The global tea market is estimated to grow at a CAGR of 5.22% from a market size of USD55.225 billion in 2019 to a market size of USD74.937 billion by 2025. Tea is the most widely consumed non-alcoholic beverage in the world. The market is projected to grow at a significant rate 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 at the global level after water. Around 80% of the households in the United States of America consume tea, on any given day, more than 159 million Americans drink tea.
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 and this includes the consumption of iced teas as well, which is a quite refreshing drink, it is enjoyed by most of the millennials. Thus, fueling 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 varieties of tea 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, 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 growing demand for sustainably produced tea will augment the market growth in the forecast period.
The increasing demand for sustainable production of tea has given rise to the utilization of Voluntary Sustainability Standards (VSS) in order to address certain challenges in the tea sector and propagating market growth over the next five 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 giving rise to better conditions for the tea producers and environment supporting the production would eventually lead to greater investments, hence, this would prove to be more sustainable and a 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 also fulfilling the increasing domestic demand.
The increasing consumption of instant beverage premixes is propelling the 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 of the fact that 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 in 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 convenient to use a beverage premix rather than preparing tea from the 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.
| Report Metric | Details |
| Market size value in 2019 | US$55.225 billion |
| Market size value in 2025 | US$74.937 billion |
| Growth Rate | CAGR of 5.22% from 2019 to 2025 |
| Base year | 2019 |
| Forecast period | 2020–2025 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Type, Distribution Channel, End-Use Application, Beverage Application, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | Tata Consumer Products Ltd, Unilever, Associated British Foods plc, Nestlé, ITO EN, LTD., Barry’s Tea, Dilmah Ceylon Tea Company PLC, Celestial Seasonings, Inc., Harney & Sons Fine Teas |
| Customization scope | Free report customization with purchase |
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