Tea Market

Global Tea Market Size (2024 to 2029)

The global tea market size was calculated to be USD 12.63 billion in 2023 and is anticipated to be worth USD 17.41 billion by 2029 from USD 13.32 billion in 2024, growing at a CAGR of 5.5% during the forecast period. The growth of the global tea market will continue during the forecast period due to increased world demand for tea.

Current Scenario of the Global Tea Market

The tea market holds significant importance worldwide as tea is one of the most popular beverages worldwide. Tea has a rich cultural heritage, can be served in various flavors, and provides several health benefits. The global tea market has experienced several notable trends in the recent past. The growing demand for premium and specialty teas worldwide is one of the notable trends in the tea market, and consumers worldwide have been increasingly accepting and preferring the unique flavors of tea. Other noteworthy global trends include the introduction of ready-to-drink (RTD) tea products, tea pods, and flavored tea concentrates. China, India, Turkey, the United Kingdom, and Japan top the list in tea consumption worldwide. During the forecast period, the tea market is anticipated to evolve further owing to the changing preferences of consumers. These consumer preferences have also brought innovation, sustainability, and quality to the ingredients and processes used in making tea.

MARKET DRIVERS

The growing awareness among consumers about the health benefits of tea and rising demand for herbal and specialty teas are propelling the global tea market growth.

Tea has antioxidant properties that help promote heart health, digestion, and immunity. People's understanding of tea's benefits has significantly increased in recent times. Consumers' preferences have changed recently, resulting in an increasing preference for herbal and specialty teas formulated with functional ingredients like herbs, spices, and botanical extracts. The components like flavonoids, antioxidants, and phytochemicals available in tea help improve various functions of the human body. Increasing awareness of the benefits of drinking tea for patients suffering from combat arthritis, cardiovascular disease, and hypertension will pave the way for market growth in the years to come. Increased awareness of benefits, such as strengthening the immune system, strengthening bones and teeth, cardiovascular disease, reducing the risk of kidney stones and cancer, and controlling blood cholesterol levels, is expected to increase demand for products. Herbal and specialty teas offer health benefits such as calming effects, weight management, and immune support, and this awareness has improved considerably among consumers, increasing consumption. In the coming days, the demand for herbal and specialty teas is likely to be very high due to these reasons. On the other hand, the popularity of specialty teas, such as matcha, chai, and rooibos, is rising worldwide due to their unique taste profiles and benefits, which are predicted to boost the tea demand and propel the market growth.

Along with the latest trends and flavors, the growing number of tea-preferring consumers worldwide is contributing to the expansion of the global tea market. Manufacturers can introduce premium and exclusive blends if the consumer's disposable income increases and you are willing to invest more money in various products. They have introduced a variety of healthy ingredients into tea blends with the goal of general health conditions like obesity, diabetes, and heart disorders. Market growth is supposed to accelerate further as applications in the beauty and cosmetics industries increase. The growing popularity of organic tea positively impacts the growth of the global tea market. Manufacturers improve product quality and flavor through R&D and attract more consumers. Black, green, and herbal teas are the prominent types of products for consumers around the world.

Green tea is famous for its various antioxidant properties, so pregnant women, health-conscious people, and the elderly increasingly consume it. Instead of soft drinks, increased acceptance of tea, especially among health-conscious consumers, is an essential factor driving market growth. Based on its low caffeine and high antioxidant content, tea is an excellent drink for consumers of all ages. Higher demand for products is assumed to foster market innovation. However, tea consumption is presumed to increase worldwide. Also, the market will strengthen during the forecast period if various flavors and types of tea are available at reasonable prices. The escalation in the mergers and acquisitions among the market players is expected to support the global tea market expansion by accelerating the growth opportunities.

MARKET RESTRAINTS

Various factors like fluctuations in raw material pricing, unfavorable climatic conditions, and high costs associated with organic tea products are majorly hampering the global tea market growth.

The massive competition from other beverages is one of the key factors restraining the growth of the market size. Consumers' growing interest in coffee consumption is due to the benefits of caffeine intake, which negatively impacts the global market growth. The frequent change in consumer preferences and tastes may lead to a decline in tea sales, where the growing consumer traction in alcoholic beverages is due to rising modernization and urbanization in most regions, which restrict tea consumption, leading to a decline in market share expansion. The need for awareness and limited knowledge among consumers regarding the benefits of organic tea consumption will limit global market expansion. Some adverse effects, such as disability in absorbing iron, heartburn, nausea sensation, insomnia, and increased heart rate, are estimated to hinder the adoption rate among people, restricting the growth rate globally. The presence of stringent regulations by regulatory authorities for product approval and launches is challenging for manufacturers in market expansion. Various challenges in tea cultivation, such as climatic conditions, pests, and infections, may impede the pricing level of the final product.

