research report on tea industry

Tea Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Tea Market Growth is Segmented by Form (Leaf Tea, and CTC Tea); Product Type (Black Tea, Green Tea, Herbal Tea, and Other Product Types); Distribution Channel (Supermarkets/Hypermarkets, Specialist Retailers, Convenience Stores, and Other Distribution Channels); and Geography (North America, Europe, Asia-Pacific, South America, Middle East, and Africa). The Report Offers Market Size and Values in (USD Million) During the Forecasted Years for the Above Segments.

• Tea Market Size

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Tea Market Analysis

The Tea Market is expected to register a CAGR of 5.72% during the forecast period.

• Health benefits associated with consuming tea and increased awareness related to carbonated drinks among people are some of the major factors boosting the demand for tea globally. The flavonoids, antioxidants, and phytochemicals present in tea help improve various functions of the human body.
• The increasing knowledge about the benefits of drinking tea for patients suffering from combat arthritis, cardiovascular diseases, and high blood pressure is likely to pave the way for the market's growth in the coming years. Moreover, a rise in disposable income, a shift in the tastes of people, and the introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth.
• The introduction of specialty iced teas is likely to be one of the major trends that will gain traction in the tea market over the forecast period. Vendors are introducing specialty iced teas by customizing different blends. Additionally, the popularity of organic label and herbal teas is also rising owing to increasing popularity. This can be attributed to their health benefits and enhanced benefits of ingredients such as basil, tulsi, etc., shifting consumer preferences toward natural ingredients-based products.
• For instance, in 2021, the German Tea & Herbal Infusions Association reported a surge in sales of organic quality teas, herbal infusions, and fruit infusions, with 15.9% of teas sold bearing the organic label. Also, from 2020 to 2021, the percentage of organic herbal and fruit infusions rose by 10.4%, reflecting a shifting consumer preference. This, in turn, is boosting the overall market for tea globally.
• Tea Market Trends

Health Benefits of Tea is Propelling the Market Growth

• Tea consumption is majorly driven by consumers' search for new non-alcoholic beverages over fruit juices and carbonated drinks. Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates.
• Market players are launching new and healthy tea products, which are attracting consumers across the world. Tea provides hydration, instant refreshment, and stimulating effects that are beneficial for consumer health. Various herbal variants with fortified nutrients in different sizes and flavors are available in the market, propelling its growth. Market players are launching ayurvedic and herbal tea in the market to attract consumers.
• For instance, in June 2022, the United Kingdom-based Clipper Tea Company expanded its product range in the United States with new packaging and flavors. The newly added flavors include organic earl grey black tea, organic orange & turmeric herbal tea, organic green tea & lemon, organic winter apple and cinnamon herbal tea, and organic winter berries herbal tea.

Asia Pacific Holds Largest Segment

• Health benefits associated with consuming tea and increasing awareness of the harmful effects of carbonated drinks among people are significant factors increasing the demand for tea in the Asia-Pacific region. The increasing knowledge about the benefits of drinking tea for consumers with arthritis, cardiovascular diseases, and high blood pressure is likely to pave the way for market growth in the future. Black tea remains the most popular bottle, with green tea gaining popularity primarily due to the preferences of health-conscious consumers.
• Due to increasing innovation like different tea flavors, Gen Z and millennials are attracted to consumption of it. Additionally, the working population in the region prefers tea for instant energy and hydration during working hours. Owing to all these factors, the market players are launching healthy and flavorful tea products in the market to cater to consumer demand.
• In November 2022, Netsurf Network launched a series of herbal teas in India. The products are available in different herbal flavors, i.e., Bramhi & cinnamon, ginger & cumin, ashwagandha & lemon, and others.

Tea Industry Overview

The tea market is highly competitive, with strong competitors and a diversified product portfolio, which leads to intense competition among the existing players. The leading players in the tea market include Associated British Foods plc, RC Bigelow Inc, Apeejay Surrendra Group, Ekaterra, and Tata Consumer Products. Consumers in the market are craving new and innovative products to accommodate their personal life.

Companies are constantly trying to offer consumers new and innovative launches that meet their demands to capitalize on this trend. Key players have intensely embarked on the industry consolidation by leveraging their distribution network, entering partnerships with local distributors, especially in emerging economies, and developing new products.

Tea Market Leaders

Associated British Foods plc

RC Bigelow Inc

Apeejay Surrendra Group

Tata Consumer Products

*Disclaimer: Major Players sorted in no particular order

Tea Market News

• November 2022: Dabur India Limited launched Dabur Vedic Tea, a premium black tea that contains 30+ ayurvedic herbs that provide health benefits and boosts immunity. The product contains herbs like Tulsi, Ginger, Cardamom, and others.
• November 2022: Tata Consumer Products expanded its green tea portfolio with the launch of Tetley Green Tea with tulsi flavor. Green tea improves immunity and is rich in vitamin C.
• July 2022: CVC Capital Partners Fund VIII completed the purchase of Ekaterra, the tea business owned by Unilever. A cash-free, debt-free sale of Ekaterra was agreed upon between Unilever and CVC in November 2021 for EUR 4.5 billion (USD 4.83 billion).

Tea Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

4.1 Market Drivers

4.1.1 Increasing Demand for Herbal Teas

4.1.2 Increasing Consumer Awareness about Health Benefits of Tea

4.2 Market Restraints

4.2.1 High Cost of Production of Green Tea

4.3 Porter's Five Forces Analysis

4.3.1 Threat of New Entrants

4.3.2 Bargaining Power of Buyers/Consumers

4.3.3 Bargaining Power of Suppliers

4.3.4 Threat of Substitute Products

4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

5.1.1 Leaf Tea

5.1.2 CTC Tea

5.1.3 Other Forms

5.2 Product Type

5.2.1 Black Tea

5.2.2 Green Tea

5.2.3 Herbal Tea

5.2.4 Other Product Types

5.3 Distribution Channel

5.3.1 Supermarkets/Hypermarkets

5.3.2 Specialist Retailers

5.3.3 Convenience Stores

5.3.4 Other Distribution Channels

5.4 Geography

5.4.1 North America

5.4.1.1 United States

5.4.1.2 Canada

5.4.1.3 Mexico

5.4.1.4 Rest of North America

5.4.2 Europe

5.4.2.1 United Kingdom

5.4.2.2 Germany

5.4.2.3 France

5.4.2.4 Spain

5.4.2.5 Italy

5.4.2.6 Russia

5.4.2.7 Rest of Europe

5.4.3 Asia-Pacific

5.4.3.1 China

5.4.3.2 Japan

5.4.3.3 India

5.4.3.4 Australia

5.4.3.5 Rest of Asia-Pacific

5.4.4 South America

5.4.4.1 Brazil

5.4.4.2 Argentina

5.4.4.3 Rest of South America

5.4.5 Middle-East and Africa

5.4.5.1 South Africa

5.4.5.2 United Arab Emirates

5.4.5.3 Rest of Middle-East and Africa

6. COMPETITIVE LANDSCAPE

6.1 Most Adopted Strategies

6.2 Market Share Analysis

6.3 Company Profiles

6.3.1 Tata Group (Tata Tea, Tetley, Good Earth, Teapigs, Vitax, and Joekels)

6.3.2 Associated British Foods PLC (Twinings)

6.3.3 RC Bigelow Inc. (Bigelow Tea)

6.3.4 Apeejay Surrendra Group (Apeejay Tea and Typhoo India Tea)

6.3.5 Yogi Tea (Yogi Tea)

6.3.6 Hain Celestial Group (Celestial Seasonings)

6.3.7 Bettys & Taylors of Harrogate Limited (Taylors of Harrogate, Bettys, and Yorkshire Tea)

6.3.8 Reily Foods Company (Luzianne)

6.3.9 Ekaterra Company (Lipton Tea, Red Label, PG Tips, TAZO, Pukka Herbs, and T2)

6.3.10 Dabur India Limited (Dabur Tea)

6.3.11 Clipper Tea Company (Clipper Tea)

• *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

Tea Industry Segmentation

This tea market accounts for tea beverages commonly prepared by pouring hot or boiling water over cured or fresh leaves of Camellia sinensis and other teas like black tea, green tea, and herbal tea.

The tea market is segmented by form, product type, distribution channels, and geography. Based on form, the market studied is segmented into leaf tea and CTC tea. Based on product type, the market is segmented into black tea, green tea, herbal tea, and other product types. Whereas based on distribution channels, the market is segmented into supermarkets/ hypermarkets, specialist retailers, convenience stores, and other distribution channels. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle-East & Africa.

The market sizing has been done in value terms in USD for all the abovementioned segments.

Tea Market Research FAQs

What is the current tea market size.

The Tea Market is projected to register a CAGR of 5.72% during the forecast period (2024-2029)

Who are the key players in Tea Market?

Associated British Foods plc, RC Bigelow Inc, Apeejay Surrendra Group, Tata Consumer Products and Ekaterra are the major companies operating in the Tea Market.

Which is the fastest growing region in Tea Market?

Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in Tea Market?

In 2024, the Asia Pacific accounts for the largest market share in Tea Market.

What years does this Tea Market cover?

The report covers the Tea Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tea Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

What innovative packaging trends are shaping the Tea Industry?

The innovative packaging trends shaping the Tea Industry are eco-friendly & single-serve packaging.

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Tea Industry Report

The global tea market growth is fueled by rising awareness of tea's health benefits, its use in cosmetics, and growing demand for organic tea. The market sees a trend of customers with disposable incomes spending more on premium blends and ingredients targeted at health conditions. Black, green, and herbal teas remain global favorites, while specialty teas for specific health concerns are gaining traction. Despite this growth, competition from other beverages is a significant market challenge, particularly among younger consumers. A historical overview and a market forecast outlook are available as a free report PDF download.

Tea Market Report Snapshots

• Tea Market Share
• Tea Companies

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Tea Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, by PACKAGING, by Application, by Distribution Channel : Global Opportunity Analysis and Industry Forecast, 2022-2031

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Report Code: A01965

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The global tea market size was valued at $49 billion in 2021, and is projected to reach $93.2 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

Tea is the most commonly consumed drink after water, with several health benefits. The aromatic beverage is made through processing and fermentation of Camellia Sinensis plant leaves. It contains potent antioxidants known as flavonoids, which stabilize harmful free radicals in the body. In addition, tea comprises vitamins C, K, B12, B6, & E; a trace amount of potassium, manganese, magnesium, & calcium minerals; and different amino acids such as L-theanine. Several studies and research on tea suggest that it prevents cancer, lowers cholesterol, facilitates weight loss, and enhances immunity. Primarily, tea can be categorized into black and green tea based on the degree of fermentation or oxidation.

The tea market size is projected to be fueled by health and wellness trends. In recent years, there has been a growing interest in health and wellness, and this has driven significant tea market growth. Tea is seen as a healthy beverage option, and many consumers are turning to it as a way to improve their overall health and well-being. Consumers are increasingly interested in teas that offer specific health benefits, such as reducing stress, improving digestion, boosting immunity, and aiding in weight loss. As a result, there has been a rise in functional teas that are formulated with specific ingredients to target these health concerns. Herbal teas have gained popularity due to their perceived health benefits. Many herbal teas are known to have anti-inflammatory and antioxidant properties, and some have been linked to improved sleep and digestion. As more people seek natural remedies for their health concerns, herbal teas have become a go-to option.

Moreover, health-conscious consumers are also seeking out teas that are free of artificial additives and preservatives. Organic and natural teas are seen as healthier alternatives to conventional tea products, and this has driven the demand for these types of products. Consumers are willing to pay more for teas that are perceived as high-quality and premium. This includes teas that are organic, fair trade, and sourced from sustainable farms. Premium teas are often marketed as being healthier and more beneficial than cheaper, mass-produced tea products. Tea companies are also capitalizing on health and wellness trends by introducing specialty teas that cater to specific health concerns. For example, some companies offer teas that are specifically designed to boost energy, aid in relaxation, or support mental clarity. Overall, health and wellness trends are driving the market, as more consumers seek tea products that offer specific health benefits and are perceived as healthier and more natural than other beverage options.

Additionally, convenience is a significant driver of the growth of the market. Tea is a quick and easy beverage to prepare, making it an ideal choice for busy lifestyles. Consumers can brew a cup of tea in just a few minutes, and some teas come in pre-packaged tea bags or pods, which further simplifies the process. Tea is a portable beverage that can be consumed on-the-go, whether it's in a travel mug, thermos, or pre-packaged bottle. This makes tea a convenient choice for people who need a quick pick-me-up while on-the-go. Tea is a versatile beverage that can be consumed hot or cold, with or without added flavors, and can be used as a base for other drinks, such as iced tea or tea lattes. This versatility makes tea a convenient choice for a variety of occasions. The growth of the ready-to-drink market has been driven by the convenience of these products. Consumers can purchase pre-bottled tea beverages at grocery stores, gas stations, and convenience stores, making it easy to enjoy tea on-the-go. Online tea retailers have made it easier than ever to purchase tea products from the comfort of your own home. This convenience has driven the growth of online tea sales, making it possible for consumers to access a wide variety of tea products without leaving their homes. Overall, convenience is a key driver of the growth of the market. The ease of preparation, portability, versatility, and availability of tea products have made it an increasingly popular choice for consumers with busy lifestyles.

However, competition from other beverages is one of the key factors that is hampering the growth of the tea industry. As consumer preferences and tastes change, they may shift away from tea and towards other beverages, such as coffee or energy drinks. This can lead to a decline in tea sales and market share. Coffee, soft drinks, and energy drinks offer a wider variety of flavors and formulations than tea. This can make it difficult for tea to compete with these products, particularly among younger consumers who may be more interested in trying new and innovative flavors. Coffee and energy drinks are often seen as a more potent sources of caffeine than tea, which can make them more appealing to consumers looking for an energy boost. Other beverage companies may have stronger marketing and branding strategies than tea companies, making it more difficult for tea to capture consumer attention and market share. Other beverages may be more widely available and accessible than tea, particularly in convenience stores, vending machines, and other on-the-go settings. This can limit the growth of the market in certain regions. Overall, competition from other beverages is a significant factor that is hampering the growth of the market.

