Tea can be defined as a hot beverage made by infusing or brewing / boiling / decocting the dried leaves of the Camellia sinensis plant. In 2015, the global tea market was valued at US$ 13,847.4 Mn and is estimated to reach a value of US$ 14,448.3 Mn by the end of 2016, reflecting Y-o-Y growth rate of 4.0%. By 2024, the global tea market is expected to reach a value of US$ 21,329.7 Mn, registering a CAGR of 5.0% over the forecast period.
Among all type segments in the global tea market, revenue from the black tea segment is projected to lead with a CAGR of 5.1% (2016–2024). This segment is expected to remain dominant and expected to account for 42.5% value share over the forecast period. The black tea segment is estimated to account for major value share in 2016, owing to continuous development, which is expected to fuel growth of this segment over the forecast period.
Global tea market dynamics
As a result of rising popularity of various flavors in the tea market and increasing consumer base along with introduction of new tea flavors such as lemon flavor, mint flavor, chocolate flavors and others is expected to have robust growth in the global tea market during the forecast period. As a result of availability of a wide variety of flavored tea worldwide, which is resulting in increasing consumer base and thus is expected to fuel global tea market growth during the forecast period.
A cup of tea has many health benefits, but over consumption of tea has some unpleasant side effects. As per a research work, a cup of tea contains 14 to 60 milligrams of caffeine, which is less than that in coffee. Caffeine affects people in different ways, causing difficulty in sleeping, nervousness, irregular heart rate, diarrhoea and others. According to the University of Maryland Medical Centre, excessive consumption of green tea increases the risk of lung cancer, colorectal cancer, and esophageal cancer. In addition, it may cause some complications such as high blood pressure, insomnia, anxiety, and stomach ulcers. Also, availability of substitutes for tea could influence consumers to defer from tea consumption during the forecast period.
Global tea market segment analysis
The black tea segment is expected to contribute comparatively high revenue among the type segment over the forecast period, and is estimated to account for around 42.1% value share of the overall global market by 2016 end. Green tea segment is also expected to witness favorable revenue growth in the global tea market, registering a CAGR of 5.4% over the forecast period. This segment is projected to create incremental $ opportunity of US$ 2499.2 Mn between 2016 and 2024.
The global tea market is also segmented on the basis of distribution channel into hyper/super market, online stores, and retail stores, convenience stores, and others. Among the distribution channel segment, the hyper/super market is projected to contribute significantly high revenue in the global tea market.
Global tea market regional analysis
Markets in North America, APAC and Europe are expected to contribute significantly to overall revenue growth of the global tea market. Change in outlook towards social consumption of tea, increasing tea consumption among youth and kids, growing prominence of café and quick service restaurants in urban areas has resulted in increasing demand for tea consumption across the globe, are factors expected to fuel growth of the global tea market. Among the regions, APAC is estimated to account for majority in terms of revenue share at 41.2% in 2016, followed by Europe.
APAC market is set to witness highest growth in terms of value over the forecast period, followed by Europe and North America. Sales of various flavors of teas in North America, Europe and APAC is estimated to collectively account for over 83.1% revenue share of the global tea market by 2016 end. Among all major markets for type, black tea and green tea segments are expected to witness significant growth rates over the forecast period.
Global tea market key market players
Top companies operating in the global tea market are Associated British Foods, WISSOTZKY TEA, Unilever, Starbucks Corporation, Akbar Brothers Ltd, Nestlé S.A, Tata Global Beverages (Tata Tea Ltd.), DAVIDs TEA, and The Republic of Tea.
Persistence Market Research offers an eight year forecast for the global tea market between 2016 and 2024. The primary objective of the report is to offer key insights on the expected future growth of the global tea market. The study demonstrates market dynamics that are expected to influence the current environment and future status of the global tea market over the forecast period. The primary objective of this report is to offer updates on global tea market.
The report offers data regarding market share of the global tea market and the market is segmented on the basis of type into black tea, green tea, oolong tea, herbal tea and others. The market is also segmented on the basis of distribution channel type, which includes hyper/super market, convenience stores, retail stores, online stores, and others. The report also highlights various trends in the global tea market. A section of the report highlights region-wise trends in the global tea market. It also provides a market outlook for 2016–2024, and sets the forecast within the context of the segment by type, distribution channels type. This study discusses key regional trends contributing to growth of the global tea market, as well as analyses the degree to which drivers are influencing markets in each region. Key regions assessed in this report include North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
In the final section of the report, a competitive landscape has been included to provide report audiences with a dashboard view. Detailed profiles of key players are also included in the scope of the report to evaluate their long-term and short-term strategies, recent developments, key brands and products offered. Key players in the global tea market covered in the report include Unilever, Starbucks Corporation, WISSOTZKY TEA, Associated British Foods, Nestlé S.A, Akbar Brothers Ltd, Tata Global Beverages (Tata Tea Ltd.), The Republic of Tea, and DAVIDs TEA.
Key Segments Covered
Key Regions Covered
To ascertain the global tea market size, we have taken into account the revenue generated by the various tea producers and processers globally. The forecast presented here assesses the total revenue generated by value, across the global tea market. In order to provide an accurate forecast, we initiated by sizing up the current market, which forms the basis on how the tea market is expected to develop in the future. Given the characteristics of the market, we triangulated the outcome on the basis of three different types of analysis; based on supply side, downstream industry demand and the economic envelope.
In addition, it is imperative to note that in an ever-fluctuating economy, we not only conduct forecasts in terms of CAGR, but also analyze on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities.
Also, another key feature of this report is the analysis of all key segments in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the global tea market.
To understand key growth segments in terms of growth and adoption for tea globally, PMR has developed the tea market ‘Attractiveness Index.’ The resulting index should help providers identify real market opportunities.