Global Tea Market - Growth, Trends, and Forecast (2018-2023)
Changing demographics also provide an opportunity to the tea market as the growing middle class and urbanized population of many emerging and developing markets influence the consumption of the various types. The convenience, availability, and versatility of tea have helped create a new consumer experience, all while keeping the product offerings fresh and unique to grab more consumers.
The market value of tea in USA accounted for USD 1315.9 million in 2017 and it is expected to register a CAGR of 4.4%, during the forecast period (2018-2023). The US tea market is poised to be the fastest growing globally due to increasing popularity of RTD tea in the country.
In the global tea market, the two most important types of tea produced are black tea and green tea. The major production is of black tea, which is nearly 60% of the global production and, nearly 30% comprises of green tea and remaining 10% are others. High nutritive content of flavonoids, phytochemicals and antioxidants in tea has been one of the crucial factors driving the growth of tea market over the forecast period. Foodservice channels are even coming up with variant natural and infused flavors of tea, which makes it lucrative for health conscious consumers. Black tea is predominantly produced and exported by Kenya and Sri Lanka. Green tea is mainly grown and consumed in China. Although black tea is the most produced and exported tea, production, and exports of green tea are rapidly increasing. Green tea acts as a natural detoxification agent and helps in healing scars, managing weight, and improve quality of skin. Growing popularity of other substitutes, such as coffee is expected to restrain the growth of the market in the years to come. Premiumization of tea, such as yellow tea, oolong tea, and white tea, among others are gaining popularity among the developed nations, owing to its functional properties and exotic flavor offerings.
The tea market has been segmented by form, product type, and distribution channel. By form, the tea market has been segmented into leaf tea, CTC tea, and other forms of tea. Black tea held for the dominant market share of the tea market owing to its wide popularity. South and Northeast regions of Americas are significant consumers of tea. Lipton, Twining, RC Bigelow, Hain Celestial Group, Unilever, and RedCo Foods are the popular brands in this region. Specialist stores held for a significant market due to its variant products offerings of tea across different types and flavors.
Growing popularity of convenience options has fuelled the rise in the consumer preferences for tea in the developed nations of North America and Western Europe. Consumers are willing to pay more for healthier alternative beverages, which is driving the growth of the tea market in Europe. Millennial population exerts a significant demand for tea over other alternatives in the developing countries, such as India and China. Anti-aging properties of tea coupled with busy lifestyle of consumers have facilitated the growth of tea market in Asia-Pacific.
Innovations in tea type and flavors due to changing consumer preferences have intensified the competition among the global players. Several companies find it important to meet the local regulatory requirements apart from meeting their standard safety and quality criteria.
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