Global Tea Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Type (Green Tea, Black Tea, White Tea, Herbal Tea, Others), By Distribution Channel (Online, Offline), By End-Use Application (Residential, Commercial), By Beverage Application (Hot Tea, Cold/Iced Tea), And By Geography- Forecasts From 2022 To 2027

The global tea market is estimated to grow at a CAGR of 4.95%, from a market size of US$56.095 billion in 2020 to a market size of US$78.688 billion by 2027. 

Tea is one of the most commonly consumed non-alcoholic beverages across the globe. The market is projected to grow significantly due to the prevalent tea culture in some parts of the world, including China and India. Tea is known to originate from China and has gained popularity in the last 2000 years. It is still an important beverage in Chinese society. At present more than 1000 varieties of tea are available in the market, and more than 25 countries in the world are involved in tea cultivation.

According to the Tea Association of the U.S.A Inc., tea is the most widely consumed beverage globally after water. Around 80% of households in the United States of America consume tea. About 159 million Americans are estimated to drink tea every day.

In 2019, it was noticed that more than 3.8 billion gallons of tea were consumed by Americans. Black tea accounted to hold a share of 84%, green tea accounted for 15%, and the remaining 1% share was distributed among oolong, white, and dark tea consumption. The United States continued to be the third-largest tea importer globally, followed by Russia and Pakistan. It is the only western country to grow in tea import and consumption.

Additionally, with the growing change in dietary consumption, the demand for ready-to-drink products has surged the market demand for ready-to-drink teas, including the consumption of iced teas as well, which is a quite refreshing drink, it is enjoyed by most millennials. Thus, the facts mentioned above fuel the market growth in the forecast period.  The increasing disposable income in the developing regions of the world is further promoting tea consumption. The demand for tea is predicted to experience continued growth owing to a constant demand from the Asia Pacific region. Furthermore, with the growing awareness regarding the health benefits of tea, the market is estimated to grow, showing high growth prospects. The expanding product portfolio of teas, including herbal tea, green tea, black tea, white tea, and other tea varieties, is creating interest among tea lovers, further burgeoning the market growth in the forecast period. The booming concept of sustainable tea is augmenting the market demand in the forecast period, providing an opportunity for the global tea market to thrive. The utilization of tea extracts for various end-use applications, such as cosmetics and nutraceuticals, is further driving the market demand in the forecast period. However, the growing coffee consumption at the international level is predicted to hamper the market growth in the forecast period. On the basis of Geography, the Asia Pacific region is estimated to hold a significant share in the global tea market owing to the maximum tea consumption as tea drinking is prevalent in their culture.

The surging demand for sustainably produced tea is anticipated to augment the market growth in the projected period.  

The growing demand for sustainable production of tea amid the increasing environmental awareness has led to increased adoption of Voluntary Sustainability Standards (VSS) in order to address certain issues in the tea market and propagate market growth over the upcoming few years. These standards provide tea consumers with more sustainable options. The production of VSS-compliant tea is focused on meeting consumer preferences and aiming to maintain the tea sector’s sustainability through the requirement of agricultural practices that enable climate resilience, help in the prevention of soil erosion, lower the use of pesticides, help in increasing the profitability for smallholders, in addition to improving the worker’s conditions, which include the provision of rights to collective bargaining and access to sanitation and clean drinking water. The aim of VSS is the creation of a virtuous cycle where demand for sustainable tea gives rise to better conditions for the tea producers, and the environment supporting the production would eventually lead to greater investments. Hence, this would prove to be a more sustainable and profitable sector for the producers. At first, the demand for sustainable tea arose from the regions of North America and Europe. This was utilized by the tea producers with resources to become VSS-compliant as an opportunity to gain access to these potentially attractive export markets and fulfil the increasing domestic demand.

The increasing consumption of instant beverage premixes is propelling market growth in the forecast period.

The growing preference for convenience food and beverages has given rise to augmenting the market demand for instant beverages like instant tea, propagating the market growth in the forecast period. This is because there are changes in the consumer lifestyle with the growing adoption of modern living conditions and moving away from the traditional style of cooking food and beverages. The change has been observed especially in the developing regions of the world and those parts of the world where home cooking was prevalent in their culture. The growing urbanization, increasing personal disposable income, and increasing family income have surged the market demand for these types of beverage products. The women in the families have started working and earning equivalent to their male counterparts. Hence, they find it easier and more convenient to use a beverage premix rather than preparing tea from scratch due to a busy schedule. In the developed regions of the world, people are moving towards the adoption of an individual lifestyle. The high disposable income in these regions, like the North American region, has further resulted in the consumer’s non-willingness to spend time on food preparation and are rather showing a preference for recreational activities, thus encouraging the utilization of ready-to-made food and beverages, fueling the market demand in the forecast period. Furthermore, the presence of varieties of instant tea premixes, which include instant masala tea, instant eliachi tea, instant ginger tea, and instant lemon tea, is offering strong growth prospects for the market to proliferate in the forecast period and satiate a range of customers at the international level. 

Key Developments in the market:

• In June 2022, one of the leading North American tea retailers announced the launch of their new blend Manoomin Maple, created in collaboration with a women-led, indigenous-owned tea brand, Tea Horse. With a hint of maple, vanilla, and berries, this comfortable black tea mix is labelled as Manoomin Mapple and is available at all 18 of their flagship locations across Canada as well as online at davidstea.com.
• In June 2022, TAZO and Deepti Vempati launched the #TAZOSummerBucketList giveaway in honour of National Iced Tea Day, giving away 2,500 bottles of TAZO iced tea for free and 20 prizes for the summer to fans.
• In October 2021, TwiningsOvo, a UK-based leading player in green tea infusions, a speciality tea, entered into a partnership with Nihilent, a global consulting change management firm. This partnership is expected to accelerate the digital ambition the TwiningsOvo in India with Nihilent's expertise.

COVID-19 Impact on the Global Tea Market:

COVID-19 had a significant impact on the global tea market. The growing health awareness among consumers amid the pandemic led to an unprecedented surge in domestic demand. Herbal tea and green tea are well-known for their health benefits. According to the UN Food and Agriculture Organisation, global tea production increased by 3.5 percent annually in 2020. The rapid growth of the e-commerce segment further fuelled the growth. 

Global Tea Market Scope:

Segmentation:

• By Type
  • Green Tea
  • Black Tea
  • White Tea
  • Herbal Tea
  • Others
• By Distribution Channel
  • Online
  • Offline
• By End-Use Application
  • Residential
  • Commercial
• By Beverage Application
  • Hot Tea
  • Cold/Iced Tea
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • UAE
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
    • Indonesia
    • Thailand
    • Taiwan
    • Others