Organic Tea Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Black, Green, Others), By Packaging (Cans, Cartons, Pouches, Sachets, Tea Bags, Others), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2022 To 2027

The organic tea market is projected to grow at a CAGR of 7.82% to reach US$1926.429 million by 2027, from US$1136.982 million in 2020.

Organic tea refers to tea that is grown using natural processes and is devoid of any synthetic chemicals. The numerous health benefits associated with organic tea are inclusive of but not limited to developing atherosclerotic cardiovascular disease, lower blood pressure, reduction of oxidative stress due to its richness in flavonoids, and bioactive compounds, protection of teeth, and sustenance of a healthy heart as well as the aid in easy digestive functions. Moreover, through environmentally sustainable methods that contribute to the already healthy attribute of this wonder of human discovery, the market for global organic tea is expected to witness healthy growth during the forecast period. Further, the rise of various health disorders encourages the erstwhile non-tea drinkers to switch to organic tea varieties.

The health and wellness aspiration of consumers worldwide is increasingly influencing food and beverage consumption.

 Further, the growing trend of a perceived need to reduce the consumption of beverages with chemicals and sugars and increase the inclusion of healthy beverages as a part of the regular diet is another aspect contributing to the purchasing proclivities of an informed consumer in the present times. Moreover, the current state of indisposition to which the world has succumbed, also known as COVID-19, is further enthusing consumers to lead a life devoid of any chemically induced production process and all the way natural. Other health problems like soil acidification and autotoxication have emerged as top concerns among today's environmentally conscious consumers. Further, many families have embraced organic farming as a means of earning a living.

 A recent example of a speciality tea company- English Tea Shop, had secured funding from HSBC Under HSBC UK's £14m lending fund, supporting small and medium-sized enterprises (SMEs) in the country. English Tea Shop is engaged in the production and distribution of artisan teas in the country. It sources organic teas, among others, from small organic farmers in Sri Lanka, as well as 20 other countries worldwide. Further, as of March 2020, Rishi Tea & Botanicals, a known source of Direct Trade organic tea and botanicals, has just released a groundbreaking new product line called Sparkling Botanicals into the explosively growing RTD market that honours the ancient wisdom of herbal infusions and merges with modern culinary technique.

Organic tea-preferring consumers are not only limited to fitness-centric millennials but also comprise a myriad of consumers, which is one of the prime factors expected to drive the growth of the global organic tea market during the forecast period.

Moreover, the propensity to purchase organic tea varietals is not only limited to the affluent only, but also includes households who have just started a family, nuclear as well as joint families as well as independent singles, established couples, young adolescents who wish to transition into more healthy consumption, and senior couples who want to try out a new form of beverage.  The rationale behind such a consumption ranges from the need to compensate for not consuming products that have been grown without any chemicals, losing weight, complementing a healthier diet that has been recently embraced, achieving fitness goals as well as due to health reasons, i.e., considering possible health complication that may arise among the geriatric population.

Further, the extensive industrialization and indiscriminate use of agricultural chemicals have led to many governments bringing about policies that embrace organic methods of cultivation and, in the case of some nations bringing about a revival of organic farming.

For India, the latter has been the case. India's agriculture sector accounts for around 15.9 percent of the country's $2.7 trillion economy and 49 percent of total employment (2018-19). The Government of India has recently set an ambitious target to double the income of farmers by 2022-23, which corresponds to targeted annual agricultural growth of more than 14 percent per year. Organic farming by Village Producer Organizations (VPOs) and Farmer Producer organizations (FPOs) is encouraged in large clusters. Further, with the largest number of organic producers in the world, it is home to more than 30 percent of the total organic producers in the world (835,000 vs. 2.7 million). With a 1.5 million ha area under organic agriculture, out of 10 countries in the world, India stands in ninth place [Source: Report on Policies and Action Plan for a Secure and Sustainable Agriculture, Government of India]. Further, India saw the launch of Typhoo, the British tea brand, in October 2019.  Thus, despite the aforesaid elaboration that is not exhaustive, the organic tea market across the world is poised to witness exponential growth as more and more value-driven individuals take over the consumer pool and raise the bar of values that resonates with their own.

Key Developments in the Market

• In January 2022, California-based Numi Organic Tea, a fair-trade sustainable firm, collaborated with WeWork, a leading flexible workspace solutions provider. According to the partnership, the former will be providing its six best-selling tea offerings, including Breakfast Blend, Aged Earl Grey, Jasmine Green, Moroccan Mint, Rooibos Chai, and Matcha Toasted Rice, to the members of WeWorks across 275 locations in Canada and the US.
• In March 2021, US-based Brand Holdings acquired Simple Botanics, organic nutrition bars, and a herbal tea producer. This acquisition is part of the former's objective to acquire health and wellness, functional foods, and sports nutrition DTC brands. Following the development, the former is working with the latter to fuel the brand's growth while introducing new offerings.
• In March 2020, Typhoo India, a British tea brand, expanded its organic tea offerings portfolio with three new additions—Digestive Power Seeds, Purifying Super Greens, and Three tulsi for boosting immunity. According to the brand, the ingredients are procured from the best organic certified farms and are crafted by popular herb and fruit master blenders.

COVID-19 Insights

COVID-19 had a positive impact on the global organic tea market. The surge in active cases mandated lockdown, and border restrictions had impacted tea production and exports in top tea-producing countries. Nevertheless, the growing health awareness of organic tea among the population amid the pandemic and increased at-home consumption have led to market growth.

Organic Tea Market Scope:

Segmentation

• By Type
  • Black
  • Green
  • Others
• By Packaging
  • Cans
  • Cartons
  • Pouches
  • Sachets
  • Tea Bags
  • Others
• By Distribution Channel
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • The Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • Indonesia
    • South Korea
    • Thailand
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the global organic tea market size by 2027?
A1. The organic tea market is projected to reach a market size of US$1926.429 million by 2027. 

Q2. What is the size of the global organic tea market?
A2. Organic Tea Market was valued at US$1136.982 million in 2020. 

Q3. What are the growth prospects for the organic tea market?
A3. The global organic tea market is projected to grow at a CAGR of 7.82% over the forecast period. 

Q4. What factors are anticipated to drive the organic tea market growth?
A4. Organic tea-preferring consumers are not only limited to fitness-centric millennials but also comprise a myriad of consumers, which is one of the prime factors expected to drive the organic tea market growth.

Q5. How is the global organic tea market segmented?
A5. The global organic tea market has been segmented by type, packaging, distribution channel, and geography.