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  • To Be Published : Apr 2024
  • Code : CMI3003
  • Formats :
      Excel and PDF
  • Industry : Consumer Goods

Out of home tea refers to consumption of tea in outdoor places such as restaurants, workplace canteens etc. Tea is positioned as a refreshing drink which is affordable by majority of the population. Tea contains less caffeine than coffee which makes it a preferred drink in outdoor places. Higher out of home tea consumption occurs in urban regions that have witnessed increasing industrialization and commercialization. Moreover, there is increasing preference for black tea owing to its antioxidant properties which can help in lowering cholesterol and blood sugar levels.


The growth of the out of home tea market is attributed to increasing consumption of tea at workplaces owing to increasing working population across the globe. For instance, according to European Commission’s Labor Market & Labor Force Statistics, Europe’s employment rate for person aged 20-64 was 64 % in 2017, and which increased to 73.1% in 2018.

However, increasing consumption of coffee as a refreshing beverage is expected to restrict to growth of out of home tea market over the forecast period. For instance, according to International Coffee Organization, global coffee production in the year 2018-19 increased by 1.9% to reach 168.77 million bags and the global consumption increased by 2.1% to reach 164.84 million bags in the same year.


Asia Pacific is expected to witness the highest growth rate in the market during the forecast period owing to growing number of cafes and quick service restaurants in the region. According to India Brand Equity Foundation, India’s cafe chain market was valued at US$ 359 million in 2018, and is projected to grow at an annual rate of 6.9% to reach US$ 634 million by 2023.

Among product type, black tea segment is expected to account for the highest market share during the forecast period due to various health benefits associated with it. According to Food and Agriculture Organization of United Nations’ Current Market Situation and Medium Outlook’s 2018 report, the global black tea production was pegged at 3.33 million tons in 2017, and is expected to grow at a rate of 2.2% to reach 4.42 million tons by 2027. According to the same source, global tea consumption was pegged at 3.29 million tons in 2017, and is expected to grow at a rate of 2.5% to reach 4.16 million tons by 2027.


Major players operating in the global out of home tea market include Tata Global Beverages Ltd., Nestle S.A, Celestial Seasonings Inc., Unilever Plc., Ito En, Ltd, Barry’s Tea, Associated British Foods, Dilmah Ceylon Tea Company, The Republic of Tea, and Bettys and Taylors Group Limited. Companies operating in the market are focusing on mergers & acquisitions in order to expand their market share. For instance, in 2017, Unilever Plc acquired Pukka Herbs Ltd., producer of organic herbal tea. This will help Unilever to expand its product portfolio and expand its tea business.


On the basis of product type, the global out of home tea market is segmented into:

  • Black Tea
  • Green Tea
  • Herbal Tea
  • Fruit Tea
  • Matcha Tea
  • Oolong Tea

On the basis of packaging type, the global out of home tea market is segmented into:

  • Loose Tea
  • Tea Bags
  • Bottled Tea
  • Canned Tea

On the basis of distribution channel, the global out of home tea market is segmented into:

  • Quick Service Restaurants
  • Full Service Restaurants
  • Bars & Pubs
  • Cafes
  • Workplace
  • Others

On the basis of region, the global out of home tea market is segmented into:

  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Russia
    • Rest of the Europe
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • Northern Africa
    • Central Africa
    • South Africa

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