The global tea market is characterized by high level competition on account of the inclusion of many large and small suppliers, states Transparency Market Research (TMR), a market intelligence company. The players within the global tea market are competing with each other on the basis of service, quality, reputation, price, innovation, and distribution. Leading players operating within the global tea market are Davids Tea, Kusmi Tea, Tea Forte, Tata Global Beverages, and Unilever Plc.
According to Transparency Market Research (TMR), the global tea market will expand at a 5.7% CAGR and rise from US$12.8 bn in 2017 to US$20.0 bn by 2025. By type, the crush, tear, curl (CTC) tea is leading in the market not only in terms of value but also be volume. By geography, Asia Pacific is the leading regional market for tea, showcasing a healthy 6.8% CAGR between 2017 and 2025.
Premium Tea Segment Expanding at Steady Pace
Among the premium and traditional tea types, it is the traditional tea which is consumed more. The cost efficiency of traditional tea over premium tea is behind the high consumption rates. The consumption of premium tea is also increasing at a healthy pace. Premium tea such as yellow tea, oolong tea, white tea, and others are becoming popular and this segment is expected to expand at a steady pace. The high disposable income of the people across the globe is anticipated to bode well for the demand for premium tea.
Health Benefits of Tea Behind High Consumption
The increasing variety and flavours available for tea is one of the key factors behind the accelerated growth of the tea market. The market also benefits from the widening consumer base of tea on account of the common perception that tea helps in the healthy functioning of the body and has various benefits. The antioxidants, flavonoids, and phytochemicals present in tea is expected to be another important factor bolstering the growth of the tea market. In addition to this, the fact that tea helps prevent cardiovascular diseases, combat arthritis, and also helps control blood pressure will boost the consumption of tea.
Herbal and Organic Tea Emerging Popular
One of the key trends within the global tea market is the growing popularity of green, herbal, and organic tea. The infusion of tea with various flavours and fragrances so as to create newer blends will continue to bolster the demand for tea worldwide. On the other hand, the change in consumer preference, volatility in wages of labour, and unavailability of labour are some of the factors helping the market to grow. The surge in the consumption of coffee in the U.S. and Brazil will act as a threat to the growth of tea market.
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Availability of Variety of Flavours to Drive Growth Prospects
Other challenging factors include climate change, resource constraints, and changing demographic conditions. On a bright note however, the consumption of tea is expected to rise on account of the various health benefits associated with herbal and organic tea. The growing availability of a wide range of tea varieties at reasonable costs will also help the market to grow.