Tea Market

Market Overview:

The global tea market size reached US$ 23.2 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 31.6 Billion by 2028, exhibiting a growth rate (CAGR) of 5.4% during 2023-2028. The increasing consumer preference for drinking tea, rising inclination towards RTD beverages, and the growing number of tea stalls represent some of the key factors driving the market.

Increasing Establishment of Tea Lounges Augmenting Market Growth

The increasing number of tea lounges, cafeterias, tea shops or stalls, cafes, restaurants, quick serving restaurant (QSR) chains, and hotels represents one of the major factors propelling the market growth around the world. These lounges allow consumers to try a variety of handpicked teas from across the globe. Moreover, several tea brands are collaborating with these establishments to implement their endorsement programs.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is concentrated with a number of large and small manufacturers in the tea industry. The volume of new entrants is moderate in the tea industry due low product differentiation and easy access to distribution networks.

What is Tea?

Tea is a beverage prepared from the leaves of the Camellia sinensis plant. It is produced in different varieties, each with its unique flavor, aroma, and color, including black, green, oolong, white, and herbal teas. It is rich in antioxidants, which can assist in protecting the body against damage from free radicals. It is an aromatic drink that is made by pouring boiling or hot water over fresh or cured tea leaves. It also contains caffeine and other beneficial compounds, such as theanine, which can improve mental alertness and reduce stress levels. It aids in improving heart health, reducing the risk of certain types of cancer, and promoting weight management.

COVID-19 Impact:

The COVID-19 pandemic outbreak caused a significant impact on the tea industry and imposed unprecedented challenges on numerous countries. With restaurants and cafes closed, there was a significant drop in the out-of-home consumption of tea. This resulted in a decrease in the overall demand for tea and a surplus in supply, which led to a decline in prices. The pandemic also disrupted the supply chain of tea. Many tea-producing countries, such as India and Sri Lanka, implemented restrictions on movement and transportation, which led to a delay in the harvest and processing of tea leaves. This led to a decrease in the availability of tea, further exacerbating the problem of oversupply. On the other hand, the pandemic led to an increase in the demand for tea in the retail sector as people stayed at home and consumed more tea. The shift towards online shopping also resulted in an increase in the demand for tea sold through e-commerce platforms.

Tea Market Trends:

The increasing consumer preference for drinking tea among the masses on account of its numerous advantages and rising health consciousness among individuals represents one of the major factors strengthening the market growth around the world. Moreover, the growing inclination towards ready to drink (RTD) beverages due to rapid urbanization, busy lifestyles, and the expanding purchasing power of consumers is influencing the market positively. In addition, the increasing installation of tea stalls across airports, hospitals, shopping malls, school canteens, railways, and petrol stations is favoring the growth of the market. Apart from this, product manufacturers are introducing new and innovative tea flavors, such as mint, lemon, orange, cranberry, and pomegranate, to expand their product portfolio and existing consumer base. They are also focusing on launching organic tea variants that cater to various health conditions, such as diabetes and obesity, and aid in digestion, strengthening the immune system, controlling, cholesterol levels, and minimizing the risk of heart attacks.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global tea market report, along with forecasts at the global and country level from 2023-2028. Our report has categorized the market based on product type, packaging, distribution channel and application.

Product Type Insights:

• Green Tea
• Black Tea
• Oolong Tea
• Others
   

The report has provided a detailed breakup and analysis of the tea 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 due to its anti-allergic, anti-viral, and anti-spasmodic properties. It is rich in antioxidants, such as flavonoids, which can help protect the body against damage from free radicals.

Packaging Insights:

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

A detailed breakup and analysis of the tea market based on the packaging has 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 as they are made from renewable resources and recyclable, which make them a more environment friendly option as compared to plastic or non-recyclable materials. They are designed to protect tea leaves from moisture, light, and other factors that can affect their quality and freshness.

Distribution Channel Insights:

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

A detailed breakup and analysis of the tea market based on the distribution channel has also been provided in the report. This includes supermarkets/hypermarkets, specialty stores, convenience stores, online, and others. According to the report, supermarkets/hypermarkets accounted for the largest market share as they offer a one-stop-shop for all the grocery needs, including tea.  They also provide a wide variety of tea brands, flavors, and types, including loose-leaf tea, tea bags, and specialty teas.

Application Insights:

• Residential
• Commercial
   

A detailed breakup and analysis of the tea market based on the application has also been provided in the report. This includes residential and commercial. According to the report, residential accounted for the largest market share due to the rising awareness about the benefits of consuming tea.

Regional Insights:

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

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. The increasing inclination towards herbal tea products among individuals on account of its several health benefits, such as curing constipation, irritable bowel syndrome (IBS), motion sickness, and headaches and migraines, represent one of the major factors bolstering the market growth in China. Moreover, the rising number of health conscious consumers in the country is favoring the growth of the market. Apart from this, the easy availability of tea through online and offline distribution channels is propelling the growth of the market.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global tea market. Some of the companies covered in the report include:

• Associated British Foods Plc
• Barry's Tea
• Taetea Group 
• Tata Consumer Products Limited (Tata Group)
• Unilever
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the tea market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global tea market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.