SEGMENTAL ANALYSIS 

The tea market forecast is segmented on the basis of type, packaging, application, distribution channel, and region. By type, the market is divided into green tea, black tea, oolong tea, dark tea, and others. By packaging, it is fragmented into plastic containers, loose tea, paperboard, aluminum tins, and tea bags. Applications covered in the study include residential and commercial. By distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

By type, the market is divided into green tea, black tea, oolong tea, dark tea, and others. The green tea segment accounted for a major tea market share in 2021 and is expected to grow at a significant CAGR during the forecast period. The green tea segment is expected to witness exponential growth during the forecast period. This can be attributed to a rise in awareness about health and fitness and a rise in the number of educated tea consumers. Moreover, the increase in the frequency of direct-to-customer advertisements and celebrity endorsements also boosts the growth of this segment in the market.

BY PACKAGING

By packaging, the market is fragmented into plastic containers, loose tea, paperboard, aluminum tins, and tea bags. The paperboard segment accounted for a major tea market share in 2021 and is expected to grow at a significant CAGR during the forecast period. Paperboards are usually treated, coated, laminated, or impregnated with materials such as waxes, resins, or lacquers to improve their functional and protection properties. Metal boxes are also used for frozen food packaging due to their high barrier property. As metal boxes are expensive and highly prone to impact damage, they are being replaced by rigid plastic boxes and paperboard. These boxes have been gaining popularity due to their remarkable design flexibility and excellent barrier properties. The use of these boxes for packaging improves the brand appeal of frozen food and helps attract new consumers. Boxes are typically used for packaging frozen food products such as pizza, and pasta, but other products such as snacks and branded tea are also packed in such paperboards for visual appeal.

BY APPLICATION

Based on application, the tea market demand is fragmented into residential and commercial. The residential segment accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. The surge in the consumption of caffeine beverages at home boosts the market growth in the residential segment. Moreover, a rise in consumer awareness toward the health benefits of tea and extensive marketing & advertising by leading brands have shifted the consumer preference toward drinking tea, which drives the growth of the residential segment in the tea market.

BY DISTRIBUTION

Based on distribution channel, it is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online stores, and others. The supermarkets/hypermarkets accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. The growth of the supermarket/hypermarket segment in the tea market is attributed to the increase in adoption of supermarket and hypermarket in both the mature and emerging markets. Moreover, the one stop solution provided by these retail formats makes it a very popular option for shopping for consumers. Furthermore, these retail formats offer a wide range of products at a competitive price to customers and are usually located at easily accessible areas. Consumers are able to satisfy all their shopping needs at these destinations, which also saves their time which further adds to the attractiveness of this segment.

Based on region, the tea market revenue is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region accounted for a major share of the tea market in 2021 and is expected to grow at a significant CAGR during the forecast period. In Asia-Pacific, tea market is growing significantly, owing to highly prevalent tea culture in countries like China, India, and Japan. Black tea is anticipated to gain maximum demand in the region, compared to other segment, due to high popularity and low price. Consumers have become health conscious and are attracted toward healthy products, which is also expected to boost the market for tea. Innovation in packaging and in the taste and flavor is anticipated to unfold new business opportunities for the market in the region.

COMPETITION LANDSCAPE

The major players operating in the tea industry focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have been also focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the tea market include Associated British Foods plc, BARRY'S TEA, HAIN CELESTIAL GROUP, INC., ITO EN, LTD., Mcleod Russel India limited, Nestle S.A., TAETEA, Tata Global Beverages, The Republic of Tea, INC., UNILEVER GROUP.

Key strategic moves and developments:-

• In September 2021, Twinings, a tea brand of Associated British Foods plc, announced the creation of a new foodservice exclusive range which include 11 tea blends specially made for the foodservice industry.
• In February 2022, Twinings, a tea brand of Associated British Foods plc, announced the creation of a new series of tea blends called Superblends range which includes five different types of tea blends named Sleep, Calm, Digest, Focus and Glow with the aim of improving health and wellbeing.
• In September 2021, Tetley, a tea brand of Tata Consumer Products, announced the launch of a limited trial tin can for its tea bags along with Tesco and Loop in order to reduce waste caused by disposable containers
• In July 2021, Tata Consumer Products inaugurated its new tea packaging plant in Gopalpur Industrial Park by Tata Steel Special Economic Zone, which will help increase the volume of teas and tea bags produced.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the tea market analysis from 2021 to 2031 to identify the prevailing tea market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the tea market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global tea market trends, key players, market segments, application areas, and market growth strategies.

  Tea Market Report Highlights

Analyst Review

According to the insights of the CXOs, the global tea market is expected to witness robust growth during the forecast period. This is attributed to several factors such as the increasing focus on health and wellness, the rising popularity of specialty teas, the convenience of tea products, and the growing demand for tea in emerging economies. Additionally, the market is being driven by innovation and new product development, geographic expansion, e-commerce and online sales channels, and sustainability initiatives.

CXOs further added key players in the tea market have the opportunity to capitalize on these trends by diversifying their product portfolio, targeting new markets, and investing in research and development to create new and innovative tea products that cater to changing consumer preferences. Despite challenges such as price competition and supply chain issues, the tea market is expected to continue to grow due to its appeal to a wide range of consumers and its adaptability to changing market trends.

• Non Alcoholic Drinks

The global tea market was valued at $49 billion in 2021, and is projected to reach $93.2 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.

The global Tea market registered a CAGR of 6.7% from 2022 to 2031.

Raise the query and paste the link of the specific report and our sales executive will revert with the sample.

The forecast period in the Tea market report is from 2022 to 2031.

The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have been also focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the tea market include Associated British Foods plc, BARRY'S TEA, HAIN CELESTIAL GROUP, INC., ITO EN, LTD., Mcleod Russel India limited, Nestle S.A., TAETEA, Tata Global Beverages, The Republic of Tea, INC., UNILEVER GROUP.

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Global Opportunity Analysis and Industry Forecast, 2022-2031

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State of the U.S. Tea Industry: a Review of 2022 and a Look Forward into 2023

2022 was a year in which COVID-19 finally began to take a backseat. Consumers emerged from their homes and the economy began to open more fully. Unfortunately, inflation – driven by supply chain costs, shipment imbalances, low unemployment and government spending – reached levels not seen for 40 years, averaging eight percent for 2022 (1981 was 10.33 percent). This level of inflation certainly impacted cost of goods and apparent growth rates in dollar terms.

Overall, the tea market grew in 2022 in both imports and dollars. In reviewing tea import figures for the year, total tea imports were 4.3 percent up in volume terms. Black tea imports exceeded 2021 by more than 5.1 percent with green tea softening slightly by less than two percent year-on-year.  Surprisingly, 2022 organic imports were down by about 40 percent vs. 2021.

As we have been reporting over the last few years, consumers continued to turn to tea during COVID. Further, subsequent qualitative work indicated the at-home consumption remained high, while the likelihood for consumers to consume tea out of home declined. The hybrid way of working, with many workers continuing to split time between the office and home, will help sustain gains in consumption trends.

Tea has demonstrated it is capable of acting as an enabler for de-stressing, as well providing a feeling of “centeredness,” particularly for Gen Zs and Millennials. Not only did they increase their consumption, but research after COVID indicated that about 70 percent would continue to drink tea at the higher rate. This is great news and highlights the importance of tracking demographic behavior as both a marketing tool and to provide insight for product development, brand and product messaging and optimizing communication pathways.

Further, consumers are looking for specific health and wellness benefits from their food and beverages, placing that above sustainability, according to  Tastewise’s 2023 trend report . While health and wellness and international flavors have been trending in food and drink for years, this report shows preferences are evolving and consumers are zeroing in on specific niches that interest them.

These trends complement tea’s strong position as a plant-based, healthful drink, consumed for its variety of benefits, rooted in its high flavonoid content. In fact, several new research papers were published in 2020 and 2021 illustrating tea’s extraordinary ability to act as a booster of human immune systems, followed by an important study in 2022 highlighting tea’s high content of a class of key bio-actives, flavan-3-ols.

Consumers clearly discovered their own personal “tea ceremonies” during COVID, whether using a family recipe or a “mom’s” kettle or a certain mug, and continue to embrace these “for myself” moments as a way to cope with the stress of the work day. And we know that the process of making tea, in and of itself, calms and relaxes. This coupled with tea’s natural ability to induce a “relaxed but ready” mental state, heightens the feeling of serenity and internal quiet – mental states that were at a premium during this past year.

Literally thousands of published scientific journals continue to document tea’s ability to positively impact human health.  Whether potentially interfering with cancer mechanisms, enhancing heart health, slowing neurological decline, positively impacting weight management and preventing diabetes, or improving bone health and lastly boosting immune functionality, tea is good for you and tastes great!

Inventory imbalances continued in 2022. The Federal Maritime Commission (FMC) and Biden administration did step in and helped to defuse the unconscionable levels to which ocean freight companies raised their rates. As a reminder, some export regions, particularly Asia, saw the cost of a FEU (40 foot equivalent unit) going from US$3,000 to US$17,000. The Tea Association of the U.S.A.’s participation in a Freight Coalition consortium assisted us in helping to apply pressure and provide notice to key players in the government and maritime bureaucracies to act on consumers behalf.

Tariffs on tea from China continued as a holdover from President Trump’s administration and continued under President Biden. We continue to advocate for removal of this tariff on Chinese tea, although to date, there seems to be no interest in removing them by this Administration.

Our work in Washington D.C. continued with the Tea Association communicating its positions on behalf of the industry in the areas of tariffs, labeling (country of origin and nutritional), dietary guidelines, healthy definition for tea and port congestion issues. Support and defense of the tea industry continues to be our primary our mission.

In all efforts, the Tea Association of the U.S.A. attempts to ensure cohesive messaging across borders by liaising with the Tea & Herbal Association of Canada and the UK Tea & Infusions Association. Of late, this includes addressing such topics as heavy metals; HTIS classifications and modifications; Prop 65 actions; sustainability issues and nano-plastics in tea bags. Sustainability continues to be an important driver for consumers, customers and industry supply chains.

Foodservice Improves; Specialty Tea Continues Growth; RTD Is Recovering Its Shares; Traditional/Grocery Works to Hold on to Previous Gains

We all know how devastated the foodservice market was during COVID. Thankfully, stay-at-home orders, prohibition of indoor dining and social distancing requirements that kept people far away from their favorite restaurants, deli’s and convenience stores are generally no longer. Fortunately, this sector began to come back in 2021 as vaccination rates increased, domestic travel resumed and federal and state governments eased restrictions, and continued in 2022.

As one key foodservice operator reported…

“We witnessed the food service bouncing back post-COVID, despite the huge increases in sea freight. As you are aware, the unprecedented freight costs that we witnessed in the past from origins such as China, Vietnam, Argentina, who are the main supply sources for the food service iced tea, did not in any way dampen the appetite for iced tea consumption.

“Our customers were willing to pay these costs and keep their customers happy. For example the sea freight from China to Long Beach/L.A. was approximately US$2,000 prior to COVID. This peaked to US$ 20,000 per FCL last season. From paying a mere 10 USC /kg we ended up paying a dollar on a kilo for low priced teas. The demand was further driven by relatively lean inventories with packers and end customers.

“Overall, we saw demand ultimately approaching levels not seen since the outbreak of COVID. Furthermore, food service restaurants that served quality food products (we saw long lineups at these outlets), where premium quality tea was served, gained market  share. A most welcome outcome from our perspective compared to others, who are driving prices down and compromising on quality.”

Fortunately, some segments of the market won’t change its upward trajectories! Specialty tea continues its rise in both pounds and dollars. Led by Millennials and Gen Zs, consumers across all demographics continued to consume tea for its variety of origins, types and flavors. Tea generates interest in terroirs, flavors, origins, bush to brand and sustainability, particularly in these high quality, higher priced teas. Artisanal teas remain of high interest and continue to grow at a fast clip. Consumers are becoming more engaged with their teas and want to learn more and more about where their teas come from; how they are harvested and manufactured; how the product supports the livelihoods of those making it; and, how friendly the product is to the environment. Specialty tea buyers, in particular, seek to engage with their products of choice.

Ready-to-drink (RTD) tea category continued its dollar growth, but volume was a challenge in 2022.  Estimates are that 2022 exhibited circa seven to eight percent growth in dollars, but a decline of some and less than one percent gallonage. Challenges for RTD remain clear: Competition across other categories, e.g., health, refreshment and hydration, will challenge this category’s ability to innovate and compete in order to continue volume and dollar growth. We continue to see separation and segmentation between premium, high quality RTDs and the value, carbonated soft drink (CSD) replacement segment.  Innovation, flavor variety and healthful positioning will continue to be legs of growth.

Traditional tea (grocery/DMM [Drug/Mass Merchandisers]) fought hard to maintain the gains from 2020 and 2021. Communication to consumers through traditional media and social media was at a much higher level than previous years, and that speaks to the improved bottom lines and need for re-investment in brands.

As an industry, we are challenged to continue educating the consumer in the difference between true teas (Camellia sinensis) from herbals and other botanicals, neither of which have the same level of AOX or overall healthful qualities. Our messaging across all forms of tea through our social media initiatives highlight the benefits of “true tea” and should be amplified by all tea companies.

Internationally, producer countries of origin continue to protect and advertise their teas through geographic designations and by trademarking their unique terroirs. The adoption of wine-like appellation marketing and protection serves to differentiate one region from another as well as proactively communicating to the consumer the benefits of geography, elevation and climate as key ingredients to tea quality.

Market Growth

Each year, we try to estimate the size and growth of the various tea markets. We derive many of these estimates qualitatively with some quantitative validation. Further, we note that the consumer price index (CPI) for food inflation in 2022 was 9.9 percent and an incredible challenge for U.S. consumers. Please use these figures as a guide.

2023 PREDICTIONS

Tea will continue to grow across all sectors, led by specialty and foodservice.Whole leaf teas/specialty tea will continue its penetration with consumers in this segment. Individual terroirs and countries will continue to attract interest.

The “Power of Tea” Continues to Shine

• Cardiovascular health, immune boosting properties and improvement of mood are the most popular reasons as to why people drink tea according to a qualitative survey by Seton Hall University. 
• Black tea continues to emerge from under the shadow of green tea’s health aura with ownable health properties – cardiovascular health, physical health, immune system boost, bio-active compound, satisfy thirst/hunger, pick-me-up.
• Green tea continues to drive consumer interest, specifically: emotional/mental health, immune system boost, consume when feeling ill, stress relief.
• Foodservice will continue its return to pre-pandemic levels.
• Consumers will continue to enjoy tea and the new levels of tea consumption will be maintained, helping Grocery/DMM sales to resist declines vs. pandemic gains.
• RTD will continue to grow.
• Specialty continues its growth in both dollars and volumes, as unique offerings from tea growing “appellations” become more widely known.

