Global out of home tea market is valued at approximately USD 23.65 billion in 2023 and is expected to expand at a robust growth rate of 9.3% during the forecast period of 2024-2032. Tea has become the most commonly consumed beverage globally, driven primarily by increased consumer awareness regarding its health benefits. Tea offers antioxidants, supports cough control, and is widely consumed to energize individuals, particularly workers, professionals, and students. With the rising trend of out-of-home tea consumption, including at tea stalls, caf?s, and restaurants, the demand for tea has surged considerably.
Tea stalls and caf? owners have made significant efforts to provide high-quality and hygienic tea services to attract more customers. The establishment of franchise outlets and the growth of online tea retail stores further facilitate the accessibility and consumption of tea products. For instance, Chai Point, a leading tea retailer in Bengaluru, India, invested USD 1.33 million in June 2018 to set up 30 new tea stores across the city, highlighting the expansion potential in this sector.
The growing consumer preference for immunity-boosting food and beverages during the COVID-19 pandemic has also propelled demand for tea among hotels and restaurants. Tea stalls have seen rising demand as instant energy drinks, while innovations in tea-making technologies, such as IoT-enabled tea machines, are boostinsg the productivity of tea merchants. However, the high price of premium tea products and the temporary reduction in out-of-home tea consumption during the COVID-19 outbreak have created some challenges for market growth.
The Asia-Pacific region, particularly China and India, is projected to dominate the out-of-home tea market due to high on-the-street tea consumption, strong tea culture and tradition, increasing consumer preference for convenient and premium tea experiences, and rapid urbanization. Busy lifestyles boost demand for ready-to-drink and on-the-go tea options, while the growth of caf? chains and specialty tea shops cater to the rising trend of social and premium tea consumption. Additionally, the region’s expanding middle class and evolving taste preferences are fueling innovation and variety in tea offerings, from traditional blends to modern, flavored, and health-oriented options. In North America, the out-of-home tea market is driven by a growing demand for healthier beverage options, a rise in specialty tea consumption, and the expansion of caf? and quick-service restaurant chains offering diverse tea selections. Increasing consumer interest in wellness and premium, artisanal tea experiences contributes to market growth, while the convenience of ready-to-drink and on-the-go tea options aligns with busy lifestyles. Additionally, the influence of global tea trends and the expanding presence of innovative tea brands and products further stimulate consumer interest and market expansion.
Major market players profiled in this report include:
Unilever Plc.
Starbucks Corporation
Tata Global Beverages Ltd.
The Republic of Tea
Tenfu Corporation
JAB Holding Company
Hain Celestial Group
Associated British Foods Plc.
The Coca-Cola Company
Nestle S.A.
The detailed segments and sub-segments of the market are explained below:
By Product Type:
- Herbal Tea
- Green Tea
- Black Tea
- Oolong Tea
- Others
By Packaging Formats:
- Pouches
- Tea Bags
- Canned Tea
- Bottled Tea
- Others
By End-User:
- Tea Stalls & Caf?’s
- Hotels & Restaurants
- Offices & Institutions
- Others
________________________________________By Region:
North America:
- U.S.
- Canada
Europe:
- UK
- Germany
- France
- Spain
- Italy
- ROE (Rest of Europe)
Asia Pacific:
- China
- India
- Japan
- Australia
- South Korea
- RoAPAC (Rest of Asia Pacific)
Latin America:
- Brazil
- Mexico
- RoLA (Rest of Latin America)
Middle East & Africa:
- Saudi Arabia
- South Africa
- RoMEA (Rest of Middle East & Africa)
Years considered for the study are as follows:
- Historical year – 2022
- Base year – 2023
- Forecast period – 2024 to 2032
Key Takeaways:
- Market estimates and forecasts for 10 years, 2022 to 2032.
- Annualized revenues and regional analysis for each market segment.
- Detailed geographic landscape analysis, including country-level insights.
- Competitive landscape with profiles of major players.
- Analysis of key business strategies with recommendations for future market approaches.
- In-depth demand and supply-side analysis.