About This Report

Diverse tea offerings and a variety of cultural significance globally are the drivers while competition from other beverages is a restraint

Numerous consumer tastes are catered for by the availability of a large variety of tea kinds, including black, green, white, herbal, and specialty teas. The distinct flavors and health advantages of various tea kinds are sought after by consumers. For instance, the Tea Association of the United States of America reports that sales of specialty tea have been continuously increasing in the United States, with herbal and green teas becoming more and more popular due to their varied flavor profiles and potential health advantages.

Furthermore, in many cultures, tea is significant, which contributes to an ongoing and persistent demand. The Japanese tea ceremony and British afternoon tea are two examples of traditional tea ceremonies that highlight the significance of tea in cultural customs. For instance, Tea ceremonies have been held for millennia in China, which is also the world's largest user and producer of tea, demonstrating the importance of tea in Chinese culture.

However, the market share of tea may be constrained by competition from a variety of substitute beverages, such as coffee, soft drinks, and functional beverages. As an illustration, the specialty coffee and cold brew industries have seen tremendous expansion globally, drawing customers who might otherwise have opted for tea.

Black tea is expected to account for a significant market share by the type segment

The global Tea market is mainly classified based on type, form, and distribution channel. Based on the type, the market is classified into white tea, black tea, oolong tea, green tea, herbal tea, and other types. On the basis of distribution channels, the market is categorized into convenience stores, supermarkets/hypermarkets, specialist retailers, and other distribution channels. By form, the market is divided into loose-leaf tea, tea bags, ready-to-drink tea, and instant tea.

By type, black tea typically accounts for the largest market share in the worldwide tea market. One of the most popular forms of tea in the world, black tea is valued for its strong flavor, adaptability in preparation, and the variety of mixes and variations it may be made into. In many tea-drinking locations, black tea has a long history and a firmly established custom. For instance, India is one of the countries that consumes the blackest tea, and the country's culture and customs are strongly influenced by this practice. For instance, black tea is frequently consumed in India and is frequently served as chai, a spiced tea brew. The Tea Board of India estimates that India produced more than 1,339 million kg of tea in 2020, with a sizable proportion of black tea.

Furthermore, antioxidants and polyphenols found in black tea are known to have health advantages, including those that may improve heart health and general well-being. These alleged health benefits encourage people to consume it. As an illustration, studies in the European Journal of Preventive Cardiology suggest that frequent black tea consumption may lower the risk of cardiovascular disease. Black tea is widely produced in nations like Kenya, Sri Lanka, and China for both domestic use and export. The market share of black tea is further increased by its global export to numerous foreign markets. For instance, Kenya is a big exporter of black tea, and the nation's tea sector makes a sizable economic contribution. Kenya sold over 496 million kilos of tea in 2020.

Interesting Facts of Tea Market.

• After water, tea is the beverage that people drink the most in the world. People from different cultures and backgrounds all around the world adore it.
• Over 5,000 years ago, China is where tea is thought to have first appeared. According to legend, tea leaves blew into a pot of boiling water that Emperor Shen Nong was preparing, which is how he first learned about tea.
• Tea has a long cultural history and is fundamental to many nations' cultures. For instance, the preparation and consumption of matcha green tea are the focal points of the elaborately choreographed Japanese tea ceremony.
• The tea bag is credited with being created in the early 20th century by Thomas Sullivan, a tea dealer from New York. Customers started steeping the bags in hot water even though he had originally intended to use them for sample purposes.
• Iced tea is a cooling beverage that is particularly well-liked in the US. According to estimates, 80% of the tea consumed in the United States is served cold.
• The history of the tea trade is one of travel and adventure. An antiquated trading route known as the "Tea Horse Road" allowed for the exchange of goods such as tea, horses, and other items between southwest China and Tibet and India.
• Europe has a long history of tea culture, especially in nations like the United Kingdom where drinking black tea is customary. However, customers who are concerned about their health are also showing an increasing interest in specialized and herbal teas. Diverse tastes and preferences define the European tea market.
• Tea consumption in North America has significantly increased in recent years, driven by health-conscious customers looking for healthier beverage options. The popularity of herbal teas and specialty teas like kombucha and matcha has increased. Tea is also popular in the area as part of lifestyle and wellness trends.
• Black tea and strongly spiced teas like chai are preferred in the Middle East and Africa, which has a vibrant tea culture. Egypt and Morocco, for example, have distinctive tea cultures. Tea is an essential component of social gatherings in the Middle East and is frequently served with flavorful herbs and spices. Due to their alleged health advantages, herbal teas and local herbal infusions are popular in Africa.

