TEA MARKET ANALYSIS

Tea Market Size and Trends

The global tea market is estimated to be valued at USD 21.43 Bn in 2024 and is expected to reach USD 32.44 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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Rising awareness about the health benefits of tea consumption is driving the market growth. Some of the major health benefits of tea include improved heart health, bone strength, mental alertness, and weight management. Increasing disposable incomes in developing regions is also supporting the growing preference for specialty teas.

Market Driver - Health benefits of tea

Tea is considered one of the healthiest beverages around the world. Research has shown that tea contains various antioxidants that have wide ranging health benefits. Green tea in particular has gained prominence in recent years due to claims that it can boost metabolism and help in weight loss. The antioxidant EGCG present in green tea is said to play a role in protecting cells from damage. There have also been studies showing green tea may help reduce risk of heart diseases and certain types of cancer. Oolong tea is also receiving attention for its anti-inflammatory and cholesterol lowering properties. Black tea is reported to improve bone health while white tea finds mention for its antiviral activities.

Health-conscious consumers are increasingly drawn towards tea as it is not just as a refreshing drink but a beverage that can potentially have positive impact on their overall wellbeing. Various medical research on tea and its health benefits have contributed to tea gaining respectability as a superfood. This has motivated people to include more tea in their daily diets. The availability of different types of teas alongside growing promotion of their individual health traits have augmented the interest in regularly consuming tea. Multiple studies validating tea's advantage for conditions like heart health, brain function, and weight management have strengthened consumer confidence in opting for tea as a lifestyle choice. With rising health awareness, tea has emerged as a globally popular beverage that people feel comfortable about consuming multiple times daily or weekly without worrying about negative effects on their health.

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Increasing demand for premium/specialty teas

The steady growth seen in overall tea consumption has fueled a parallel rise in demand for more premium varieties of this beverage. While regular black and green teas still have their dedicated consumer base, people are now willing to experiment and pay more for specialized types of teas that impart unique flavors or come from selective sources. For instance, white and oolong teas from specific farming regions are gaining patrons who seek differentiated drinking experiences. Similarly, exotic infusions made from fruits or spices are popular amongst those wanting to incorporate new flavors in their lifestyles. Specialty blends incorporating ingredients like turmeric, ginger, or holy basil are another premium segment making space in the market.

On the supply side, numerous small tea producers/importers have emerged who deal only in premium loose-leaf teas to tap into this niche. Tea boutiques and cafes curating exclusive varieties have also proliferated to introduce diverse offerings to customers. Enhanced online visibility through e-commerce has exposed global buyers to small tea growers across countries. Festivals, tastings, and education events held by tea importers are sparking interest in nuanced tea styles. Influencers in wellness and gourmet space have contributed in raising the profile of artisanal teas. The luxury element attached to rare processed or single estate teas is a strong pull for affluent patrons. With emphasis on quality over quantity, specialized niche teas now constitute a bigger share of total tea revenue than before.