Tea Market, Size, Share, Growth, Trends, and Forecast, 2032

The global Tea Market size was worth around USD 63.49 Billion in 2023 and is predicted to grow to around USD 110.40 Billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.34% between 2024 and 2032.

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The report offers valuation and analysis of Tea market on a global as well as regional level. The study offers a comprehensive assessment of the industry competition, limitations, sales estimates, avenues, current & emerging trends, and industry-validated market data. The report offers historical data from 2017 to 2023 along with a forecast from 2023 to 2032 based on value (USD Million).

Tea Market: Overview

Tea is an aromatic drink extracted from camellia sinesis herb which is said to possess medicinal property. It is one of the majorly consumed drinks across the globe. The beverage is considered to be a healthy one due to presence of anti-oxidants as well as minerals including potassium, calcium, magnesium, and manganese. Routine tea consumption will assist in minimizing the damage of the cells as it helps in reducing proportion of free radicals in the body of an individual. Polyphenolic compounds present in black tea as well as green tea help in preventing heart disorders. Furthermore, it has been observed that these tea types possess anti-aging and anti-diabetic features.  Four kinds of teas are available across the globe and they include green tea, black tea, white tea, and oolong tea.

Tea is a traditional beverage originated in China. Tea is the oldest and the most popular, non-alcoholic caffeine-containing beverage. Tea is basically made from the leaves of the tea plant named Camellia sinensis which is a member of the Theaceae family. Tea processing is the method in which the leaves of the tea plant are transformed into dry leaves. 

Tea has antioxidant property due to the presence of polyphenols and is anti-carcinogenic in nature. Moreover, it shows anti-cancerous activity and is effective for the different type of cancers such as lung, prostate, esophageal, stomach, and pancreatic cancer. Tea is a rich source of fluoride and aluminum. It has different amino acids and helps to develop strong immunity, increase metabolism, and reduced cholesterol. There are different types of tea such as green tea, white tea, black tea, yellow tea, oolong tea, and fermented tea. The most commonly consumed tea is black, green, and oolong. Each type of tea has a different smell, taste, and appearance. The main techniques involved in tea making are oxidation and drying. Steps involved in tea processing are plucking, withering, disruption, oxidation or fermentation, fixation, shaping, and drying.

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Market Growth Drivers

Rise in the per capita income and growing health consciousness is anticipated to spur the tea market in the years ahead. Furthermore, rise in the consumption of functional drinks have resulted in massive product penetration across the globe in the years ahead. Pleasant taste and massive health benefits owing to tea consumption will proliferate the business growth over the upcoming years. In addition to this, myriad studies have unleashed favorable effects of routine tea intake against skin disorder as well as cancer. This, in turn, is likely to kindle the expansion of tea industry over the projected timeline.

Apparently, tea improves heart & metabolic activity along with favorably impacting insulin signaling and glucose metabolism. Additionally, it also assists in quick recovery of arthritis patients as well as individuals suffering from neurological disorders. Nonetheless, climatic changes and dependence of the farmers on cultivating tea plant on climate in tea-producing countries like India will pose a threat to the growth of the tea industry over the forecast timeline. However, launching of new tea flavors and massive popularity of herbal tea across the globe will not only nullify the hindrances on the market growth but will offer huge growth avenues for the business over the assessment timeline.

Increasing promotional and marketing strategies applied by tea manufacturers and producers is affecting the global tea market positively. Growing awareness among people regarding the benefits of tea consumption has increased the intensity of demand for tea among consumers. This is increasing the customer base consuming tea on the daily basis which is expected to boost the growth of the global tea market. This growth is mainly due to changing lifestyle and busy daily schedule of people. 

Asia Pacific Market Size To Increase Exponentially Over 2024-2032

The expansion of industry in Asia Pacific zone over the forecast timeline is due to large-scale production as well as intake of tea in the countries like India and China. In addition to this, Vietnam, Indonesia, and Japan are also major regional revenue contributors apart from China and India. Moreover, tea is available at affordable costs in the Asia countries and forms a key part of the Asian culture. This aspect will open new horizons for tea market in the years to come.

Global Tea Market Report Scope:

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Tea Market: Segmentation

The product type of the global tea market includes green tea, black tea, oolong tea, herbal tea, and others. In terms of consumption, black tea is anticipated to dominate the market owing to large demand and consumer base associated with it. On the basis of application, global tea market is segmented into household and commercial. However, increasing cost of raw material is expected to hinder the market growth. 

On the basis of packaging, global tea market is segmented into a plastic container, loose tea packets, tea bags, and aluminum tins.

On the basis of the distribution channel, the market is segmented into a convenience store, supermarket/hypermarket, online retail, specialty store, and others. Hypermarket & supermarket segment is projected to be the most popular sales channel during the forecast period. This is due to high discount rates and offers such as buy one get one free offered at hypermarket & supermarket. 

Tea Market: Regional Analysis

By geography, Asia Pacific is expected to be the fastest growing region in terms of revenue. Emerging economies are experiencing growing demand for processed food items along with increased population the demand for tea is expected to rise in the region. Developed nations in the region of North America and Europe are anticipated to show significant growth due to the popularity of convenience and healthy beverage option which has grown the consumer preferences for tea. The Middle East and Africa region are projected to show a considerable growth rate during the forecast period due to the growing demand for tea by tea loving expatriates.

Key participants leveraging the business growth are -

• Hangzhou Wahaha International Group Co. Ltd.
• The Coca-Cola Company
• Monster Beverage Corporation
• PepsiCo Inc.
• Danone SA
• Sapporo Beverage Co.
• Starbucks Corporation
• Ting Hsin International Group
• Nestle S.A.
• Arizona Beverage Company
• Suntory Holdings Ltd.
• Asahi Group Holdings
• Uni-President Enterprises
• Unilever NV.

This report segments the global tea market as follows:

Global Tea Market: Type Segment Analysis

• Green Tea
• Black Tea
• Oolong Tea
• Herbal Tea
• Others

Global Tea Market: Application Segment Analysis

• Household
• Commercial

Global Tea Market: Packaging Segment Analysis

• Plastic Container
• Loose Tea Packets
• Tea Bags
• Aluminum Tins

Global Tea Market: Distribution Channel Segment Analysis

• Supermarket/Hypermarket
• Convenience Store
• Specialty Store
• Online Retail
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa