3 Significant Trends Driving Growth of the Tea Market Globally

Attributed to various health-related benefits, tea is witnessing an upsurge in demand globally. In addition, growing awareness related to healthy food in parallel to changing lifestyle has further propelled demand for tea in various regions over the years. Tea was initially introduced and originated from China in the 3rd century AD during the Shang Dynasty. However, today the production of tea has doubled globally, and is witnessed to be in the range of 5 billion kilos in 2015.

The global tea market is expected to grow at 5.0% CAGR in the span of next eight years. Black tea among various types of products will grow at 5.1% CAGR and retain dominance in the coming years. Moreover, black tea will represent 42.5% revenue share in the span of next eight years. Green tea among others types of products will grow at 5.4% CAGR, and will create an incremental opportunity of US$ 2499.2 Mn in the coming years. Hyper/super market among various distribution channels will contribute relatively high revenue significantly in the tea market globally.

Various trends propelling growth of the global tea market includes,

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  1. Health-related Benefits:

In parallel to various flavours, tea offers various health-related benefits, which helps the customers recover from cold and cough. In addition, intake of tea further protects the heart and teeth on consumption. Apart from various health-related attributes, tea prevents possibility of cancer as well. Besides benefits, tea can impact health of the customers adversely on excessive intake. Nervousness, sleeping issues, irregular heart beat and diarrhoea are a few common symptoms that consumption of tea causes.

Hyper/super market among other distribution channels will contribute significantly high revenue in the global tea market in the span of next eight years. Moreover, expanding consumer base and easy availability of range of flavoured teas will further fuel demand for tea in the global market in the coming years.


  1. Range of Flavours:

Tea market is stacked with range of flavours and ingredients to benefit your health and suit your needs. Oolong, black, herbal and green tea are some flavours witnessed to be majorly preferred by customers over the years. Moreover, attributed to various health-related benefits in parallel to range of flavours, tea will witness an upsurge in demand in the coming years.

Black tea among other flavours will represent nearly 42.1% revenue share in the coming years. In addition, the black tea among other flavours will further contribute significantly to the revenue share of the global tea market in the coming years. Whereas, green tea among others will witness significant growth in terms of revenue in the global tea market in the span of next ten years. Green tea will grow at a 5.4% CAGR in the coming years. Moreover, green tea will further create an incremental opportunity of US$ 2499.2 Mn in the span of next eight years.


  1. Regional Analysis:

APAC, Europe and North America among various regions will contribute significantly to the market growth of tea in terms of revenue in the coming years. Moreover, attributed to growing prominence of quick service restaurants and café, demand for range of tea has witness an upsurge in the span of next eight years. In addition, surge in consumption of hot beverages in winter weather in parallel to surge in consumption of tea among kids and youth has further fuelled demand for tea. Such factors are likely to propel growth of the tea market globally in the coming years.

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In parallel with expanding consumer base, the tea market globally is flooded with range of new flavours of tea such as chocolate, mint, lemon, cinnamon and various others. Availability of wide range of tea flavours has fuelled demand, which, in turn has led to expansion of customer base in the coming years.


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