Tea Market Research Report - Forecast till 2027

Global Tea Market Research Report Information By Type (Green Tea, Black Tea, Oolong Tea, Herbal Tea, and Others),By Form (Loose Leaf, Tea Bags, and Others), By Category (Organic and Conventional), By Distribution Channel (Store-Based, and Non-Store-Based),and Region (North America, Europe, Asia-Pacific, and the Rest of the World)—Forecast till 2027

ID: MRFR/F-B & N/1603-CR | 110 Pages | Author: Snehal Singh | February 2021         

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Global Tea Market Research (MRFR Insights)


The Tea Market is projected to register a CAGR of 4.60% from 2020 to 2027.Tea is the most popular beverage in the globe, processed from the leaves of the Camellia sinensis plant. Rising awareness regarding benefits such as boosting the immune system, strengthening bones and teeth, reducing the risk for cardiovascular diseases, cancer, and kidney stones, and controlling blood cholesterol levels is anticipated to fuel the product demand. The Tea Market size is expected to reach approximately USD 28 billion by 2027. Moreover, the rising popularity of organic tea is anticipated to impact the market's growth positively. Manufacturers engage in R&D to enhance the quality and taste of their products to attract more customers. For instance, Green Hills launched Rum and Honey Flavored Herbal Tea for consumers looking for low-sugar beverages. The product is alcohol-free and is rich in apple, licorice, cinnamon, and star anise, giving it a taste equivalent to alcohol.


COVID-19 Impact Analysis


The COVID-19 pandemic has had a devastating effect on the market owing to complete lockdown situations and social distancing measures that have led to import-export restrictions, labor shortages, supply chain disruptions, and a decline in manufacturing processes. For instance, Kenya, the largest tea-exporting country in Africa, was greatly affected during the pandemic due to disruption in transportation. Furthermore, India, the second largest tea producer globally, was negatively impacted by the pandemic due to the shutdown of production facilities for months, affecting the tea producers' and smallholder livelihoods.


Tea Market Dynamics


Growing consumer disposable income and willingness to spend more money on various products encourage manufacturers to introduce premium and exclusive blends. They have introduced various healthy ingredients in their tea blends to target common health conditions, including diabetes, obesity, and heart diseases. Rising application in beauty and cosmetics is expected to further fuel market growth. Moreover, the growing acceptance of tea instead of aerated drinks, especially among health-conscious consumers, is a major factor encouraging market growth. The low caffeine and high antioxidant content make tea a suitable beverage for consumers of all ages.


Tea Market Drivers



  • Growing demand for functional beverages


The growing trend of on-the-go nutrition and healthy hydration has significantly expanded consumers' demand for functional beverages. Green-type tea contains huge amounts of antioxidants that assist in reducing the aging of cells and tissues and enhance normal body functions. The increasing demand for nutrient-enriched beverages to decrease the risk of certain health conditions fuels the market's growth. Growing research and innovation activities to develop novel tea varieties, including naturally flavored, pure, organic, and environmentally friendly, also support market growth. Technological enhancements to develop novel packaging for tea are expected to boost market growth over the forecast period.


Market Restraints



  • Constraints in organic tea production


The shortage of knowledge regarding proper farming practices for producing this tea is a major restraint for the Tea Market growth. Tea growers generally need more expertise to convert their conventional farming systems to become more productive and sustainable. Moreover, the production cost of this tea is comparatively higher than that of the conventional one, which hampers the market's growth. The certification process included in organic tea production and sales in the international market is very costly. The access to certification cost implicated and the time lag of three years often hamper farmers from adopting organic farming.



  • High cost of green tea


The high cost of green-type tea is expected to be a key restraint for the market's growth. Green-type tea cost remains a major concern for the tea industry. The production of this tea variety is huge in the Asian countries of Japan, China, and India. The shortage of awareness regarding good farming practices and the safe use of agrochemicals among farmers generally limits production and increases the cost of the product.


Market Opportunities



  • Increasing demand for specialty teas


Modern-day tea consumers actively seek high-value specialty teas due to the developing trend of natural, clean-label, organic and healthful products. Customers are also more aware of tea varieties and origins and seek an authentic tea experience. Millennials actively search for healthy teas, necessitating manufacturers of innovative tea blends, flavors, and ready-to-drink teas. The growing knowledge of the healthful characteristics of organically grown tea would significantly contribute to the enhanced demand for organically grown tea.


Tea Market segmentation


Type Insights


The Tea Market segmentation, based on type, is green tea, black tea, oolong tea, herbal tea, and others. The black tea category held a prominent market share in 2020 due to a huge range of advantages, such as antioxidant properties that remove free radicals and decrease cell damage. However, green tea was the fastest-growing category due to an increase in health and fitness-conscious people.


Form Insights


The Tea Market segment, based on the form, is loose leaf, tea bags, and others. In 2020, tea bags accounted for the largest share of the global market owing to the convenience it offers over loose or differently packaged tea, as brewing tea with tea bags is very easy and disposal of the used tea bag is even more convenient. However, the loose leaf was the fastest-growing category due to customers' growing demand for loose-leaf tea.


