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Teabags are largely used products that provide easy tea brewing solutions to users. On a daily basis, people prefer to consume a cup of tea to gain refreshment and to improve their health. There is a wide variety of tea bags that varies based on geographical locations and their benefits. Companies are largely focusing on adding various aromatic flavours & ingredients in the tea bags to attract consumers towards purchasing their teabag products. For instance, in January 2020, in the U.K., Tea India launched luxurious coloured and aromatic flavoured tea bags that contain various infused materials such as simmering milk, oat, cashew, and coconut.
Growing consumer demand for instant health benefiting drinks is primarily driving the demand for tea bags. Also, rising consumer demand for the immunity-boosting drinks for gaining body immunity during the COVID-19 outbreak has spiked the consumption of the herbal & green teabags. Moreover, the increasing number of tea stalls & hotels across the globe is propelling the future consumption of teabags. According to the report ‘Hospitality, Tourism, and Leisure in the U.A.E.’, presented by Use UAE Business Organisation, as of 2018, Dubai had 703 number of hotels and 111,864 number of rooms of apartment properties that increased by 6% over to that of 2017.
the Expanding chain of convenience stores and specialty stores is immensely supporting the demand for tea bags. However, the higher cost of premium tea bags is expected to limit its consumption among the low-income growth of the population. Additionally, the growing consequences of the tea adulteration due to the plastic coating of the tea bags are anticipated to restrain the market growth.
Key Market Driver -
Rising demand for instant health benefiting drinks to drive market growth
Key Market Restraint -
The higher cost of the premium tea bag products is anticipated to restraint the market growth.
The prominent companies associated with the global tea bags market are, Associated British Foods Plc., Twining Crosfield and Company Ltd., Unilever Plc., The Republic of Tea, Bettys & Taylors of Harrogate Ltd., Celestail Seasonings Inc., Harney & Sons Fine Teas, Dilmah Ceylon Tea Company Plc., Bigelow Tea, Tetley, and others.
The global tea bags market is segmented based on tea type, distribution channel, end-user, and geography.
Based on the tea type, the market is segmented into herbal tea bags, green tea bags, black tea bags, and others. Herbal tea bags segment is expected to hold a major share of the market owing to the wide availability of the herbal teabags of different flavours such as sage tea, mint tea, chamomile tea, lavender tea and many others which give rise to the higher revenues from this segment. Additionally, people largely prefer to consume herbal tea over the other types owing to its advantages such as weight loss, cough & cold protection, and bone protection, among others.
Based on the distribution channel, the market is segmented into hypermarkets & supermarkets, convenience stores, online stores, and others. Hypermarkets & supermarkets segment is expected to hold a major share of the market owing to the wide availability of the branded teabag products in these stores. Additionally, the provision of the discounts & offers by these stores is acting as a consumer attraction towards teabags from these stores.
Based on the end-user, the global market is segmented into households, hotels & restaurants, workplaces, and others. The household segment is anticipated to hold a major share of the market owing to the large usage of the tea in households which results in the higher consumption of the domestic teabags. According to the data presented by the Tea Board India, in 2018, Indian domestic tea consumption reached to 1,090 M.kgs.
By geography, the global teabag market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
The largest share of the Asia Pacific region in the global teabag market is attributed to the large presence of prominent teabag brands such as Tenfu Corporation, Unilever Plc., The Coca-Cola Company, and many others in the countries such as China, and India. Additionally, a large consumption volume of tea in countries such as China, India results in higher revenues from teabags in the region. According to the data presented by the Direct China Chamber of Commerce, as of 2018, total tea consumption volume in China reached 2.8 million tonnes.
European tea bags market is expected to grow at a considerable rate owing to the increasing awareness regarding the health benefits of the herbal tea bag products in countries such as the U.K., and Germany. Additionally, increasing import activities of the tea products in countries such as Russia, and Turkey indicates higher consumption of tea bags in the region. According to the statistics presented by the Tea Board India, in the Russian Federation, the quantity of import of the tea bags & packed tea products has increased from 34.08 M. kgs in the period of April to December 2018 to 34.31 M kgs in the period of April to December 2019.
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