The global tea market is projected to grow with a CAGR of 5.7% over the forecast period (2021 - 2026).
The present situation in terms of the COVID-19 outbreak has paved a strong ground for different types of teas, like herbal tea, as consumers are actively seeking products that are good for health, natural, and act as immunity boosters, which has boosted trade globally and also the consumption of various types of tea. Moreover, fiction in the supply chain and various trade regulations had impacted the market studied during the previous year 2020.
Health benefits associated with consuming tea and increase in awareness related to carbonated drinks among people are some of the major factors increasing the demand for tea globally.
The flavonoids, antioxidants, and phytochemicals present in tea are known to help in improving various functions of the human body. The rising knowledge about the benefits of drinking tea for patients suffering from combat arthritis, cardiovascular diseases, and high blood pressure is likely to pave way for the market's growth in the coming years.
Moreover, rise in disposable income, a shift in tastes of people, and introduction of additional healthy ingredients in tea by different market players, are the other factors that fuel the market growth.
The introduction of specialty iced teas is likely to be one of the major trends that will gain traction in the tea market over the forecast period. Vendors are introducing specialty iced teas by customizing different blends.
This increasing popularity can be attributed to the health benefits of tea, with enhanced benefits of ingredients such as basil, tulsi, etc. shifting consumer preferences toward natural ingredients-based products.
Key Market Trends
Healthy Hydration is Propelling the Market Growth
Tea consumption is majorly driven by consumer's search for new non-alcoholic beverages over fruit juices and carbonated drinks.
Consumers are developing an affinity for tea, due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates. Healthy hydration refers to the ability of tea of providing instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee and other energy drinks.
The organoleptic versatility, associated with tea, makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in North America and European markets. The linkage between tea and its healthful properties remains fundamentally strong in the market. The tea market is propelled, due to its health-promoting profile as well as the variety of herbal variants, new pack sizes, as well as organic options.
Tea has been projected as all-natural and environment-friendly product from a renewable source. It is a refreshing beverage that contains no sodium or fat. The prime healthy hydration properties, offered by any tea beverage, proves its ability to maintain proper fluid balance in the body and its metabolism-regulating traits.
Tea, apart from providing healthy hydration, can offer host of the other benefits that are expected to fetch sustainable sales, globally.
Strong Inclination Toward Tea in Asian and Europe Region
Health benefits associated with consuming tea and increase in awareness related to carbonated drinks among people are some of the major factors increasing the demand for tea in the Asia-Pacific region. The rising knowledge about the benefits of drinking tea for consumers suffering from arthritis, cardiovascular diseases, and high blood pressure is likely to pave way for market growth in the future.
Black tea remains the most popular bottled with green tea gaining popularity largely due to the preferences of health-conscious consumers.
Europe has a generation disparity in terms of tea consumption, where traditionalists associate tea with a 'builders' brew', while modern consumers see tea as a sensory experience with much more diversity. Furthermore, the European market is changing with consumer perception, and there is a growing preference for afternoon tea, where it is a part of a social and celebratory experience. Therefore, these factors are increasing the consumption of tea in both Asia and Europe.
The global tea market is highly competitive with strong competitors with a diversified product portfolio, leading to intense competition among the existing players. The leading players in the tea market enjoy a dominant presence across the region. Brand loyalty among the consumers gives these companies an upper edge.
The consumers in the market are craving for new and innovative products, to accommodate their personal life. Seeking opportunities in the trend, the company are constantly trying to offer the consumers new and innovative launches and specifically meeting their demands.
Key players have intensely embarked on the industry consolidation by leveraging their distribution network and entering partnerships with local distributors, especially in emerging economies and developing new products.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Form
- 5.1.1 Leaf Tea
- 5.1.2 CTC Tea
- 5.1.3 Other Forms
- 5.2 By Product Type
- 5.2.1 Black Tea
- 5.2.2 Green Tea
- 5.2.3 Herbal Tea
- 5.2.4 Other Product Types
- 5.3 By Distribution Channel
- 5.3.1 Supermarkets/Hypermarkets
- 5.3.2 Specialist Retailers
- 5.3.3 Convenience Stores
- 5.3.4 Other Distribution Channels
- 5.4 Geography
- 5.4.1 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 18.104.22.168 Mexico
- 22.214.171.124 Rest of North America
- 5.4.2 Europe
- 126.96.36.199 United Kingdom
- 188.8.131.52 Germany
- 184.108.40.206 France
- 220.127.116.11 Spain
- 18.104.22.168 Italy
- 22.214.171.124 Russia
- 126.96.36.199 Rest of Europe
- 5.4.3 Asia Pacific
- 188.8.131.52 China
- 184.108.40.206 Japan
- 220.127.116.11 India
- 18.104.22.168 Australia
- 22.214.171.124 Rest of Asia-Pacific
- 5.4.4 South America
- 126.96.36.199 Brazil
- 188.8.131.52 Argentina
- 184.108.40.206 Rest of South America
- 5.4.5 Middle East and Africa
- 220.127.116.11 South Africa
- 18.104.22.168 United Arab Emirates
- 22.214.171.124 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Most Active Companies
- 6.2 Most Adopted Strategies
- 6.3 Market Share Analysis
- 6.4 Company Profiles
- 6.4.1 Tata Group
- 6.4.2 Associated British Foods plc
- 6.4.3 RC Bigelow Inc
- 6.4.4 Apeejay Surrendra Group
- 6.4.5 Unilever plc
- 6.4.6 Yogi Tea
- 6.4.7 Hain Celestial Group
- 6.4.8 Bettys & Taylors of Harrogate Limited
- 6.4.9 Reily Foods Company
- 6.4.10 Traditional Medicinals
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 IMPACT OF COVID-19 ON THE MARKET