Tea Market

Tea Market Outlook (2024 to 2034)

As opined in the recently published market analysis by Fact.MR, the global tea market is analyzed to reach US$ 20.4 billion in 2024 and is further forecasted to advance at a CAGR of 5.7% to reach a value of US$ 35.6 billion by the end of 2034.

The tea market is spread across the globe and is witnessing an increase in the demand for tea. To meet consumer demands, tea manufacturing companies have introduced a range of improvements.

Key Market Growth Drivers

• Health and wellness trends are expected to drive demand for tea globally. Significant expansion in the tea market has been driven by the increased interest in health and wellness in recent years than ever before. Tea is viewed as a healthful beverage choice, and a growing number of customers are using it to enhance their general well-being. Customers are becoming more interested in tea for specific health benefits, such as reducing stress, enhancing immunity, facilitating weight reduction, and improving digestion.
• Expansion of the tea market size is attributed to wellness and health trends. More consumers are actively taking an interest in wellness and health, which is further contributing to tea market growth.
• Tea is adopted as a healthy beverage, and several individuals are opting for it as a beverage used for improving well-being and health. There is an increasing consumer interest in tea with health benefits, including improving digestion, reducing stress, aiding in weight loss, and boosting immunity.
• Green tea, black tea, oolong tea, and herbal tea are the most popular types of tea. Green tea is sold as a drink or dietary supplement that aids in weight loss, reduces headaches and gastrointestinal problems, and enhances mental clarity, thus consumed widely.
• Tea is a popular beverage that is processed to create a variety of value-added products, such as iced tea, herbal tea, decaffeinated tea, instant tea, package tea, flavored tea, tonic tea, tea cider, and tea concentrates. Innovative sensory experiences are in demand by customers. Tea concentrates help people do that by offering flavor combinations that they otherwise couldn't recreate at home.

Report Attribute	Detail
Tea Market Size (2024E)	US$ 20.4 Billion
Forecasted Market Value (2034F)	US$ 35.6 Billion
Global Market Growth Rate (2024 to 2034)	5.7% CAGR
Market Share of Black Tea (2034F)	70.4%
Japan Market Growth Rate (2024 to 2034)	6.2% CAGR
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	ThirsTea Corp; The Chai Direct; RFI Ingredients; A. Holliday & Company Inc.; Monin, Inc.; Herbalife International of America, Inc.; Synergy Flavors, Inc.; Maya Tea Company; Amelia Bay; Island Rose Gourmet Tea; PepsiCo, Inc.; Tata Global Beverages Ltd; H&H Products Company; MB-Holding GmbH & Co. KG; Cooper Tea Company LLC.

What Benefits Does Tea Provide that It is Driving the Global Market?

“Tea's Flavonoids and Antioxidants Contributing to Health Advantages, Making it Popular and Alluring Beverage”

The functional tea industry is composed of particular ingredients to address several health issues. Due to their alleged health benefits, herbal teas are becoming popular. Several types of herbal teas are well-known for their antioxidant and anti-inflammatory qualities; some have even been connected to better digestion and sleep. Herbal teas have become popular as more individuals turn to natural solutions for their health issues.

Tea's flavonoids and antioxidants are contributing to several of its health advantages, making it a popular and alluring beverage for anybody wishing to improve their general well-being. According to a September 2022 National Institutes of Health (NIH) study, those who consume two or more cups of tea a day have a 9-13% lower likelihood of dying than those who don't, which is further contributing to expanding market size.

Which Primary Obstacles are Encountered by Market Players Across the Globe?

“Production of Tea Requires a Lot of Water”

Changes in rainfall, temperature, and the frequency of extreme weather events are adversely impacting tea output. Frosts, floods, and droughts reduce the production and affect the quality of tea. Constant production of tea wears down the soil, requiring additional fertilizers and harming the soil's long-term health. The production of tea needs a high amount of water, and in major producing locations, water shortages are becoming a serious problem, thus all these above-mentioned issues are adversely affecting the tea market in general.

Country-wise Insights

North America is a key region that is estimated to contribute 23.9% of the market share in 2024. Meanwhile, the East Asia region is estimated to capture a market share of 22.4% in 2024. The tea market is expanding steadily in the Asia-Pacific region since tea is such a popular beverage in countries such as China, India, and Japan. It is expected that new business prospects will emerge for the market in the region due to innovation in packaging, taste, and flavor.

What Factors are Leading to Consistent Increase in Demand for Tea in the United States?

“People in the United States Prioritizing Tea Over Coffee and Other Sugar-Filled Beverages”

Attribute	United States
Market Value (2024E)	US$ 2.2 Billion
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 3.9 Billion

The United States is analyzed to hold 44.5% of the North American tea market share in 2024. As people in the United States are reducing their consumption of sugary sodas and other carbonated beverages, they are consuming tea as a much healthier option. The health benefits of tea are well known, and it includes weight loss potential, antioxidant qualities, and a lower chance of developing chronic illnesses such as diabetes and heart disease.

