Market Size of Asia-Pacific Tea Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Tea Market Analysis
Asia-Pacific Tea Market is witnessing a CAGR of 3.4% during the upcoming five years.
Tea is one of the most popular beverages in the Asia Pacific, especially in India. It is obtained from Camellia sinensis plant leaves. It offers various health benefits owing to the presence of polyphenols working as antioxidants, vitamins, trace minerals, and different amino acids resulting in stronger immunity, lower cholesterol, increased metabolism, and more. The growing inclination of demand from traditional tea to premiumization is expected to grow in the years to come. India, China, and Japan are among the top consumers of tea. The tea market is majorly driven by the health benefits associated with consuming tea and the increase in awareness related to the adverse impacts pertaining to the consumption of carbonated drinks. Moreover, the rise in disposable income, changes in the tastes of people, and the introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth. However, an increase in the cost of raw materials due to unpredictable weather, a rise in the cost of agricultural inputs, and an increase in the trend of coffee consumption is expected to limit the growth of the tea market.
Online retailing of organic tea products is the current profound channel for tea manufacturers, when it comes to distribution and marketing. The companies are inclining toward online stores to get better access to consumers having lack of physical outlets in remote areas. Moreover, many new startups and entrepreneurs are rather choosing this point of sale to launch their products, due to the less capital investment required and high consumer base covered.
For instance, In 2022, Luxmi Tea Company Private Ltd. scaled up operations and started selling its teas directly to consumers both through its online site, and other marketplaces and through retail stores. Moreover organic tea is also growing in the region owing to the increasing consumer awareness regarding clean-label foods such as pesticide-free commodities. The organic tea production is increasing due to the perceived higher quality along with the benefits for human wellbeing.