THE TEA MARKET WILL CONTINUE TO FACE THE FOLLOWING CHALLENGES IN 2023:

1. Sustainability

The Tea Association of the U.S.A., sees sustainability as a three-pronged strategy – ecological sustainability, social sustainability and economic sustainability.

The tea industry has demonstrated a strong commitment to ecological sustainability and continues on its journey for a sustainable supply chain.

Concurrently, our industry has successfully embarked on a path of making our product even more sustainable. I venture to say that tea is one of the most ecologically sustainable agricultural products in the world. However, this path comes with its own toll, and the sad fact is that the cost of sustainability efforts almost always fall on the shoulders of the producer, the segment that can least afford it. Further, the promise of increased margins and consumers willing to spend more money on sustainably sourced products have been empty, at best. And all our efforts may be blunted by climate change.

Economic sustainability continues to be a challenge. Producers and smallholders are generally not making money. The realized prices of tea have not moved since the 1950s, when taking inflation into account. This marginalizes workers at origin and drives the industry to an unsustainable economic model, impacting the ability for tea workers to maintain the social fabric in the towns and villages where they live. Meanwhile, large retailers advertise and speak about sustainability, yet do nothing about allowing the price of the product in their stores to rise, disallowing the opportunity for the producers to realize a reasonable margin. The time is come to put pressure on retailers to ensure that EVERY player in the supply chain receives fair value for the work they do.

It is a cultural imperative that parents want a better life for their children, and what underpins the ability to make that happen is for there to be steady and fair wage growth for the family to thrive.  However, throughout the tea industry we’ve seen a flight from tea estates to the cities by the most recent generations. Clearly, lack of job growth and the ability to provide a better life are driving reasons. Having said that, I continue to believe that the biggest contributor to this migration is the cellphone. This device provides virtually anyone in the world access to the globe. Whether learning a language, discovering different cultures and lifestyles or, more importantly, being able to imagine greater potential for oneself, the mobile provides a window on alternatives to current realities.

This migration from rural to urban highlights another consequence of low prices… the lack of available labor. We’ve already seen the results of this in Japan, where the average age of tea producing villages has gone from the mid-50s to the low 70s.  And 80 percent of towns and villages have lost people. Analogous movements are being witnessed in virtually all traditional tea growing areas.

2. Supply and Demand

The global picture is not pretty, as production went from 4,299 million kgs in 2011 to 6,455 M kgs in 2021 an increase of approximately 50 percent. Meanwhile, population in 2011 was seven billion. In 2021 it is estimated to be 7.9 billion, only a 12.8 percent increase (statistics courtesy of the International Tea Committee). Supply continues to outstrip demand and history has proven that if tea prices rise, the producers will manufacture more tea to take advantage of the higher prices. Certain origins continue to expand tea plantings, completely ignoring the impact on tea surplus. Further,  producers, by skipping pruning cycles or plucking a little further down on the bush, have an almost immediate ability to turn on a volume tap of 20 percent more tea. The result of higher availability and poorer quality: lower prices. Escaping the clutches of this boom/bust cycle will be one of the keys to the long-term survival of the business. There are only two solutions: drive consumption or reduce production. Note that these solutions are not exclusive and should be done in tandem.

The unremunerative pricing of tea undercuts all sustainability efforts and creates an unsustainable future for the industry.

3. Free and Unencumbered Trade

International trade is becoming much more of a challenge to the entire supply chain. We have all seen the impact of the global shipping supply chain, the piling up of containers at the ports, increased freight rates, lack of trucks and truck drivers and poorly positioned empty containers at origin. We have also seen ocean carriers and ports use this disruption to their favor and increase costs to an almost unconscionable level.

Further, we continue to see barriers to trade through: lack of harmonization of crop chemical tolerances; political vs. science-based regulatory decisions (e.g., glyphosate); country of origin labeling; and tariffs.

Free trade is a basic building block that we must have in order to fully return to economic growth and stability. Our industry must work together to properly address these issues.

4. The Goodness of Tea

The number of positive attributes regarding tea continues to be buttressed by research and demonstrates why this great product should be consumed by EVERYONE!  More research continues to be published highlighting the power of tea.

The U.S. dietary guidelines are due for updating and the Tea Association of the U.S.A. will be submitting comments in an effort to include tea in this important government publication and recommendation.

WHAT THE INDUSTRY NEEDS TO DO

So, where are we? Too much tea being produced; prices too low; we are leaders in ecological sustainability, but social and economic legs are struggling; retailers continue to push down pricing; costs are being pushed up the supply chain.

This is not about painting an ugly picture. It is about realistic assessment of our challenges, which can then help frame our actions to mitigate the problems.

As an industry, we need to continue to meet in multiple forums to discuss honestly and openly our excess supply. The Food and Agriculture Organization, tea associations, tea boards, tea producers and governments need to collaborate and create pathways for crop/surplus reduction, while striving to protect the lifeblood of tea producers, and, in particular, smallholders.

Efforts must continue to drive tea consumption. Tea and Health is THE platform from which powerful messaging can be developed to incent and motivate consumers to drink tea. In April of 2022, the USTA hosted the 6th International Scientific Symposium on Tea & Human Health. This virtual meeting highlighted the power of tea, and most importantly, the outputs of that meeting have driven consumer engagement to the tune of more than five billion impressions through both conventional and social media. If we all help to drive this message, think of the potential influence we could have on driving tea consumption! Additionally, bio-actives research points to more positives in tea’s positive impact on human health.

Costs of sustainability efforts must be shared throughout the supply chain, not borne just by producers. Is there a mechanism currently? No… but this has to be addressed. If consumers want sustainable products, they must pay. If retailers want to sell sustainable products, they need adjust their margins. If packers want to pack sustainable products, they must pay OR they must support sustainability programs through pricing mechanisms.

Leverage existing associations and councils as representatives and speakers for the industry. I continue to be shocked at how easily some companies withdraw from associations based solely on cost, yet, it is these very groups that most effectively represent the industry and protect brands; interpret governmental regulations and provide a single point of contact for both internal and external communication. My thanks go to Tea & Herbal Association of Canada and UK Tea & Infusions Association, who work tirelessly with us on joint efforts to represent the industry.

I remain firmly optimistic going forward. Tea has so much to offer to its consumers. Tea’s supply chain is resilient; producers generally want to produce good product and consumers want to receive good value.

Peter F. Goggi is president of the  Tea Association of the U.S.A, Inc. , Tea Council of the USA and Specialty Tea Institute. Goggi began his career at Unilever and spent more than 30 years working with Lipton Tea as part of Royal Estates Tea Co. He was the first American-born tea taster in the history of T.J. Lipton/Unilever and was featured on The History Channel’s Modern Marvels. His career at Unilever included research, planning, manufacturing and procurement, and his final position was director of commodities procurement, sourcing over $1.3 billion of raw materials for all operating companies in the Americas. At the Tea Association, goggi has implemented and updated their strategic plans; has continued to drive the tea and health message of the Tea Council; and helped to guide the tea industry on its path to growth. Goggi also serves as the U.S. representative on FAO’s International Governmental Group for Tea, and he continues to drive communication and understanding of the multiple issues faced by the tea industry – locally, regionally and internationally.

Founded in 1899, the Tea Association of the USA, Inc. was formed to promote and protect the interests of the tea trade in the United States and is the recognized independent authority on Tea. To learn more, visit  TeaUSA.org .

Plan to Attend or Participate in the World Tea Conference + Expo, March 27-29, 2023

To learn about other key developments, trends, issues, hot topics and products within the global tea community, plan to attend the World Tea Conference + Expo, March 27-29, 2023 in Las Vegas, co-located with Bar & Restaurant Expo . Visit WorldTeaExpo.com .

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The 2020 global tea market report

Freshly picked tea leaves on a truck on the Sorwathe plantation in Rwanda. Photo courtesy of Barbara Dufrêne

Tea production continues to increase, with robust consumption growth in origin and Muslim countries. However, lagging demand in Western markets, the division between black and green teas, rising production costs, and social responsibility requirements erode company profits, while farm gate prices remain low. Furthermore, adverse weather patterns impact supply and herald climate change.  By Barbara Dufrêne

All images courtesy of Barbara Dufrêne

Data and feedback from the United Nations Food & Agriculture Organisation (FAO) Inter Governmental Group (IGG) Tea, located in Rome, Italy, together with the London-based International Tea Committee’s (ITC) Annual Bulletin of Statistics issued in October 2019, offer a thorough overview of the current state of the global tea market. Thus, looking back over the past decade helps identify trends and provide an outlook towards future developments.

Status of Supply and Demand

World tea production has increased at an average annual growth rate of 4.7 percent over the past decade to reach 5.89 million tonnes in 2018. This continued growth in global volume was mainly generated by China’s hugely expanded tea output, which has almost doubled since 2009, reaching 2.616 million tonnes in 2018, that is, 44.4 percent of the world’s teas. This massive expansion caters to an unprecedented growth in domestic demand, coming from an ever-growing urban population with more and more disposable income.

Production in India, the world’s second largest tea producer, also shows growth with an output of 1.33 million tonnes in 2018, up by 37 percent since 2009. Output in the two largest tea-exporting countries, Kenya and Sri Lanka, reached 0.49 million tonnes and 0.30 million tonnes respectively in 2018, with Kenya displaying an increase of 57 percent since 2009, whilst Sri Lanka’s tea output, hampered by bad weather conditions and restrictive government rulings, shows growth of only five percent since 2009.

Black teas continue to dominate the market and this dividing line between the black tea and green tea segments remains a major feature of the global tea scene. The traditional auction system, which was introduced during colonial rule in order to secure the supply for British, Dutch and North American consumers is fully focused on black tea. Industrial black tea manufacturing was introduced some 150 years ago in India, Sri Lanka, East Africa and Indonesia for export purposes only. According to Manuja Peiris, chief executive of the ITC, the auction system remains the best way to move important volumes and to cash in the selling price. Being run publicly by appointed staff, the fully transparent system gives good insight into the status of supply and demand and price development.

The auction system may need some overhaul to adopt more flexible procedures and better use of digital methods, noted Joydeep Phukan, the principal officer and secretary of India’s Tea Research Association (TRA). He indicated that investigations are currently ongoing about modernising the Indian auction system, which operates five regional platforms, and moved 41 percent of the total volume of auction-sold black teas in 2018.

El Mamoun Amrouk, the FAO officer in charge of IGG Tea, confirmed these views and underlined that the share of auction sold tea as calculated on the global tea export volume, rose from 61.4 percent in 2009, to 68.6 percent in 2019, which looks like operators continued to approve the system as the best choice. He also said that tea prices were on a downward trend since 2017 but partly recovered in 2019. Talks were ongoing with the Chinese Tea Authorities, to find ways to capture price data for green teas, in order to improve coverage and obtain more insight about global tea sales revenues.

On the other side, there is the highly diversified world of the green teas, which are grown and consumed by the traditional origin tea-producing countries, with China leading, followed by Vietnam, Japan and Korea who have been growing tea for centuries as their peoples’ own heritage cups. In China, which is widely accepted as the cradle of tea cultivation, there are no auction platforms and no agreed grading and quality standards. Thousands of different teas harvested from the many tea regions are displayed on sale in the local towns’ dedicated tea markets, with huge such tea market hubs in Guangzhou/Kanton, Beijing, Chengdu, Shanghai, Wuhan and Kunming, etc.

Trading is carried out in a fully private, person to person manner, with no price/volume disclosure, no transparency and no data. It is a regularly reported fact that for the past few years and with growing demand, tea prices have continued to rise in China. This has now opened a door for India, Sri Lanka and Vietnam to supply some good cups with novelty and a good quality/price ratio, to the Chinese consumers. There is some public auction trading in Japan mainly for sencha green teas, where wholesale companies buy to prepare their blends, but on a very local scale. There are no auctions in Vietnam or Korea.

State of the Global Consumer Markets

Looking at the producing countries, per capita consumption has continued to increase over the past 10 years. This is quite spectacular in China, where the share of the tea output available for export continues to decline, from 22 percent in 2009 down to 14 percent in 2018, and also for India, where only 19 percent of the teas produced in 2018 have remained available for export. One can also see growth in many other producing countries throughout Asia and Africa, where tea is well promoted among domestic consumers, as a healthy and home-grown cup.

In the main importing markets, one can see that decline continues in the mature, mainly black tea-drinking markets that are Russia and the United Kingdom, where imports have decreased by nine percent and ten percent respectively since 2009. This decline is partly offset by the ongoing growth of tea imports to the USA, where tea consumption continues to rise with an increase of eight percent since 2009. The USA now ranks rank as the world’s number three tea-importing market, with 0.12 million tonnes in 2018. Imports for consumption are also up in Pakistan, where volume has more than doubled since 2009, reaching 0.19 million tonnes in 2018 (mainly black tea). Morocco, the world’s biggest green tea importer, registered an increase of 35 percent with 0.07 million tonnes imported for consumption in 2018.

Contrasting data showed that market patterns continue to fluctuate in line with changing consumer preferences, in particular in the mature Western black tea-drinking markets, where the mainstream/mass market cups continue to be the cheapest cup per serving, compared to coffee, juices, bottled water, and dairy. With this decline becoming a persistent market feature, action was taken to reconquer throat-share and revamp the profile of tea. In the United Kingdom for example, Tetley (owned by Tata GB) offered training and teaching to tea professionals, and Russia launched the Tea Masters Cup.

Forecasts may not look satisfactory though, with Unilever, the world’s leading tea manufacturer, announcing during its fiscal year revenues and earnings report, that it is considering selling its global tea business, which includes the Lipton and PG Tips brand, both of which dominate many Western markets. This declaration, made in January with Unilever also stating that mass market black tea bags have no more future in the West, is shaking up the tea world right now. Over the last few years, Unilever has invested in the premium segment by buying Australia’s T2, the UK’s Pukka Organic Herbal tea brand, and the Tazo brand from Starbucks, thus acknowledging that the premium tea segment had important potential for the future.

