Global Tea Market Overview
The global tea market was valued at USD 48.6 billion in 2023 and is projected to reach USD 65.5 billion by 2030, growing at a CAGR of 6.1% during the forecast period (2024–2030). This growth is driven by a rise in consumer demand for healthy beverages, as well as increased awareness about the health benefits of tea, such as its antioxidant properties and potential to aid digestion and improve mental clarity.
The market is also being shaped by a surge in premium tea varieties, including herbal, green, and specialty teas, alongside growing preference for organic and sustainably sourced tea products.
Key Factors Driving Tea Market Growth
1. Health Consciousness and Consumer Preferences
As consumers become more health-conscious, the demand for herbal, green, and organic teas has risen significantly. Tea is increasingly being recognized as a healthier alternative to sugary soft drinks and coffee, which is contributing to its growing popularity, especially in the wellness and health-conscious demographics.
2. Sustainability and Ethical Sourcing
Consumers are increasingly interested in knowing the source of their food and beverages, leading to a growing demand for organic, ethically sourced, and environmentally friendly tea options. Major tea producers are responding by investing in sustainable farming practices and eco-friendly packaging.
3. Innovations in Tea Products
Innovation in tea products, such as flavored teas, ready-to-drink (RTD) tea beverages, and cold-brew teas, is driving the market forward. This diversification appeals to younger consumers looking for more variety and convenience in their tea-drinking experiences.
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Regional Insights: Growth Across Key Countries
Southeast Asia: Vietnam, Thailand, and Singapore
In Vietnam and Thailand, tea plays a significant role in daily life, with local varieties like green tea and herbal blends being highly popular. The demand for premium and organic teas is also on the rise, as consumers in these regions become more health-conscious.
In Singapore, a vibrant tea culture has emerged, driven by a diverse population with varying tastes. Companies are capitalizing on the country’s strategic location to distribute high-quality teas across Southeast Asia. Singapore is also witnessing a growing trend of premium and specialized tea blends targeting high-income consumers.
Japan and South Korea
Both Japan and South Korea have long been tea-drinking nations, with green tea being particularly popular. In Japan, matcha tea has seen an explosion in demand, fueled by its incorporation into beverages, desserts, and even snacks. South Korea is seeing a rise in innovative tea drinks, particularly those that combine traditional teas with modern, health-conscious twists.
Europe
Europe is a growing market for tea, particularly in countries such as the UK, Germany, and France, where tea is a staple part of daily life. In the UK, the market is seeing increasing demand for specialty teas, such as Earl Grey and herbal varieties, alongside a rise in sustainable and fair-trade options. The rise of premium teas and wellness-oriented products is driving growth across the continent.
United States
In the US, the demand for tea has been growing rapidly due to the increasing awareness of its health benefits. While black tea remains the most popular, green tea, herbal teas, and specialty varieties are gaining traction. The ready-to-drink tea segment is also expanding rapidly, especially among millennials and health-conscious consumers.
Key Mergers and Acquisitions in the Tea Industry
Nestlé Acquires Organic Tea Brand “Twitch Tea”
Nestlé recently acquired Twitch Tea, an organic and premium tea brand, as part of its ongoing strategy to expand its health-conscious portfolio. The acquisition will enable Nestlé to leverage Twitch Tea’s innovative product offerings and expand its presence in the premium tea market, particularly in North America and Europe.
Unilever’s Acquisition of “Pukka Herbs”
In a strategic move to strengthen its position in the herbal tea market, Unilever acquired Pukka Herbs, a leading organic herbal tea company. The acquisition complements Unilever’s existing portfolio, including brands like Lipton and Tazo, and positions the company to tap into the growing demand for organic and plant-based beverages.
Tata Consumer Products to Acquire “Tetley Tea”
Indian multinational Tata Consumer Products announced plans to acquire the Tetley Tea brand to further solidify its position in the global tea market. The acquisition will enable Tata to strengthen its portfolio in key markets such as North America, Europe, and Asia, where Tetley enjoys significant brand recognition.
Coca-Cola’s Partnership with “Honest Tea”
Coca-Cola has significantly increased its presence in the tea market by partnering with Honest Tea, a leading organic bottled tea brand. The partnership enables Coca-Cola to expand its ready-to-drink tea offerings while tapping into the growing demand for organic and sustainably sourced beverages.
