Tea

Tea

Global Tea Market to Reach US$26.1 Billion by 2030

The global market for Tea estimated at US$17.5 Billion in the year 2023, is expected to reach US$26.1 Billion by 2030, growing at a CAGR of 5.9% over the analysis period 2023-2030. Green Tea, one of the segments analyzed in the report, is expected to record a 6.9% CAGR and reach US$10.5 Billion by the end of the analysis period. Growth in the Black Tea segment is estimated at 5.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$4.6 Billion While China is Forecast to Grow at 9.4% CAGR

The Tea market in the U.S. is estimated at US$4.6 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.3 Billion by the year 2030 trailing a CAGR of 9.4% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.3% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.

Global Tea Market - Key Trends and Drivers Summarized

Why Has Tea Become a Global Beverage Staple?

Tea has grown from its ancient roots in China and India to become a global beverage staple, beloved by millions across diverse cultures and regions. Its widespread popularity is due in part to its incredible versatility, as tea offers a broad spectrum of flavors, health benefits, and cultural significance. Unlike many beverages that are confined to specific times of day or occasions, tea seamlessly fits into everyday routines, whether it’s a morning cup of black tea, a calming evening herbal blend, or an iced tea during a hot summer afternoon. In many parts of the world, tea drinking is deeply embedded in the culture, such as in Japanese tea ceremonies, British afternoon teas, or Moroccan mint tea traditions, which emphasize hospitality and relaxation. This global appeal is also driven by tea`s inherent health benefits, which range from its rich antioxidant content in green and white teas to the digestive and calming properties of herbal infusions like peppermint and chamomile. Moreover, tea offers an adaptable drinking experience; it can be enjoyed hot, cold, or infused with spices, fruits, and herbs, allowing consumers to tailor it to their personal preferences. The increasing focus on wellness and mindfulness has further cemented tea’s place in daily life, making it more than just a drink—it is an experience that promotes balance, calm, and connection.

How Have Production and Innovation Enhanced the Tea Industry?

The tea industry has undergone a transformative shift in production techniques and innovation, allowing it to reach a wider audience and meet the changing demands of modern consumers. Traditional tea production, which involves hand-picking leaves, drying, fermenting, and packing, has been supplemented by new technologies that streamline the process while maintaining the quality that tea connoisseurs expect. This balance between tradition and modernity is particularly evident in the growth of organic and fair-trade teas, as consumers increasingly seek out sustainable, ethically produced products. Innovations in packaging have also played a significant role in broadening the appeal of tea, with single-serve tea bags, biodegradable sachets, and eco-friendly packaging becoming the norm as consumers prioritize convenience and sustainability. Additionally, the rise of ready-to-drink (RTD) teas has revolutionized the market, offering consumers on-the-go options that do not sacrifice quality or flavor. These RTD products are now available in an array of flavors, from classic green tea to exotic blends like hibiscus and jasmine, catering to a younger, more health-conscious demographic that demands both flavor and convenience. The push toward innovation doesn’t stop at packaging or flavor; tea concentrates, cold-brew options, and even tea pods for single-serve brewing machines have further diversified the ways in which consumers can enjoy tea. These advancements in production and product offerings have not only preserved the integrity of traditional tea but also brought it into the modern era, making it accessible, sustainable, and tailored to the preferences of a global audience.

What Trends Are Shaping Consumer Preferences in the Tea Market?

Consumer preferences in the tea market are undergoing dynamic shifts, influenced by broader lifestyle trends, health consciousness, and the growing popularity of wellness products. One of the most notable trends is the rising demand for functional teas that promise specific health benefits. Herbal blends designed to support sleep, digestion, detoxification, or immune function have surged in popularity as consumers turn to natural remedies for everyday ailments. This trend is part of a broader shift toward holistic health and self-care, where consumers are looking for products that align with their wellness goals. Green tea, in particular, has become a staple for its rich antioxidant content, believed to aid in weight management, heart health, and cancer prevention. Additionally, the market has seen a significant push towards organic, ethically sourced teas, reflecting consumers` desire for transparency and sustainability in their food and drink choices. Brands are responding by offering teas that are certified organic, non-GMO, and fair trade, appealing to an environmentally and socially conscious consumer base. Another emerging trend is the growing popularity of specialty and artisanal teas, as consumers seek out high-quality, single-origin varieties that offer unique flavor profiles and premium experiences. Specialty tea shops and cafés are capitalizing on this trend by providing curated experiences, including tea tastings and rare blends that allow consumers to explore tea in a more sophisticated way. Social media platforms have also amplified these trends, with influencers promoting new tea rituals, recipes, and presentations that cater to a younger, more trend-focused audience. This intersection of health, sustainability, and lifestyle has dramatically reshaped the tea market, with consumers looking for both tradition and innovation in their daily cup.

What Are the Key Drivers Behind the Growth of the Tea Industry?

The growth in the tea industry is driven by several key factors, each contributing to the expansion of tea’s presence in both traditional and emerging markets. First, the global shift toward health and wellness has been a primary catalyst. As consumers become more health-conscious, they are increasingly turning to tea as a healthier alternative to sugary beverages and coffee. The antioxidant properties of green and white teas, combined with the soothing, functional benefits of herbal blends, have made tea a go-to beverage for those looking to enhance their overall well-being. In addition to health consciousness, the convenience of ready-to-drink (RTD) teas has significantly boosted market growth. These products, which offer the same quality and benefits of brewed tea in a portable format, appeal particularly to busy, on-the-go consumers, including younger generations who prefer grab-and-go solutions. The rise of premiumization within the tea market is another important driver, with consumers increasingly willing to spend more on high-quality, artisanal teas that promise unique flavors and superior sourcing practices. Premium tea brands have capitalized on this by offering single-origin, hand-picked teas, often in luxury packaging that appeals to discerning customers. Sustainability is another key driver. As awareness of environmental issues grows, consumers are demanding eco-friendly options, prompting brands to adopt sustainable practices, such as the use of biodegradable packaging and responsibly sourced ingredients. Finally, globalization has introduced tea to new markets and demographics. The expansion of tea cafés, both in urban areas and through online platforms, has popularized tea among younger consumers in Western markets, who are discovering tea’s diverse flavors and health benefits. These factors, combined with continuous innovation in flavors, formats, and sustainability, have positioned the tea industry for robust, long-term growth.

Select Competitors (Total 426 Featured) -

• Apeejay Surrendra Group
• Associated British Foods Plc
• Barry`s Tea
• Bettys & Taylors Group Ltd.
• Celestial Seasonings, Inc.
• DavidsTea
• Fukujuen
• Godrej Group
• Harney and Sons
• Ito En, Inc.

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