Selection of standard mass-market teas. Photo courtesy of Barbara Dufrêne

Training and Education

This ties in fully with many actions undertaken by smaller tea companies and trade associations that have been investing consistently in consumer education and in-depth training of tea professionals in order to promote the fine, premium, specialty and origin teas that mainly come as leaf teas. Such efforts are gradually bringing results, with more science and research becoming available every year. Also, tea forums and conventions are promoting the many origins, botanicals and processes involved in tea, which makes the base of keen and knowledgeable consumers larger every year. Fully aware of the intrinsic and added value of these premium cups, they are happy to reach deep into their pockets for hand-picked, artisanal, organic, single estate and other specialty teas.

There are also tea lovers on the producer side, namely in China, and the overseas Chinese communities in Singapore, Malaysia, Hong Kong, and Taiwan, who will pay extreme prices for rare and special spring picks or very famous aged Puer tea cakes. Premium teas have been ranking high on the official state gift list in China, in the same way as the former tribute teas, which, in the past, were reserved for the Emperor.

Sustainability of Lands and Workers

While tea is becoming more expensive in China, most producing countries express concern about the farm gate price levels, which are too low to allow for sustainable tea growing. This links with the fact that in most producing countries the major share of the tea volume is harvested by smallholders, who deliver the leaf to the factory and have no market access themselves, being the first but least empowered link of the supply chain.

With new areas under tea in China, and in Bangladesh, Zambia, Ethiopia, and Mozambique, where tea is introduced with the focus on poverty eradication, sustainability remains a growing concern. When and where better paid crops become available, farmers will uproot the tea bushes to improve their revenue.

The need to build a platform to take care of smallholders’ interests has become truly urgent. To support and advocate for smallholders, the Confederation of International Tea Smallholders (CITS) was established in 2018. Under the supervision of the FAO IGG Tea, the CITS will be hosted in China’s Sichuan province as a first step, but it is not yet fully operational.

In addition, rural labour is becoming scarce as many ageing farmers see their children moving to the cities, and this means that mechanisation will soon become unavoidable.

Furthermore, changing weather patterns threaten many crops including tea, which makes harvests more unpredictable and threaten farmers’ incomes. Looking towards 2030, an expected increased population and less arable land will also put a strain on the five continents’ available fields, with a preferential allocation to food-crop growing, squeezing the acreage for permanent crops, like fruit trees, vineyards, tea, coffee and cocoa. With such forecasts one can expect to move towards a small top premium market for high quality teas and a mainstream market geared towards extracts, ready-to-drink (RTD) teas and industrially processed cups.

There is clearly a need for more science, more agri-research and international cooperation to cope with these many challenges. All the big producing countries have their Tea Research Institutes (TRI) which compile a wealth of knowledge, data and experience. Increased cooperation will foster progress through cross fertilization. Eventually tea will follow the example of coffee and build more global platforms for more global operations and implementations, such as the recently launched CITS for tea smallholders.

Tea Market Evolves Amid Challenges

Consumption trends remain based on health benefits, convenience, novelty and premiumisation, with the stressed urban consumer on the constant look out for a beverage that picks you up without jitteriness, that supplies hydration and functional benefits together with authentic flavours. Good tea has no need for sugary or creamy calories, thus it is fitting to be the cup/mug or can/bottle of the younger generations. RTD teas, sparkling teas and cold brew teas are on the rise in all the developed markets, with their popularity growing steadily.

According to global market intelligence firm Euromonitor International, the top three cold tea markets today by total RTD volume are China, Japan and the USA, but the trend is spreading fast to many other markets.

Although consumption habits are changing and follow new and diversified patterns, from hot to cold, from black to green tea, from brewed to RTD, tea has positioned itself as a drink that is good for the mind and the body, with a rich cultural background. Also, the strong increase in teas blended with herbals, supplement the functionality of the beverage.

Furthermore, tea is harvested from a bush that absorbs CO2 and is considered a poverty relief crop. Recently, coffee shops in China, India and Korea, as well as in the West, have started to carry some quality teacups in response to consumer demand. This is another move that will foster more choice and open new slots for good cups out of home.

• Barbara Dufrêne is the former secretary general of the European Tea Committee and editor of La Nouvelle du Thé. She may be reached at: b-dufrê [email protected] .

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2 responses to “the 2020 global tea market report”.

Thanks for this story. The information is very helpful to understand global tea market. Might I request a copy of this article? thanks

Deyu Xie North Carolina State University

Very informative piece. Thanks

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Tea market worldwide - statistics & facts

Tea consumption has been around since as early as 1500 BC, originating as a medicinal beverage in the Yunnan province of China, also known as the birthplace of tea. Tea is produced using the leaves of the Camellia sinensis plant and the harvesting process has a significant impact on the resulting product. There are thousands of varieties of tea, the four main types being black, green, white, and oolong, all of which are produced from the same plant. China has, by far, the largest tea market worldwide , valued at over 91 billion U.S. dollars. India and Japan rank in distant second and third places. China is the top global tea producer , producing an annual volume of nearly 3.1 million metric tons in recent years. The British introduced tea consumption and production to India in the early 1800s, in order to create a competing market for China. India is the second largest producer of tea worldwide , followed by Kenya, Sri Lanka, and Indonesia. Sustainable farming practices within tea production have become more important in recent years; the estimated global production of UTZ certified tea has increased by almost 90 percent since 2012, although 2020 and 2021 saw a significant decline. Ready-to-drink (RTD) tea is a segment of the market which is set to experience strong growth in the future; the RTD tea market is forecast to reach almost 30 billion U.S. dollars worldwide by 2024. RTD tea beverages can be still or sparkling, and with additional flavorings. In terms of volume sales, ready-to-drink tea was one of the top-selling liquid refreshment beverages worldwide . Some niche categories also exist within the market, including healthier options. The size of the kombucha market worldwide , a fermented tea beverage consumed for its health benefits, is also estimated to grow in coming years. This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. Show more Published by M. Ridder , Dec 18, 2023

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Global Tea Market

Segments - by Type (Green Tea, Black Tea, Oolong Tea, White Tea, Yellow Tea, Dark Tea, Fruit/Herbal Tea, Flavored Tea, Instant Tea, Others), By Application (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Coffee Shops/Bakeries, Catering Services, Others), By Packaging (Plastic Containers, Paper Containers, Aluminum Cans, Glass Bottles, Others), By Distribution Channel (B2B, B2C), And By Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa, Oceania), Forecast From 2023 To 2032

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Vaibhav Chandola

Market Overview:

The global tea market is expected to grow at a CAGR of 6.5% from 2022 to 2030. The growth in the market can be attributed to the increasing demand for premium tea products and the growing popularity of iced tea. The green tea segment is expected to grow at a CAGR of 7.1% from 2022 to 2030, while the Black Tea segment is projected to grow at a CAGR of 5.8%. In terms of applications, supermarkets/hypermarkets are expected to account for the largest share of the global tea market in 2020, followed by specialty stores and convenience stores.

Product Definition:

Tea is an aromatic beverage prepared by pouring hot or boiling water over cured leaves of the Camellia sinensis, an evergreen shrub native to Asia. After brewing for a few minutes, the sweetener may be added and milk or lemon can be added for flavor. Tea has long been consumed as a refreshing drink and has been credited with many health benefits.

Green tea is the fresh leaves of the Camellia sinensis plant, steaming hot water, and is served either with sugar or without sugar. It has high antioxidant content that helps prevent heart diseases, cancer, and skin aging. Green tea contains EGCG (epigallocatechin gallate) which boosts the body's immune system response to viruses, bacteria, and other harmful elements present in the body. This helps cure various ailments like bronchitis, asthma, etc.

Black tea is the most popular variety of tea produced from the Camellia sinensis plant. It has higher antioxidant content as compared to other green and white teas. Antioxidants help in protecting cell damage and neutralize free radicals that cause disease by reacting with them. Black tea contains high levels of antioxidants, which helps in reducing the risk for cardiovascular diseases, cancer, diabetes mellitus type 2 & 3, and cognitive decline along with protection against UV light exposure which may lead to skin cancer.

Oolong Tea:

Oolong tea is a type of tea that is made from leaves that have been rolled and twisted multiple times. This process gives the tea its characteristic flavor and aroma. Oolong teas are typically darker in color than other types of tea, and they can be enjoyed either hot or cold.

Fruit/Herbal Tea:

Fruit/Herbal Tea is a type of tea that contains natural ingredients such as fruits or herbs. These teas are often enjoyed for their health benefits, such as reducing inflammation and improving digestion.

Application Insights:

The supermarkets/hypermarkets segment dominated the market in 2015, accounting for over 60% of the overall share. The segment is expected to witness significant growth owing to increasing demand for packaged food and beverages among consumers, particularly in developed countries such as the U.K., Germany, Russia, and China. Furthermore, the growing penetration of multinational retail companies including Walmart Inc., Carrefour S.A., Ahold N.V., Metro AG, etc is expected to fuel industry expansion over the forecast period (2022-2030).

Specialty stores accounted for a considerable share in 2015 due to rising consumer preference toward specialty tea products with unique flavors such as fruit-flavored green tea and oolong tea extracts which are not available in conventional markets due to high costs involved in their production (2022-2030).

Regional Analysis:

The Asia Pacific dominated the global tea market in terms of revenue with a share of over 50% in 2019. The region is expected to witness significant growth owing to increasing consumption as an alternative beverage coupled with growing health awareness among consumers. China and India are the major consumers in this region due to their large consumer base and high demand for black tea, fruit/herbal tea, green tea, oolong tea, and others.

North America is projected to expand at the fastest CAGR during the forecast period from 2022 to 2030 on account of rising demand for organic products along with changing lifestyle patterns among consumers, especially millennials. Moreover, an increasing number of specialty stores that offer healthy beverages including herbal infusions will drive growth further. Furthermore, new product launches by key manufacturers including Twinings Ltd., Numi Organic Tea Co., Tata Global Beverages Ltd., Apeejay Surrendra Group's TCS Food & Hospitality Pvt. Ltd.

Growth Factors:

• Increasing disposable income of the population: The disposable income of the population is increasing, which is increasing the demand for tea.
• The growing popularity of tea as a healthy drink: Tea is considered a healthy drink, and its popularity is growing among people worldwide. This is contributing to the growth of the tea market.
• Rising demand from emerging markets: The demand for tea from emerging markets such as China and India is increasing rapidly, which is contributing to the growth of the global tea market.
• The proliferation of new flavors and varieties: Tea manufacturers are coming up with new flavors and varieties of tea, which are attracting more consumers to this beverage category. This trend will continue in the future, driving growth in the global tea market size.
• Technological advancements: With technological advancements, there has been an increase in production efficiency and quality standards for teas globally.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Tea Market Report Segments:

The market is segmented by Type (Green Tea, Black Tea, Oolong Tea, White Tea, Yellow Tea, Dark Tea, Fruit/Herbal Tea, Flavored Tea, Instant Tea, Others), by Application (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Coffee Shops/Bakeries, Catering Services, Others), by Packaging (Plastic Containers, Paper Containers, Aluminum Cans, Glass Bottles, Others), by Distribution Channel (B2B, B2C).

Some of the companies that are profiled in this report are:

• Associated British Foods
• Bettys& Taylors Group
• London Fruit& Herb

Tea Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Tea Market

Overview of the regional outlook of the Tea Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Tea Market Report:

• The market structure and projections for the coming years.
• Drivers, restraints, opportunities, and current trends of Tea Market.
• Historical data and forecast.
• Estimations for the forecast period 2032.
• Developments and trends in the market.
• Fruit/Herbal Tea
• Flavored Tea
• Instant Tea
• By Application:
• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• Online Stores
• Coffee Shops/Bakeries
• Catering Services
• By Packaging:
• Plastic Containers
• Paper Containers
• Aluminum Cans
• Glass Bottles
• By Distribution Channel:
• Market scenario by region, sub-region, and country.
• Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
• Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
• Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Tea Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2032.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Tea Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.

The tea market has been segmented on the basis of

Application

Distribution channel.

• Asia Pacific
• North America
• Latin America
• Middle East & Africa

Key Players

Swot analysis for tea market, pestel analysis for tea market, political factors, economic factors, social factors, technological factors, environmental factors, legal factors, porter 5 forces analysis of tea market, threat of new entrants.

The tea market has a moderate level of threat from new entrants. There are already several established brands in the market and new entrants would have to compete with these established players. Additionally, there is a high cost of entry due to the need to purchase land, machinery, and other necessary equipment. Furthermore, new entrants would also need to invest heavily in marketing and promotional activities to make their presence known in the market.

Bargaining Power of Suppliers

The bargaining power of suppliers in the tea market is moderate. The majority of raw materials used in tea production are sourced from the local market with a few exceptions. This means that suppliers are unable to exert a great deal of power over the market prices. Furthermore, there are several other suppliers in the market that manufacturers can switch to if the prices offered by one supplier become too high.

Bargaining Power of Buyers

The bargaining power of buyers in the tea market is high. There are a number of large retailers and wholesalers in the market that are able to purchase tea at lower prices due to the large quantities they are able to buy. Furthermore, these buyers are also able to negotiate for discounts and other benefits from the suppliers.

Threat of Substitute Products

The threat of substitute products in the tea market is low. Tea is a unique product that has no real substitutes. Coffee and other hot beverages are not considered to be substitutes as they are different products with different tastes and flavors.

Competitive Rivalry

The competitive rivalry in the tea market is high. There are several established players in the market that are vying for market share. These players are constantly introducing new products and engaging in price wars in order to gain an edge over their competitors.

Research Design

Secondary data collection, primary research, data validation, market estimation and forecasting, research ethics.

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FAQ Section

Some frequently asked quetions about this report!

1. What is the future outlook for the tea market?

The tea market is expected to continue to grow due to the increasing demand for specialty tea types and flavors, health benefits, and development of innovative products using tea as an ingredient. However, challenges like supply chain disruptions and shifting consumer preferences will continue to impact the industry.

2. Are there any regulatory changes in the tea market?

Yes, many countries have regulations in place to ensure the quality and safety of tea. For example, in the United States, the Food and Drug Administration (FDA) regulates tea as a food product and sets standards for quality and safety.

