Market Snapshot
| Study Period: | 2016 -2027 |
| Base Year: | 2021 |
| CAGR: | 3.1 % |
|
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Market Overview
The European tea market is projected to register a CAGR of 3.1% during the forecast period (2022 - 2027).
The COVID-19 crisis has significantly affected the market. There was a change in the buying behavior of the consumers. The consumption of tea was growing as the consumers were locked in their homes. Moreover, the health benefits of the consumption of hot drinks were more during the pandemic, as it reduces the effect of several viruses and also refiles from several bacterial infections. Consumers prefer e-commerce websites for purchasing their products. This was because of the closures of several stores and groceries due to the rules and regulations imposed by the government.
Health benefits associated with consuming tea and an increase in awareness related to carbonated drinks among people are some of the major factors increasing the demand for tea in the region.
Moreover, the increasing work culture and busy schedules of the consumers are dragging the per capita spending toward the market.
Scope of the Report
Tea is a drink that is produced from the combination of cured leaves of the Camellia Sinensis (tea) plant with hot water. Tea is the second most popular beverage in the world, after water. The European tea market is segmented by form (leaf tea and CTC tea), type (black tea, green tea, herbal tea, and other types), distribution channel (hypermarket/supermarket, specialist retailers, convenience stores, online retailers, and other distribution channels), and geography (Spain, United Kingdom, France, Germany, Russia, and Italy). The report offers the market size and forecasts in value (USD million) for the above segments.
| By Form | |
| Leaf Tea | |
| CTC Tea |
| By Type | |
| Black Tea | |
| Green Tea | |
| Herbal Tea | |
| Other Types |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Specialty Stores | |
| Online Retailers | |
| Other Distribution Channels |
| By Geography | |
| Germany | |
| United Kingdom | |
| France | |
| Russia | |
| Italy | |
| Spain | |
| Rest of Europe |
Key Market Trends
Rising Demand for Herbal Tea
The demand for green tea and herbal tea in the country is growing at a faster rate due to aggressive marketing and campaigns showcasing the health benefits of the tea. Consumption of tea improves the blood flow in the body by broadening the key arteries and reducing the risk of clots, thereby reducing the risk of heart attacks. It has a high capacity to absorb oxygen radicals in the human body, which further helps to destroy the free radicals that are harmful. Such health benefits associated with the consumption of tea is one of the major factor driving the demand for tea in the country. Moreover, the popularity of tea is continuously increasing in the food services sector. The herbal tea can help in promoting the immune system. The preference for herbal tea is growing because of the fact that many consumers use herbal tea as a medicine that can help in improving the digestive system of the body.
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The United Kingdom is the Largest Market
The United Kingdom is the largest market. The changing lifestyles of people are gradually amplifying the importance of herbal tea, and a large part of the population now prefers herbal tea over caffeinated forms of tea. High nutritive content and fat-burning properties in green tea play a significant role in driving the growth of the tea market. The rising need for tea enables the manufacturers to introduce natural and infused tea flavors targeted toward health-conscious consumers. For instance, Lipton Herbal Tea is mostly used for the treatment of liver problems by supporting it in the release of toxins from the body. Due to the engagement of the individuals in several works, the stress level rises eventually. Thereby, consumers of this region prefer tea as a stress-reliever drink, as consumption of tea reduces the stress level hormone, which is cortisol. Therefore, consumer demand for tea is rising in this region which is also driving the market.
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Competitive Landscape
The European Tea market is highly competitive in nature. This is due to the presence of domestic and international players in this sector. The major players in the industry are Unilever Company, Associated Britsh Foods PLC, Dilmah Ceylon Tea Company PLC, Nestlé Food Company, and Kusmi Tea. Key players are majorly focusing on product development and product innovation to meet the consumer's needs by offering a variety in taste and in the product's quality to maintain premiumization. Some of the major players use mergers and acquisitions as their key strategy. The strategy to follow mergers and acquisitions by these top players is to sustain and secure a leading position in the industry. This will enable the companies to maintain dominance over other players, and also, the companies can remain a strong competition for other players in the market.
Recent Developments
- In 2020, Nestle launched " Nesquik Go Vegetal" in Europe, which is a plant-based tea drink. According to the company, the drink is made to target vegan consumers. This strategy will also enable the expansion of the company's product portfolio.
- In 2019, Kusmi Tea launched Tea Capsules in France. The strategy behind the launching of this product was to expand the business of the company by enlarging its product portfolio of the company.
- In 2019, Unilever's Tea brand Lipton launched " Cold Brew Tea" in the United Kingdom. According to the company, the launch of the new product will enable larger tea consumers to this product as this was the first ice tea in the country. The major strategy behind the launching of this new product is an expansion of the company's product portfolio.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Form
5.1.1 Leaf Tea
5.1.2 CTC Tea
5.2 By Type
5.2.1 Black Tea
5.2.2 Green Tea
5.2.3 Herbal Tea
5.2.4 Other Types
5.3 By Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Convenience Stores
5.3.3 Specialty Stores
5.3.4 Online Retailers
5.3.5 Other Distribution Channels
5.4 By Geography
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Russia
5.4.5 Italy
5.4.6 Spain
5.4.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Unilever Company
6.4.2 Associated British Foods PLC
6.4.3 Dilmah Ceylon Tea Company PLC
6.4.4 Bettys & Taylors of Harrogate Limited
6.4.5 Nestlé Food Company
6.4.6 Typhoo Tea Limited
6.4.7 Kusmi Tea
6.4.8 Clipper Teas
6.4.9 Cafedirect PLC
6.4.10 Twinings Tea
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Europe Tea Market market is studied from 2016 - 2027.
What is the growth rate of Europe Tea Market?
The Europe Tea Market is growing at a CAGR of 3.1% over the next 5 years.
Who are the key players in Europe Tea Market?
Associated Britsh Foods PLC, Dilmah Ceylon Tea Company PLC, Kusmi tea, Nestlé Food company, Unilever Company are the major companies operating in Europe Tea Market.
