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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Tea is a hot beverage and is the second most consumed beverage around the globe. It is prepared by infusing boiled brewing leaves of the Camellia sinensis plant and this plant is mostly grown in Northeast India, north Myanmar, Southwest China, and Tibet. Tea is classified into green tea, black tea, oolong tea, and herbal tea.

The global tea market was valued at US$ Mn in terms of revenue in 2020 and is predicted to grow at a CAGR of 5.0% during the forecast period (2021 to 2027).

Drivers:

Health benefits associated with tea consumption is a prime factor propelling the market growth of tea. Tea offers various health benefits, such as its lower risk of cardiovascular disease, diabetes, cancer, and other chronic diseases. Moreover, it has high nutritional value due to its antioxidants and low calories content. Moreover, it is considered an excellent source of antioxidants and alkaloids and also other vitamins such as vitamins like A, D, E, and C. Due to its various health benefits the market of tea is growing exponentially.

Shifting preferences toward flavored tea is expected to augment the market growth of tea. The increasing availability of flavored tea is increasing the consumer base. For instance, in September 2020, Vessl, Inc. has announced the launch of three new flavors of its ready-to-drink bottled tea brand Tea of a Kind. This includes Mango Yerba Mate, Prickly Pear Yerba Mate, and Blackberry Basil Yerba Mate. Thus, the advent of flavored tea is projected to favor the market growth of the tea in the near future. 

Asia Pacific region dominated the global tea market in 2020, accounting for 41.06% share in terms of volume, followed by Europe and North America, respectively.

Figure 1. Global Tea Market, Revenue Share (%), By Region, 2020

Tea  | Coherent Market Insights

Market Restraints

The availability of substitutes for tea such as coffee is expected to restrict market growth. This is attributed to the changing taste and preferences of consumers as customers in Britain highly prefer coffee over tea. Also, in keeping with today’s fast-paced lifestyle, young people are opting for instant coffee whenever and wherever they wish, along with self-service.

Fluctuating price of raw material due to unpredictable climatic conditions is leading to a gap in supply and demand. This factor is expected to hinder the market growth of the tea over the forecast period.

Market Opportunities

The growing availability of wide variants in tea is expected to serve major growth opportunities over the forecast period. For instance, Cha Bar a tea lounge in India offers 133 varieties of Indian and international tea, including flavored tea, herbal tea, and fruit tea, to their consumers. Organic tea, green tea, and Ayurveda are also some of the new varieties introduced in their menu. Thus, the advent of wide variants in tea is projected to propel the market growth of tea in the near future.

Increasing penetration of tea cafe and lounge culture especially across the North America region is expected to bring new market opportunities over the forecast period. Also, increasing consumption of tea among Americans is again expected to propel the market growth. According to the Tea Association of the USA Inc. in 2019, Americans consumed over 84 billion servings of tea or more than 3.8 billion gallons. About 84% of all tea consumed was black tea, 15% was green tea, and the small remaining amount was oolong, white and dark tea.

Figure 2. Global Tea Market – Opportunity Analysis

Tea  | Coherent Market Insights

On the basis of type, Black tea dominates the global tea market in 2020 with around 42.31% of market share in terms of revenue, followed by Green tea and Oolong tea, respectively. The Black tea market is valued at US$ 7,371.20 million and is expected to grow at a CAGR of 5.10% between 2021 and 2027.

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Tea Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 17,420.30 Mn
Historical Data for: 2017 to 2019 Forecast Period: 2021 to 2027
Forecast Period 2021 to 2028 CAGR: 5.0% 2027 Value Projection: US$ 24,691.79 Mn
Geographies covered:
  • Regions: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Type: Black tea, Green tea, Oolong tea, Herbal tea, and Others tea.
  • By Distribution Channel: Hyper Market/ Super Market, Convenience Stores, Retail Stores, and Online Stores
Companies covered:

Starbucks Corporation, Wissotzky Tea, Associated British Foods, Nestle S.A., Akbar Brothers Ltd., Tata Global Beverages, The Republic of Tea, and DAVIDs Tea

Growth Drivers:
  • Health benefits associated with tea consumption is a prime factor propelling the market growth of tea
  • Shifting preferences toward flavored tea is expected to augment the market growth of tea.
Restraints & Challenges:
  • Fluctuating price of raw material due to unpredictable climatic conditions is leading to a gap in supply and demand

Figure 3. Global Tea Market, Revenue Share (%), By Type, in 2020

Tea  | Coherent Market Insights

Market Trends/Key Takeaways

Fruit juices with herbal teas is gaining traction in the market. Nowadays, traditional teas are now getting replaced by flavored teas that are caffeine-free and have no-added-sugar. Moreover, the demand for this tea is tremendous because consumers are experimenting with the different varieties and flavors of tea. For example, Pomegranate-Blackcurrant-Blackcurrant Leaf-Peppermint and Peach-Vervain-Lemon are some of the new flavors that are gaining traction in the market.