3. What is the impact of COVID-19 on the tea market?

COVID-19 has disrupted the supply chain and distribution channels for tea, leading to a shortage of tea in some regions. However, the pandemic has also led to an increase in at-home consumption of tea, which has mitigated the impact on the industry.

4. Can you describe the current market situation in the tea industry?

The tea industry is witnessing a shift in consumer preferences towards specialty tea types and flavors, such as green tea, herbal tea, and fruit-flavored tea. Consumers are also increasingly concerned about sustainability and ethical sourcing of tea. The market is highly competitive with many players offering a broad range of products and innovative marketing strategies to attract consumers.

5. What are the major challenges in the tea market?

Some major challenges in the tea market include supply chain disruptions, lack of transparency and quality control in the supply chain, intense competition, and fluctuations in commodity prices.

6. Which regions will see growth in the tea market?

The Asia-Pacific region is expected to witness significant growth in the tea market owing to the increasing consumption of tea in countries like China and India. Other regions like Europe and North America are also expected to grow due to the increasing demand for specialty tea.

7. What opportunities are available in the tea market?

The tea market presents several opportunities such as the growing demand for organic and premium tea, development of new flavors and blends, increasing awareness about the health benefits of tea, and expanding distribution channels.

8. Who are the major players in the tea market?

Some major players in the tea market include Unilever Group, Tata Global Beverages, Celestial Seasonings, Inc., Barry's Tea, Harney & Sons Tea Corp., Associated British Foods plc, The Republic of Tea, and Nestlé S.A.

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Tea Production in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

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Industry statistics and trends.

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Tea Production in the US

Industry Revenue

Total value and annual change from . Includes 5-year outlook.

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Trends and Insights

Market size is projected to over the next five years.

Market share concentration for the Tea Production industry in the US is , which means the top four companies generate of industry revenue.

The average concentration in the sector in the United States is .

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Table of Contents

About this industry, industry definition, what's included in this industry, industry code, related industries, domestic industries, competitors, complementors, international industries, performance, key takeaways, revenue highlights, employment highlights, business highlights, profit highlights, current performance.

What's driving current industry performance in the Tea Production in the US industry?

What's driving the Tea Production in the US industry outlook?

What influences volatility in the Tea Production in the US industry?

• Industry Volatility vs. Revenue Growth Matrix

What determines the industry life cycle stage in the Tea Production in the US industry?

• Industry Life Cycle Matrix

Products and Markets

Products and services.

• Products and Services Segmentation

How are the Tea Production in the US industry's products and services performing?

What are innovations in the Tea Production in the US industry's products and services?

Major Markets

• Major Market Segmentation

What influences demand in the Tea Production in the US industry?

International Trade

• Industry Concentration of Imports by Country
• Industry Concentration of Exports by Country
• Industry Trade Balance by Country

What are the import trends in the Tea Production in the US industry?

What are the export trends in the Tea Production in the US industry?

Geographic Breakdown

Business locations.

• Share of Total Industry Establishments by Region ( )

Data Tables

• Number of Establishments by Region ( )
• Share of Establishments vs. Population of Each Region

What regions are businesses in the Tea Production in the US industry located?

Competitive Forces

Concentration.

• Combined Market Share of the Four Largest Companies in This Industry ( )
• Share of Total Enterprises by Employment Size

What impacts market share in the Tea Production in the US industry?

Barriers to Entry

What challenges do potential entrants in the Tea Production in the US industry?

Substitutes

What are substitutes in the Tea Production in the US industry?

Buyer and Supplier Power

• Upstream Buyers and Downstream Suppliers in the Tea Production in the US industry

What power do buyers and suppliers have over the Tea Production industry in the US?

Market Share

Top companies by market share:

• Market share
• Profit Margin

Company Snapshots

Company details, summary, charts and analysis available for

Company Details

• Total revenue
• Total operating income
• Total employees
• Industry market share

Company Summary

• Description
• Brands and trading names
• Other industries

What's influencing the company's performance?

External Environment

External drivers.

What demographic and macroeconomic factors impact the Tea Production in the US industry?

Regulation and Policy

What regulations impact the Tea Production in the US industry?

What assistance is available to the Tea Production in the US industry?

Financial Benchmarks

Cost structure.

• Share of Economy vs. Investment Matrix
• Depreciation

What trends impact cost in the Tea Production in the US industry?

Financial Ratios

• 3-4 Industry Multiples (2018-2023)
• 15-20 Income Statement Line Items (2018-2023)
• 20-30 Balance Sheet Line Items (2018-2023)
• 7-10 Liquidity Ratios (2018-2023)
• 1-5 Coverage Ratios (2018-2023)
• 3-4 Leverage Ratios (2018-2023)
• 3-5 Operating Ratios (2018-2023)
• 5 Cash Flow and Debt Service Ratios (2018-2023)
• 1 Tax Structure Ratio (2018-2023)

Data tables

• IVA/Revenue ( )
• Imports/Demand ( )
• Exports/Revenue ( )
• Revenue per Employee ( )
• Wages/Revenue ( )
• Employees per Establishment ( )
• Average Wage ( )

Key Statistics

Industry data.

Including values and annual change:

• Revenue ( )
• Establishments ( )
• Enterprises ( )
• Employment ( )
• Exports ( )
• Imports ( )

Frequently Asked Questions

What is the market size of the tea production industry in the us.

The market size of the Tea Production industry in the US is measured at in .

How fast is the Tea Production in the US market projected to grow in the future?

Over the next five years, the Tea Production in the US market is expected to . See purchase options to view the full report and get access to IBISWorld's forecast for the Tea Production in the US from up to .

What factors are influencing the Tea Production industry in the US market trends?

Key drivers of the Tea Production in the US market include .

What are the main product lines for the Tea Production in the US market?

The Tea Production in the US market offers products and services including .

Which companies are the largest players in the Tea Production industry in the US?

Top companies in the Tea Production industry in the US, based on the revenue generated within the industry, includes .

How many people are employed in the Tea Production industry in the US?

The Tea Production industry in the US has employees in United States in .

How concentrated is the Tea Production market in the United States?

Market share concentration is for the Tea Production industry in the US, with the top four companies generating of market revenue in United States in . The level of competition is overall, but is highest among smaller industry players.

Methodology

Where does ibisworld source its data.

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Tea Market Report

Tea market by type (green tea, black tea, oolong tea, fruit/herbal tea, and others), packaging (plastic containers, loose tea, paperboards, aluminum tins, and tea bags), distribution channel (hypermarket/supermarket, specialty stores, convenience stores, online stores, and others), application (residential and commercial), and regional analysis (north america, europe, asia-pacific, and lamea): global opportunity analysis and industry forecast, 2021–2028.

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Impact of covid-19 on Tea Market

Tea market analysis.

The global tea market is anticipated to garner $67,920.8 million in the 2021 – 2028 timeframe, growing from $54,322.1 million in 2020 at a healthy CAGR of 6.6%

Market Synopsis

Product launch and business expansion among market players, along with partnership to attract customers and to enhance the geographical presence, is anticipated to drive the growth of the tea market.

However, growth in coffee consumption that is proven to lower the risk of type 2 diabetes, cancer, and other diseases makes coffee a great substitute for tea. This aspect is anticipated to restrain the market growth. 

According to the regional analysis of the market, the Asia-Pacific tea market is anticipated to grow at a CAGR of 7.3% by generating a revenue of $51,650.0 million during the review period.

Tea Overview

Tea is a commonly consumed beverage globally and people have been drinking tea since ages due to its associated benefits. Different types of teas have different benefits that boost the immune system, help in reducing inflammation, and others which makes it an extremely popular beverage.

Impact Analysis of COVID-19 on the Global Tea Market

The novel coronavirus pandemic has had a devastating effect on several industries and the tea market also experienced a negative impact owing to complete lockdown situations and social distancing measures that has led to import-export restrictions, shortage of labor, supply chain disruptions, and decline in manufacturing processes. For instance, Kenya which is the largest tea exporting country in Africa was greatly affected during the pandemic due to disruption in transportation. Furthermore, India which is the second largest tea producer in the world, was negatively impacted by the pandemic due to complete shutdown of production facilities for months that affected the tea producers and smallholder livelihoods.

Several companies with their technological advancements, innovations, and initiatives, are helping the society to recover from the chaotic situation. For instance, Assam government has launched 4 new schemes on September 25, 2020, to boost the tea production business which has been hit badly due to pandemic restrictions. As per the scheme, the government will pay 3% interest on the capital loan. The government will pay subsidy of Rs. 7 per kg to promote production and export of tea. In addition, the government will also pay 25% subsidy to purchase plants and machineries needed to grow tea. Also, the government has waived off the agriculture income tax for tea garden owners for three years. Such initiatives are estimated to boost the production and export of tea to different countries.

Health Benefits Associated with Tea Consumption to Drive the Market Growth

The global tea industry is witnessing a rapid growth as tea is one of the widely consumed beverages across the world. Tea is rich in antioxidants that lowers the risk of heart disease, promotes weight loss, protects against cancer as it contains healthy bioactive compounds. Tea is also rich in various nutrients such as vitamin C, B6, B12, and E and minerals such as potassium, calcium, magnesium, and others. Further, green tea contains catechin called epigallocatechin-3-gallate (EGCG), which are natural antioxidants that prevents cell damage that has anti-ageing properties. Furthermore, tea is rich in caffeine which acts as a stimulant that improves the functioning of brain, memory, reaction time, vigilance, and others. All these advantages are anticipated to drive the market demand during the analysis timeframe.     

To know more about global tea market drivers, get in touch with our analysts here.

Growth in Coffee Consumption to Restrain Tea Market Growth

Coffee is another widely consumed beverage across the world which is rich in manganese, potassium, niacin, and other nutrients. Coffee is proven to reduce the risk of cancer, type 2 diabetes, and other diseases and has higher caffeine content that elevates your energy levels, reduces fatigue, and increases alertness. Hence, these associated benefits make coffee as an easy substitute for tea. These factors are predicted to restrain the tea market growth during the forecast period.

Introduction of New Tea Flavors to Create Enormous Investment Opportunities

The launch of new tea flavors such as organic tea, green tea, fruit tea, chamomile tea, white tea, and others are anticipated to generate excellent growth opportunities in the market. For instance, Chamomile tea which is derived from flowers has various health benefits such as it improves sleep quality, promotes digestive health, controls blood sugar level, improves heart health, and others. In addition, herbal tea such as peppermint tea is made from dried leaves of peppermint plant that makes it bold, refreshing, and minty. In addition, Nestlé S.A., the Switzerland-based food & beverages company, introduced zero-waste initiative that converts tea into fertilizer in August 2018. This is a regenerative approach that aims to prevent leakage of resources, minimizes waste and energy emissions. Tea waste is rich in compounds such as potassium, nitrogen, and phosphorous that makes it an excellent fertilizer. All these factors are estimated to generate huge growth opportunities during the forecast period.

To know more about global tea market opportunities, get in touch with our analysts here.

Global Tea Market, by Type

Based on type, the market has been divided into green tea, black tea, oolong tea, fruit/herbal tea, and others. out of these, the black tea sub-segment has accounted for highest revenue share in 2020 and green tea sub-segment is projected to have the fastest growth during the analysis period..

Source: Research Dive Analysis

The black tea type is anticipated to have a dominant market share, and it is predicted that the market shall generate a revenue of $24,368.3 million by 2028, growing from $24,272.2 million in 2020. Black tea is most popular consumed beverage across the world that is derived from Camellia sinensis plant which has a strong flavor and contains more caffeine than any other tea. The growth in this sub-segment is attributed to a wide range of benefits such as antioxidant properties that removes free radicals and decreases the cell damage. Black tea also contains flavonoids found in fruits, red wine, dark chocolate which is beneficial for heart health. In addition, black tea also lowers down the level of bad LDL (Low Density Lipoprotein) cholesterol that reduces the risk of heart disease. All these advantages are anticipated to boost the black tea market demand and growth in the upcoming years.

The green tea sub-segment is predicted to have a fastest growth in the global market and is expected to register a revenue of $30,513.4 million during the forecast period. This growth is majorly owing to wide range of benefits associated with the consumption of green tea. The green tea contains healthy bioactive compounds that improves the functioning of brain, aids in fat burning process, reduces bad breath, prevents the risk of type 2 diabetes, cardiovascular diseases, and others. In addition, green tea prevents tooth cavities, strengthens tooth enamel, promotes healthy skin, and prevents food poisoning. Increase in the number of health and fitness-conscious people have increased the demand for green tea due to its weight loss and healthy skin benefits. All the benefits and advantages of green tea consumption are predicted to drive the growth of green tea sub-segment during the analysis period.

Global Tea Market, by Packaging

Based on packaging, the analysis has been divided into plastic containers, loose tea, paperboards, aluminum tins, and tea bags. out of these, paperboards is predicted to be a  dominant sub-segment and tea bags is projected to account for the fastest growth in the global market..

The paperboards sub-segment of the global tea market is anticipated to have fastest growth and surpass $26,199.5 million by 2028, with an increase from $20,631.9 million in 2020. Paperboards or cardboards are widely used for packaging as they are economical for companies. The paperboards are highly efficient to move, keep, or carry various items. Also, it is lightweight, and it can be customized based on consumer needs. In addition, if paperboards are derived from renewable or recycled materials such as waste products from sawdust, wood chips, recycled paper, and others, then it can act as a sustainable solution for safe and healthy environment. These aspects are estimated to drive the growth of paperboards sub-segment during the forecast period.

The tea bags sub-segment of the global tea market is anticipated to have fastest growth and surpass $9,445.3 million by 2028, with an increase from $6,988.1 million in 2020. Tea bags are small pouches that contain powdered tea or tea leaves which has become extremely popular in recent years. Tea bags offers convenience and it has appropriate portion of tea quantity. In addition, tea bags have eye catching shape and elegant design. Also, the manufacturer can sell variety of tea types in one box by using different color tea bags to differentiate various flavors. All these benefits are estimated to drive the growth for tea bags sub-segment during the analysis timeframe.

Global Tea Market, by Distribution Channel

Based on distribution channel, the analysis has been divided into hypermarket/supermarket, specialty stores, convenience stores, online stores, and others. out of these, the hypermarket/supermarket is a dominant sub-segment and online stores is the fastest growing sub-segment in the global market..

