Tea Market is Expected to Surpass US$ 24,691.79 Million by 2027- CMI

Definition of Market/Industry:

Tea is one of the most popular aromatic beverage that is consumed worldwide and is available in different forms such as black tea, green tea, herbal tea, and oolong tea. It is prepared by pouring hot or boiling water in cured leaves of Camellia sinensis plant shrub that is native to East Asia. It has a stimulating effect on humans due to its caffeine content.

Statistics:

The global tea market valued US$ 17,420.30 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:

Improving lifestyle of the consumer is projected to foster the market growth of the tea. The rise in urban population coupled with the change in outlook towards consumption of tea among young people is contributing to the market growth of the tea. According to the United Nation, in 2018, 55% of the population lived in urban areas, by 2050, the urban population is expected to increase by 68%. This is driven by the overall population increase and by the upward shift in the percentage living in urban areas which could add another 2.5 billion to the world’s urban population by 2050.

Market Opportunities

Aggressive advertising and promotion activities by key manufacturers is expected to offer potential market opportunities to the market. For instance, in august 2019, Tata Tea Premium launched a new ad campaign featuring Sania Mirza. As part of its strategy, the company has launched its latest advertising campaign featuring Sania Mirza in order to promote the Tata Tea Premium brand that has a perfect blend of energy, refreshment, and rejuvenation. Thus, growing adoption of such marketing strategy by the key manufacturer is projected to foster market growth.

Market Restraints

Health issues associated with the overconsumption of tea is projected to hinder the market growth of the tea. Tea contains 14 to 60 milligrams of caffeine which has a direct effect on the health of people such as disturbing sleep, irregular heart rate, nervousness, and diarrhea. Moreover, according to the University of Maryland Medical Centre, excessive consumption of green tea increases the risk of lung cancer, colorectal cancer, and esophageal cancer. In addition, it may cause some complications such as high blood pressure, insomnia, anxiety, and stomach ulcers.

Key Takeaways:

For Type information:

Black tea segment dominated the global tea market in 2020, accounting for 46.78% share in terms of volume, followed by Green tea and Oolong tea, respectively. Black tea segment generates highest revenue this can be attributed to rise in the number of tea drinkers worldwide. Furthermore, high concentration of antioxidants and polyphenols makes black tea very popular among health. However, the green tea segment is expected to grow at the highest CAGR throughout the forecast period. This can be attributed to rise in awareness about health and fitness and a rise in the number of educated tea consumers.

For Distribution Channel information:

Hyper Market/ Super Market dominated the global tea market in 2020, accounting for 51.77% share in terms of volume. This is due to the options such as the one-stop shopping experience offered by these retail formats, which has made it a very popular shopping option for consumers. Furthermore, these retail formats provide customers with a diverse choice of products at a reasonable price and are typically placed in easily accessible regions.

Market Trends

Shifting consumer preferences from carbonated drink to tea as it is emerging as a healthy alternative is contributing to market growth. The growing demand for healthy beverages due to growing health-conscious consumers is propelling the market growth of tea. Moreover, there is a high demand for ready-to-drink beverages among youth which is again fostering the market growth of tea. For instance, the Tea Association of the USA (or USTA) states that the ready-to-drink tea category has grown over 15 times in the last ten years.

The increasing offering of products in sustainable packaging is a growing trend in the market. Various manufacturers are launching sustainable packaging solutions in order to retain the freshness of tea and increase the shelf-life of the tea. For example, the manufacturer is offering the product in teabags which is instant to prepare and thus gaining popularity around the globe. These tea bags are easy to carry and can be prepared in simple steps only by adding hot water. Thus, the offering of such sustainable packaging solution by manufacturers is propelling the market growth.

To know the latest trends and insights prevalent in the Global Tea Market, click the link below:

https://www.coherentmarketinsights.com/market-insight/tea-market-4726

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

Tea producers across the globe have been greatly affected by COVID-19, mainly because of national lockdowns and social distancing policies. Export and import restrictions are creating uncertainty on the tea market, and producers are undertaking emergency response measures to prevent the spread of COVID-19 in tea communities. Tea market is experiencing low traffic on sales and movement of goods, which in turn is having an adverse effect on market operations and cash flow for tea producers. Though stocks of made tea are available in warehouses, producers are facing challenges to meet financial obligations specially to pay workers and smallholders who supply green leaf. Smallholder farmers in the country also face a risk of lower food and income security as a result of COVID-19.

Competitive Section:

Company Names