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The tea market size is forecast to increase by USD 19.34 billion at a CAGR of 5.6% between 2023 and 2028.
The rising consumption of tea products in APAC drives market growth in the region. Global and regional tea companies expand their consumer base in APAC through increased e-commerce activities, particularly via third-party online platforms like Amazon.com Inc (Amazon). Akbar Brothers Pvt. Ltd. offers various tea types, including Ceylon tea, green tea, black tea, flavored black tea, and flavored green tea. The market experiences a notable growth rate, providing benefits and convenience to consumers.
The market shows an accelerated CAGR during the forecast period.
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The rapid rise in the consumption of green tea is notably driving the market. Globally, there is a notable surge in the consumption of green tea, with a particularly rapid increase expected. Historically, until late 2014, green tea availability was predominantly limited to China and certain parts of Asia. However, a significant shift occurred in 2016, leading to the widespread popularity of green tea in Europe and North America, attributed to its various medicinal benefits.
The unique attributes of green tea, such as its rich content of Camellia sinensis herb, anti-oxidants, minerals, and polyphenolic compounds, contribute to its growing appeal. The diverse range of green tea varieties, including white tea, oolong tea, and others, cater to evolving consumer preferences. As green tea gains prominence globally, it not only addresses health concerns, including heart disorders, aging, and diabetes but also aligns with cultural practices, introducing new flavors and herbal tea variations into the market. The infusion of Asian culture, flavonoids, and phytochemicals further propels the expanding popularity of green tea worldwide. Hence, such factors will drive market growth during the forecast period.
The growing popularity of purple tea is an emerging trend in the market. Purple tea is a rare variety of tea that is mainly grown in Kenya. In addition, purple tea plants are grown at an elevation that is between 4,500 and 7,500 feet. Furthermore, this elevation allows plants to sustain intense sun rays, thereby producing increased levels of protective anthocyanins and higher levels of polyphenols than polyphenols levels in other teas.
Moreover, this beverage contains red and purple anthocyanins that cause the distinctive purple color of the leaves. In addition, scientists believe that anthocyanins help the immune system combat free radicals in the body and soothe inflammation. Furthermore, this beverage is relatively rare compared to other beverage varieties, as it is primarily cultivated in specific regions with suitable growing conditions, such as Kenya and China. Hence, such factors will drive market growth during the forecast period.
The negative impact of overconsumption of tea is a major challenge hindering the market. Intake of tea is good for health in several aspects, but excessive consumption of tea is not preferable. For instance, according to nutritionists, the ideal consumption of tea should not be more than three cups a day. Furthermore, the major threat of overconsumption of tea is that tea can be addictive.
Moreover, excess consumption of this beverage increases the intake of caffeine as well. In addition, high caffeine levels reduce the absorption abilities of tubules, thus causing dehydration. Furthermore, a high intake of caffeine also leads to bloating, which is caused by unwanted water retention due to dehydration. Hence, such factors hinder market growth during the forecast period.
The diversity of flavors in the black tea segment will increase the market. The black tea segment is obtained by extreme oxidation of Camellia sinensis. In addition, under the oxidation process, the leaves are exposed to moist, oxygen-rich air. Moreover, during the oxidation process, the leaf turns into a dark-brownish-black color, thus forming this beverage. In addition, this beverage has a strong flavor when compared with the flavor of other types of tea. In addition, the a strong demand for this beverage in countries such as Turkey, Saudi Arabia, Iran, and the UK. Furthermore, the diversity of flavors and aromas that appeal to different tastes and occasions is expected to fuel the growth of this segment, which, in turn, drives the market during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. The offline segment of the global market refers to the distribution and sales of functional tea products through physical retail channels, including brick-and-mortar stores, supermarkets, specialty tea shops, and health food stores. In addition, this segment involves consumers visiting physical locations to purchase this beverage rather than making purchases through online platforms or e-commerce websites.
The offline segment was the largest segment and was valued at USD 43.48 billion in 2018.
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Moreover, offline distribution channels play a significant role in the global market, as they provide consumers with the opportunity to physically see, touch, and sample the products before making a purchase. In addition, these channels also allow for personalized customer interactions and the assistance of knowledgeable staff who can provide recommendations and answer product-related queries. Furthermore, 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 this beverage product. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
APAC is estimated to contribute 60% 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.APAC is one of the main producers and consumers of tea products across the world. In addition, China is one of the major manufacturers and exporters of green tea, and India is one of the major manufacturers and exporters of black tea. Moreover, other prominent markets for this beverage in APAC include Japan, Sri Lanka, Vietnam, and Indonesia. In addition, China was the largest manufacturer and consumer of green tea in 2023, with the production of green tea in China is higher than the production of green tea in Japan. Furthermore, increasing penetration of the Internet and the growing trend of online shopping in the region are significantly contributing to the market. Hence, such factors are driving the market in APAC 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 15 market companies, including:
ACIL, Barrys Tea, Fukujuen Co. Ltd., Godrej and Boyce Manufacturing Co. Ltd., Harney and Sons Fine Teas, ITO EN Ltd., LIPTON Teas and Infusions, M.M.Ispahani LTD., Mighty Leaf Tea Canada, Nestle SA, Numi Inc., Senchasou.co ltd., Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Republic of Tea Inc., Williamson Magor and Co. Ltd., and Yunnan Dayi Tea Industry Group Co. Ltd.
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 research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market experiences robust growth driven by the popularity of the Camellia sinensis herb, known for its rich composition of beneficial components like potassium, calcium, and polyphenolic compounds. Consumers are increasingly embracing tea for its various health benefits, including anti-aging, and anti-diabetic properties and support for heart and metabolic activities. With a rising health consciousness, herbal teas, specialty iced teas, and organic tea varieties have gained prominence. Factors such as changing raw material prices, unexpected weather circumstances, and the appeal of new flavors contribute to the market's dynamics. The market caters to diverse preferences, offering flavors like Rum and Honey Flavoured Herbal Tea, chamomile, and jasmine, meeting the demands of health-conscious individuals, pregnant women, and consumers seeking antioxidant benefits.
The global market segment includes applications such as Oolong Tea and Herbal Tea, capturing market shares among tea drinkers and health enthusiasts. The market extends its reach through various distribution channels, including supermarkets, hypermarkets, specialty stores, and online platforms like Walmart and Big Basket. Health and fitness awareness, coupled with direct-to-consumer advertising and celebrity endorsements, influences consumer choices. The market also reflects the influence of traditional tea-producing countries, the colonial rule's impact on industrial black tea production, and the increasing adoption of online apps for quick product delivery and discounts. The diverse applications, flavors, and distribution channels contribute to the dynamic and evolving landscape of the global tea market.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.6% |
Market Growth 2024-2028 |
USD 19.34 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.69 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACIL, Akbar Brothers Pvt. Ltd., Apeejay Surrendra Group, Associated British Foods Plc, Barrys Tea, Fukujuen Co. Ltd., Godrej and Boyce Manufacturing Co. Ltd., Harney and Sons Fine Teas, ITO EN Ltd., LIPTON Teas and Infusions, M.M.Ispahani LTD., Mighty Leaf Tea Canada, Nestle SA, Numi Inc., Senchasou.co ltd., Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Republic of Tea Inc., Williamson Magor and Co. Ltd., and Yunnan Dayi Tea Industry Group Co. Ltd. |
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. |
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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