The hypermarket/supermarket sub-segment of the global tea market is anticipated to have dominant market share and surpass $27,286.1 million by 2028, with an increase from $21,462.6 million in 2020. The hypermarket/supermarket provides one stop access to variety of products from various brands. In addition, hypermarket/supermarket offers self-service so that the users have choice to select appropriate product based on price, ingredients and benefits offered. Also, attractive discounts are offered by these stores, located at easily accessible areas, and operates under convenient timings. All these aspects are anticipated to drive the growth of hypermarket/supermarket sub-segment during the analysis period.

The online stores segment is estimated to grow at the fastest rate registering a revenue of $4,738.3 million during the analysis timeframe owing to growing popularity of e-commerce platforms. Due to pandemic situation e-commerce platform has experienced the rapid growth and it is one of the fastest emerging sectors. Attractive discounts, coupons, cashback offers, delivery service, and product variety offered by e-commerce platforms have attracted large number of customers. In addition, ease of placing an order, order tracking, cancellations & smooth refund process have gained huge popularity. All these factors are estimated to boost the market growth in the upcoming years.

Global Tea Market, by Application

Based on application, the analysis has been divided into residential and commercial. out of these, commercial sub-segment is predicted to be the most dominant fastest growing in the global market, with residential sub-segment acquiring the subsequent place..

The residential sub-segment of the global tea market is anticipated to have dominant market share and surpass $60,344.5 million by 2028, with an increase from $49,387.9 million in 2020. This growth is mainly owing to consumption and popularity of tea at large number of residences. Tea is largely consumed across residential segment as it provides refreshment and has health benefits. Also, advertising and marketing by the manufacturers has shifted the consumer preferences towards drinking tea that is estimated to drive the growth of residential sub-segment during the forecast period.

The commercial sub-segment of the global tea market is anticipated to have a significant growth and surpass $7,572.3 million by 2028, with an increase from $4,934.3 million in 2020. Tea is widely consumed beverage across hotels, corporate offices, restaurants, cafes, and more. The growth in commercial sector is majorly attributed to fast service offered by these commercial places. These factors are anticipated to drive the growth of commercial sub-segment during the analysis period.

Global Tea Market, Regional Insights:

The tea market was investigated across north america, europe, asia-pacific, and lamea..

The Market for Tea in Asia-Pacific to be the Most Dominant & Fastest Growing

The Asia-Pacific tea market accounted $39,173.3 million in 2020 and is projected to register a revenue of $51,650.0 million by 2028. The rapid increase in tea demand is majorly attributed to high prevalence of tea culture in countries like China, India, Japan, and others. The growing health consciousness has attracted people towards consumption of different type of tea such as black tea, green tea, herbal tea, and others. Also, innovative packaging methods, variety of flavors, and taste is anticipated to attract new business opportunities in this region. 

The Market for Tea in LAMEA to Acquire Significant Growth

The share of LAMEA tea market is anticipated to grow at a CAGR of 5.0% by registering a revenue of $6,608.2 million by 2028. Increase in health-conscious population, awareness regarding benefits offered by consumption of tea compared to carbonated drinks, and growth in food service channels mainly e-commerce platforms are anticipated to drive the demand for tea in the upcoming years. Argentina, the country in Latin America is one of the largest producers of black tea. In addition, availability of various flavors such as green tea, lemon tea, fruit tea, and others is anticipated to drive the tea demand in LAMEA region.

Competitive Scenario in the Global Tea Market

Product launches, business expansions, and partnerships are common strategies followed by major market players..

Some of the leading tea market players are Associated British Foods Plc., Barry's Tea Limited, Hain Celestial Group, Inc., ITO EN, Ltd., McLeod Russel, Nestlé S.A., Taetea Group, Tata Global beverages, The Republic of Tea, Inc., Unilever Group  

Porter’s Five Forces Analysis for the Global Tea Market:

• Bargaining Power of Suppliers: Tea leaves are the primary raw materials for manufacturing different varieties of tea. This factor indicates that there is low product differentiation but there are small number of domestic and international raw material suppliers which increases the suppliers bargaining power. Thus, the bargaining power suppliers is high.
• Bargaining Power of Buyers: Buyers have low bargaining power; as number of buyers are high, which are basically the direct customers who buy tea for residential and commercial applications. Furthermore, specific climatic conditions are required for tea production along with major capital investment that decreases the bargaining power of buyers. Thus, the bargaining power of the buyers is low.
• Threat of New Entrants: The companies entering tea market has less legal barriers and government policies are moderate as tea production is non-toxic and has less harm. In addition, the demand is high and increase in innovations in tea such as sustainable packing and launch of new varieties are anticipated to attract new entrants. Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: The availability of substitute product such as coffee which is also energy activating beverage consumed by people almost twice a day. Tea and coffee are the substitutes of each other, and it depends on the consumer’s choice and availability which beverage to consume. Thus, the threat of substitutes is high.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is high. The growing demand for tea from different regions has encouraged market players to focus on expanding their business capacity and geographical presence.   Therefore, competitive rivalry in the market is high.

Q1. What is the size of the global tea market?

A. The size of the global tea market was over $54,322.1 million in 2020 and is projected to reach $67,920.8 million by 2028.

Q2. Which are the major companies in the tea market?

A. Associated British Foods, Plc., Barry's Tea Limited, and Nestlé S.A. are some of the major players operating in the tea market.

Q3. Which region, among others, possesses greater investment opportunities in the near future?

A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.

Q4. What will be the growth rate of the Asia-Pacific tea market?

A. Asia Pacific tea market is anticipated to grow at 7.3% CAGR during the forecast period.

Q5. What are the strategies opted by the leading players in this market?

A. Product launch, product innovation, and partnerships are the key strategies opted by the operating companies in this market.

Q6. Which companies are investing more on R&D practices?

A. Associated British Foods, Plc., Barry's Tea Limited, and Nestlé S.A. are investing more on R&D activities for developing new products and technologies.

1.Research Methodology

1.1.Desk Research 1.2.Real time insights and validation 1.3.Forecast model 1.4.Assumptions and forecast parameters

1.4.1.Assumptions 1.4.2.Forecast parameters

1.5.Data sources

1.5.1.Primary 1.5.2.Secondary

2.Executive Summary

2.1.360° summary 2.2.Type trends 2.3.Packaging trends 2.4.Distribution channel trends 2.5.Application trends

3.Market overview

3.1.Market segmentation & definitions 3.2.Key takeaways

3.2.1.Top investment pockets 3.2.2.Top winning strategies

3.3.Porter’s five forces analysis

3.3.1.Bargaining power of consumers 3.3.2.Bargaining power of suppliers 3.3.3.Threat of new entrants 3.3.4.Threat of substitutes 3.3.5.Competitive rivalry in the market

3.4.Market dynamics

3.4.1.Drivers 3.4.2.Restraints 3.4.3.Opportunities

3.5.Technology landscape 3.6.Regulatory landscape 3.7.Patent landscape 3.8.Market value chain analysis 3.9.Strategic overview

4.Tea Market, by Type 

4.1.Green Tea

4.1.1.Market size and forecast, by region, 2020-2028 4.1.2.Comparative market share analysis, 2020 & 2028

4.2.Black Tea

4.2.1.Market size and forecast, by region, 2020-2028 4.2.2.Comparative market share analysis, 2020 & 2028

4.3.Oolong Tea

4.3.1.Market size and forecast, by region, 2020-2028 4.3.2.Comparative market share analysis, 2020 & 2028

4.4.Fruit/Herbal Tea

4.4.1.Market size and forecast, by region, 2020-2028 4.4.2.Comparative market share analysis, 2020 & 2028

4.5.1.Market size and forecast, by region, 2020-2028 4.5.2.Comparative market share analysis, 2020 & 2028

5.Tea Market, by Packaging 

5.1.Plastic Containers 

5.1.1.Market size and forecast, by region, 2020-2028 5.1.2.Comparative market share analysis, 2020 & 2028

5.2.Loose Tea 

5.2.1.Market size and forecast, by region, 2020-2028 5.2.2.Comparative market share analysis, 2020 & 2028

5.3.Paperboards

5.3.1.Market size and forecast, by region, 2020-2028 5.3.2.Comparative market share analysis, 2020 & 2028

5.4.Aluminum Tins

5.4.1.Market size and forecast, by region, 2020-2028 5.4.2.Comparative market share analysis, 2020 & 2028

5.5.Tea Bags

5.5.1.Market size and forecast, by region, 2020-2028 5.5.2.Comparative market share analysis, 2020 & 2028

6.Tea Market, by Distribution Channel 

6.1.Hypermarket/Supermarket

6.1.1.Market size and forecast, by region, 2020-2028 6.1.2.Comparative market share analysis, 2020 & 2028

6.2.Specialty Stores

6.2.1.Market size and forecast, by region, 2020-2028 6.2.2.Comparative market share analysis, 2020 & 2028

6.3.Convenience Stores

6.3.1.Market size and forecast, by region, 2020-2028 6.3.2.Comparative market share analysis, 2020 & 2028

6.4.Online Stores

6.4.1.Market size and forecast, by region, 2020-2028 6.4.2.Comparative market share analysis, 2020 & 2028

6.5.1.Market size and forecast, by region, 2020-2028 6.5.2.Comparative market share analysis, 2020 & 2028

7.Tea Market, by Application

7.1.Residential

7.1.1.Market size and forecast, by region, 2020-2028 7.1.2.Comparative market share analysis, 2020 & 2028

7.2.Commercial

7.2.1.Market size and forecast, by region, 2020-2028 7.2.2.Comparative market share analysis, 2020 & 2028

8.Tea Market, by Region

8.1.North America

8.1.1.Market size and forecast, by Type, 2020-2028 8.1.2.Market size and forecast, by Packaging, 2020-2028 8.1.3.Market size and forecast, by Distribution Channel, 2020-2028 8.1.4.Market size and forecast, by Application, 2020-2028 8.1.5.Market size and forecast, by country, 2020-2028 8.1.6.Comparative market share analysis, 2020 & 2028

8.1.7.1.Market size and forecast, by Type, 2020-2028 8.1.7.2.Market size and forecast, by Packaging, 2020-2028 8.1.7.3.Market size and forecast, by Distribution Channel, 2020-2028 8.1.7.4.Market size and forecast, by Application, 2020-2028 8.1.7.5.Comparative market share analysis, 2020 & 2028

8.1.8.Canada

8.1.8.1.Market size and forecast, by Type, 2020-2028 8.1.8.2.Market size and forecast, by Packaging, 2020-2028 8.1.8.3.Market size and forecast, by Distribution Channel, 2020-2028 8.1.8.4.Market size and forecast, by Application, 2020-2028 8.1.8.5.Comparative market share analysis, 2020 & 2028

8.1.9.Mexico

8.1.9.1.Market size and forecast, by Type, 2020-2028 8.1.9.2.Market size and forecast, by Packaging, 2020-2028 8.1.9.3.Market size and forecast, by Distribution Channel, 2020-2028 8.1.9.4.Market size and forecast, by Application, 2020-2028 8.1.9.5.Comparative market share analysis, 2020 & 2028

8.2.1.Market size and forecast, by Type, 2020-2028 8.2.2.Market size and forecast, by Packaging, 2020-2028 8.2.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.4.Market size and forecast, by Application, 2020-2028 8.2.5.Market size and forecast, by country, 2020-2028 8.2.6.Comparative market share analysis, 2020 & 2028

8.2.7.Germany 

8.2.7.1.Market size and forecast, by Type, 2020-2028 8.2.7.2.Market size and forecast, by Packaging, 2020-2028 8.2.7.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.7.4.Market size and forecast, by Application, 2020-2028 8.2.7.5.Comparative market share analysis, 2020 & 2028

8.2.8.France

8.2.8.1.Market size and forecast, by Type, 2020-2028 8.2.8.2.Market size and forecast, by Packaging, 2020-2028 8.2.8.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.8.4.Market size and forecast, by Application, 2020-2028 8.2.8.5.Comparative market share analysis, 2020 & 2028

8.2.9.Italy

8.2.9.1.Market size and forecast, by Type, 2020-2028 8.2.9.2.Market size and forecast, by Packaging, 2020-2028 8.2.9.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.9.4.Market size and forecast, by Application, 2020-2028 8.2.9.5.Comparative market share analysis, 2020 & 2028

8.2.10.Spain

8.2.10.1.Market size and forecast, by Type, 2020-2028 8.2.10.2.Market size and forecast, by Packaging, 2020-2028 8.2.10.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.10.4.Market size and forecast, by Application, 2020-2028 8.2.10.5.Comparative market share analysis, 2020 & 2028

8.2.11.Russia 

8.2.11.1.Market size and forecast, by Type, 2020-2028 8.2.11.2.Market size and forecast, by Packaging, 2020-2028 8.2.11.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.11.4.Market size and forecast, by Application, 2020-2028 8.2.11.5.Comparative market share analysis, 2020 & 2028

8.2.12.Rest of Europe

8.2.12.1.Market size and forecast, by Type, 2020-2028 8.2.12.2.Market size and forecast, by Packaging, 2020-2028 8.2.12.3.Market size and forecast, by Distribution Channel, 2020-2028 8.2.12.4.Market size and forecast, by Application, 2020-2028 8.2.12.5.Comparative market share analysis, 2020 & 2028

8.3.Asia Pacific

8.3.1.Market size and forecast, by Type, 2020-2028 8.3.2.Market size and forecast, by Packaging, 2020-2028 8.3.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.4.Market size and forecast, by Application, 2020-2028 8.3.5.Market size and forecast, by country, 2020-2028 8.3.6.Comparative market share analysis, 2020 & 2028

8.3.7.Japan

8.3.7.1.Market size and forecast, by Type, 2020-2028 8.3.7.2.Market size and forecast, by Packaging, 2020-2028 8.3.7.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.7.4.Market size and forecast, by Application, 2020-2028 8.3.7.5.Comparative market share analysis, 2020 & 2028

8.3.8.China 

8.3.8.1.Market size and forecast, by Type, 2020-2028 8.3.8.2.Market size and forecast, by Packaging, 2020-2028 8.3.8.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.8.4.Market size and forecast, by Application, 2020-2028 8.3.8.5.Comparative market share analysis, 2020 & 2028

