Tea Market Size, Share & Trends Analysis Report By Product (Black, Green, Oolong, Herbal), By Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, Online), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global tea market size was valued at USD 12.63 billion in 2018 and is expected to expand a CAGR of 5.5% from 2019 to 2025. Tea is among the most popular beverages in the world, processed from the leaves of Camellia sinensis plant. Rising awareness regarding the benefits such as the ability to boost immune system, strengthen bones and teeth, reduce the risk for cardiovascular diseases, cancer, and kidney stones, and control blood cholesterol levels, is anticipated to fuel the product demand.

Increasing consumer disposable income and willingness to spend more on money on a variety of products encourages manufacturers to introduce premium and exclusive blends. They have introduced various healthy ingredients in their tea blends, to target some of the common health conditions including diabetes, obesity, and heart diseases among others. Rising application in beauty and cosmetic industries is expected to further fuel the market growth.

Rising popularity of organic tea is anticipated to positively impact growth of the tea market. Manufacturers engage in R&D to improve the quality and taste of their products, to attract more consumers. For instance, Green Hills introduced Rum and Honey Flavored Herbal Tea for the consumers looking for low sugar beverages. The product is free from alcohol and is rich with licorice, apple, cinnamon, and star anise that give it a taste similar to alcohol. 

Black, green, and herbal teas are the most preferred product types among consumers across the globe. Green tea is known for its antioxidant properties hence is increasingly consumed by pregnant women, health conscious people, and the older population. Oolong tea is the mixture of both black and green tea and is found effective for preventing high blood cholesterol levels and type 2 diabetes. The product is highly popular in China and Japan. Green and herbal teas such as chamomile and jasmine are also widely used as a remedy for blemish-free skin and healthy hair thereby propelling the product demand.

Growing acceptance of tea instead of aerated drinks, especially among health conscious consumers is a major factor encouraging the market growth. The low caffeine and high antioxidant content make tea a suitable beverage for consumers of all age. Rising demand for the product is projected to encourage innovation in the market. For instance, recently, Twinings launched its Superblends in seven blends, namely, Sleep, Energise, Glow, Defence, Detox, Matcha, and Turmeric.

Asia Pacific (APAC) and Europe have a high product penetration, where the product is widely consumed on a daily basis as an affordable beverage suitable for consumers from all socio-economic groups. Black tea is considered to be the most popular product type consumed across all regions as it has anti-spasmodic, anti-allergic, and anti-viral properties. Mindfull, Inc. recently introduced two ready-to-drink organic electrolyte tea brands, namely, Vibe and Gaiam.

Product Insights

Black and green tea are the two most widely consumed products, with a market share of almost 39.19% and 30.54% respectively, in 2018. India, Sri Lanka, and China predominantly produce and export black tea. Most of China's green tea production is used for domestic consumption. Oolong is a semi-green fermented tea where the process of fermentation is stopped as soon as the color of leaves starts changing. The product can help boost metabolism, accelerate weight loss, manage type-2 diabetes, prevent cancer, and improve heart, brain, bone, and dental health. According to the USDA National Nutrient Database, oolong contains traces of vital vitamins and minerals such as calcium, manganese, potassium, copper, magnesium, selenium, and carotene. These factors are projected to fuel the product demand in the near future.

Distribution Channel Insights

Online distribution channel is anticipated to expand at the fastest CAGR of 5.9% over the forecast period. The rise of online apps coupled with availability of discounts and easy product delivery has positively impacted the supply chain of the market. For instance, distributors such as Walmart and Big Basket among others offer a wide range of flavored tea with both online and offline delivery options. This factor is anticipated to bode well for the growth of the segment over the forecast period. Hypermarkets and supermarkets held the largest market share of 38.12% in 2018.

Specialty stores segment is also projected to witness significant growth in the forthcoming years. Due to the increasing penetration of brands offering premium and organic products, specialty stores make available a large variety of branded teas for the convenience of consumers. For example, Fabindia offers premium green and herbal teas.

Regional Insights

North America is anticipated to witness a CAGR of 5.9% from 2019 to 2025. Easy availability of the products from brands like Twinings, Numi Organic Tea, and Tata Global Beverages among others is projected to bode well for the regional market growth over the forecast period.

Leading Indian manufacturers such as Tata Global Beverages and Apeejay Surrendra Group produce a wide range of products for high-end consumers across India as well as different parts of the world. Teabox, an Indian specialty store launched an exclusive range of tea using only organic and all-natural ingredients that are cold-stored to preserve the aroma and freshness of the product. As a result, these products are more expensive than the regular products.

Middle East and Africa (MEA) is anticipated to expand at the fastest CAGR of 7.3% during the forecast period. Countries such as Turkey and Iran are some of the leading consumers in the world. Rising per capita income, rising awareness about the product benefits, and changing food and beverage trends are expected to further boost the growth.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of major players such as Tata Global Beverages; Unilever; Associated British Foods Plc.; TAETEA; Barry's Tea; Apeejay Surrendra Group; Bettys & Taylors Group Ltd.; McLeod Russel; ITO EN Inc.; Mighty Leaf Tea Company; Numi Organic Tea; The Republic of Tea; Tazo Tea Company; and others.

Most companies operating in the market engage in product innovation and R&D. They also focus on innovative advertising and social media campaigns to attract more target consumers. Tata Global Beverages entered into Ready-to-Drink segment with the introduction of green tea based drink, led by Tata Tea in India and Tetley in Canada.

Tea Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global tea market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Black

  • Green

  • Oolong

  • Herbal

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Specialty Stores

  • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Ireland

    • The U.K.

  • Asia Pacific

    • India

    • China

  • Central & South America

    • Argentina

  • Middle East & Africa

    • Turkey