Organic Tea Market Driven by Increasing Consumer Demand for Healthy Food & Beverage Products

Tea is a very popular beverage prepared by boiling leaves and buds obtained from the plant of Camellia sinensis. Cultivation of organic tea is done without the use of harmful fertilizers and pesticides which contain harmful chemicals. The harmful chemicals may enter our food chain and can lead to severe health problems.

Tea is considered to be a refreshing drink which helps in reducing stress and is consumed worldwide. Organic tea is rich in antioxidants and flavonoids. Flavonoids are beneficial in reducing the risks of cardiovascular diseases and also help in lowering cholesterol. They are considered to have anti-cancer and anti-ageing properties which make them a healthier choice.

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Market Segmentation

Organic tea market can be segmented on the basis of type, form, packaging type, distribution channel, and regions.

Based on the type, organic tea market is segmented into five major segments which include white organic tea, green organic tea, black organic tea, oolong organic tea, and others. Out of these, black organic tea segment is estimated to occupy a dominant market position. Also, due to the increasing awareness amongst people about the health advantages obtained from green tea, the organic green tea market is expected to grow in the given forecast period.

On the basis of form, organic tea market can be segmented into dried leaf, powder, liquid (organic iced tea) and others. The organic tea available in the dried leaf form is being increasingly consumed and the market is expected to grow at a higher rate.

Based on the packaging type, organic tea products are sold in the form of paper pouches, cans, cartons, tea bags and others. Due to easy storage and greater shelf life, carton packages of organic tea are more preferred over others.

On the basis of the distribution channel, organic tea market can be segmented into supermarkets/hypermarkets, convenience stores, online, specialty stores and others. Supermarkets/hypermarkets segment contributes more as distribution channels for organic tea and is expected to grow at a high rate.

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Market Regional Outlook

The global organic tea market can be divided into major regions which include North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan and the Middle East and Africa. Asia-Pacific is considered to be a potential market for organic tea products, countries like India and China are found to be contributing more to the market revenue. Also, due to the beneficial medicinal properties, North America is expected to expand their organic tea market in the given forecast period.

Market Drivers and Trends

Organic tea has widespread applications as a healthy food and is particularly suited for people suffering from obesity, heart diseases, and high cholesterol. The increasing consumer demand for healthy food and beverage products is a major driver for the organic teas. The tea is very popular for reducing excess body fat and in increasing the metabolic rate without any significant side effects. Due to the organic production of the tea, the prominent qualities and the medicinally important compounds present in the tea do not get lost. This makes it a healthier tea compared to other products.

Organic tea is now widely used in various forms. It is also available in the form of oil, as organic tea oil extracts. This form is finding increasing use as it easy to store and has the greater shelf life. Organic tea contains anti-microbial agents making them a healthier drink than others.

The other important market trend is the introduction of several new organic tea flavours. Due to the increasing awareness amongst consumers about the harmful chemical constituents of most packaged food products, the global market for organic tea is expected to register a robust growth rate.

Organic tea Market Key Players:

Some of the key players in the market include Tata Tea Limited (Tetley), Alkaloid AD Skopje (Good Nature), R.Twining and Company Limited, Unilever (Lipton), Organic India, Ceylon Organics Limited, The Stash Tea Company etc.