8.3.9.Australia  

8.3.9.1.Market size and forecast, by Type, 2020-2028 8.3.9.2.Market size and forecast, by Packaging, 2020-2028 8.3.9.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.9.4.Market size and forecast, by Application, 2020-2028 8.3.9.5.Comparative market share analysis, 2020 & 2028

8.3.10.India 

8.3.10.1.Market size and forecast, by Type, 2020-2028 8.3.10.2.Market size and forecast, by Packaging, 2020-2028 8.3.10.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.10.4.Market size and forecast, by Application, 2020-2028 8.3.10.5.Comparative market share analysis, 2020 & 2028

8.3.11.South Korea

8.3.11.1.Market size and forecast, by Type, 2020-2028 8.3.11.2.Market size and forecast, by Packaging, 2020-2028 8.3.11.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.11.4.Market size and forecast, by Application, 2020-2028 8.3.11.5.Comparative market share analysis, 2020 & 2028

8.3.12.Pakistan

8.3.12.1.Market size and forecast, by Type, 2020-2028 8.3.12.2.Market size and forecast, by Packaging, 2020-2028 8.3.12.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.12.4.Market size and forecast, by Application, 2020-2028 8.3.12.5.Comparative market share analysis, 2020 & 2028

8.3.13.Rest of Asia Pacific

8.3.13.1.Market size and forecast, by Type, 2020-2028 8.3.13.2.Market size and forecast, by Packaging, 2020-2028 8.3.13.3.Market size and forecast, by Distribution Channel, 2020-2028 8.3.13.4.Market size and forecast, by Application, 2020-2028 8.3.13.5.Comparative market share analysis, 2020 & 2028

8.4.1.Market size and forecast, by Type, 2020-2028 8.4.2.Market size and forecast, by Packaging, 2020-2028 8.4.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.4.Market size and forecast, by Application, 2020-2028 8.4.5.Market size and forecast, by country, 2020-2028 8.4.6.Comparative market share analysis, 2020 & 2028

8.4.7.Brazil  

8.4.7.1.Market size and forecast, by Type, 2020-2028 8.4.7.2.Market size and forecast, by Packaging, 2020-2028 8.4.7.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.7.4.Market size and forecast, by Application, 2020-2028 8.4.7.5.Comparative market share analysis, 2020 & 2028

8.4.8.Saudi Arabia 

8.4.8.1.Market size and forecast, by Type, 2020-2028 8.4.8.2.Market size and forecast, by Packaging, 2020-2028 8.4.8.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.8.4.Market size and forecast, by Application, 2020-2028 8.4.8.5.Comparative market share analysis, 2020 & 2028

8.4.9.South Africa

8.4.9.1.Market size and forecast, by Type, 2020-2028 8.4.9.2.Market size and forecast, by Packaging, 2020-2028 8.4.9.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.9.4.Market size and forecast, by Application, 2020-2028 8.4.9.5.Comparative market share analysis, 2020 & 2028

8.4.10.Turkey

8.4.10.1.Market size and forecast, by Type, 2020-2028 8.4.10.2.Market size and forecast, by Packaging, 2020-2028 8.4.10.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.10.4.Market size and forecast, by Application, 2020-2028 8.4.10.5.Comparative market share analysis, 2020 & 2028

8.4.11.Egypt

8.4.11.1.Market size and forecast, by Type, 2020-2028 8.4.11.2.Market size and forecast, by Packaging, 2020-2028 8.4.11.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.11.4.Market size and forecast, by Application, 2020-2028 8.4.11.5.Comparative market share analysis, 2020 & 2028

8.4.12.Rest of LAMEA

8.4.12.1.Market size and forecast, by Type, 2020-2028 8.4.12.2.Market size and forecast, by Packaging, 2020-2028 8.4.12.3.Market size and forecast, by Distribution Channel, 2020-2028 8.4.12.4.Market size and forecast, by Application, 2020-2028 8.4.12.5.Comparative market share analysis, 2020 & 2028

9.Company profiles

9.1.Associated British Foods Plc. (ABF)

9.1.1.Business overview 9.1.2.Financial performance 9.1.3.Product portfolio 9.1.4.Recent strategic moves & developments 9.1.5.SWOT analysis

9.2.Barry’s Tea Limited

9.2.1.Business overview 9.2.2.Financial performance 9.2.3.Product portfolio 9.2.4.Recent strategic moves & developments 9.2.5.SWOT analysis

9.3.Hain Celestial Group, Inc.

9.3.1.Business overview 9.3.2.Financial performance 9.3.3.Product portfolio 9.3.4.Recent strategic moves & developments 9.3.5.SWOT analysis

9.4.ITO EN, Ltd.

9.4.1.Business overview 9.4.2.Financial performance 9.4.3.Product portfolio 9.4.4.Recent strategic moves & developments 9.4.5.SWOT analysis

9.5.Mcleod Russel India Limited

9.5.1.Business overview 9.5.2.Financial performance 9.5.3.Product portfolio 9.5.4.Recent strategic moves & developments 9.5.5.SWOT analysis

9.6.Nestle S.A.

9.6.1.Business overview 9.6.2.Financial performance 9.6.3.Product portfolio 9.6.4.Recent strategic moves & developments 9.6.5.SWOT analysis

9.7.1.Business overview 9.7.2.Financial performance 9.7.3.Product portfolio 9.7.4.Recent strategic moves & developments 9.7.5.SWOT analysis

9.8.Tata Global Beverages

9.8.1.Business overview 9.8.2.Financial performance 9.8.3.Product portfolio 9.8.4.Recent strategic moves & developments 9.8.5.SWOT analysis

9.9.The Republic of Tea, Inc.

9.9.1.Business overview 9.9.2.Financial performance 9.9.3.Product portfolio 9.9.4.Recent strategic moves & developments 9.9.5.SWOT analysis

9.10.Unilever Group

9.10.1.Business overview 9.10.2.Financial performance 9.10.3.Product portfolio 9.10.4.Recent strategic moves & developments 9.10.5.SWOT analysis

As far as the legend goes, it was in 2737 B.C.E, the Chinese emperor – Shen Nong stumbled upon tea. As per the ancient tale, a tea leaf drifted into the emperor’s pot of boiling water and this is how the love for tea reached far and wide for centuries to come. According to archeologists, tea was originally found in the Yunnan province of China, however, evidence pinpoints that Northern India and Tibet may have been native to tea as well. It was in the Tang Dynasty of China (600 to 900 A.D.) that tea gained humongous popularity and was declared as the national drink of China. Apart from this, the Japanese follow a tea ceremony that signifies tranquility, purity, harmony, and respect. The Japanese put in a lot of effort during the preparation of the tea ceremony.

There are 3 types of teas:

• Herbal teas

True teas are further classified into the following:

Forecast Analysis of the Tea Market

The global tea market is anticipated to witness a tremendous growth rate in the coming years due to variegated health benefits associated with tea and it is one of the commonly preferred beverages worldwide amongst all classes of people. Tea contains three main compounds – antioxidants, polyphenols, and catechins. Polyphenols contain tannins and flavonoids that keep diseases off the bay. Flavonoids contain antioxidants that prevent premature aging and severe neurological disorders. Green tea is recommended for people, who are into fitness, because this type of tea contains a huge amount of antioxidants.

Some of the notable advantages of drinking tea are as follows:

• Chamomile – An herbal tea that helps in ridding bowel syndrome as this tea acts like an antispasmodic.
• Ginger tea – helps to calm nausea.
• Tea helps in fighting cancer (no fixed evidence found as such so far)
• Tulsi or holy basil tea – used to enhance immunity and fend off illness or injuries. This tea is known for its anti-fungal, antibacterial, and anti-inflammatory property that helps to strengthen the immune system.
• Teas prevent cavities by changing the pH in the mouth.
• They reduce the risk of heart attacks.
• They offer exceptional weight loss.

All the above-stated perks of drinking tea are estimated to drive the global tea market in the coming years. Apart from this, a report by Research Dive, states that the global tea market  is predicted to gain $67,920.8 million during the 2021-2028 timeframe. Furthermore, the massive prevalence of tea culture in regions, such as India, China, Japan, and so on, is expected to surge the Asia-Pacific tea market in the coming years.

Recent Developments in the Market

The well-established participants of the global tea market are concentrating on exclusive strategies such as constructing product portfolios, mergers and acquisitions of prospering companies, investments in research & development fields, new product declarations, and funding for the upcoming activities and innovations. These tactics are propelling the growth of numerous tea businesses across the world.

For instance,

• In February 2021, Tata Consumer Products, a food and beverage company declared the re-launch of Tetley , a green tea brand that has a new variant consisting of vitamin C. This launch focuses to capitalize on the rising consumer fondness for drinks, food, and remedies that can augment immunity during the Covid-19 outbreak.  
• In October 2020, Indian Chai Company, a tea brand, revealed an exquisite line of healthy and exotic tea products. These teas are available in numerous flavors like Berries Jungle, Tumeric Citrus, Immunity Tea, Weight Loss Tea, Bombay Cutting, and Chai20. The company provides exclusive, aromatic, healthy, and medicinal tea options for consumers.  
• In August 2020, Society Tea, a Mumbai-based tea brand, launched ‘Cleanse’ that is composed of ingredients meant for immunity and metabolism growth. The product encompasses turmeric that is known to treat the common cold, skin issues, and much more. The target audiences for Cleanse are those who are always on the move; one can restart their lifestyle with this tea brand.

Covid-19 Impact on the Global Market

The global tea market is expected to witness a negative impact during the coronavirus outbreak due to the lockdown scenario and social distancing norms. This factor has restricted import and export, declined the manufacturing procedures, decreased labor, and disrupted the supply chain. However, technical advances, initiatives, and innovations are predicted to upsurge the market in the post-pandemic scenario.

Future Scope of the Market

A substitute product for tea is generally coffee and this aspect is likely to restrain the market growth in the coming years. However, the introduction of several new tea flavors, such as green tea, organic tea, fruit tea, white tea, chamomile tea, and much more, is projected to create promising opportunities in the market globally. Also, tea waste is filled with nutritious compounds like nitrogen, potassium, and phosphorus that make it an ideal choice for fertilizer. Such unique benefits of tea are estimated to aid the growth of the market and mark a bright future for the market.       

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Revolutionizing Sri Lankan Tea Industry: A Comprehensive Analysis of the Economic Viability of Implementing IoT Applications

• Conference paper
• First Online: 27 September 2023
• Cite this conference paper

• Ayesha Sooriyarachchi 16 ,
• P. T. R. S. Sugathadasa 16 ,
• Oshadhi K. Herath 16 , 17 ,
• Amila Thibbotuwawa 16 ,
• Izabela Nielsen 18 &
• Tadachika Nakayama 17  

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

Included in the following conference series:

• International Conference on Intelligent Systems in Production Engineering and Maintenance

335 Accesses

This research focuses on technological innovation's adaptability in the Sri Lankan tea industry and its economic benefits. The four focused areas below were created to address specific knowledge gaps in this research. These objectives correspond to the study's purposes: Identify existing Internet of Things (IoT) applications in the Tea operational process in Sri Lanka. Assess the efficiency and economic sustainability of tea processing under IoT applications. Identify Issues with the existing technological improvement and challenges. Propose feasible autonomous applications according to the financial ability of the Sri Lankan Tea Industry. The research relies on both primary and secondary data. Factory visits provided observational data, and an expert opinion poll was undertaken among tea industry professionals in selected Sri Lankan companies active in the export market. The results of this study have significant policy implications for the tea industry and guide industry stakeholders on the potential of IoT applications to enhance productivity, reduce costs, and improve quality. The findings may be instrumental in guiding decision-making regarding IoT technology adoption and promoting economic sustainability in the Sri Lankan tea industry.

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Mujahid Hilal, M.I.: Sri Lanka's Tea Economy: Issues and Strategies. J. Polit. Law 13 (1), 1 (2019). https://doi.org/10.5539/jpl.v13n1p1

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Acknowledgment

The authors would like to acknowledge the financial support given by the Norwegian Program for Capacity Development in Higher Education and Research for Development (NORHED II - Project number 68085), the “Politics and Economic Governance” sub-theme, the project “Enhancing Lean Practices in Supply Chains: Digitalization”, which is a collaboration between the University of Stavanger (Norway), ITB (Indonesia), and the University of Moratuwa (Sri Lanka).

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Ayesha Sooriyarachchi, P. T. R. S. Sugathadasa, Oshadhi K. Herath & Amila Thibbotuwawa

Extreme Energy-Density Research Institute, Nagaoka University of Technology, Nagaoka, 940-2188, Niigata, Japan

Oshadhi K. Herath & Tadachika Nakayama

Department of Mechanical and Manufacturing Engineering, Aalborg University, 9220, Aalborg, Denmark

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Sooriyarachchi, A., Sugathadasa, P.T.R.S., Herath, O.K., Thibbotuwawa, A., Nielsen, I., Nakayama, T. (2024). Revolutionizing Sri Lankan Tea Industry: A Comprehensive Analysis of the Economic Viability of Implementing IoT Applications. In: Burduk, A., Batako, A.D.L., Machado, J., Wyczółkowski, R., Dostatni, E., Rojek, I. (eds) Intelligent Systems in Production Engineering and Maintenance III. ISPEM 2023. Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-031-44282-7_21

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Herbal Tea Market

Global Herbal Tea Market Share, Size, Analysis: By Raw Material: Green Tea, Black Tea, Yellow Tea, Others; By Type: Chamomile, Peppermint, Lemongrass, Ginger, Hibiscus, Turmeric, Others; By Packaging: Loose Tea, Tea Bags, Plastic Containers, Aluminium Tins, Others; By Distribution Channel; Regional Analysis; Competitive Landscape; 2024-2032

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Global Herbal Tea Market Outlook

The global herbal tea market size attained a value of USD 3.81 billion in 2023. The market is further expected to grow at a CAGR of 6.6% between 2024 and 2032, to reach a value of USD 6.77 billion by 2032.

Key Trends in the Market

Herbal tea refers to a type of tea which contains herbs and can include a blend of several non-tea plant components such as leaves, fruits, bark, roots, or flowers. This tea comes with some remarkable health benefits owing to its antioxidant, anti-inflammatory, and hydration promoting properties. Herbal teas offer a pleasing aroma, refreshing taste, and healing properties.

