Europe Tea Market - Growth, Trends, and Forecast (2018-2023)
Europe is highly dependent on imports from producing countries, Poland and Germany being the top importers of tea. Based on the consumer obsession with health, the trend in Europe is moving away from black tea. Health conscious consumers are often drawn to tea, since tea is naturally laden with antioxidants, catechins, and epigallocatechin gallate (EGCG), all of which are positively linked with health benefits and disease prevention. Availability of substitutes, such as coffee and juices, etc. is likely to hinder the market growth in the years to come. Consumer preferences for tea-based beverages have been one of the key factors driving the growth of the market in Europe. Rise in the demand for healthier alternative beverages have been influencing the growth of the market. Well-established distribution channels offering wide variety of new and innovative tea is expected to drive the demand for tea market in the years to come. Kenya, India, and China are some of the top suppliers of tea in Europe.
The Europe tea market is likely to register a CAGR of 2.6%, during the forecast period, 2018-2023. Over the years, the preference has been shifting from standard black tea to healthier options, like fruit & herbal tea, and green tea.
The vast tea industry in Europe is segmented on the basis of form, product type, distribution channel, and geography. Furthermore tea is also segmented based on the production and processing into leaf tea, CTC, and others. Green tea accounted for a considerable market share due to the awareness about and preference for the health benefits associated with them. The herbal and flavored tea segment is expected to register maximum growth during the forecast period, 2018-2023.
Europe accounted for a considerable market share of the tea market owing to the interest of specialty teas with special flavors and higher quality. North and Western Europe held for the majority of the tea market in Europe. In UK itself, the fruit/herbal tea market witnessed an increasing growth at the cost of black tea. Germany, UK, France, Poland, Netherlands, and Ireland are the major consuming countries in Europe. Consumers are looking for unique and high quality tea experiences, which is expected to fuel the expansion of the market in this region. Green tea is the most consumed tea in Denmark, Belgium, and France.
Product innovations and considerable invest in research and development has been the key strategies for the development of the tea market in Europe. Innovations in tea type and flavors due to changing consumer preferences have intensified the competition among the global players. Various global players are considering the taste and preferences of the consumers in order to influence the demand of the regional consumers.
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