China Tea Bag Market 2022-2028

China Tea Bag Market 2022-2028

China Tea Bag Market Size, Share, & Analysis by type (green tea, black tea, oolong tea, herbal tea, and other tea). The tea bag market in China is expected to grow at a CAGR of 7.0% during the forecast period. China has deep roots in modern tea consumption in medicinal use for around 5,000 years. Since then, tea has become one of the most popular drinks around the globe. At present, the total tea consumption and market growth are backed by cohesive government policies, favorable trade relations, and a significant rise in the disposable income in the country. Increasing urban and young population pool preferring tea is surging the demand for tea in the country. Besides, the target population is also inclined towards consuming premium tea products; thereby, influencing the China tea bag market. The above factors have the potential to develop into a stronger and longer influencing trend, which could characterize the consumption pattern of tea in China in the future.

KEY FACTORS TO LEAD THE CHINA TEA BAG INDUSTRY

1.The health benefits offered by tea is a major factor to drive the growth of the tea industry and hence tea bag in the country. Tea, especially green tea lowers the risk of stroke, reduces cholesterol, and protects against Parkinson's disease.

2.The growing trend towards customized/personalized premium tea bags also gives a boost to the market growth in the country.

3.The expansion of the global key players in the country will create enormous opportunities for the future growth of the market.

4.Extensive growth in tea consumption in the country is expected to open routes for the importer to present their branded products.

5.Growth in online distribution platform tends to create opportunities for the local tea bag manufacturers to capture more audience.

Over the decades, the Chinese tea industry has observed significant growth, with the entrance of new on-the-go tea-based beverages and a growing number of consumers across the globe. China led the global production volume with more than 40.0% production capacity. According to OMR analysis, in 2021, the tea production in China was around 2.8 million tons from around 1.9 million tons in 2013, accounting for around a 47.3% increase in volume over the period (2013-2021). Further, the tea bag market in China is estimated to grow at a CAGR of 4.8% to reach 341 thousand tons in 2028.

SEGMENTAL OUTLOOK

China tea bag market is segmented based on types of tea consumed in the country. The market is segmented into green tea, black tea, oolong tea, herbal tea, and other tea. Other tea segment includes white tea, yellow tea, Pu'er tea, and scented tea. The green tea bag market in China held the highest market share.The green tea bag segment in China is growing at the highest CAGR of 7.7% during the forecast period owing to the rising disposable income, rapid urbanization, and increasing preference for on-the-go beverages. China is the largest producer and consumer of green tea across the globe. A wide variety of high-quality green tea products such as Dragon Well tea, Biluochun, Huangshan Maofeng tea, Taiping Houkui tea, Lu'an Melon Seed tea, Xinyang Maojian tea, Lushan Yunwu tea, and Nanjing Rain Flower tea. Further, the growth of the green tea bag market is growing owing to its various health benefits such as lower cholesterol, hence reducing the risk of cardiovascular disease and stroke.

KEY PLAYERS OUTLOOK

China tea bag industry is fragmented in nature with various local manufacturers contributing majorly to the overall market. The tea supply chain is characterized by vertical and horizontal integration, with a small number of companies controlling the entire tea supply chain, from packing to processing and consumer branding. Some of the key players operating in the China tea bag market include Associated British Foods PLC, ITO EN Ltd., Tata Global Beverages, Ltd., Unilever Group, and many others. These market players are adopting various strategies to capitalize on market growth opportunities. For instance, in May 2021, Global tea brand Lipton planned to sell black and green tea produced in Zunyi, Guizhou province, nationwide, and later globally. Guizhou is expected to provide 50 metric tons of raw tea to Lipton, annually, and the tea bags will be made in Lipton’s manufacturing base in Huangshan, Anhui province.