The tea market has shown strong growth, with the market size increasing from $52.74 billion in 2023 to $56.12 billion in 2024, reflecting a CAGR of 6.4%. This growth is driven by tea’s cultural significance, health trends, globalization, rising disposable incomes, and effective marketing. The market is projected to reach $70.19 billion by 2028, with a CAGR of 5.8%. Growth drivers include premiumization, specialty teas, functional benefits, sustainability, innovation in formats, and e-commerce expansion. Major trends include tea-based culinary applications, enhanced packaging, tea subscription services, technology integration in retail, and exploration of regional tea varieties.
Major Driver In The Tea Market
The surging demand for herbal tea is poised to fuel the growth of the tea market in the coming years. Herbal tea, crafted from dried herbs and spices and often caffeine-free, offers various health benefits, including reduced inflammation, lowered stress levels, and immune system support. According to data from Canada Statistics in October 2022, the forecasted retail value sales for fruit or herbal tea in 2022 were $144.1 million, projected to rise to $286.1 million in 2026. This growing consumer preference for herbal tea is a significant driver shaping the tea market's trajectory, with its impact expected to be evident in 2023, 2024, and 2028.
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Tea Market Competitive Landscape
Nestlé S.A., Unilever PLC, Associated British Foods plc, ITO EN Ltd., Hain Celestial Group Inc., Godrej Consumer Products Limited, Tata Global Beverages Limited, Twinings of London Ltd., McLeod Russel India Limited, Tazo Tea Company, RC Bigelow Inc., DavidsTea Inc., Yorkshire Tea Ltd., Barry's Tea Limited, Traditional Medicinals LLC, Rishi Tea & Botanicals, Celestial Seasonings Inc., Harney & Sons Fine Teas, The Republic of Tea Inc., Dilmah Ceylon Tea Company PLC, Apeejay Surrendra Group Limited, Typhoo Group Limited, M.M. Ispahani Limited, The Jasmine Pearl Tea Company, Mighty Leaf Tea, The Tea Spot, Big Heart Tea Company, Taetea Group Co Ltd., Numi Organic Tea, Teavana Corporation
Key Tea Market Trend
Major companies operating in the tea market are focused on developing new product innovations, such as specialty iced teas, to strengthen their position in the market. Specialty iced teas are unique blends of tea that are specifically designed to be served cold over ice. These teas often have a refreshing and fruity flavor profile and can be made with a variety of ingredients, such as fruit, herbs, and spices. For instance, in September 2022, Honest tea Inc., a US-based organic tea and beverages company introduced a specialty iced tea named ‘Just Ice Tea’, a ready-to-drink organic iced tea. The launch Just Ice Tea's team's goal is to promote ‘Justice’ through Fair Trade premiums and working standards, which relate to a set of environmental and working standards. The company is dedicated to protecting the environment through organic accreditation, which forgoes the use of artificial pesticides, herbicides, insecticides, and fertilizers.
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Tea Market Segmentation
The tea market covered in this report is segmented –
1) By Type: Green Tea, Black Tea, Oolong Tea, Fruit Or Herbal Tea, Other Types
2) By Packaging: Plastic Containers, Loose Tea, Paper Boards, Aluminum Tins, Tea Bags
3) By Distribution Channel: Super Markets Or Hyper Markets, Special Stores, Convenience Stores, Online Stores, Other Distribution Channels
4) By Application: Residential, Commercial
By Geography:The regions covered in the tea market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the tea market in 2023.
The Tea Global Market Report 2024 furnishes information about the global tea market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
