Global Tea Market: Snapshot
Tea is one of the most frequently consumed beverages across the world. The medicinal benefits – it contains phytochemicals, flavonoids, and antioxidants, which help to maintain a healthy functioning of the human body – associated with tea have kept its demand high over time. The pool of tea consumers has been witnessing a continuous rise, globally, owing to which, the global tea market is anticipated to experience a high growth over the forthcoming years.
In 2016, the market stood at US$12.45 bn. Researchers estimate the opportunity in this market to rise at a CAGR of 5.70% between 2017 and 2025 and attain a value of US$20.03 bn by the end of the forecast period. The introduction of new flavors in tea is expected to boost this market substantially over the next few years. However, the increasing popularity of coffee may pose a tough challenge for the tea market in the years to come.
Mass Tea Segment to Remain on Top in Global Tea Market
Broadly, the global market for tea is evaluated on the basis of the products and the type of products available across the world. Tea is primarily found in two types: Mass tea or traditional tea and premium/specialty tea. As the name suggests, mass tea is consumed by the mass, which means, the consumption volume of the mass tea segment is much higher than the premium specialty tea segment. With the cost-efficiency it offers, the segment is expected to continue its growth streak over the next few years.
The demand for premium/specialty tea is also rising at a steady rate across the world. Premium/specialty tea, including yellow tea, white tea, oolong tea, and several ready-to-drink tea, is prepared by infusing various organic ingredients and flavors to the traditional tea. Considering its health benefits and high quality, specialty tea are very expensive in comparison with mass tea. With the increasing number of young and health conscious consumers, the demand for specialty tea is expected to rise significantly in the years to come.
Leaf tea and CTC tea are the main products available in the worldwide market for tea. The demand for CTC tea is relatively higher than leaf tea and the trend is expected to continue in the near future due to the low cost of CTC tea.
Asia Pacific to Maintain Dominance over Global Market
The global tea market is also assessed on the basis of region, that is, Asia Pacific, North America, the Middle East and Africa (MEA), Europe, and South America. Asia Pacific has been leading the global market over the last few years and is anticipated to maintain its dominance in the near future as tea is the most common and popular hot beverage in various economies in this region, such as India, Singapore, China, Japan, Thailand, Hong Kong, Australia. North America and Europe are also projected to register a high rise in their respective tea markets over the forthcoming years, thanks to increasing awareness among consumers regarding the benefits of tea on health.
Starbucks, Kusmi Tea, Associated British Foods Plc., Peet’s Coffee & Tea, Tata Global Beverages, DAVIDs Tea, Unilever Plc., and Tea Forte are some of the leading tea vendors across the world.
Global Tea Market: Overview
This report covers the analysis and forecast of the tea market on a global, regional and country level. The study provides historic data of the years 2005 to 2016 along with forecast for the period between 2017 and 2025 based on volume (kilo tons) and value (US$ Mn). It provides a decisive view of the tea market by segmenting it based on product, type, and regional demand. Application segments have been analyzed based on current trends and future potential.
The market has been estimated from 2017 to 2025 in terms of volume (kilo tons) and value (US$ Mn). Regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, South America, and the Middle East and Africa. These have been further sub-segmented into countries and regions with relevance to the market.
Global Tea Market: Scope of the Study
The study covers the drivers and restraints governing the dynamics of the tea market along with their impact on demand during the forecast period. Additionally, the report includes potential opportunities in the tea market on the global, regional and country level. The global tea market has been forecasted based on constant currency rates. Prices of tea vary in each region and country as a result of the demand-supply scenario in the particular region and the country. Hence, a similar volume-to value ratio does not follow for each individual region and country. Individual pricing of tea for each application has been taken into account while estimating and forecasting market value on a global basis. Regional average price has been considered while breaking down the market into segments in each region.
The report provides the size of the tea market in 2005 and the forecast for the next twenty years up to 2025. The size of the global tea market is provided in terms of both volume and value. Market volume is defined in kilo tons, while market value for regions is in US$ Mn. The market size and forecast for each product segment is provided in the context of global and regional markets. Market estimates for this study have been based on volume, with value being derived through regional pricing trends. The price for commonly utilized type of tea in each region has been considered, and customized product pricing has not been included. Demand for tea has been derived by analyzing the global and regional demand for tea.
Global Tea Market: Segmentation
The product type split of the market has been derived using a top-down approach for each regional market separately, with the global product type segment split being an integration of regional estimates. Companies have been considered based on their product portfolio, revenue, and manufacturing capacity. In the absence of specific data related to the sales of tea of several privately held companies, calculated assumptions have been made in view of the company’s product portfolio and regional presence along with the demand for products in its portfolio.
The global tea market has been analyzed based on expected demand. Market data for each segment is based on volume and corresponding value. Prices considered for calculation of value are average regional prices obtained through primary quotes from numerous regional suppliers, distributors, and direct selling regional producers based on manufacturers’ feedback. Forecasts have been based on the expected demand from tea. We have used the top-down approach to estimate the global tea market, split into regions and countries.
Companies Mentioned in the Report
The report covers a detailed competitive outlook that includes market share and company profiles of key players operating in the global market. Some of the leading market players in the tea market are Kusmi Tea (France), Tata Global Beverages (India), Davids Tea (Canada), Unilever Plc. (U.K.), Tea Forte (United States), Starbucks (United States), Associated British Foods Plc. (Twinings) (U.K.), and Peet’s Coffee & Tea (United States) among others.
The global tea Market has been segmented into:
- Leaf Tea
- CTC Tea
- Premium/Specialty Tea
- Mass Tea
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- Hong Kong
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Rest of South America