The vendor landscape of the global tea market includes companies such as Unilever, Twinings of London, Wissotzky Tea, Akbar Brothers Ltd. and Tata Global Beverages Ltd. These key players work through various distribution channels. In fact, the existence of a string distribution channel is one of the key factors behind the growth of this market. Convenience stores, hypermarkets/supermarkets, food and drinks specialists, and retailers are the most preferred distribution channels for the market vendors. The market players are investing heavily in the sales of their products through supermarkets and hypermarkets as these distribution channels are anticipated to dominate through 2020. “The market players are also trying to introduce innovative flavors of tea to meet the increasing demand of consumers,” cites a TMR analyst.
The market players are focusing on expanding their business across Asia Pacific as India and China are expected to emerge as the key markets for tea. In 2014, Asia Pacific was the leading region in the market with India accounting for the largest market share. During the forecast horizon, the U.S. and the U.K. are anticipated to witness sluggish growth.
Consumption of Tea Reduces Risks of Heart Attack, Cancer
The various health benefits associated with the consumption of tea have led to the growth of the global tea market. Tea contains antioxidants and flavonoids, and is helpful in reducing the risk of heart attacks and strengthening the immune system. According to a research study by the U.S. Department of Agriculture, drinking tea can help to lower the levels of Low Density Lipoprotein (LDL) cholesterol. Furthermore, the consumption of black tea has been associated with a significantly lower risk of squamous cell carcinoma. The economic benefits and ample opportunities of employment generated by the tea industry have also augmented the market’s growth.
Green Tea Extracts are increasingly used in Sunscreen Formulations
The growing demand for green tea for beauty and skin care has opened new avenues for the growth of the global tea market. “An increasing number of beauty products manufacturers are introducing green tea extracts in sunscreen formulations as green tea is associated with reducing the impact of sunburns,” TMR report states.
The key types of tea include CTC (crush, tear, and curl) tea and leaf tea. Among the leaf tea segment, black tea accounted for a majority share in the overall market in 2013. However, during the forecast period, the green tea segment is anticipated to drive the demand from the market and register the fastest growth. Among the packaged and loose tea, loose tea dominates the market. To increase their market share, the packaged tea manufacturers are introducing different flavors of tea while enhancing the quality of tea.
The global tea market is anticipated to expand at a CAGR of 2.8% during the period between 2014 and 2020. The market was worth US$38.84 bn in 2013 and is projected to reach a value of US$47.20 bn by 2020.
The information presented in this review is based on a Transparency Market Research report, titled “Tea Market - Global Industry Analysis, Trend, Size, Share and Forecast, 2014 - 2020.”
Global tea market has been segmented as:
The global tea market is segmented into:
- Leaf Tea
- Black tea
- Green tea
- Oolong tea
- CTC tea
- North America
- Asia Pacific
- Rest of the World