REPORT COVERAGE

SEGMENTAL ANALYSIS

GLOBAL TEA MARKET ANALYSIS BY TYPE

The black tea segment held 40.8% of the worldwide market share in 2023.

The domination of the black tea segment in the global market is expected to continue during the forecast period. Black tea is popular worldwide due to its rich flavor profile, versatility, and widespread availability. The consumption of black tea is high in several countries, including India, the UK, and Russia, which is one of the major factors propelling the growth of the black tea segment. The rising popularity of specialty and premium black tea variants, such as Assam, Darjeeling, and Earl Grey, is further aiding the expansion of the black tea segment. China, India, and Kenya are the largest producers and exporters of block tea worldwide and stand at the forefront in addressing the increasing demand for black tea domestically and internationally.

The green tea segment is another significant segment in the global tea market.

The green tea segment is also anticipated to grow at a promising CAGR during the forecast period in the worldwide market. The awareness among tea consumers regarding the health benefits of green tea, such as weight management, cardiovascular health, and immunity enhancement, has dramatically improved in recent years and resulted in the increased adoption of green tea worldwide. Currently, the population that consumes green tea regularly worldwide is considerable, which is a crucial factor boosting the expansion of the green tea segment in the worldwide market. The rising popularity of ready-to-drink (RTD) green tea beverages is further favoring the growth of the green tea segment. China, Japan, and India are the largest producers and exporters of green tea worldwide.

The fruit or herbal tea segment is predicted to register the fastest CAGR during the forecast period.

The rising trend of functional and wellness-oriented beverages and the introduction of exotic and innovative flavor combinations are primarily driving the growth of the herbal tea segment in the global market. The rising health benefits of herbal tea and rising awareness among consumers augment the market growth in this segment.  

GLOBAL TEA MARKET ANALYSIS BY PACKAGING

The plastic containers segment occupied 30.7% of the global market share in 2023.

The plastic containers segment is predicted to hold the leading position in the global market during the forecast period while facing stiff competition from the paperboard segment. The convenience and durability of plastic containers to store and preserve tea products is a crucial factor driving the segment's growth. The lightweight nature, cost-effectiveness, and ability to protect tea from moisture and light exposure further contribute to expanding the plastic containers segment in the global market. Popular tea brands such as Lipton and Nestea that offer various tea products use plastic containers as this packaging meets consumer preferences such as on-the-go consumption and portion control. The rising adoption of recyclable and eco-friendly plastics in tea packaging also supports the growth of the plastic containers segment in the global market.

The paperboard segment is predicted to be the fastest-growing segment.

Governments are encouraging sustainable packaging practices in several countries, fueling the demand for paperboard packaging solutions, including for tea products, and driving segmental growth. The lightweight and versatile nature of paperboards makes them suitable for various tea products, including tea bags, loose-leaf tea, and tea sachets, another pivotal factor propelling the growth of the paperboard segment.

GLOBAL TEA MARKET ANALYSIS BY DISTRIBUTION CHANNEL

The supermarket segment held 41.9% of the global tea market share in 2023.

The domination of the supermarket segment in the global market is primarily attributed to the availability of a wide range of tea products under one roof in the supermarkets. The rising popularity of private-label tea products in supermarkets that offer consumers affordable yet quality options is further boosting the growth rate of the supermarket segment in the global market. The ease of accessibility and exploration of a diverse range of products fuels the segment's growth.

The online stores segment is estimated to have the fastest growth during the forecast period. The e-commerce segment is experiencing rapid growth due to enhanced technological advancements, and consumers' comfort of shopping from home through digital platforms propels the segment growth.

REGIONAL ANALYSIS

The Asia Pacific region dominated the global tea market with a prominent market share in 2023. The increasing awareness among consumers regarding the health benefits associated with tea consumption, the growing population, and the rising demand for healthy beverages due to enlarging awareness about the adverse effects of carbonated drinks are boosting regional market growth. Asian countries such as India and China are tea's primary consumers and exporters worldwide, fueling regional market revenue expansion. China is known to be the birthplace of tea due to its rich history of over 4000 years, which has steady growth in China, leading to the expansion of the Asia Pacific tea market size. The continuous growth of product launches and investments by market players create growth opportunities for the regional market. For Instance, in November 2022, Netsurf Network launched a series of herbal teas in India. The products are available in different herbal flavors such as Bramhi & Cinnamon, ginger & cumin, ashwagandha & lemon, and other flavors. Products from Twinings, Numi Organic Tea, and Tata Global Beverages are likely readily available. Indian specialty store Teabox has released exclusive teas using only organic, all-natural, refrigerated ingredients to preserve the products' freshness and odor. As a result, these products are more expensive than ordinary products. The presence of significant market players in the region and their strategic marketing implementations reflect the market share growth opportunities across the Asia Pacific region.

