Tea and Tea-Based Beverages Market Outlook
The Global Tea and Tea-Based Beverages Market was estimated at USD 131.3 Bn in 2022 and is anticipated to reach USD ~285.1 Bn by 2031, expanding at a CAGR of 9.3% during the forecast period.
The tea plant is native to East and South Asia Pacific and is now grown in many parts of the world, including China, India, and others. The tea plant leaves were considered for medicinal purposes at first, then later, as a beverage.
The leaves are usually processed, often through methods such as oxidation, fermentation, & drying to produce different types & flavors of tea. Various types of tea, including black, green, herbal, and others, are manufactured from the leaves and buds of Camellia sinensis. Black tea is the most commonly consumed tea type known for its strong & bold flavor. Green tea is another popular kind, which is known for its light and refreshing taste.
Macro-economic Factors
Economic Growth
Economic growth increases the demand for tea and tea-based beverages, particularly in developing countries. With economic growth, consumers tend to have additional disposable income that they are able to spend more on luxury goods such as tea. High disposable incomes tend to increase the demand for premium tea and tea-based beverages, as consumers are likely to splurge on high-quality products when they have additional money to spend.
Climate Change
Climate change has a significant impact on the tea and tea-based beverages market, as tea is a crop that is highly sensitive to weather patterns and climate conditions. A tea plant requires a specific set of conditions to grow, including a cool and moist climate. Changes in temperature and rainfall patterns impact the quality and quantity of tea produced.
Moreover, climate change also leads to an increase in pest and disease infestations in tea plants. Climate change impacts the tea market, particularly for countries that produce tea. Changes in weather patterns affect the quality, yield, and price of tea.
Tea and Tea-Based Beverages Market Dynamics
Market Driver- Rising Health Awareness
The rising health awareness among consumers has driven the market for tea and tea-based beverages market in recent years as tea is known for its several benefits. Tea is used as a popular beverage worldwide and its ingredients are now finding medicinal benefits. Consumers are becoming increasingly conscious of health benefits associated with tea consumption, such as antioxidants, flavonoids, and other beneficial compounds found in tea.
Tea is rich in flavonoids, which account for 30% of the dry weight of fresh tea leaves. Flavan-3-ols comprise an important subclass of tea flavonoids and are the source of catechins. Catechins are well-known powerful antioxidants. Tea is known for its potential health benefits in reducing the risk of chronic diseases, including cardiovascular disease, cancer, and others.
Market Driver- Convenience and Availability of a Wide Range of Flavors
Tea is easy to prepare and consumed hot or cold, making it a convenient choice for people on the go. Tea bags, ready-to-drink teas, and tea concentrates are readily available in supermarkets, convenience stores, and online making it easy for consumers to access and enjoy.
Additionally, tea comes in a wide range of flavors and blends, from traditional black tea to green tea, and herbal teas. There are over 1000 varieties of tea, most commonly categorized as white, green, oolong, and black. The wide availability of flavors and blends, as well as innovative packaging solutions, has significantly contributed to the growing popularity of tea-based beverages.
Market Restraint- Geographic Limitations and Stringent Regulations
The production of tea is concentrated in certain regions of the world, including China, India, and others. This limits the availability of certain types of tea and tea-based beverages in other regions, which in turn restricts demand. Additionally, shipping and transportation costs increase the price of tea and tea-based beverages in other regions, which also restricts the demand for the product and makes it less competitive with other beverages that are produced locally.
Market Opportunity- Upsurge in E-commerce
The rise of e-commerce has created new opportunities for tea and tea-based manufacturers to reach a wider audience in the coming years. Online sales channels help manufacturers to access new markets and reach consumers who are looking for convenience and value.
E-commerce allows tea and tea-based beverage manufacturers to reach a wider audience than traditional brick-and-mortar retail channels. This presents a lucrative opportunity for particularly small and emerging brands that do not have the resources to establish a physical retail presence.
