Out Of Home Tea MarketSize and Trends

Out of home tea refers to consumption of tea in outdoor places such as restaurants, workplace canteens etc. Tea is positioned as a refreshing drink which is affordable by majority of the population. Tea contains less caffeine than coffee which makes it a preferred drink in outdoor places. Higher out of home tea consumption occurs in urban regions that have witnessed increasing industrialization and commercialization. Moreover, there is increasing preference for black tea owing to its antioxidant properties which can help in lowering cholesterol and blood sugar levels.

MARKET DYNAMICS

The growth of the out of home tea market is attributed to increasing consumption of tea at workplaces owing to increasing working population across the globe. For instance, according to European Commission’s Labor Market & Labor Force Statistics, Europe’s employment rate for person aged 20-64 was 64 % in 2017, and which increased to 73.1% in 2018.

MARKET OUTLOOK

Asia Pacific is expected to witness the highest growth rate in the market during the forecast period owing to growing number of cafes and quick service restaurants in the region. According to India Brand Equity Foundation, India’s cafe chain market was valued at US$ 359 million in 2018, and is projected to grow at an annual rate of 6.9% to reach US$ 634 million by 2023.

Among product type, black tea segment is expected to account for the highest market share during the forecast period due to various health benefits associated with it. According to Food and Agriculture Organization of United Nations’ Current Market Situation and Medium Outlook’s 2018 report, the global black tea production was pegged at 3.33 million tons in 2017, and is expected to grow at a rate of 2.2% to reach 4.42 million tons by 2027. According to the same source, global tea consumption was pegged at 3.29 million tons in 2017, and is expected to grow at a rate of 2.5% to reach 4.16 million tons by 2027.