Future Trends in the Global Tea Market
Growth of Specialty Teas
Specialty teas, including organic, herbal, and flavored teas, are expected to continue their growth trend. Consumers are increasingly seeking unique tea blends and high-quality offerings, particularly those that are ethically sourced.
Ready-to-Drink (RTD) Tea Segment Expansion
The RTD tea market is projected to experience significant growth, particularly among millennials and health-conscious consumers. This is due to the increasing preference for convenient, on-the-go beverages that also offer health benefits.
Sustainability in Tea Production
Sustainability will continue to be a key focus in the tea industry, with more tea companies adopting eco-friendly packaging, fair-trade practices, and sustainable farming methods. Consumers are increasingly aware of the environmental impact of their purchases, pushing companies to offer more eco-conscious products.
Tea Market segmentation :
by Product Type
Green Tea
Black Tea
Oolong Tea
Others
The market is divided into three segments based on the applications: specialty stores, online, and supermarkets and hypermarkets. The online distribution channel market is anticipated to expand at a compound annual growth rate (CAGR) of 5.9% over the course of the forecast period.
The market’s supply chain benefits from the introduction of online apps, as well as from the availability of discounts and speedy product delivery. Retailers such as Walmart and Big Basket, for instance, provide a wide range of flavored teas with delivery choices both online and offline. These are the main factors propelling this market segment’s expansion globally throughout the course of the predicted timeframe.
by Category
Organic
Conventional
The tea market is separated into two categories: conventional and organic. In 2023, the conventional tea sector had the biggest market share. The traditional type of tea, known as conventional tea, is produced using normal farming practices, artificial fertilizers, and pesticides. It is readily available in the market and is less expensive. In many nations, especially in Asia, Europe, and North America, traditional tea—especially black tea—is a staple beverage. The market for organic tea is expanding quickly as a result of customers’ increased health consciousness. Because organic tea has higher production costs, it is sometimes advertised as a premium product, which can lead to higher price points. Customers who are prepared to spend more for organic goods are usually wealthier or more health-conscious.
by Packaging
Plastic Containers
Loose Tea
Paperboards
Aluminum Tins
Tea Bags
Others
by Distribution Channel
Supermarkets/Hypermarkets
Specialty Stores
Convenience Stores
Online
Others
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Learn about the top players driving innovation in the Tea Market :
1. Nestle S. A.
2. Goodricke
3. Wissotzky Tea
4. Akbar Brothers Ltd.
5. Tata Consumer Products Limited
6. The Republic of Tea
7. Davids TEA
8. Assam Company India Ltd.
9. LIPTON Teas and Infusion
10. Caraway Tea Company
11. Harris Tea Company
12. JDE Peet’s
13. Bigelow Tea Company
14. Genuine Tea Co
15. Indong Tea
16. Rabea Tea
17. Mighty Leaf Tea
18. Ito En
19. Teavivre
20. Tealyra
21. Betjeman & Barton
22. TeaGschwendner
23. Teekanne
24. Teekampagne
25. Yogi Tea
Get answers to critical questions shaping the Tea Market
- What is Tea ?
- What is the growth rate of the Tea Market?
- Which are the factors expected to drive the Tea market growth?
- What is the CAGR at which the Tea market will grow during the forecast period?
- What are the different segments of the Tea Market?
- Which is the fastest growing region in the Tea market?
- What growth strategies are the players considering to increase their presence in Tea ?
- What are the upcoming opportunities and trends for the Tea Market?
- What are the recent industry trends that can be implemented to generate additional revenue streams for the Tea Market?
- Who are the leading companies and what are their portfolios in Tea Market?
- What segments are covered in the Tea Market?
- Who are the key players in the Tea market?
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Get a closer look at the game-changing products driving success :
- Past Size and Competitive Landscape
• Past Pricing and price curve by region
• Size, Share, Size Forecast by different segment
• Dynamics Growth Drivers, Restraints, Opportunities, and Key Trends by Region
• Segmentation A detailed analysis by segment with their sub-segments and Region
• Competitive Landscape Profiles of selected key players by region from a strategic perspective
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