Tea Market

Tea Market Size:

The global tea market size reached US$ 24.4 Billion in 2023. Looking forward, the market is expected to reach US$ 37.4 Billion by 2032, exhibiting a growth rate (CAGR) of 4.7% during 2024-2032. The market is primarily driven by the rising health consciousness, a surge in demand for organic and premium teas, and increased consumption in emerging economies, along with numerous innovations in flavors and packaging.

Tea Market Analysis:

• Major Market Drivers: The market is expanding as consumers become more aware of the health advantages of tea intake, including its ability to reduce inflammation and promote relaxation. Along with this, the market for high-quality goods is growing due to the growing demand for specialty and premium teas, particularly artisanal and organic types.
• Key Market Trends: The market is growing owing to the popularity of flavored and herbal teas that satisfy a wide range of customer tastes and preferences, including blends that combine exotic and fusion flavors. Besides this, the industry is expanding in part due to ready-to-drink (RTD) teas becoming more popular, especially among urban customers looking for choices for on-the-go tea.
• Geographical Trends: China is dominating the market due to the historic tea-drinking habits of nations. The Asia-Pacific region continues to be the largest market with China, India, and Japan developing in these areas due to the rising demand for specialty teas and health-conscious fashions. 
• Competitive Landscape: Some of the major market players in the tea companies include Associated British Foods Plc, Barry's Tea, Taetea Group, Tata Consumer Products Limited (Tata Group), Unilever, etc., among many others.
• Challenges and Opportunities: Challenges are associated with climate change and sustainable sourcing techniques. It also faces fierce rivalry from local and international companies, which calls for innovation in product offers and marketing tactics. Besides, the tea market recent opportunities comprise companies emphasizing quality assurance and transparency, the growing demand for herbal and specialty teas, taste developments, and market expansion in non-traditional areas.
   

Tea Market Trends:

Rising Health Awareness

The growing tea demand due to the consumers' growing awareness regarding its health advantages is influencing the market growth. For instance, green tea has a high content of antioxidants called catechins and polyphenols, which have been associated with several health advantages such as a lower risk of heart disease, stroke, and some forms of cancer. Moreover, more people are choosing tea over sugary beverages or coffee as a healthier beverage option due to the growing public health awareness. According to the Food and Agriculture Organization of the United Nations (FAO), the global tea trade value reached US$ 9.5 Billion in 2022, with annual output exceeding US$ 17 Billion making tea an essential source of income for developing and low-income countries. Besides, the development of a wide range of flavored and specialty teas, which appeal to a wider audience seeking health advantages and new sensory experiences, is supported by the proliferation of health-focused marketing across the globe, thus contributing to the tea market outlook. 

Growing Population:

The global increase in population is affecting the demand for tea globally. According to United Nations (UN) estimates, the global population will increase by almost 2 Billion people for the next 30 years, reaching 9.7 Billion by 2050, with a possible peak of 10.4 Billion people in the middle of the 2080s. As per the UN, as of mid-November 2022, the global population reached 8.0 Billion individuals, increasing from an estimated 2.5 Billion in 1950. Moreover, the increasing demand for food and drinks, especially tea, is predicted to grow along with the growing global population. In addition, there is a growing trend toward urban lives, which frequently value easy-to-use, health-conscious products among them, including numerous kinds of tea. Furthermore, the growing middle class in developing nations is fueling this trend as these new customers are more inclined to take up tea drinking due to its supposed health advantages and social features. Thus, the global consumption of tea is steadily increasing due to this demographic and economic change positively generating the tea market revenue.

Climate and Agricultural Advancements

The global tea industry’s increased production efficiency owing to numerous improvements in climatic resistance and cultivation practices. For instance, precision agriculture is one of the more recent innovations that uses of Internet of Things (IoT) and global positioning system (GPS) sensors to optimize nutrient delivery and water use, improving production and quality of the product. Additionally, climate-resilient cultivars have been created to endure unpredictable weather patterns, minimizing crop failures and guaranteeing a steady supply. Moreover, the areas used for tea planting have been sustainably expanded owing to several advancements, even in locations that were previously unsuitable due to climate limits. According to the Food and Agriculture Organization (FAO) reports tea production increased from 4.3 million tonnes (Mt) in 2008 to 6.3 Mt in 2020, which was cultivated on 5 million hectares. Hence, it is anticipated that this pattern will persist as agricultural technology advances and stabilizes tea production due to the ongoing global climate change across the globe.

Tea Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and country levels for 2024-2032. Our report has categorized the market based on product type, packaging, distribution channel, and application.

Breakup by Product Type:

• Green Tea
• Black Tea
• Oolong Tea
• Others
   

Black tea accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes black tea, green tea, oolong tea, and others. According to the report, black tea represented the largest segment.

Black tea represents the largest segment owing to its immense popularity and deep-rooted cultural importance in many parts of the globe. It is renowned for having more caffeine than other varieties and a strong taste. Additionally, the widespread consumption of black tea in the West and several regions of Asia is due to its adaptable characteristics which allow it to be enjoyed cold or hot. According to Gitnux, Lapsang Souchong, Chinese black tea called Lapsang Souchong may cost up to $200 per kilogram (KG). Moreover, black tea is also sold in a variety of formats, such as loose leaves, tea bags, and instant powder, providing customers with convenience and a selection of options that support its marketability across the globe.

