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Wednesday, 27 April 2016

Increasing Consumer Preference for Hot Beverages Accelerating Global Tea Market

Tea market is expected to experience significant growth throughout the forecast period. Globally tea consumption increases rapidly as it is most preferred beverage next to water, available at low price. Research shows that consumption of tea helps to prevent a wide range of ailments. Tea has high antioxidants hence it is used in the treatment of cancer, helps to prevent arthritis, improve bone density, control blood pressure and reduce the risk of heart disease, protect against cardiovascular and degenerative diseases among others. Green tea consumption helps to protect against developing of esophageal and stomach cancer. In this report, the tea market is categorised into leaf tea and CTC tea (Crush, Tear and Curl). Leaf tea is further categorised into black tea, green tea and oolong tea. Health benefits of tea consumption are one of the major factors that are fuelling the growth of tea market.

Many researchers speculate that the polyphenols present in tea inhibits certain mechanisms that promote cancer growth. Moreover, both black tea and green tea are credited with cancer inhibiting powers. A recent study published in the journal “Circulation,” claims that the consumption of more than two cups of tea in a day helps to decrease the risk of death caused by heart attack by 44%. Tea is a good source of flavonoids quercetin, myricetin, and kaempferol. High dietary intake of these compounds reduces the risk of fatal heart attacks. Moreover, black tea consumption helps to improve the immunity power of the body, which is required to fight against any flu. In a recent research, it has been found that people who gargled with black tea extract solution showed a higher immunity against flu virus compared to the people who did not.

Under leaf tea, black tea held the largest market share in 2013 followed by green tea and oolong tea. The tea market has experienced diversified trends across different regions including North America, Europe, Asia Pacific and RoW. Geographically, Asia Pacific region held the largest market share in 2013, and is expected to continue its dominance throughout the forecast period.


The tea market is expected to witness stable growth owing to rising demand for hot beverages in daily life. Further, the economic benefits such as high revenue earning and huge employment opportunity are also expected to boost the demand for tea globally. The situation is further stimulated due to increasing consumer awareness about tea consumption and its health benefits. In Asia Pacific, the tea market is expected to grow significantly, due to growing demand from leading markets such as India and China. Tea market in Asia Pacific region generates huge revenue as tea is exported across the world. Currently, tea market in North America is smaller as compared to other developed regions. However, this market is expected to witness decent growth during the forecast period.

Major markets such as India, China, U.K., Germany, the U.S. and Brazil among others are expected to witness robust demand for tea in coming years. Some key players in this market include Twinning of London, Unilever, Wissotzky Tea, Akbar Brothers Ltd., and Tata Global Beverages. Tea is sold through a variety of channels. Distribution of products is another area of significant value addition. Major distribution channels such as hypermarkets/supermarkets, retailers, general merchandisers, convenience stores, and food and drinks specialists are among the most preferred channels for the sale of tea. Supermarkets and convenience stores have become popular channels for the purchase of goods due to improvement in the living standards of people in different developed countries. Supermarkets and hypermarkets are likely to dominate the distribution channels by 2020.

Global tea market is valued at USD 40.03 billion in 2014 and is expected to reach USD 47.20 billion by 2020, growing at a CAGR of 2.8% from 2014 to 2020. The growth in the tea market is primarily attributed to growing demand for healthy hot beverages such as tea and increasing awareness of health benefits of tea consumption in different markets such as India, China, U.K., the U.S. and Brazil.


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