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The Tea Market size is projected to increase by USD 20.50 billion and the market size is estimated to grow at a CAGR of 5.55% between 2022 and 2027.This tea market report extensively covers market segmentation by product (black tea, green tea, and others), distribution channel (offline and online), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
New product launches are driving the market growth. The global tea market is experiencing a shift in consumer preferences from traditional tea products to those that offer health benefits, such as antioxidants and herbal tea. To cater to this demand, tea vendors are introducing new and innovative tea products to expand their existing product lines. These new variants of tea not only attract more consumers but also contribute to increased sales volume and market share.Moreover, to promote their launches, vendors actively collect feedback on tea quality. For example, Tiesta Tea showcases previous consumer reviews and opinions to ensure transparency and highlight the quality of its products for potential customers. Overall, the introduction of new tea products is anticipated to drive market growth in the forecast period, as consumers seek teas that offer both flavor and health benefits.
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Premiumization of tea products is expected to have a positive impact on the market in the coming years. Tea vendors in the global market cater to consumer preferences by offering a diverse range of tea products, including different flavors, qualities, volumes, and prices. Consumers have a preference for high-quality tea products that contain natural or organic ingredients and offer health benefits. Moreover, the premium products, such as herbal tea and organic functional tea, are particularly sought after, and they often carry the USDA organic certification to ensure their quality. The introduction of premium tea products is expected to drive market growth in developed countries like the US. For example, Numi offers a line of Premium Matcha green tea with various flavors to engage consumers.
Also, tea vendors focus on expanding their presence in the premium segment to cater to these preferences. They offer single packages with a variety of tea flavors to encourage the adoption of premium tea products. For instance, Numi's Petite Bouquet is a tea box that includes four different flowering tea buds, providing consumers with a range of options. In February 2022, ITO EN Ltd. launched matcha LOVE ENERGY +, a plant-based functional energy drink that combines green tea and matcha with beneficial ingredients for the body and mind. These strategies, exemplified by the mentioned examples, influence consumer buying behavior by offering a variety of tea products in a single purchase. As a result, the premiumization of tea products is expected to drive market growth in the forecast period.
The negative impact of overconsumption of tea will be a major challenge for the global tea market during the forecast period. While tea consumption offers several health benefits, it is important to avoid excessive intake. Nutritionists recommend a maximum of three cups of tea per day to maintain a healthy balance. Excessive consumption of tea can lead to addiction and various negative effects on health. It may cause dehydration, bloating, nutrient deficiencies, and anxiety.
One of the concerns with overconsumption is the increased intake of caffeine. High caffeine levels can disrupt the absorption capabilities of the body, resulting in dehydration. Bloating can also occur due to water retention caused by dehydration. Additionally, excessive tea consumption may hinder the absorption of essential nutrients like iron, leading to deficiencies. Restlessness, insomnia, and anxiety are common side effects of excessive caffeine intake. Other potential consequences include weakened bones (osteoporosis), stomachaches, nausea, and constipation. These effects may impact the demand for tea negatively, thus affecting the growth of the global tea market in the forecast period.
The offline segment of the global tea market pertains to the traditional distribution and sales channels of functional tea products, which involve physical retail outlets such as brick-and-mortar stores, supermarkets, specialty tea shops, and health food stores. Unlike online platforms or e-commerce websites, this segment relies on consumers visiting physical locations to make their tea purchases. Offline channels are crucial in the tea market as they offer customers the opportunity to physically interact with the products, examine the packaging, and assess the quality of tea leaves or ingredients. This tangible experience instills consumer confidence and enables informed decision-making. Additionally, offline stores often provide sampling or tasting sessions, allowing customers to try different flavors and varieties of functional tea, facilitating personalized exploration and strengthening their purchasing choices.
The market share growth by the black tea segment will be significant during the forecast period. Black tea is produced through a process of extensive oxidation of the Camellia sinensis plant's leaves. During this process, the leaves are exposed to moist, oxygen-rich air, causing them to turn dark-brownish-black in color, resulting in the distinctive flavor and characteristics of black tea.
The black segment was valued at USD 31.83 Billion in 2017 and continued to grow until 2021.
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The market for black tea is expected to experience significant growth in the forecast period, driven by strong demand in countries like Turkey, Saudi Arabia, Iran, and the UK. However, the consumption of black tea has seen a slight decline in Russia and the US while witnessing progressive growth in India and Turkey. African countries such as Rwanda, Uganda, and Kenya are anticipated to contribute to the substantial growth of the market, alongside moderate growth expected in the tea markets of Sri Lanka, Bangladesh, Tanzania, and Vietnam. Conversely, the consumption of black tea in Europe has been decreasing since 2011 due to the rising preference for alternative beverages like coffee and ready-to-drink soft drinks. Consequently, the growth of black tea consumption in countries like Germany, Poland, the Netherlands, and France is expected to be slower. These factors collectively shape the growth trajectory of the black tea segment in the global tea market.
APAC is estimated to contribute 64% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC holds a prominent position in the global tea market as both a major producer and consumer of tea products, and this dominance is expected to continue in the forecast period. China and India play significant roles in the production and export of green tea and black tea, respectively, on a global scale. Other notable tea markets in APAC include Japan, Sri Lanka, Vietnam, and Indonesia. The increasing consumption of tea is a key driver for market growth in the region. India stood out as one of the largest markets for black tea production and consumption in 2020, while China led in green tea production and consumption, surpassing Japan. The e-commerce sector, facilitated by popular platforms like Amazon, Alibaba, and Flipkart, is gaining momentum in APAC, contributing to the expansion of tea sales through online channels. The tea market in APAC is expected to witness substantial growth, with an accelerating year-over-year growth rate, fueled by these factors.
In 2020, the outbreak of COVID-19 negatively impacted the growth of the regional market, owing to lockdowns and social distancing norms. However, the removal of lockdowns in APAC countries such as India and China due to the initiation of large-scale vaccination drives and the increased demand for healthy and organic tea revived the growth of the regional market in 2021. Also, increasing health awareness among consumers, the growing popularity of tea-based beverages, and growing disposable income will spur the growth of the regional tea 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.
The tea market report also includes detailed analyses of the competitive landscape of the market and information about 15 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 tea market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Tea Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.55% |
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Market growth 2023-2027 |
$ 20.5 billion |
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Market structure |
USD Fragmented |
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YoY growth 2022-2023(%) |
5.25 |
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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 64% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akbar Brothers Pvt. Ltd., Apeejay Surrendra Group, Associated British Foods Plc, DAVIDsTEA Inc., ekaterra, Fukujuen Co. Ltd., Godrej and Boyce Manufacturing Co. Ltd., Harney and Sons Fine Teas, ITO EN Ltd., M.M.Ispahani LTD., Mighty Leaf Tea Canada, Nestle SA, Numi Inc., Restaurant Brands International Inc., Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Republic of Tea Inc., Williamson Magor and Co. Ltd., Yunnan Dayi Tea Industry Group Co. Ltd., and Barrys Tea |
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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, Market condition analysis for 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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