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Green Tea Market Size, Share & COVID-19 Impact Analysis, Form (Tea Bags, Loose Leaves, Loose Powder, Ready-to-drink, and Capsules & Tablets), Flavor (Flavored and Unflavored), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, and Online Retail) and Regional Forecast, 2020 – 2027

Region : Global | Format: PDF | Report ID: FBI100790

 

KEY MARKET INSIGHTS

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The global green tea market size was USD 12.80 billion in 2019 and is projected to reach USD 23.66 billion by 2027, exhibiting a CAGR of 8.0% during the forecast period.


The global market is experiencing robust growth primarily due to the rising awareness regarding the health benefits of green tea among consumers. The growing prevalence of lifestyle-related health conditions has increased the demand for tea as a source of nutrients to delay the occurrence of these disorders. The increased popularity of functional beverages among millennials has necessitated key players to introduce novel types and forms of green type tea to capitalize on modern consumer demands. The increasing number of studies and scientific researches proving the positive role of tea in preventing certain diseases is expected to drive market growth in the upcoming years.


Disruption of Green Tea Supply Chain amid COVID-19 Pandemic to Impede Growth


The global supply chain of various types of teas has experienced a sudden disturbance due to the outbreak of the COVID-19 pandemic. Nationwide lockdowns in various countries have resulted in the disruption of trade activities, which has slowed the growth of the green-type tea industry. However, the increased concerns related to immunity and overall health have re-established the demand for nutritional beverages across retail channels, which is expected to continue during & after the pandemic. According to the U.S. Department of Agriculture, grocery store sales were up 99% in the middle of March and 25% higher in April 2020 compared to the sales last year. The growing interest in consuming antioxidant-rich foods & beverages to reduce the risk of diseases is expected to further increase the demand for tea during and after the pandemic.


LATEST TRENDS


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Consumption of Antioxidant & Nutrient-rich Beverages to Reduce Risk of Certain Health Conditions


The trend of maintaining overall health and wellness by shifting to nutrient-rich food & beverage choices mainly drives the market growth. In recent years, consumers have shifted their buying preferences towards products rich in functional ingredients to minimize the risk of the occurrence of lifestyle-related health conditions. The modern-day stressful and sedentary lifestyle of consumers has resulted in the increased prevalence of obesity, diabetes, and cardiovascular diseases conditions.


According to the National Diabetes Statistics Report by the Center for Disease Control, over 88 million American adults are prediabetic. The growing knowledge of the strong association between the consumption of antioxidant-rich food & beverages and overall wellbeing contributes to the growing demand for green-type tea. The rising trend of ready-to-drink functional beverages among millennials significantly contributes to the growing demand for ready-to-drink teas. The increasing popularity of flavored beverages strongly impacts the global market and it is projected to boost the market growth in the foreseeable years.


DRIVING FACTORS


Rising Awareness about the Health Benefits of Green Tea to Drive Market Growth


The recent recognition regarding the positive health effects of antioxidants has increased the demand for food & beverages such as tea that contain a high amount of antioxidants. According to the Food & Drug Administration, the global production of green type tea is projected to increase at a rate of 7.5% annually, driven by the emerging trend of antioxidant-rich beverages. Various clinical studies carried out recently suggest that the consumption of antioxidants and flavonoids augment physical and mental stress response, cardiovascular health, and several other functions in the body. According to the study carried out by the Indian Tea Association, epidemiological observations suggest that green type of tea consumption is associated with lower cancer rates of prostate, breast, esophagus, and breast. The increasing understanding of the importance of flavonoids and antioxidants among consumers further fuels market growth.


In the past few years, the demand for green tea has gained remarkable popularity among consumers as an instant source of nutrients. The other factor influencing the market growth is the growing popularity of specialty teas across the globe. Rising discretionary incomes have enabled consumers to spend on quality products that improve and support their wellbeing. The emerging trend of natural, organic, and clean-label products has also contributed to their growing demand across the global market.


Growing Demand for Functional Beverages to Fuel the Market


The emerging trend of on-the-go nutrition and healthy hydration has significantly increased the demand for functional beverages among consumers. Green-type tea contains high amounts of antioxidants that help reduce the aging of cells and tissues and improve normal body functions. The growing demand for nutrient-enriched beverages to reduce the risk of certain health conditions fuels the growth of the market. Increasing research and innovation activities to develop novel tea varieties such as naturally flavored, organic, pure, and environmentally friendly tea varieties also support green tea market growth. Technological advancements to develop novel packaging for tea are expected to boost market growth in the upcoming years.


