How Big is the Tea Market?
by Susan Hill Business ConsultantThe
global tea market size is expected to reach USD 18.42
billion by 2025, according to a new report by Grand View Research, Inc. It is
projected to expand at a CAGR of 5.5% during the forecast period. Rising
popularity of carbonated drinks coupled with rise in consumer disposable
income, especially in emerging economies such as India, China, and Brazil will
create robust product demand.
Tea, being a
widely consumed beverage especially across Asia Pacific (APAC) and Middle East
and Africa (MEA). It has gained immense popularity in other parts of the world
as well, owing to its antioxidant properties. Presence of polyphenols,
antioxidants, vitamins, and a variety of amino acids make it help strengthen
the immune system. Additionally, it helps lower cholesterol levels, increase
metabolism, and may help prevent cancer. It also contains a small amount of
caffeine, which boosts its consumption as a mild stimulant.
Changing
demographics, rise in disposable income of middle class population, especially
in urban areas is anticipated to drive the product consumption and in turn
drive the market. Millennials are anticipated to register the strongest growth,
especially in countries such as China, Japan, Brazil, and India. Rising
awareness regarding the benefits of drinking tea coupled with willingness to
shell out money on the product is anticipated to bode well for the demand.
Hence, to leverage this trend, a number of manufacturers are repositioning the
product like a lifestyle brand to reach more consumers. They engage in social
media campaigns and celebrity advertising to promote their new and premium
flavors.
In 2018,
black tea held the largest market share of about 39%. The product is predominantly
produced and consumed in countries like India, China, Sri Lanka, and Kenya.
Green tea is also anticipated to hold a significant market share over the
forecast period. The product is a natural and organic detoxifying agent and
hence, along with food and beverage, it also finds application in skin care and
wellness products. It that has therapeutic properties to cure scars, helps
manage weight, and to improves skin texture.
Oolong is a
premium-quality product that apart from being used as a weight loss remedy, has
innate properties to help prevent type 2 diabetes. Herbal tea includes
hibiscus, tulsi, jasmine, and chamomile among numerous other flavors. These
products are popular among consumers from European countries such as Germany
and U.K. Typhoo, the British packaged tea brand currently owned by Kolkata,
India-based, Apeejay Surrendra Group, which manufactures non-tea infusions,
including organic herbal mixes due to declining black tea market, especially in
the European countries.
Hypermarkets
and supermarkets distribution channel segment held the market share of more
than 38% in 2018, while convenience stores held the market share of around 32%
in the same year. Specialty stores, such as Fabindia and Teafloor provide
consumers with premium and exquisite brands and flavors. On the other hand,
online channel is expected to expand at the fastest CAGR of 5.9% over the
forecast period due to ease of payment methods and availability of a wide
variety of products.
Most
companies operating in the market engage in product innovation and R&D.
They also focus on innovative advertising and social media campaigns to attract
more target consumers. Tata Global Beverages entered into Ready-to-Drink
segment with the introduction of green tea based drink, led by Tata Tea in
India and Tetley in Canada.
Further key
findings from the report suggest:
- Asia Pacific is
projected to generate a revenue of USD 6.33 billion by 2025
- Green tea
constituted about 30.54% of the total market share in 2018 and is
projected to exhibit a significant rise in the next few years
- MEA is
anticipated to lead the global tea market with the fastest CAGR of 7.3%
over the forecast period
- The market is
highly competitive in nature with the main players including Tata Global
Beverages; Unilever; Associated British Foods Plc.; TAETEA; Nestlé S.A.;
Barry's Tea; Apeejay Surrendra Group; Bettys & Taylors Group Ltd.;
McLeod Russel; and ITO EN Inc.; Mighty Leaf Tea Company; Numi Organic Tea;
The Republic of Tea; Tazo Tea Company; Teavana; Celestial Seasonings,
Inc.; Fukujuen; Harney and Sons; Kazi Tea; M. M. Ispahani Limited;
DavidsTea; Tim Hortons; and Godrej Group
Access full
research report on global tea market:
www.grandviewresearch.com/industry-analysis/tea-market
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Created on Oct 29th 2019 09:03. Viewed 352 times.