Organic tea is gaining popularity around the globe due to the growing trend of go natural and organic. Also, the growing demand for low-calorie tea is gaining importance due to increasing health-conscious consumers and they prefer a product that contains health benefits this is supporting the overall market growth of the green tea. Moreover, the growing demand for ice-tea especially across Eastern Europe due to people seeking sugar-rich carbonated beverages is again expected to propel the market growth of the tea over the forecast period.

Global Tea Market - Impact of Coronavirus (Covid-19) Pandemic

The global tea market has experienced some transportation disruptions from the tea producing areas, as well as some consequential disruptions of cash flow. The impact on tea production itself is so far seems limited, however social distancing measures are triggering emergency response from tea producers in the country.

The strict lockdown measures in India, world’s second tea producer, had shut down production of all agricultural industries for a number of weeks in March and April. Recently, tea gardens and small tea growers have been picking up tea production and export again, but the lockdown has impacted tea producers and smallholder livelihoods significantly.

Competitive Section:

Company

  1. Starbucks Corporation
  2. Wissotzky Tea
  3. Associated British Foods
  4. Nestle S.A.
  5. Akbar Brothers Ltd.
  6. Tata Global Beverages
  7. The Republic of Tea
  8. DAVIDs Tea

Few Recent Developments

In July 2019, Wissotzky Tea Launched Nana Mint Tea. It has an exotic mint flavor.

Tea is an aromatic beverage derived from Camellia Sinensis plant. It is one of the most consumed beverage in the world. Black tea and green tea are the most popular tea while herbal tea is gaining popularity. Tea is considered a healthy beverage owing to presence of a number of potent antioxidants, and minerals such as potassium, manganese, magnesium, & calcium. Regular consumption of tea helps reduce cell damage caused due to free radicals as well as lowers cholesterol levels and facilitates healthy weight loss.

Market Dynamics

Tea has been very popular in the emerging market, owing to prevalence of tea culture. Furthermore, rising health consciousness and disposable income has aided the tea market's expansion. Other factors driving the market's growth include the introduction of additional beneficial components in tea by various industry competitors.

The primary restraints for this market are a rise in the trend of coffee consumption and changing raw material prices induced by unexpected weather circumstances. On the contrary, the tea market is expected to grow as demand for herbal tea increases and new flavors and varieties of tea are introduced.

Asia pacific region is anticipated to grow enormously in the market on account of increasing tea culture and rising demand of tea from millennial. The robust economic growth in the country has also created a large consumer base among middle-class groups with a preference for premium tea blends. The consumers are frequently enhancing their purchases from unpackaged tea to packed and bagged specialty varieties. India is expected to grow with the highest CAGR throughout the forecast period, owing to the prevalence of tea culture.

Key features of the study:

  • This report provides in-depth analysis of tea market, and provides market size (US$ Million & KT) and compound annual growth rate (CAGR %) for the forecast period (2021-2027), considering 2020 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global tea market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Starbucks Corporation, Wissotzky Tea, Associated British Foods, Nestle S.A., Akbar Brothers Ltd., Tata Global Beverages, The Republic of Tea, and DAVIDs Tea.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future products launches, technology upgradation, market expansion, and marketing tactics
  • The global tea market report caters to various stakeholders in this industry including investors, suppliers, tea manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global tea market

Detailed Segmentation:

  • Global Tea Market, By Type:
    • Black Tea
    • Green Tea
    • Oolong Tea
    • Herbal Tea
    • Others Tea
  • Global Tea Market, By Distribution Channel:
    • Hyper Market/ Super Market
    • Convenience Stores
    • Retail Stores
    • Online Stores
  • Global Tea Market, By Region:
    • North America
      • By Type
        • Black Tea
        • Green Tea
        • Oolong Tea
        • Herbal Tea
        • Others Tea
      • By Distribution Channel
        • Hyper Market/ Super Market
        • Convenience Stores
        • Retail Stores
        • Online Stores
      • By Country
        • Canada
        • U.S.
    • Europe
      • By Type
        • Black Tea
        • Green Tea
        • Oolong Tea
        • Herbal Tea
        • Others Tea
      • By Distribution Channel
        • Hyper Market/ Super Market
        • Convenience Stores
        • Retail Stores
        • Online Stores
      • By Country
        • U.K.
        • France
        • Germany
        • Rest of Europe
    • Asia Pacific
      • By Type
        • Black Tea
        • Green Tea
        • Oolong Tea
        • Herbal Tea
        • Others Tea
      • By Distribution Channel
        • Hyper Market/ Super Market
        • Convenience Stores
        • Retail Stores
        • Online Stores
      • By Country
        • China
        • India
        • ASEAN
        • Australia
        • Rest of Asia Pacific
    • Latin America
      • By Type
        • Black Tea
        • Green Tea
        • Oolong Tea
        • Herbal Tea
        • Others Tea
      • By Distribution Channel
        • Hyper Market/ Super Market
        • Convenience Stores
        • Retail Stores
        • Online Stores
      • By Country
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East & Africa
      • By Type
        • Black Tea
        • Green Tea
        • Oolong Tea
        • Herbal Tea
        • Others Tea
      • By Distribution Channel
        • Hyper Market/ Super Market
        • Convenience Stores
        • Retail Stores
        • Online Stores
      • By Region
        • Middle East
        • Africa
  • Company Profiles
    • Starbucks Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Wissotzky Tea
    • Associated British Foods
    • Nestle S.A.
    • Akbar Brothers Ltd.
    • Tata Global Beverages
    • The Republic of Tea
    • DAVIDs Tea