Breakup by Packaging:

• Plastic Containers
• Loose Tea
• Paper Boards
• Aluminium Tin
• Tea Bags
• Others
   

Paper boards hold the largest share of the industry

A detailed breakup and analysis of the market based on the packaging have also been provided in the report. This includes plastic containers, loose tea, paper boards, aluminium tin, tea bags, and others. According to the report, paper boards accounted for the largest market share.

Paper boards are preferred by manufacturers and customers due to their economical and environmentally favorable qualities. Furthermore, paper board packaging consists of cartons and paper-based containers, which are recyclable and biodegradable, and are widely preferred for maintaining the freshness and scent of tea. This is in line with consumers’ increasing desire for environmentally friendly packaging options due to growing environmental concerns. Moreover, paper boards’ outstanding printability and ability to adapt to different patterns improve brand exposure and appeal on store shelves, further solidifying their position as the industry leader in tea packaging. According to Worldmetrics, the tea bag sector holds a dominant position in the global market, capturing over 55% of the market share.

 Breakup by Distribution Channel:

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• Online
• Others
   

Supermarkets/hypermarkets represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets/hypermarkets, specialty stores, convenience stores, online, and others. According to the report, supermarkets/hypermarkets represented the largest segment.

According to the tea market overview, supermarkets, and hypermarkets dominate the market due to their extensive reach and the convenience they offer to consumers seeking diverse tea varieties under one roof. Additionally, supermarkets and hypermarkets typically provide a wide range of tea options, from basic blends to premium, specialty teas, catering to a broad spectrum of consumer preferences. For instance, in 2021, as per the Government of Canada, the retail sales of tea in the United States amounted to US$2.9 Billion, with projections to increase to US$3.4 Billion by 2026. Besides, organic tea sales in the U.S. reached US$ 0.4 Billion in 2021, with projections to increase to US$0.5 Billion by 2026. Additionally, organic products made up 13.3% of the total U.S. tea retail sales in 2021. Moreover, the location of supermarkets and hypermarkets ensures easy accessibility for numerous consumers, further boosting their appeal with their strategic location in urban and suburban areas. Furthermore, the ability to physically inspect products, coupled with competitive pricing and frequent promotional activities, attracts a larger customer base, reinforcing their position as key players in the distribution of tea.

Breakup by Application:

• Residential
• Commercial
   

Residential exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential and commercial. According to the report, residential accounted for the largest market share.

The residential segment holds the largest share due to the growing consumption of tea in households globally. It benefits from the deep-rooted cultural significance of tea drinking in many regions, coupled with the increasing preference for specialty teas among consumers seeking diverse flavors and health benefits. Additionally, the easy availability of a wide range of products, including organic, herbal, and green teas, further fuels the tea market growth. Additionally, the trend of health consciousness and the shift toward natural beverages enhance the demand for tea in residential settings, positioning it as a staple in daily routines. Hence, this dominance is supported by innovations in packaging and marketing strategies tailored to attract the home consumer.Top of FormBottom of Form

Breakup by Region:

• China
• India
• Kenya
• Sri Lanka
• Turkey
• Vietnam
• Others
   

China leads the market, accounting for the largest tea market share

The report has also provided a comprehensive analysis of all the major regional markets, which include China, India, Kenya, Sri Lanka, Turkey, Vietnam, and others. According to the report, China was the largest market for tea.

As per the tea market forecast, China represents the largest tea market, contributing significantly to the global supply and demand for tea. Additionally, the rich cultural heritage of the country in tea cultivation and consumption is influencing the market growth. According to Worldmetrics, China accounts for roughly 40% of the total global tea production, leading the globally in tea production globally. Moreover, other regions like India also play a vital role in the Asia-Pacific tea market, while China's influence remains unparalleled, bolstered by a vast array of native tea varieties and a deeply ingrained tea-drinking culture across the region.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the tea industry include Associated British Foods Plc, Barry's Tea, Taetea Group, Tata Consumer Products Limited (Tata Group), Unilever, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• At present, key players in the global tea market are implementing various strategies to expand the market growth. Additionally, tea market recent developments, such as companies focusing on expanding their product ranges to include organic, herbal, and specialty teas, are also catering to increasing consumer demands for healthy and diverse options. They are also investing in sustainable farming practices to ensure long-term supply stability and respond to environmental concerns. Additionally, partnerships and acquisitions, expansion, and new product launches are common as firms seek to enhance their distribution networks globally and enter new regional markets. For instance, in January 2024, Chai Sutta Bar, a prominent tea chain introduced its new tea brand, Maatea. The announcement was made via a press release in New Delhi, India. The goal with Maatea is to enhance the tea-drinking experience by providing a natural, high-quality tea that avoids the additives and artificial colors common in other brands. The product has been on the market for two weeks and has already garnered over 500 orders, according to the company.

Tea Market News:

• March 2024: Pansari Group, renowned as India's leading FMCG brand, is poised to impress attendees with the debut of TVOY Green Tea at Aahar 2024. In addition, with the successful launch of its new tea line Pansari Chai, which features four unique flavors delivering a remarkable tea experience, the brand has decided to introduce its green tea range in response to positive customer feedback.
• April 2024: China has initiated the One Country One Priority Product (OCOP) China Tea Programme & International Tea Day Campaign 2024, launching the event on April 12 in Dongguan, Guangdong province. The OCOP is a premier program by the Food and Agriculture Organization of the United Nations (FAO), designed to assist countries in showcasing their unique agricultural products with distinct qualities on global, regional, and local scales.

Tea Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the tea market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global tea market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the tea industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.