Asia Pacific will account for the largest share of the Tea industry.

Asia Pacific holds the major market share globally. Some of the most populated nations in the world, like China and India, are found in the Asia-Pacific region. These countries have a long history of tea use, and a sizeable number of their people partake in it on a regular basis. For instance, China alone was responsible for almost 39% of the world's tea consumption in 2020. With more than 2 million metric tons of tea produced each year, China is both the world's greatest producer and consumer of tea. Additionally, there are many different types of tea produced in India, including Darjeeling, Assam, and Nilgiri teas, each with distinctive qualities and flavors.

Green tea, black tea, oolong tea, and herbal tea are just a few of the many different tea varieties available in the area. This broad selection of tea products satisfies a variety of consumer tastes and cultural customs. For instance, China is well-known for its green teas whereas India is recognized for its robust black teas. Furthermore, many Asian nations place a high value on tea culturally. It is an essential component of social customs, religious services, and everyday life. For instance, the production and consumption of matcha green tea are celebrated in the traditional Japanese tea ceremony, or "chanoyu," in Japan. To adapt to shifting consumer preferences, the Asia-Pacific tea business is always innovating by releasing new flavors, mixes, and tea-based products. The regional tea market is expanding as a result of effective marketing and branding tactics.

Global Tea Market Key Players:

Some of the major competitors in the global Tea market include Peet's Coffee & Tea, Inc., The Republic of Tea, Hindustan Unilever Limited (Brooke Bond), Tata Consumer Products (Tata Tea), Associated British Foods plc (Twinings), Unilever, Celestial Seasonings (The Hain Celestial Group, Inc.), Ito En, Ltd., The Bigelow Tea Company, Dilmah Ceylon Tea Company PLC, Numi Organic Tea, and Harney & Sons Fine Teas.

Tea is highly competitive with aggressive market strategies of global and regional companies looking to strengthen their market position through new product launches and facility expansions. The following are some recent market developments:

• Tata Consumer Products, best known for its tea brand Tata Tea, is growing its market share. To broaden their selection of tea, they have been releasing new items and acquiring brands.
• Lipton and PG Tips are just two of the Unilever brands that are actively supporting ethical sourcing and eco-friendly methods in order to source all of their tea sustainably, Unilever has made progress.
• The company Numi Organic Tea is dedicated to using sustainable and organic methods. They have been promoting social and environmental responsibility while increasing their selection of organic tea.
• The Republic of Tea is known for its innovative tea flavors. They have been introducing unique blends and wellness-focused teas to cater to health-conscious consumers.

Frequently asked questions about the global Tea market

Q: What is the current size of the global Tea market?
Ans: The Tea market was valued at XX million US$ in 2020 and is projected to reach XX million US$ by 2027, at a CAGR of XX% during the forecast period.

Q: What are the major opportunities in the Tea industry?
Ans: The increased demand for herbal teas and teas with a health focus, as well as the possibility of development into emerging countries, are the three main opportunities in the tea sector.

Q: What is the major growth driving factor for the Tea industry?
Ans: Consumer awareness of the health advantages of tea drinking is the primary growth driver for the tea industry, generating demand for functional and healthy beverages as an alternative to typical caffeinated beverages.

Q: Which region is expected to have the largest share of the Tea market?
Ans: Asia Pacific region is expected to have the largest share of the Tea market.

Q: Which type segment will dominate the Tea market?
Ans: By type, black tea typically accounts for the largest market share in the worldwide tea market.