Tea is becoming popular among people in the United States who value their health more than coffee and other sugar-filled beverages. Tea consumption corresponds nicely with the increase in wellness, setting tea market trends. Several tea drinkers in the country are drawn to the assortment of tastes and varieties available in the country, such as herbal, green, black, white, oolong, and specialty teas.

How Tea Represents the Cultural Aspect of Japan Leading to Market Growth?

“Making Green Tea is a Ritualistic Ceremony in Japan”

Attribute	Japan
Market Value (2024E)	US$ 1.3 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 2.4 Billion

Japan is analyzed to account for a 28.9% share of the East Asian market in 2024. Tea, particularly green tea, or "ocha" as it is called in Japan, is an essential component of Japanese culture. Matcha, a powdered green tea, is prepared and consumed ritualistically as part of the Japanese tea ceremony, or "chanoyu," which is a symbol of harmony, hospitality, and mindfulness. A sizable section of the population drinks tea daily, both hot and in several cold forms. It is a mainstay of Japanese culture, served in homes, restaurants, and social events.

Category-wise Insights

Tea's popularity is increasing due to the growing number of social media users, where influencers and celebrities are promoting several tea brands and lifestyle goods centered around tea. To attract younger consumers, tea manufacturers are employing creative branding techniques. Some of these techniques include providing distinctive packaging, crafting captivating product tales, and creating limited edition or seasonal teas.

The market is categorized into black, green, oolong, and herbal, of which black tea is estimated to capture 70% of the market share in 2024. Compared to other segments, black tea is expected to experience significant demand growth because of its low cost and high appeal. The tea market is predicted to grow with consumers' increased health consciousness and attraction to healthy products.

Why Black Tea is a Highly Preferred Beverage?

“Black Tea Seen as Extensively Sought After Replacement for Coffee”

Attribute	Black Tea
Segment Value (2024E)	US$ 14.3 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 25.1 Billion

Black tea is the most significant type of the tea market across the globe. The black variety is witnessing a moderate CAGR of 5.8% through 2034. Consumers are consuming packaged rather than unpackaged varieties owing to the perceived superiority in terms of packaging and quality. Antioxidants included in black tea, especially polyphenols, reduce the risk of chronic illnesses such as cancer and heart disease.

Demand for black tea is spurred by a greater understanding of these health benefits, particularly among health-conscious customers. Due to its modest caffeine content, black tea is a well-liked substitute for coffee. Customers looking for a less strong caffeine experience with possible health benefits have been drawn to this.

Black tea is an integral component of everyday life and cultural customs in several countries, especially in South Asia (India, Sri Lanka), the Middle East, and the United Kingdom. These areas have a strong cultural affinity for black tea, which guarantees steady market growth.

Which Distribution Channel is Responsible for Significant Sales of Tea?

“One-Stop Shopping Experience Makes Supermarkets Popular Choice”

Attribute	Hyper/Super Market
Market Value (2024E)	US$ 7.6 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 13.3 Billion

By distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, and online stores. The supermarkets/hypermarkets are projected to hold a major share of the global market in 2024. The rising popularity of supermarkets and hypermarkets in both developed and potentially high growth countries is responsible for the expansion of this particular area within the tea market.

Furthermore, these retail formats' provision of a one-stop shop is contributing to their popularity as a shopping choice. These retail formats are typically found in easily accessible locations and provide customers with a large selection of products at competitive prices. At these locations, customers fulfill all of their shopping demands, saving them time and increasing the segment's appeal.

Competitive Landscape

Key players in the tea market are focusing on meeting customer requirements for packaging, delivering high-quality items in an efficient manner, and highlighting superior and organic quality herbs that have health benefits and strengthen immunity.

• In January 2024, Tata Consumer Products finalized arrangements to purchase up to 100% of the issued equity share capital of Organic India, an organic company that sells food and drink items as well as traditional and herbal supplements.
• Dabur India Limited launched Dabur Vedic Tea in 2022, a high-quality black tea containing more than thirty ayurvedic ingredients, including cardamom, ginger, and tulsi.
• A new variety of tea mixes called Superblends, which includes five different types of tea blends named Sleep, Calm, Digest, Focus, and Glow to enhance health and wellbeing, was introduced in February 2022 by Twinings, a tea brand of Associated British Foods plc.
• Twinings, an Associated British Foods plc tea brand, in September 2021 announced the launch of a new foodservice exclusive line that consists of 11 tea blends created especially for the foodservice sector.

Fact.MR provides detailed information about the price points of key players in the tea market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Tea Market Research

• By Type :

  • Black Tea
  • Green Tea
  • Oolong Tea
  • Herbal Tea

• By Distribution Channel :

  • Hyper/Super Market
  • Convenience Stores
  • Retail Stores
  • Online Stores

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA