJF Exports Pvt. Ltd., Nestle SA, PALAIS DES THES, Rishi Tea and Botanicals, Tata Consumer Products Ltd., The Art of Tea LLC, The Coca Cola Co., The Hain Celestial Group Inc., and The Republic of Tea Inc.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market has witnessed significant growth in grocery store sales over the past few years, driven by the increasing number of American adults diagnosed as prediabetic. There's a growing understanding of the importance of green tea as an instant source of nutrients and its potential to combat lifestyle-related health conditions. Consumers are increasingly opting for specialty teas with health-improving nutritional profiles, especially those with natural, organic, and clean-label products. The market is also witnessing a rise in demand for flavored green type teas, including floral, fruity, and unflavored tea varieties.
Moreover, the distribution channel analysis shows a preference for supermarkets/hypermarkets, convenience stores, and specialty stores, indicating the wider availability of green tea products. Advanced technologies and equipment are improving the quality of beverages, ensuring safe use of agrochemicals, and addressing climate changes. However, challenges such as refrigerant leaks and price challenges remain.
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Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.22% |
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Market Growth 2024-2028 |
USD 7.72 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.75 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aiya Europe GmbH, Amorepacific Corp., Arbor Teas, AriZona Beverages USA LLC, Davidsons Organics, Equal Exchange, Fortnum and Mason, Heavenly Tea Inc., ITO EN Ltd., John Swire and Sons Ltd., MARIAGE FRERES, MJF Exports Pvt. Ltd., Nestle SA, PALAIS DES THES, Rishi Tea and Botanicals, Tata Consumer Products Ltd., The Art of Tea LLC, The Coca Cola Co., The Hain Celestial Group Inc., and The Republic of Tea Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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