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The Organic Tea Market size is projected to increase by USD 552.51 million at a CAGR of 8.62% between 2022 and 2027. The market's growth depends on several factors, including the increasing recognition of organic tea's health benefits, growing interest among retailers in offering organic tea, and the expansion of product lines in the segment. These trends underscore a shifting consumer preference towards healthier and more sustainable beverage options, driving the demand for these products. Retailers are actively seeking to capitalize on this trend by diversifying their tea offerings and emphasizing organic choices to meet consumer demand. Additionally, the expansion of product lines in the market reflects efforts by manufacturers to cater to evolving consumer preferences and capture a larger market share in the growing segment.
One of the key factors driving the market growth is the increasing health benefits of organic tea. There is an increasing preference among consumers over other beverages as it contains herbs and medical plant extracts that are beneficial for the body. One of the main advantages is that it contains healthy ingredients protects against colds and enhance digestion and immunity. Several companies are providing tea products that contain hibiscus flower petals, that help in reducing blood sugar and blood pressure levels. Some of the main types that offer several health benefits include yerba tea, hibiscus tea, lemongrass tea, chamomile tea, etc. Hence, such health benefits are expected to drive the global market during the forecast period.
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This market report extensively covers market segmentation by distribution channel (offline and online), type (leaf and powder, tea bag, and liquid), and geography (APAC, Europe, North America, South America, and Middle East and Africa).
The growing health awareness among consumers is expected to fuel the growth of the leaf and powder segment during the forecast period. One of the main reasons for the increasing preference of this segment among consumers is to experience the authentic and traditional consumption of tea in the form of leaves or powder. It offers the consumers a sensory experience to watch the tea leaves unfold and unleash their flavors. In addition, there is a growing awareness regarding the health benefits of this segment as it contains high concentrations of healthy substances such as antioxidants and polyphenols. Furthermore, this segment can accommodate a variety of consumer taste with different processes such as infusion, steeping, and matcha preparation. Hence, such factors are expected to fuel the demand for this segment, which in turn will drive the market growth during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. The offline distribution channel mainly comprises supermarkets and hypermarkets, Health food stores, and independent retailers, among others. Supermarkets can be referred to as self-service retail stores where customers can purchase a wide variety of food and household items. While supermarkets are organized into different departments and are larger in size when compared to traditional grocery stores, hypermarkets are large self-service retail stores that provide different kinds of products, including food items, groceries, appliances, and clothing.
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The offline segment was the largest segment and was valued at USD 736.50 million in 2017. There is an increasing availability of a wide variety of products across these supermarkets and hypermarkets. For instance, as of January 2022, there were more than 63,419 supermarket stores in the US. The increasing product visibility of these products across these retail chains will increase the sales of these products and thereby fuel the growth of this market. Furthermore, another offline distribution channel that offers natural tea products includes health food store outlets that offer organic food, local produce, and nutritional supplements. These outlets are essentially a combination of aggregation of natural and organic food stores, drugstores, and other related health food stores. Hence, such factors are expected to drive market growth during the forecast period.
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APAC is estimated to contribute 60% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that are significantly contributing to the growth of the market in APAC is the growing consumer awareness of health and wellness. The several advantages and health benefits offered aredue to its natural components and antioxidants are expected to fuel the demand in the region.
Moreover, some of the key countries in APAC where there is increasing consumption are China, India, Japan, and South Korea. In India, Darjeeling and Assan are two of the main regions which are the leading producers of organic tea. Hence, such factors are expected to drive the growth of the market during the forecast period.
The market is witnessing a surge in demand, driven by the growing preference for clean-label products and specialty teas. Consumers are increasingly opting for organic tea due to its perceived health benefits and superior quality compared to conventional products. They are produced without synthetic pesticides or fertilizers, ensuring food safety and minimizing exposure to harmful chemicals. These teas are rich in phenols and have antioxidant properties, which can help reduce the risk of infections and promote gut function. Additionally, this is known for its slimming and digestive health benefits, attributed to its flavonoid-based composition. However, it's essential to monitor the levels of cadmium, as excessive consumption can have harmful effects on human health. Our researchers analyzed the data with 2022 as the base year, along with the key trends and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
A key factor shaping the market growth is the rise in demand for organic matcha green tea. Organic matcha green tea is essentially a Japanese-style powdered green tea. There is an increasing demand among consumers due to its several health benefits. One of the main features of this green tea which differentiates it from other green tea is that it is a combination of theanine and caffeine in a moderate amount.
Moreover, the main health benefit of consuming organic matcha green tea is that it enhances mental alertness and focus. This type of tea is rich in antioxidant catechins, and hence, consumption of organic Matcha tea provides anti-inflammatory health benefits. Additionally, there is an increasing preference for this tea among women consumers as it benefits their skin. Hence, such factors are expected to drive the market during the forecast period.
The impact of overconsumption of tea is one of the key challenges hindering market growth. Even though the intake of tea has several health benefits, the overconsumption of tea has some side effects. The ideal consumption of tea should only be three cups a day as per several nutritionists. One of the main concerns regarding the excessive consumption of tea is that it is addictive.
Additionally, dehydration, bloating, vital nutrient deficiencies, and anxiety are some of the health concerns associated with the overconsumption of tea. Furthermore, the excessive consumption of tea leads to intake of caffeine which reduces the absorption abilities of tubules, resulting in dehydration. Also, over-consumption of caffeine can lead to restlessness, insomnia, and anxiety. Thus, such health concerns are negatively impacting the market, which in turn will hinder the market market growth 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.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is experiencing growth driven by the increasing demand for organic food products and sustainability. Consumers, especially Millennials and the working population, are opting for organic farming practices due to their health and wellness benefits. This trend has led to a rise in production, particularly in segments like ready-to-drink specialty teas. Manufacturers and startups are focusing on innovative variants and premiumization to cater to diverse consumer preferences. The market offers a range of options, including black organic tea, green organic tea, and oolong organic tea, packaged in cartons, tea bags, cans, and paper pouches, available in various retail channels such as hypermarkets, convenience stores, and online stores. This is not only a beverage but also a lifestyle choice, offering nutrient-rich and flavonoid-based beverages that promote gut health and overall well-being. Organic crops often contain beneficial bacteria that contribute to the nutritional quality of the products.
Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.62% |
Market growth 2023-2027 |
USD 552.51 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
8.44 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arbor Teas, Big Heart Tea Co., Bigelow Tea, Cup of Te, Davidsons Organics, Divinitea, East West Tea Company LLC, ECOTONE, Halssen and Lyon GmbH, Harney and Sons Fine Teas, Numi Inc., ORGANIC India Pvt. Ltd., PepsiCo Inc., R. Twining and Co. Ltd., The Coca Cola Co., The Hain Celestial Group Inc., The Republic of Tea Inc., Tielka Pty Ltd , Unilever PLC, and Tata Sons Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
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 Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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