Oolong Tea Market

Global Oolong Tea Market Size (2024 to 2029)

Oolong Tea Market value in 2024 was 0.33 billion, and it is expected to grow at a CAGR of 4.2% during the forecast period 2024-2029 to reach USD 0.40 billion by 2029.

The combination of qualities of dark and green tea is Oolong tea. Oolong tea has several health benefits. This is made from the Camellia sinensis plant. Oolong tea is dried leaves and leaf buds. It is used to make numerous different teas, such as black and green tea. Oolong tea consists of caffeine which affects thinking and alertness. This stimulates the central nervous system, heart, and muscles. This helps with mental alertness. Oolong tea help with obesity, diabetes, high blood pressure, autism, and many other health issues. The process of steps such as oxidation is involved in making Oolong tea. This is created when leaves are wilted in the sun and bruised to create partial pressure for partial oxidation. This has nutritional benefits that contain calcium, magnesium, and potassium. Antioxidants like tea polyphenols, theaflavins, etc., are present in Oolong tea. Oolong tea consists of L-theanine, which helps to have positive effects on relaxation and cognitive performance.

The increase in disposal income among the population is creating major opportunities for Oolong Tea Market growth over the projected period. The millennial generation prefers going to cafes and restaurants for breakfast and visiting cafes to drink various beverages. The restaurants are adding Oolong tea to their menu to attract these consumers. Consumers are adapting to Western culture. As Oolong tea is present in Asian countries, there is an increase in demand for Oolong tea across the globe. The key manufacturing companies were focusing on innovations in the tea market. Additionally, the increase in usage of e-commerce among the population is creating opportunities for market growth. These are the factors creating opportunities in the Oolong Tea market growth.

Global Oolong Tea Market Drivers:

The increase in the popularity of consumption of tea among the population is one of the driving factors in the Oolong Tea Market. This is due to Oolong tea being a healthy beverage. Additionally, there is an increase in the usage of e-commerce among the population, which makes it easier to buy tea leaves, which increases customer satisfaction. The healthy benefits offered by Oolong tea consumption drive market growth. This helps in weight loss and reduces stress. Hence, Oolong tea is preferred by the population over sugary drinks as other sugary tea is not as healthy as Oolong tea. The increase in health awareness among the population to consume food with less sugar in it benefits your health. Additionally, a rise in the use of social media, and these are the things that were prompting consumers to self-medicate. The increase in awareness of food components with artificially modified food is driving market growth.

The restaurant and many cafes are adding Oolong tea to their menu; this fuels the Oolong Tea Market growth. The restaurants are doing this to improve their luxury standards. As Oolong tea helps detoxify the human body, the demand for oolong tea is increasing as it helps to maintain the cholesterol level. The Oolong tea helps to boost the immune system. The increase in preference for natural and organic substances over artificial products helps to boost market growth. Additionally, the availability of Oolong tea, because of expanding distribution channels such as tea shops, supermarkets, and cafes, helps to increase in demand for Oolong tea. 

Global Oolong Tea Market Restraints:

The major number of the population is unaware of Oolong tea and its health benefits. The weak market recognition of Oolong tea is the major restraining factor for the Oolong Tea Market demand. Despite the healthy benefits offered by Oolong tea, there are several side effects associated with Oolong tea. There are several disadvantages to the overconsumption of Oolong tea, as Oolong tea consists of caffeine. The overconsumption of this caffeine leads to anxiety, headache, insomnia, and irregular heartbeat. These factors hinder the Oolong tea market growth. It is possible to cause problems in homeostasis because of the flavonoids present in it. Oolong tea comes under the type of premium tea type. The high cost associated with the product restraints the market growth. This makes that consumers in the low-income category are not able to buy Oolong tea. The increase in the availability of different brands for the same product increases the competition in the industry is the limiting Oolong Tea Market growth.