RESTRAINING FACTORS


High Cost of Green Tea to Act as a Key Restraint for the Market


The high cost of green type tea is expected to act as a key restraint for the growth of the market. Green type tea price remains a major concern for the tea industry. The production of this tea variety is highest in the Asian countries of China, Japan, and India. The lack of awareness regarding good farming practices and safe use of agrochemicals among farmers generally limits production and increases the cost of the product. The tea crop is heavily dependent on certain weather conditions, making it highly susceptible to climate changes. However, increasing efforts towards maximizing tea production by spreading awareness regarding advanced agricultural practices are expected to tackle the price challenges in the tea industry.


SEGMENTATION


By Form Analysis


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On the basis of the form, the green type tea market is segmented by tea bags, loose leaves, loose leaf powder, ready-to-drink tea, and capsules & tablets.


 Tea Bags Hold the Largest Market Share Backed by Easy Storage & Portability


The traditional way of preparing tea is being replaced by more convenient ways due to modern-day hectic lifestyles. Based on form, tea bags hold the highest market share due to their wide availability, easy storage, and portability. Technological advancements in the tea processing industry have enabled manufacturers to invest in environment-friendly and food-grade tea bags to capitalize on the growing consumer demands for clean-label products. The growing popularity of innovative flavors in tea bags is expected to drive market growth in the forthcoming years.


Ready-to-drink green type teas are gaining popularity among millennials due to the increasing availability of functional beverages in convenient packages. Ready-to-drink teas are also becoming popular due to the wide variety of flavors and blends available.


Green type tea capsules and tablets are expected to gain prominence over the forecast period due to the rising demand for dietary supplements among consumers.


By Flavor Analysis


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On the basis of flavor, the green type tea market is segmented by flavored and unflavored green type tea.


 Flavored Green Tea to Hold Higher Market Share and Display Faster Growth


Flavored green type teas are gaining popularity among consumers across the globe owing to their enticing tastes along with their health-improving nutritional profiles. Flavored teas are becoming mainstream across retail channels with the expansion of novel distribution channels. The incorporation of flavors such as honey, citrus, floral, and fruity in packaged teas improves their market value and visibility due to the growing trend of flavored beverages.


Unflavoured tea is primarily consumed in Asian countries where its production is the highest. Growing concerns over natural flavors and clean-label products are expected to contribute to the steady growth of the unflavored tea segment.


By Distribution Channel Analysis


On the basis of the distribution channels, the market is segmented by supermarkets/hypermarkets, convenience stores, specialty stores, and online retail.


 Wider Availability of Products to Promote Sales Growth through Supermarkets/ Hypermarkets


The supermarket/hypermarket industry is continuously changing and the investors are capitalizing on purchasers’ comforts to offer an easy shopping experience. The adoption of advanced technologies and equipment on the floor help retailers to provide adequate quality of beverages to the consumers. According to the Food Industry Association 2018, 43% of total groceries in 2017 were sold through supermarkets/ hypermarkets, which also represent a major share of green tea sales every year. Supermarkets are also emphasizing meeting new regulatory requirements such as refrigerant leaks and quality assurance to avoid penalties from the Environmental Protection Agency (EPA) and to offer quality products to their consumers.


REGIONAL INSIGHTS


Asia Pacific Green Tea Market Size, 2016-2027 (USD Billion)

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The robust growth of the green-type tea market in Asia Pacific is primarily attributed to the high production of green tea in the region. China is the leading country in green-type tea consumption across the globe with a long history of its production. In recent years, green type tea has gained importance among consumers owing to its health-improving nutritional profile. The rising awareness of its health benefits and increasing discretionary incomes among consumers in countries such as India have majorly contributed to the growth of the market.


North America is the fastest-growing region in the green tea market share, with immense potential for the tea industry. The growth of the tea market in the region is mainly attributed to the increasing awareness regarding the health benefits of green type tea. The modern-day hectic lifestyle has increased the prevalence of lifestyle-related health conditions such as obesity, diabetes, and cardiovascular disorders among consumers. This has contributed to the growing demand for tea to reduce the risk of these conditions. The growing popularity of functional beverages has also increased the demand for tea among millennials in the region.


Consumers in the Europe market are actively seeking high-value specialty teas with a unique and authentic experience. Consumers nowadays are more knowledgeable about tea origin and varieties. Millennials are constantly seeking innovative and healthy teas, which offer opportunities for manufacturers to invest in unique tea flavors, blends, and ready-to-drink teas. Sustainability remains an important issue in the European tea market, driving the demand for clean-label and organic green teas.


The South America market is expected to witness substantial growth due to the rising awareness of the health benefits of this tea. Green tea bags and ready-to-drink teas are becoming popular across retail sectors as consumer’s interest in healthy beverages has increased. The increasing popularity of various flavors is expected to drive the demand for novel tea varieties in the region.


