Tea Market Size, Share & Trends Analysis Report By Product (Black, Green, Oolong, Herbal) By Distribution Channel (Hypermarkets, Convenience Stores, Specialty Stores) By Region, And Segment Forecasts, 2024 - 2030

Tea Market Size, Share & Trends Analysis Report By Product (Black, Green, Oolong, Herbal) By Distribution Channel (Hypermarkets, Convenience Stores, Specialty Stores) By Region, And Segment Forecasts, 2024 - 2030

Tea Market Growth & Trends

The global tea market size is expected to reach USD 91.98 billion in 2030 and is projected to grow at a CAGR of 7.4% from 2024 to 2030. Rising popularity of carbonated drinks coupled with rise in consumer disposable income, especially in emerging economies such as India, China, and Brazil will create robust product demand.

Tea, being a widely consumed beverage especially across Asia Pacific (APAC) and Middle East and Africa (MEA). It has gained immense popularity in other parts of the world as well, owing to its antioxidant properties. Presence of polyphenols, antioxidants, vitamins, and a variety of amino acids make it help strengthen the immune system. Additionally, it helps lower cholesterol levels, increase metabolism, and may help prevent cancer. It also contains a small amount of caffeine, which boosts its consumption as a mild stimulant.

Changing demographics, rise in disposable income of middle class population, especially in urban areas is anticipated to drive the product consumption and in turn drive the market. Millennials are anticipated to register the strongest growth, especially in countries such as China, Japan, Brazil, and India. Rising awareness regarding the benefits of drinking tea coupled with willingness to shell out money on the product is anticipated to bode well for the demand. Hence, to leverage this trend, a number of manufacturers are repositioning the product like a lifestyle brand to reach more consumers. They engage in social media campaigns and celebrity advertising to promote their new and premium flavors.

In 2018, black tea held the largest market share of about 39%. The product is predominantly produced and consumed in countries like India, China, Sri Lanka, and Kenya. Green tea is also anticipated to hold a significant market share over the forecast period. The product is a natural and organic detoxifying agent and hence, along with food and beverage, it also finds application in skin care and wellness products. It that has therapeutic properties to cure scars, helps manage weight, and to improves skin texture.

Oolong is a premium-quality product that apart from being used as a weight loss remedy, has innate properties to help prevent type 2 diabetes. Herbal tea includes hibiscus, tulsi, jasmine, and chamomile among numerous other flavors. These products are popular among consumers from European countries such as Germany and U.K. Typhoo, the British packaged tea brand currently owned by Kolkata, India-based, Apeejay Surrendra Group, which manufactures non-tea infusions, including organic herbal mixes due to declining black tea market, especially in the European countries.

Hypermarkets and supermarkets distribution channel segment held the market share of more than 38% in 2018, while convenience stores held the market share of around 32% in the same year. Specialty stores, such as Fabindia and Teafloor provide consumers with premium and exquisite brands and flavors. On the other hand, online channel is expected to expand at the fastest CAGR of 5.9% over the forecast period due to ease of payment methods and availability of a wide variety of products.

Most companies operating in the market engage in product innovation and R&D. They also focus on innovative advertising and social media campaigns to attract more target consumers. Tata Global Beverages entered into Ready-to-Drink segment with the introduction of green tea based drink, led by Tata Tea in India and Tetley in Canada.

Tea Market Report Highlights

• Asia Pacific held the largest market revenue share of 35.2% in 2023.
• The black segment held the largest market revenue share of 39.1% in 2023and is projected to exhibit a significant rise in the next few years
• The Middle East and Africa is projected to witness the fastest CAGR over the forecast period.
• Online segment is projected to witness the fastest CAGR over the forecast period. Consumers are increasingly turning to online platforms for convenience and accessibility, allowing them to browse a wide range of tea varieties and brands from the comfort of their homes.

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