The North American Tea Market is poised for substantial growth during the forecast period, presenting a promising opportunity for investors. The shift in consumer preferences towards healthy and organic beverages, particularly in the United States and Canada, is a key driver of this growth. The increasing consumption of tea over alcoholic and carbonated beverages is a trend that is boosting the tea market across the North American region. The rising awareness of the health benefits of tea consumption, especially in stress management, is gaining traction among consumers, further expanding the regional market share. The growing demand for tea among millennials, who are seeking unique taste experiences with distinct aromas, is also contributing to the regional market's growth rate.

The European region tea market is estimated to have moderate growth in the coming years due to the presence of a well-established food and beverage industry. Tea manufacturers' innovations are gaining traction among people, contributing to the region's market growth. The rising demand for international beverages, the growing vegan population, and the rising number of fitness-conscious people across the European region fuel the market growth. The availability of various types of tea depending on consumer desire and the continuous product launches are augmenting the market size expansion in the European region.

The Latin American tea market is expected to maintain a steady growth rate during the forecast period, providing a stable investment opportunity. The growing demand for herbal beverages in the region, coupled with advancements in agricultural practices, is boosting the size of the tea market in Latin America. The development of a wide range of flavored and specialty teas, and the increasing number of people seeking health advantages, are all contributing to the regional market's growth.   

The Middle East and Africa (MEA) tea market will likely expand to the fastest CAGR of 7.3% during the forecast period. Countries like Turkey and Iran are some of the best consumers in the world. Growth is assumed to accelerate further due to rising per capita income, increased awareness of product benefits, and changing food and beverage trends. Rising regional tourists are enhancing the beverage industry by introducing various international healthy beverages, which fuels market growth.

KEY PLAYERS IN THE GLOBAL TEA MARKET

Companies playing a significant role in the global tea market include Associated British Foods Plc., Unilever Group, Tata Global Beverages, Nestle S.A., Barry's Tea Limited, Mcleod Russel India Limited, Hain Celestial Group, Inc., TaeTea, The Republic of Tea, Inc. and ITO EN, Ltd. Tata Global Beverages and Apeejay Surrendra Group produce a wide range of high-end consumer products in India and across the world.

RECENT HAPPENINGS IN THE TEA MARKET

• In January 2024, Tata Consumer Products signed definitive agreements to acquire up to 100% of the issued equity share capital of Organic India, an organic brand offering food and beverages and herbal and traditional supplements.
• In January 2024, Starbucks announced that it aims to operate 1000 cafes in India. By 2028, it will unveil a new one every third day, focusing on the nation's remarkable growth and improved business environment for tea drinkers.
• In November 2022, Dabur India Limited launched Dabur Vedic Tea, a premium black tea containing 30+ ayurvedic herbs that provide health benefits and boost immunity. The product contains primary herbs like Tulsi, Ginger, and Cardamom.
• In November 2022, Tata Consumer Products expanded its green tea portfolio by launching Tetley Green Tea with Tulsi flavor. Green tea is estimated to improve immunity and is rich in Vitamin C.
• Green Hills introduced herbal teas flavored with rum and honey for consumers seeking mortgage beverages. This alcohol-free product is rich in licorice, apple, cinnamon, and star anise, giving it an alcohol-like flavor.
• In 2019, Multipak Ltd. showed impressive performance and better-shared value with the famous Luk Yu tea during the review period. The Luk Yu brand was dedicated to the owner and writer Lu Yu (spelling Luk Yu in Mandarin Chinese) during the Tang Dynasty (7th to 10th centuries), who is widely known as the first known tea sage.
• The best player of 2019, Unilever, is increasingly focusing on the organic and specialized store strategies of the Lipton and Elephant brands. The demand for premium tea varieties will increase in the coming years, and consumers will be willing to increase spending by increasing their income.

DETAILED SEGMENTATION OF THE GLOBAL TEA MARKET INCLUDED IN THIS REPORT

This research report on the global tea market has been segmented and sub-segmented based on type, packaging, distribution channel, and region.

By Type

• Green Tea    
• Black Tea    
• Fruit/Herbal Tea

By Packaging

• Plastic Containers  
• Loose Tea    
• Paper Boards
• Aluminium Tin       
• Tea Bags               

By Distribution Channel

• Supermarkets        
• Speciality Stores    
• Convenience Stores
• Online Stores         

By Region

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus