According to the report, the global tea industry generated US$49 billion in 2021 and is estimated to generate US$93.2 billion by 2031, with a compound annual growth rate (CAGR) of 6.7 percent from 2022 to 2031.
The new report also offers a detailed analysis of changing market trends, top segments, key investment pockets, value chains, regional landscapes and competitive scenarios.
According to the report, the global tea market is experiencing rapid growth worldwide because of the health benefits associated with tea and increased awareness.
And following the COVID-19 pandemic, consumers are even more concerned about their health and wellness, which has increased the demand for tea worldwide, and boosted the tea market’s growth significantly.
The Outlook for Tea by Segments and Distribution Channels
By packaging, the paperboards tea segment held the highest market share in 2021, accounting for nearly two-fifth of the global tea market, and it’s estimated to maintain its leadership status throughout the forecast period. This is due to the rising demand for environmentally friendly packaging options, as well as the practicality and affordability, which will drive the growth of the segment. However, the plastic containers segment is projected to manifest the highest CAGR of 7.2 percent from 2022 to 2031. The plastic container segment is driven by convenience and shelf life.
By application, the commercial segment held the highest market share in 2021, contributing to nearly one-fifth of the global tea market revenue and is projected to maintain its lead position during the forecast period. This is due to significant growth of food chains and restaurants, which is expected to continue in the future, driven by an increase in quick service restaurants. However, the residential segment (home consumption) is expected to showcase the most with a CAGR of seven percent during the forecast period. The increase in the overall consumption of caffeinated beverages at home is also fueling this segment's market growth.
By distribution channel, the supermarkets/hypermarkets segment held the highest market share for tea in 2021, accounting for more than one-third of the global tea market, It’s also projected to rule in terms of revenue during the forecast period.
The growth of the supermarket/hypermarket segment in the tea market is attributed to the increase in adoption of supermarkets and hypermarkets in both the mature and emerging markets.
On the other hand, the online stores segment is projected to manifest the highest CAGR of 8.1 percent from 2022 to 2031. An increasingly popular sales channel in the tea industry, online platforms are preferred by customers because they are convenient and easily accessible. To attract more customers, these online platforms are regularly offering a number of discounts and sales for tea orders placed online.
Asia-Pacific Region Garners Highest Tea Market Share in 2021
By region, Asia-Pacific held the major share in 2021, garnering more than three-fourths of the global tea market revenue, and it’s likely to dominate the market during the forecast period, due to the highly prevalent tea culture in countries such as China, India, Japan and Sri Lanka.
However, the North American region is expected to witness the fastest CAGR of 8.4 percent from 2022 to 2031. The market in the region has been consolidating, due to high competition. Moreover, the shift in preference of consumers toward healthier alternatives to caffeinated beverages and toward tea and coffee is expected to provide opportunities for growth of the tea market.
Allied Market Research is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Ore.
To learn more about Allied Market Research, visit AlliedMarketResearch.com.
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