Impact of COVID-19 on the Oolong Tea Market:

The Oolong Tea market experienced both ups and down during the pandemic. Because of COVID-19 in the starting period, there was a negative effect on the market, while after some period, there was market growth. Covid-19 led to cause lockdowns and restrictions that led to closing imports and exports across the globe. Initially, the restrictions led to disruption in the supply chain. The increase in awareness among the population about health and immunity during COVID-19. This increased the demand for healthy food products such as Oolong tea, as Oolong tea has various health benefits over other sugary drinks. Oolong tea helps to reduce obesity and diabetes. Obese and diabetic people are more susceptible to COVID-19. Hence these consumers were more focused on the consumption of Oolong tea instead of Sugary drinks. Hence there was a moderate effect on Oolong Tea Market.

REPORT COVERAGE: 

This research report on the Global Oolong Tea Market has been segmented and sub-segmented based on form, flavour, distribution channel, and region. 

 Global Oolong Tea Market - By Form: 

• Loose leaf
• Powder
• Teabag
• Others

Among these, the powder form segment dominates the Oolong Tea market. The powder form segment is expected to show its dominance over the forecasting period; This is due to the increase in the popularity of conventional food. This helps to increase in demand for the powdered form of oolong tea. The powdered segment has the advantage of first mover advantage. Powdered Oolong tea is available in different flavors in the market. This allows the customers to choose the various flavors. The teabag form segment is expected to show the fastest CAGR growth over the forecasting period. This is due to the ready-to-drink availability of the product.

Global Oolong Tea Market - By Flavour:

• Flavored
• Plain

Among these, the flavored segment dominates the Oolong Tea Market. The Flavored segment is expected to dominate the oolong tea market over the forecasting period. This is due to an increase in demand for flavored oolong tea. The Oolong tea is available in various flavors. The key market players are making different flavored tea. This is due to many consumers were not happy with the original taste of the tea. Hence the key market players are adding flavors to the tea. The plain segment is expected to show the fastest CAGR growth over the forecasting period.

Global Oolong Tea Market - By Distribution Channel:

• Direct Sales
• Online Retail
• Supermarkets/Hypermarkets
• Specialty Stores

Among these, the supermarkets or hypermarket segment dominates the Oolong Tea Market. The Supermarket segment is expected to show its dominance over the forecasting period. This is due to the availability of oolong tea in these stores. Various flavors are available in these stores, making it easy for customers to select their choice. The large availability of various flavors enhances customer satisfaction. These stores often offer sales and discounts over these products, which leads to an increase in demand for oolong tea leaves. The online store segment is expected to show the fastest CAGR growth in the Oolong Tea Market over the projected period. This is due to the increase in the usage of e-commerce to buy this oolong tea.

Global Oolong Tea Market – By Region:

• Asia-Pacific
• Middle East
• Latin America
• Europe
• North America

Regionally, the Asia Pacific region dominates the Oolong Tea Market. The Asia Pacific region is expected to show dominance in the Oolong Tea Market over the forecasting period. This is due to the oolong tea being majorly consumed in this region. The emerging countries in this region, such as China and India. China is the main country that produces a significant amount of tea. China produces more than 80% of the oolong tea. For instance, as per Mammoth Espresso, about 11% of oolong tea is produced in China only. Hence the demand for oolong tea is high in this region.

The North America and Europe region is expected to show the fastest CAGR growth over the forecasting period. This is due to an increase in the consumption of tea. As oolong tea offers various health benefits when compared with sugary beverages. The increase in awareness among consumers about the consumption of healthy food and beverages increases the demand for oolong tea. The increase in the availability of different flavored oolong tea powders increases the demand for tea leaves. The Middle East and Africa region is expected to show moderate growth over the forecasting period. This is due to an increase in demand for premium tea in the market.

KEY MARKET PLAYERS:

Key market players of global oolong tea market are Unilever PlC, Dilmah, Arbor Teas, Townshend's Tea Company, The Hain Celestial Group, Inc, Bigelow Tea Company, Teas and Thes (China) Ltd, Ceylon Organic Ltd, Republic of Tea, Twinings (Associated British Foods), Sierra Tea.

RECENT HAPPENINGS IN THE MARKET:

On 21st Sept 2022, BETHESDA, MD. Just Ice Tea, a new brand of organic, ready-to-drink tea beverages that come in six flavors, has been officially launched by Eat the Change, such as berry hibiscus herbal tea, honey green tea, Moroccan mint tea, original green tea, peach oolong tea, and half-tea, half-lemonade.