The
global tea market has been predicted by Transparency Market Research
(TMR) to exhibit the presence of important players such as Kusmi Tea,
Tata Global Beverages, Davids Tea, Unilever Plc., and Tea Forte among
others. The level of competition in the market could be intense, as
reported by the market research firm, because of the inclusion of
several small and large suppliers. Distribution, reputation, service,
innovation, quality, and price have been anticipated to be key
factors that base the competition amongst market vendors. Weakening
profit margins could mean the existence of substantial risk factors
in the operations of the suffering vendor.
TMR
has foreseen the global tea market to expand at a CAGR of 5.7% during
the forecast period 2017–2025. By the concluding forecast year, the
market could bag an almost US$20.0 bn, a revealing progress from a
US$12.8 bn secured in 2017. On the basis of segmentation by type,
crush, tear, curl (CTC) tea has been foretold to secure a higher
share in the market in terms of both value and volume. Regionally,
Asia Pacific could post a colossal CAGR of 6.8% and also a larger
revenue by the end of 2025.
Presence
of Antioxidants and Medicinal Benefits Promote Growth
The
world tea market is prognosticated to be bolstered by the growing
count of various tea flavors and widening consumer base in
significant regions of the world. After water, tea has been surveyed
to be a commonly consumed beverage which boasts of helping the human
body to maintain a healthy functioning and providing medicinal
benefits. One of the reasons tea is largely consumed is the presence
of advantageous constituents such as antioxidants, phytochemicals,
and flavonoids. Preventing the risk of cardiovascular diseases,
controlling blood pressure, and combating arthritis are some of the
benefits of antioxidants present in tea.
The
world
tea market has been envisaged to gain a strong push in demand
in the near future due to different health benefits associated with
the consumption of tea. The increase in the consumption of herbal and
green tea could augur well for the growth of the market. Spices,
fruits, and herbs used in the manufacture of herbal or organic teas
rarely contain caffeine. The infusion of tea with different
fragrances and flavors creating new blends have been predicted to set
the tone for a valuable growth in the market.
Substitution
by Coffee and Resource Constraints Hurt Demand
Despite
the growth trends of the international tea market, there could be
certain factors dampening the demand. For instance, volatility of
labor wages, change in consumer preferences, and unavailability of
labor have been envisioned to obstruct the growth of the market.
Furthermore, resource constraints, climate changes, and change in
demographic conditions could spoil the demand for tea. The surging
consumption of coffee in Brazil and the U.S. as an alternative to tea
could also decline market growth.
However,
the consumption of tea has been prophesied to regain growth owing to
several health and medicinal benefits of certain classes such as
herbal and organic. The latest move to the preference for
experimenting with various tea flavors could help the market to
create ample of favorable prospects for players operating therein.
The advent of organized retail and availability of a broad range of
tea offerings at discounted prices could also pamper players with
bettered opportunities in the coming years.
The
information presented in this review is based on a TMR report, titled
“Tea Market (Product - Leaf Tea and CTC Tea; Type -
Premium/Specialty Tea and Mass Tea) - Global Industry Analysis, Size,
Share, Growth, Trends, and Forecast 2017 - 2025.”
The
global tea market has been segmented as presented below:
Global
Tea Market: By Product
- Leaf Tea
- CTC Tea
Global
Tea Market: By Type
- Premium/Specialty Tea
- Mass Tea
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