According to the report, the global tea market was worth around USD 63.49 Billion in 2023 and is predicted to grow to around USD 110.40 Billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.34% between 2024 and 2032.
Zion Market Research has published a new report titled Tea Market By Product Type (Green Tea, Black Tea, Oolong Tea, Herbal Tea, and Others), By Application (Household and Commercial), By Packaging (Plastic Container, Loose Tea Packets, Tea Bags, and Aluminum Tins), and By Distribution Channel (Supermarket/Hypermarket, Convenience Store, Specialty Store, Online Retail and Others): Global Industry Perspective, Comprehensive Analysis and Forecast, 2024 - 2032.
Tea is a type of shrub, cultivated widely in the countries such as India, China, Sri Lanka, and Kenya. An aromatic beverage is prepared by soaking tea leaves in water. Leaf buds and internodes of the tea plant are also used in making tea beverage. Two main types of the tea plant are very popular such as the large-leaved Assam-plant and small-leaved China plant. Caffeine is the main constituent of tea, giving stimulating character to the beverage. Another important chemical present in tea is polyphenol or tannin. Polyphenol oxidase is an enzyme, which when acts with polyphenol gives reddish color and generates flavoring compounds in the beverage. The volatile oils present in tea leaf gives an aroma to the beverage.
The global tea market is projected to exhibit significant growth within the forecast period. The market is mainly driven by the growing tea beverage industry. Increasing consumption of tea owing to its health benefits, growing number of restaurants serving tea, availability of flavored tea beverages, and growing tea consuming population are the key factors projected to fuel the global tea market growth during the forecast period.
Based on the type, the market is divided into oolong tea, black tea, herbal tea, green tea, and others. In terms of revenue, the black tea segment accounted for the largest market share in 2017. This is mainly due to the highest production and continuous developments. Green tea segment is anticipated to grow at the highest CAGR during the forecast period, owing to its increasing adoption. Based on application, the market is segmented into household and commercial. Commercial segment is anticipated to grow rapidly over the forecast period owing to increasing industrialization, rising number of hotels and restaurants, and increasing penetration of specialty tea cafés. Based on packaging, the market is segmented into a plastic container, loose tea packets, tea bags, and aluminum tins. Tea bag segment is the fastest growing segment with a considerable market share in 2017. Based on the distribution channel, the market is segmented into a specialty store, supermarket/hypermarket, online retail, and convenience store. Supermarket/hypermarket segment is the most popular distribution channel for tea products.
Key Trends Driving the Market:
- Rising Health Consciousness: Consumers are increasingly turning to tea as a healthier alternative to sugary beverages and carbonated soft drinks. Green tea, in particular, is renowned for its antioxidant properties and potential health benefits, including improved metabolism, heart health, and cognitive function. As health-conscious consumers seek functional beverages that support their well-being, demand for tea products with added health benefits, such as immunity-boosting blends and stress-relieving herbal infusions, is on the rise.
- Premiumization and Specialty Tea: The growing popularity of specialty tea varieties, such as single-origin teas, artisanal blends, and rare tea cultivars, reflects consumers' growing appreciation for high-quality, premium tea experiences. Specialty teas offer unique flavors, aromas, and stories that appeal to tea connoisseurs and enthusiasts seeking exceptional taste and craftsmanship. As consumers become more discerning about tea quality and provenance, there is a growing market for premium and specialty tea products positioned at the higher end of the market.
- Innovation in Functional and Flavored Teas: Innovation in tea flavoring and formulation is driving the development of new and innovative tea products tailored to consumer preferences and lifestyle needs. Functional teas infused with ingredients like turmeric, ginger, matcha, and adaptogenic herbs are gaining popularity for their potential health benefits and mood-enhancing properties. Additionally, flavored teas, such as fruit-infused blends, botanicals, and dessert-inspired flavors, offer consumers a wide range of options to suit their taste preferences and culinary preferences.
- Sustainability and Ethical Sourcing: Sustainability and ethical sourcing practices are increasingly important considerations for tea producers and consumers alike. With growing awareness of environmental and social issues, consumers are seeking teas that are sustainably sourced, ethically produced, and environmentally responsible. Tea companies are investing in sustainable agriculture, fair trade certifications, and carbon-neutral initiatives to reduce their environmental footprint and support the livelihoods of tea-growing communities.
Opportunities for Market Growth:
- Expansion in Emerging Markets: Emerging economies represent untapped opportunities for growth in the global tea market, driven by rising disposable incomes, urbanization, and changing consumer lifestyles. Countries such as China, India, and Indonesia are not only major tea producers but also growing markets for tea consumption. As demand for tea continues to rise in these regions, there is significant potential for tea companies to expand their presence and capture market share in emerging markets.
- Functional Tea Innovations: Functional teas infused with health-promoting ingredients, such as probiotics, collagen, and vitamins, present opportunities for market growth and differentiation. Functional tea formulations targeting specific health concerns, such as digestive health, immune support, and stress relief, resonate with health-conscious consumers seeking convenient and enjoyable ways to support their well-being. By developing innovative functional tea products backed by scientific research and consumer insights, tea companies can capitalize on the growing demand for functional beverages and wellness solutions.
- E-commerce and Direct-to-Consumer Channels: The rise of e-commerce and direct-to-consumer (DTC) channels has transformed the way tea is bought and sold, offering tea companies greater reach and flexibility in reaching consumers. Online platforms provide tea brands with opportunities to showcase their products, engage with customers, and offer personalized shopping experiences. By leveraging digital marketing strategies, social media platforms, and e-commerce capabilities, tea companies can expand their reach, build brand loyalty, and drive sales through online channels.
In terms of revenue, Asia Pacific accounted for a significant market share in 2017. The market is growing mainly due to rising population and high consumption of tea in developing countries such as China and India. Moreover, high disposable income and changing consumer preference are anticipated to boost the demand for premium and specialty tea products in the forecast period. North America and Europe will display lucrative opportunities lying ahead of rising demand for healthy drinks such as green tea & black tea. As of now, people are more concerned about their health which will ultimately gain more value share of healthy tea products during the forecast period. Latin America and the Middle East & Africa are likely to attain considerable market share during the forecast period.
Key participants leveraging the business growth are -
- Hangzhou Wahaha International Group Co. Ltd.
- The Coca-Cola Company
- Monster Beverage Corporation
- PepsiCo Inc.
- Danone SA
- Sapporo Beverage Co.
- Starbucks Corporation
- Ting Hsin International Group
- Nestle S.A.
- Arizona Beverage Company
- Suntory Holdings Ltd.
- Asahi Group Holdings
- Uni-President Enterprises
- Unilever NV.
This report segments the global tea market as follows:
Global Tea Market: Type Segment Analysis
- Green Tea
- Black Tea
- Oolong Tea
- Herbal Tea
- Others
Global Tea Market: Application Segment Analysis
- Household
- Commercial
Global Tea Market: Packaging Segment Analysis
- Plastic Container
- Loose Tea Packets
- Tea Bags
- Aluminum Tins
Global Tea Market: Distribution Channel Segment Analysis
- Supermarket/Hypermarket
- Convenience Store
- Specialty Store
- Online Retail
- Others
Global Tea Market: Regional Segment Analysis
- North AmericaThe U.S.
- EuropeUKFranceGermany
- Asia PacificChinaJapanIndia
- Latin AmericaBrazil
- The Middle East and Africa
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