Category Insights


Based on category, the global market is divided into organic and conventional. The organic category dominated the market for tea in 2020 due to the growing popularity of organic tea among consumers. Conventional was the fastest-growing category due to the increased usage of conventional tea in Asia-Pacific countries.


Distribution Channel Insights


By distribution channel, the global market has been segmented into store-based and non-store-based. In 2020 the non-store-based category had a major share in the market due to the rise of online apps coupled with the availability of discounts and easy product delivery. However, the store-based category fuels the market as it is one-stop access to various products from various brands.


Tea Market Share, by Region, 2020 (%)


Tea Market share


Tea Market Overview by Region


By region, the Tea Market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.


North America


North America dominated the market share in 2020 due to emerging trends such as consuming natural, safe, clean-label products. Consumers in the region are becoming more aware of the safety and ethnicity of the healthy food they choose to consume. The trend of functional organic beverages in the US and Canada drives market growth in North America. The growing focus on developing and launching innovative organic tea variants in novel packaging is expected to boost the regional market growth during the forecast period.


Asia-Pacific


Asia-Pacific accounted for the second-largest market share in the global market in 2020, owing to the increasing discretionary incomes among consumers in the region. Consumers in countries such as China, India, Japan, and Indonesia have now started spending more on healthful products. The growing popularity of green tea and herbal tea to improve beauty and health is primarily fueling the market growth in the region. This tea is perceived to be healthier as compared to conventional tea variants. The rapid expansion of the food and beverage industry in the region has also significantly contributed to the market growth in Asia-Pacific.


Tea Market Competitive Landscape


The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have global reach with diverse product portfolios. Companies such as Tata Global Beverages, Unilever, Associated British Foods Plc., TAE, Nestlé S.A., Barry's Tea, and Apeejay Surrendra Group dominate the global market owing to product differentiation, strategic developments, financial stability, and diversified regional presence. The major players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, joint ventures, product introduction, and partnerships, to strengthen their market position and capture an extensive customer base.


Prominent players in the Tea Market research include Bettys & Taylors Group Ltd., McLeod Russel, Mighty Leaf Tea Company, ITO EN Inc., The Republic of Tea, Tazo Tea Company, Numi Organic Tea, Teavana, Celestial Seasonings, Inc., and Fukujuen, among others.


Scope of the Tea Market Report


Type Outlook



  • Green Tea

  • Black Tea

  • Oolong Tea

  • Herbal Tea

  • Others


Form Outlook



  • Loose Leaf

  • Tea Bags

  • Others


Category Outlook



  • Organic

  • Conventional


Distribution Channel Outlook



  • Store-Based

  • Non-Store-Based


Region Outlook


North America



  • US

  • Canada

  • Mexico


Europe



  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe


Asia-Pacific



  • China

  • India

  • Japan

  • Australia and New Zealand

  • Rest of Asia-Pacific


Rest of the World



  • South America

  • Middle East

  • Africa


Objectives of the Study


The objectives of the study are summarized in 5 stages. They are as mentioned below:



  • Tea Market Forecast & Size:


To identify and estimate the market size for the Tea Market report segmented by type, form, category, and distribution channel by value (in US dollars). Also, to understand the consumption/ demand created by consumers of Tea Market forecast between 2020 and 2027



  • Market Landscape and Trends:


To identify the Tea Market growth and infer the drivers, opportunities, restraints, and challenges.



  • Market Influencing Factors:


To find out the factors which are impacting the Tea Market size



  • Impact of COVID-19:


To identify and understand the several factors involved in the market affected by the pandemic



  • Company Profiling:


To provide a detailed insight into the prominent companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, recent developments, product offerings, SWOT analysis, and key strategies.


Intended Audience



  • Tea producers

  • Raw material suppliers

  • Retailers, wholesalers, and distributors

  • Governments, associations, and industrial bodies


 



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 28 Billion
  CAGR   4.60%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Form, Category, and Distribution Channel
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Unilever, Tata Global Beverages, Associated British Foods Plc., TAE, NestlĂ© S.A., Barry's Tea, and Apeejay Surrendra Group
  Key Market Opportunities   Increasing demand for specialty teas
  Key Market Drivers   Growing demand for functional beverages


Frequently Asked Questions (FAQ) :

The Tea Market forecast period is 2020 - 2027

The market is expected to register a CAGR of 4.60% over the next 10 years, according to Tea Market research.

Asia-Pacific is expected to register the highest CAGR during 2020 - 2027

North America held the largest share in 2020

The market size is expected to be USD 28 billion by 2027.

Tata Global Beverages, Associated British Foods Plc., Unilever, Nestlé S.A., Barry's Tea, and Apeejay Surrendra Group are the major companies operating in the global market

Key Questions Answered

  • ✅ Global Market Outlook
  • ✅ In-depth analysis of global and regional trends
  • ✅ Analyze and identify the major players in the market, their market share, key developments, etc.
  • ✅ To understand the capability of the major players based on products offered, financials, and strategies.
  • ✅ Identify disrupting products, companies, and trends.
  • ✅ To identify opportunities in the market.
  • ✅ Analyze the key challenges in the market.
  • ✅ Analyze the regional penetration of players, products, and services in the market.
  • ✅ Comparison of major players’ financial performance.
  • ✅ Evaluate strategies adopted by major players.
  • ✅ Recommendations
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