The global tea market is expected to witness a CAGR of 4.5%, during the forecast period (2020 - 2025).

The global tea market is characterized by the black tea segment holding a prominent share. However, the maximum growth is estimated for green and herbal/flavored tea, due to the awareness about health benefits associated with them.

Consumption of carbonated tea drinks is a new trend in the tea industry, which is further fuelling the growth of the tea market.

Various tea manufacturing companies, such as Bigelow, have introduced several flavors of tea, ranging from fruity to herbal flavors, creating a diversified portfolio of tea products for customers.

Key Market Trends

Increasing Inclination toward Herbal and Green Tea

  • Consumer awareness about the health benefits of herbal and green tea may further drive the growth of the global tea market. Rise in disposable income of consumers, changes in taste and preferences, and introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth.
  • The easy availability of tea is expected to encourage the growth of the Asia-Pacific green tea market. World green tea production is expected to grow at a faster rate than black tea, reflecting the growth in China.
  • However, the higher price of green tea in comparison with black tea is anticipated to restrict the growth of the global green tea market, in the next few years. Nevertheless, the expansion of the product portfolio and the increasing marketing activities and advertising are expected to offer promising opportunities for the key players in the global green tea market.



Asia-Pacific is Leading the Global Tea Market

  • Currently, the growth in tea consumption is being driven by rapid growth in per capita incomes, particularly in the developing countries of Asia-Pacific. A growing, increasingly urban young population segment entering the middle class is prepared to consume more and to pay for premium tea products.
  • Therefore, these changes have the potential to develop into a stronger and longer trends. At present, Asia-Pacific has the largest market for tea consumption, with robust economic growth in a number of developing countries, such as China, India, and Russia. This has created a large middle class groups, with a preference for premium tea blends and brands, often upgrading their purchases from unpackaged tea to packed and bagged specialty varieties.



Competitive Landscape

The global tea market is highly fragmented and competitive. The market consists key players competing for major market share and small regional players catering to small regions. The key global players are based in North America and Europe, while various small players are based in Asia-Pacific, South America, and Eastern Europe. The key strategies adopted by the players in the market are expansions, innovations, and new product launches. For instance, Unilever is strengthening its presence with more product innovations, such as machine compatible tea capsules.

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