The market in the Middle East & Africa is still at a nascent stage but holds tremendous opportunities for manufacturers to promote various flavors and forms of tea in the region.


KEY INDUSTRY PLAYERS


 Unilever plc to Focus on Product Portfolio Expansion to Fortify Its Presence in the Market


Unilever plc, the owner of a leading green type tea brand Lipton, is currently focused on investing in the expansion of its green type tea portfolio to strengthen its presence in the market. For instance, in March 2020, the company along with its partner PepsiCo launched two new varieties of tea, watermelon, and white peach. This launch will enable the company to expand its product portfolio to tap into modern consumer demands.


Overall, the market exhibits a moderately consolidated structure, dominated by a few multinational companies. Key players such as Associated British Foods, Tata Consumer Products Limited, and Numi, Inc. are focusing on new product developments, acquisitions, and partnerships to gain a competitive market edge that comes from such synergies. The arrival of small and niche players in the market is further intensifying competition, which is expected to have a positive impact on the growth of this market.


LIST OF KEY COMPANIES PROFILED:



  • Associated British Foods plc (London, U.K.)

  • Unilever plc (London, U.K.)

  • Tata Consumer Products Limited (Mumbai, India)

  • The Bigelow Tea Company (Connecticut, U.S.)

  • East West Tea Company, LLC (Oregon, U.S.)

  • Numi, Inc. (California, U.S.)

  • Tazo Tea Company (Washington, U.S.)

  • Shangri La Tea Company (Nevada, U.S.)

  • The Republic of Tea, Inc. (California, U.S.)

  • Keurig Dr. Pepper, Inc. (Texas, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • October 2020 - Keurig Dr. Pepper, Inc. launched 100% recycled plastic bottles for its ready-to-drink green-type tea brands, Snapple and Core.

  • December 2019 - OZiva, the leading clean-label nutrition brand in India, launched a new product called Matcha Plus, which is a healthy blend of organic Japanese matcha, licorice, activated charcoal, and ginger root.


REPORT COVERAGE


An Infographic Representation of Green Tea Market

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product forms, and leading distribution channels of the product. Besides this, the report offers insights into the current green tea market trends and highlights key global industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.


Report Scope & Segmentation:


































ATTRIBUTES



DETAILS 



Study Period



2016-2027



Base Year



2019



Forecast Period



2020-2027



Historical Period



2016-2018



Unit



Value (USD billion)



Segmentation



By Form



  • Tea Bags

  • Loose Leaves

  • Loose Powder

  • Ready-to-drink

  • Capsules & Tables


Flavour



  • Flavoured

  • Unflavoured


Distribution Channel



  • Supermarkets/Hypermarkets

  • Convenience Stores

  • Specialty Stores

  • Online Retail


Geography



  • North America (Form, Flavor, Distribution Channel, and Country)

    • U.S. (By Flavour)

    • Canada (By Flavour)

    • Mexico (By Flavour)



  • Europe (Form, Flavor, Distribution Channel, and Country)

    • U.K. (By Flavour)

    • Germany (By Flavour)

    • France (By Flavour)

    • Italy (By Flavour)

    • Spain (By Flavour)

    • Netherland (By Flavour)

    • Rest of Europe (By Flavour)



  • Asia-Pacific (Form, Flavor, Distribution Channel, and Country)

    • Japan (By Flavour)

    • China (By Flavour)

    • India (By Flavour)

    • Australia (By Flavour)

    • Rest of Asia- Pacific (By Flavour)



  • South America (Form, Flavor, Distribution Channel, and Country)

    • Brazil (By Flavour)

    • Argentina (By Flavour)

    • Rest of South America (By Flavour)



  • The Middle East & Africa (Form, Flavor, Distribution Channel, and Country)

    • South Africa (By Flavour)

    • UAE (By Flavour)

    • Rest of the Middle East & Africa (By Flavour)





Frequently Asked Questions

Fortune Business Insights says that the value of the market was at USD 12.80 billion in 2019 and is projected to reach USD 23.66 billion by 2027.

In 2019, the Asia Pacific market value stood at USD 8.70 billion.

Growing at a CAGR of 8.0%, the market will exhibit decent growth in the forecast period (2020-2027).

The tea bags segment is expected to be the leading segment based on form in the global market during the forecast period.

Rising awareness of the health benefits of green type tea is the key driving factor for this market.

Unilever plc, Tata Consumer Products Limited, and Associated British Foods plc are the top players in the global market.

Asia Pacific is expected to hold the highest market share in 2019.

Rising awareness of the health benefits of antioxidants and the growing popularity of functional beverages are major factors driving the adoption of green tea.

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Green Tea Market  Size, Share and Global Industry Trend Forecast till 2026
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