Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global tea market is expected to witness a CAGR of 4.7%, during the forecast period (2020 - 2025). The global tea market is characterized by the black tea segment holding a prominent share. However, the maximum growth is estimated for green and herbal/flavored tea, due to the awareness about health benefits associated with them. China is the largest producer of tea in the world, followed by countries, like India, Kenya, Sri Lanka, and others. Tea production is highly sensitive to changes in the climatic conditions, as tea can only be produced in narrowly defined agro-ecological conditions. China ranks first in the global tea exports representing approximately 31.8% of the global export of tea. China is also the leading green tea exporter.

Asia-Pacific dominates the market. The robust economic growth in the country has also created a large consumer base among middle-class groups with a preference for premium tea blends. The consumers are frequently enhancing their purchases from unpackaged tea to packed and bagged specialty varieties. Furthermore, the consumption of carbonated tea drinks is a new trend in the tea industry, which is further fuelling the growth of the tea market. Various tea manufacturing companies, such as Bigelow, have introduced several flavors of tea, ranging from fruity to herbal flavors, creating a diversified portfolio of tea products for customers. Tea industry is a labor intensive industry which has more labours involved in the process of growing and processing tea, the announcment of pandemic (COVID-19) by World Health Organisation has led the governements to impose aggressive containements which coincided with the peak harvesting periods for quality tea leaves which has affected the production of quality tea.

Scope of the Report

The report contains an analysis of the various aspects of tea in the global market. The report presents an in-depth analysis of the market size and trends of tea across the world. The report identifies the key factors that are instrumental in changing the market scenario, exploiting new opportunities, and gaining a competitive edge.

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Key Market Trends

Increasing Inclination toward Herbal and Green Tea

Consumer awareness about the health benefits of herbal and green tea may further drive the growth of the global tea market. Rise in disposable income of consumers, changes in taste and preferences, and introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth.

The easy availability of tea is expected to encourage the growth of the Asia-Pacific green tea market. World green tea production is expected to grow at a faster rate than black tea, reflecting the growth in China. The millennials are also increasing their tea consumption, led by the promotion of tea schools and tea art training and the staging of tea expos and tea events all over the country, making it a flagship product among the millennials. Owing to the increased consumption across the world china's export of green tea has been recording steady growth. According to the ITC Trade, China exported USD 685.67 million in 2019 as compared to USD 648.56 million in 2016.

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