Categories: Food and Beverages
Tea is one of the most famous aromatic beverages extracted from the Camellia Sinensis plant. Green and black teas are the ones with most popularity, while herbal teas are gaining over the years. Tea is regarded as a healthy beverage due to its high minerals and antioxidants such as manganese, magnesium, calcium, and potassium. Tea consumption regularly helps reduce free lower cholesterol levels promote healthy weight loss and radical cell damage.
TEA MARKET DYNAMICS
Tea has become extremely popular due to the presence of tea culture in the emerging market. Furthermore, rising disposable income and health consciousness have aided the growth of the tea market. Other factors driving the market's expansion include introducing new beneficial components in tea by various industry competitors. The primary restraints for this market are fluctuating raw material prices caused by unforeseen weather conditions and rising coffee consumption trends. On the contrary, the tea market is expected to expand as demand for new tea flavors, introduces varieties, and herbal tea grows.
According to the tea market data, the black tea segment produced the most income and is likely to continue to do so for the foreseeable future. This is owing to a significant rise in the number of tea consumers worldwide. Black tea is also popular among health enthusiasts because of its high concentration of polyphenols and antioxidants. On the other hand, the green tea segment is anticipated to grow at the highest CAGR over the projected period. This can be ascribed to an improvement in the health and fitness awareness, along with a rise in educated tea drinkers. Furthermore, celebrity endorsements and direct-to-consumer advertising are becoming more common, allowing this segment of the tea industry to thrive.
BY PACKAGING TYPE
According to the tea market prediction, the most crucial segment was paperboards, which accounted for the most significant proportion of the global tea market. This is due to their superior barrier qualities and exceptional design flexibility. On the other hand, tea bags are predicted to expand at the fastest rate, owing to the convenience they provide over loose or differently packed tea, as boiling tea with tea bags is simple and the disposing of the spent tea bags is much easier.
BY DISTRIBUTION CHANNEL
Supermarket/Hypermarket was the leading distribution channel in the tea market, accounting for the lion's proportion. This can be ascribed to some unique features such as the wholesome shopping experience offered by these channels, which made it a predominant option for users. Furthermore, these channels provide consumers with various products at an affordable price and are usually located in accessible areas. However, due to growing internet penetration and increased usage of smartphones for online shopping, the online segment of the global tea market is predicted to grow at the quickest rate, allowing consumers to compare items in real-time and make informed decisions.
Residential is the most important regional market in terms of application. This can be attributable to an increase in caffeinated beverage use at home. However, due to increased consumer spending on hotels and cafes and more excellent tea and coffee availability at work, the commercial category is predicted to grow at the fastest CAGR during the forecast period.
Asia-Pacific and Europe are the two most important geographic markets. This might be due to the high tea consumption and production in this region. Due to the predominance of tea culture, China is predicted to expand at the fastest CAGR during the forecast period.
The tea industry's players have chosen business expansion to boost profitability and market share as their primary development strategy. Significant firms have also used product launches to improve their product portfolio and stay competitive in the global market. Barry's Tea Limited, Associated British Foods Plc., ITO EN, Ltd., Hain Celestial Group, Inc., Nestle S.A., Mcleod Russel India Limited, Tata Global Beverages, The Republic of Tea, Inc., Unilever Group, and TaeTea are among the significant players highlighted in this research.