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, Type
      • Market Snippet, By Distribution Channel
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • PEST Analysis
      • PORTER’s Five Forces Analysis
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Mergers and Acquisitions
  4. Global Tea Market - Impact of Coronavirus (Covid-19) Pandemic
    • Overview
    • Factors Affecting Global Tea Market – COVID-19
    • Impact Analysis
  5. Global Tea Market, By Type, 2017- 2027 (US$ Mn & KT)
    • Introduction
      • Market Share Analysis, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, 2021 - 2027
      • Segment Trends
    • Black Tea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Green Tea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Oolong Tea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Herbal Tea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Others Tea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
  6. Global Tea Market, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
    • Introduction
      • Market Share Analysis, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, 2021 - 2027
      • Segment Trends
    • Hyper Market/ Super Market
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Convenience Stores
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Retail Stores
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
    • Online Stores
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2021 - 2027, (US$ Mn & KT)
  7. Global Tea Market, By Region, 2017- 2027 (US$ Mn & KT)
    • Introduction
      • Market Share Analysis, By Region, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, For Region, 2021 - 2027
    • North America
      • Market Share Analysis, By Country, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2021 – 2027
      • Market Size and Forecast, By Type, 2017- 2027 (US$ Mn & KT)
      • Market Size and Forecast, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
      • By Country
        • U.S.
        • Canada
    • Latin America
      • Market Share Analysis, By Country, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2021 – 2027
      • Market Size and Forecast, By Type, 2017- 2027 (US$ Mn & KT)
      • Market Size and Forecast, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
      • By Country
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Europe
      • Market Share Analysis, By Country, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2021 – 2027
      • Market Size and Forecast, By Type, 2017- 2027 (US$ Mn & KT)
      • Market Size and Forecast, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
      • By Country
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Market Share Analysis, By Country, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, By Country, 2021 – 2027
      • Market Size and Forecast, By Type, 2017- 2027 (US$ Mn & KT)
      • Market Size and Forecast, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
      • By Country
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Middle East & Africa
      • Market Share Analysis, By Sub-Region, 2020, 2022 and 2027 (%)
      • Y-o-Y Growth Analysis, By Sub-Region, 2021 – 2027
      • Market Size and Forecast, By Type, 2017- 2027 (US$ Mn & KT)
      • Market Size and Forecast, By Distribution Channel, 2017- 2027 (US$ Mn & KT)
      • By Region
        • Middle East
        • Africa
  8. Competitive Landscape
    • Heat Map Analysis
    • Market Share Analysis (3x3 Matrix)
    • Company Profiles
      • Starbucks Corporation
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Wissotzky Tea
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Associated British Foods
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Nestle S.A.
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Akbar Brothers Ltd.
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Tata Global Beverages
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • The Republic of Tea
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • DAVIDs Tea
        • Company Overview
        • Component Portfolio
        • Financial Performance
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

* Browse 50 market data tables* and 45 figures* on "Tea Market” - Global forecast to 2027.

FAQgrowicon

Frequently Asked Questions

The market for global tea is forecast to surpass US$ 24,691.79 Mn by 2027 witnessing a CAGR of 5.0% between 2021 and 2027.
Health benefits associated with tea consumption is a prime factor propelling the market growth of tea. Also, shifting preferences toward flavoured tea is expected to augment the market growth of tea.
Organic tea is gaining popularity around the globe due to the growing trend of go natural and organic. Also, Fruit juices with herbal teas is gaining traction in the market.
Fluctuating price of raw material due to unpredictable climatic conditions is leading to a gap in supply and demand. This factor is expected to hinder the market growth of the tea over the forecast period.
Major players operating in the market include Starbucks Corporation, Wissotzky Tea, Associated British Foods, Nestle S.A., Akbar Brothers Ltd., Tata Global Beverages, The Republic of Tea, and DAVIDs Tea.
The market was valued around US$ 17,420.30 Mn in terms of revenue in 2020.
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