Scope of Tea and Tea-Based Beverages Market Report
The report on the global Tea and Tea-Based Beverages market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Tea and Tea-Based Beverages Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Form (Ready to Drink, Loose Tea Powder, and Tea Bags), Product Type (Green Tea, Black Tea, Oolong Tea, Fruit/Herbal Tea, Tea Blends, and Others), Category (Organic, and Conventional), Packaging (Plastic Containers, Cartons, and Aluminum Tins), Distribution Channel (Store-Based, and Non-Store-Based)
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Regional Scope
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Regions (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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Starbucks Coffee Company, PepsiCo Inc., The Coca-Cola Company, Nestlé, Tata Consumer Products Limited, ANHEUSER-BUSCH INBEV, Hain Celestial Group, Inc, BARRY'S TEA, The Republic of Tea, Akbar Brothers (Pvt) Ltd, Apeejay Surrendra Group, and Tan Do.
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Tea and Tea-Based Beverages Market Segmental Outlook
Based on form, the market is segmented into ready-to-drink, loose tea powder, and tea bags. The ready-to-drink segment is expected to hold a considerable share of the market during the forecast, due to the convenience it provides.
On the basis of product type, the market is fragmented into green tea, black tea, oolong tea, fruit/herbal tea, tea blends, and others. The black tea segment holds a key share of the market, owing to the various health benefits it provides. Black tea offers several health benefits due to its antioxidant content. Antioxidants, found in black tea, help reduce the risk of chronic diseases, improve heart health, support immune functions, and provide anti-inflammatory effects.
In terms of category, the market is classified as organic, and conventional. The organic segment is anticipated to expand at a significant CAGR during the forecast period, owing to the quality and taste. Organic tea is often made from high-quality leaves, resulting in richer and more complex flavors, which appeal to a wide range of consumers.
In terms of packaging, the market is classified as plastic containers, cartons, and aluminum tins. The plastic containers segment is anticipated to expand at a significant CAGR during the forecast period, owing to its lightweight. Plastic containers are lightweight and often come with secure lids or seals, making them suitable for travel and on-the-go consumption.
In terms of distribution channel, the market is classified as store-based, and non-store-based. The store-based segment is anticipated to expand at a significant CAGR during the forecast period, owing to the wide variety of brands under the same roof. Physical stores often offer a wide variety of tea brands, flavors, and blends. This allows consumers to explore different options, compare products, and make informed choices based on their preferences.
Tea and Tea-Based Beverages Market Regional Outlook
Based on regions, the market is fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America accounted for a significant share of the market in 2021. Tea is often approved for its health benefits, including antioxidants, anti-inflammatory properties, and potential benefits for heart health and brain function, thus driving the market in North America.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Tea and Tea-Based Beverages Market
- Historical, Current, and Projected Market Size in Terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Tea and Tea-Based Beverages Market Performance
Segments
By Form
- Ready to Drink
- Loose Tea Powder
- Tea Bags
By Product Type
- Green Tea
- Black Tea
- Oolong Tea
- Fruit/Herbal Tea
- Tea Blends
- Others
By Category
By Packaging
- Plastic Containers
- Cartons
- Aluminum Tins
By Distribution Channel
- Store-Based
- Non-Store-Based
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
Competitive Landscape
- Manufacturers operating in the global Tea and Tea-Based Beverages market are Starbucks Coffee Company, PepsiCo Inc., The Coca-Cola Company, Nestlé, Tata Consumer Products Limited, ANHEUSER-BUSCH INBEV, Hain Celestial Group, Inc, BARRY'S TEA, The Republic of Tea, Akbar Brothers (Pvt) Ltd, Apeejay Surrendra Group, and Tan Do.
- Market players are pursuing strategies such as acquisitions, product launches, collaborations, and geographic expansion to leverage untapped opportunities in the global Tea and Tea-Based Beverages market.
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