Tea Market Size

Tea Market Analysis

The Tea Market is expected to register a CAGR of 5.72% during the forecast period.

• Health benefits associated with consuming tea and increased awareness related to carbonated drinks among people are some of the major factors boosting the demand for tea globally. The flavonoids, antioxidants, and phytochemicals present in tea help improve various functions of the human body.
• The increasing knowledge about the benefits of drinking tea for patients suffering from combat arthritis, cardiovascular diseases, and high blood pressure is likely to pave the way for the market's growth in the coming years. Moreover, a rise in disposable income, a shift 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.
• The introduction of specialty iced teas is likely to be one of the major trends that will gain traction in the tea market over the forecast period. Vendors are introducing specialty iced teas by customizing different blends. Additionally, the popularity of organic label and herbal teas is also rising owing to increasing popularity. This can be attributed to their health benefits and enhanced benefits of ingredients such as basil, tulsi, etc., shifting consumer preferences toward natural ingredients-based products.
• For instance, in 2021, the German Tea & Herbal Infusions Association reported a surge in sales of organic quality teas, herbal infusions, and fruit infusions, with 15.9% of teas sold bearing the organic label. Also, from 2020 to 2021, the percentage of organic herbal and fruit infusions rose by 10.4%, reflecting a shifting consumer preference. This, in turn, is boosting the overall market for tea globally.