• The heightened adoption of healthy drinking habits is adding to the herbal tea market value. Growing cases of cardiovascular diseases, obesity, diabetes mellitus, and several viral diseases, among others, is likely to fuel the sale of herbal tea, thereby strengthening the herbal tea market forecast.
• Elderly populations, that are likelier to suffer from insomnia, improper digestion, and various other health conditions, can often benefit from the health advantages of herbal teas. In this regard, the increasing geriatric population across the world is likely to expand the target market for herbal tea in the forecast period.
• Availability of herbal teas in a wide variety of packaging are among the key herbal tea market trends. With options such as tea bags, plastic containers, loose tea, and aluminium tins, consumers have numerous options to choose from, based on preparation preference.
• The herbal tea market in Europe is witnessing strong growth, supported by the strong culture of tea drinking in the region. The herbal tea market UK is particularly well established, with regular tea drinkers experimenting with new flavours and packaging.
• In the coming years, the herbal tea market in US is projected to expand, fuelled by the growing popularity of tea as an alternative to coffee, particularly among more health-conscious consumers. Meanwhile, the herbal tea market in Australia is expected to witness a steady growth due to the increasing innovations in flavours.

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Market Analysis

Based on raw material, the market is segmented into green tea, black tea, and yellow tea, among others. On the basis of type, the market is classified into chamomile, peppermint, lemongrass, ginger, hibiscus, and turmeric, among others. By packaging, the market is segmented into loose tea, tea bags, plastic containers, and aluminium tins, among others. Based on distribution channel, the market is classified into supermarkets and hypermarkets, convenience stores, specialty stores, and online, among others. The regional market for herbal tea are divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the global herbal tea market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• The Hain Celestial Group, Inc.
• Pukka Herbs Limited
• Tielka Pty Ltd
• Culinary Teas
• Harney & Sons Fine Teas
• Twining and Company Limited
• ORGANIC INDIA USA, LLC
• MJF Group (Dilmah)

Market Share by Raw Material

The green tea segment, based on raw material, accounts for a healthy share of the herbal tea market. According to the herbal tea market analysis, the increasing awareness about the health benefits offered by green tea, such as enhanced brain function, boosted metabolism, reduced risk of cardiovascular disfunction, and effective sugar control, among others, is driving the segment’s growth. In addition, green tea is a popular drinking choice of working professionals, who often lead hectic lifestyles that are also sedentary. The relatively mild flavour of green tea makes it highly suitable for supplementation with additional herbs and flavours, increasing its preference as a raw material for herbal teas.

Market Share by Type

Based on type, the chamomile segment accounts for a significant portion of the herbal tea market share. As per the herbal tea market research, this type of tea helps with sleep, relaxes the body, possesses anti-inflammatory properties, is good for the heart, improves digestion, decreases anxiety, treats sore throat, and boosts the immune system. Hence, the increasing prevalence of lifestyle conditions such as insomnia, cold and cough, cardiovascular diseases, and anxiety disorders, among others, is fuelling the segment’s growth, thereby contributing the expansion of herbal tea market size. Moreover, as chamomile teas are equipped with the ability to combat harmful bacteria, rising concerns pertaining to bacterial diseases are expected to propel the sale of chamomile teas, and support the overall herbal tea market growth in the coming years.

Competitive Landscape

The Hain Celestial Group, Inc. is a leading food company which provides natural food products and botanically-based personal care products. The product portfolio of this company includes snacks, meat and dairy alternatives, tea, food, and cosmetics. The Hain Celestial Group was established in 1993 and is headquartered in New York, United States.

Pukka Herbs Limited is a prominent food company which provides products such as herbal food supplements, teas, organic botanicals, bio nutrients, body care, and skincare. The organic teas and aqua herbs offered by this company are made of variety of ingredients such as ginger, ashwagandha, chamomile, and mint, etc. It was founded in 2001 and is headquartered in Bristol, United Kingdom.

Tielka Pty Ltd is a comprehensive provider of ethical and quality food sources and is a wholesaler and retailer of gourmet, organic, allergen, and preservative-free specialty foods. The product portfolio of this company includes sauces, specialty condiments, superfoods, savoury and sweet pastries, lamb, and pork. The company was founded in 2009 and is headquartered in Queensland, Australia.

Other market players include Culinary Teas, Harney & Sons Fine Teas, Twining and Company Limited, Numi, Inc., ORGANIC INDIA USA, LLC, Bigelow, and MJF Group (Dilmah), among others.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1    Preface 2    Report Coverage – Key Segmentation and Scope 3    Report Description     3.1    Market Definition and Outlook     3.2    Properties and Applications     3.3    Market Analysis     3.4    Key Players 4    Key Assumptions 5    Executive Summary     5.1    Overview     5.2    Key Drivers     5.3    Key Developments     5.4    Competitive Structure     5.5    Key Industrial Trends 6    Market Snapshot     6.1    Global     6.2    Regional 7    Opportunities and Challenges in the Market 8    Global Herbal Tea Market Analysis     8.1    Key Industry Highlights     8.2    Global Herbal Tea Historical Market (2018-2023)      8.3    Global Herbal Tea Market Forecast (2024-2032)     8.4    Global Herbal Tea Market by Raw Material         8.4.1    Green Tea             8.4.1.1    Historical Trend (2018-2023)             8.4.1.2    Forecast Trend (2024-2032)         8.4.2    Black Tea             8.4.2.1    Historical Trend (2018-2023)             8.4.2.2    Forecast Trend (2024-2032)         8.4.3    Yellow Tea             8.4.3.1    Historical Trend (2018-2023)             8.4.3.2    Forecast Trend (2024-2032)         8.4.4    Others     8.5    Global Herbal Tea Market by Type         8.5.1    Chamomile             8.5.1.1    Historical Trend (2018-2023)             8.5.1.2    Forecast Trend (2024-2032)         8.5.2    Peppermint             8.5.2.1    Historical Trend (2018-2023)             8.5.2.2    Forecast Trend (2024-2032)         8.5.3    Lemongrass             8.5.3.1    Historical Trend (2018-2023)             8.5.3.2    Forecast Trend (2024-2032)         8.5.4    Ginger             8.5.4.1    Historical Trend (2018-2023)             8.5.4.2    Forecast Trend (2024-2032)         8.5.5    Hibiscus             8.5.5.1    Historical Trend (2018-2023)             8.5.5.2    Forecast Trend (2024-2032)         8.5.6    Turmeric             8.5.6.1    Historical Trend (2018-2023)             8.5.6.2    Forecast Trend (2024-2032)         8.5.7    Others       8.6    Global Herbal Tea Market by Packaging          8.6.1    Loose Tea             8.6.1.1    Historical Trend (2018-2023)             8.6.1.2    Forecast Trend (2024-2032)         8.6.2    Tea Bags             8.6.2.1    Historical Trend (2018-2023)             8.6.2.2    Forecast Trend (2024-2032)         8.6.3    Plastic Containers             8.6.3.1    Historical Trend (2018-2023)             8.6.3.2    Forecast Trend (2024-2032)         8.6.4    Aluminium Tins             8.6.4.1    Historical Trend (2018-2023)             8.6.4.2    Forecast Trend (2024-2032)         8.6.5    Others     8.7    Global Herbal Tea Market by Distribution Channel         8.7.1    Supermarkets and Hypermarkets             8.7.1.1    Historical Trend (2018-2023)             8.7.1.2    Forecast Trend (2024-2032)         8.7.2    Convenience Stores             8.7.2.1    Historical Trend (2018-2023)             8.7.2.2    Forecast Trend (2024-2032)         8.7.3    Specialty Stores             8.7.3.1    Historical Trend (2018-2023)             8.7.3.2    Forecast Trend (2024-2032)         8.7.4    Online             8.7.4.1    Historical Trend (2018-2023)             8.7.4.2    Forecast Trend (2024-2032)         8.7.5    Others     8.8    Global Herbal Tea Market by Region         8.8.1    North America             8.8.1.1    Historical Trend (2018-2023)              8.8.1.2    Forecast Trend (2024-2032)         8.8.2    Europe             8.8.2.1    Historical Trend (2018-2023)              8.8.2.2    Forecast Trend (2024-2032)         8.8.3    Asia Pacific             8.8.3.1    Historical Trend (2018-2023)              8.8.3.2    Forecast Trend (2024-2032)         8.8.4    Latin America             8.8.4.1    Historical Trend (2018-2023)              8.8.4.2    Forecast Trend (2024-2032)         8.8.5    Middle East and Africa             8.8.5.1    Historical Trend (2018-2023)              8.8.5.2    Forecast Trend (2024-2032) 9    North America Herbal Tea Market Analysis     9.1    United States of America          9.1.1    Historical Trend (2018-2023)          9.1.2    Forecast Trend (2024-2032)     9.2    Canada         9.2.1    Historical Trend (2018-2023)          9.2.2    Forecast Trend (2024-2032) 10    Europe Herbal Tea Market Analysis     10.1    United Kingdom         10.1.1    Historical Trend (2018-2023)          10.1.2    Forecast Trend (2024-2032)     10.2    Germany         10.2.1    Historical Trend (2018-2023)          10.2.2    Forecast Trend (2024-2032)     10.3    France         10.3.1    Historical Trend (2018-2023)          10.3.2    Forecast Trend (2024-2032)     10.4    Italy         10.4.1    Historical Trend (2018-2023)          10.4.2    Forecast Trend (2024-2032)     10.5    Others 11    Asia Pacific Herbal Tea Market Analysis     11.1    China         11.1.1    Historical Trend (2018-2023)          11.1.2    Forecast Trend (2024-2032)     11.2    Japan         11.2.1    Historical Trend (2018-2023)          11.2.2    Forecast Trend (2024-2032)     11.3    India         11.3.1    Historical Trend (2018-2023)          11.3.2    Forecast Trend (2024-2032)     11.4    ASEAN         11.4.1    Historical Trend (2018-2023)          11.4.2    Forecast Trend (2024-2032)     11.5    Australia         11.5.1    Historical Trend (2018-2023)          11.5.2    Forecast Trend (2024-2032)     11.6    Others 12    Latin America Herbal Tea Market Analysis     12.1    Brazil         12.1.1    Historical Trend (2018-2023)          12.1.2    Forecast Trend (2024-2032)     12.2    Argentina         12.2.1    Historical Trend (2018-2023)          12.2.2    Forecast Trend (2024-2032)     12.3    Mexico         12.3.1    Historical Trend (2018-2023)          12.3.2    Forecast Trend (2024-2032)     12.4    Others 13    Middle East and Africa Herbal Tea Market Analysis     13.1    Saudi Arabia         13.1.1    Historical Trend (2018-2023)          13.1.2    Forecast Trend (2024-2032)     13.2    United Arab Emirates         13.2.1    Historical Trend (2018-2023)          13.2.2    Forecast Trend (2024-2032)     13.3    Nigeria         13.3.1    Historical Trend (2018-2023)          13.3.2    Forecast Trend (2024-2032)     13.4    South Africa         13.4.1    Historical Trend (2018-2023)          13.4.2    Forecast Trend (2024-2032)     13.5    Others 14    Market Dynamics     14.1    SWOT Analysis         14.1.1    Strengths         14.1.2    Weaknesses         14.1.3    Opportunities         14.1.4    Threats     14.2    Porter’s Five Forces Analysis           14.2.1    Supplier’s Power         14.2.2    Buyer’s Power         14.2.3    Threat of New Entrants         14.2.4    Degree of Rivalry         14.2.5    Threat of Substitutes     14.3    Key Indicators for Demand     14.4    Key Indicators for Price   15    Competitive Landscape     15.1    Market Structure     15.2    Company Profiles         15.2.1    The Hain Celestial Group, Inc.             15.2.1.1    Company Overview             15.2.1.2    Product Portfolio             15.2.1.3    Demographic Reach and Achievements             15.2.1.4    Certifications         15.2.2    Pukka Herbs Limited             15.2.2.1    Company Overview             15.2.2.2    Product Portfolio             15.2.2.3    Demographic Reach and Achievements             15.2.2.4    Certifications         15.2.3    Tielka Pty Ltd             15.2.3.1    Company Overview             15.2.3.2    Product Portfolio             15.2.3.3    Demographic Reach and Achievements             15.2.3.4    Certifications         15.2.4    Culinary Teas             15.2.4.1    Company Overview             15.2.4.2    Product Portfolio             15.2.4.3    Demographic Reach and Achievements             15.2.4.4    Certifications         15.2.5    Harney & Sons Fine Teas             15.2.5.1    Company Overview             15.2.5.2    Product Portfolio             15.2.5.3    Demographic Reach and Achievements             15.2.5.4    Certifications         15.2.6    Twining and Company Limited             15.2.6.1    Company Overview             15.2.6.2    Product Portfolio             15.2.6.3    Demographic Reach and Achievements             15.2.6.4    Certifications         15.2.7    Numi, Inc.             15.2.7.1    Company Overview             15.2.7.2    Product Portfolio             15.2.7.3    Demographic Reach and Achievements             15.2.7.4    Certifications         15.2.8    ORGANIC INDIA USA, LLC             15.2.8.1    Company Overview             15.2.8.2    Product Portfolio             15.2.8.3    Demographic Reach and Achievements             15.2.8.4    Certifications         15.2.9    Bigelow             15.2.9.1    Company Overview             15.2.9.2    Product Portfolio             15.2.9.3    Demographic Reach and Achievements             15.2.9.4    Certifications         15.2.10    MJF Group (Dilmah)             15.2.10.1    Company Overview             15.2.10.2    Product Portfolio             15.2.10.3    Demographic Reach and Achievements             15.2.10.4    Certifications         15.2.11    Others   16    Key Trends and Developments in the Market

List of Key Figures and Tables

1.    Global Herbal Tea Market: Key Industry Highlights, 2018 and 2032  2.    Global Herbal Tea Historical Market: Breakup by Raw Material (USD Million), 2018-2023 3.    Global Herbal Tea Market Forecast: Breakup by Raw Material (USD Million), 2024-2032 4.    Global Herbal Tea Historical Market: Breakup by Type (USD Million), 2018-2023 5.    Global Herbal Tea Market Forecast: Breakup by Type (USD Million), 2024-2032 6.    Global Herbal Tea Historical Market: Breakup by Packaging (USD Million), 2018-2023 7.    Global Herbal Tea Market Forecast: Breakup by Packaging (USD Million), 2024-2032 8.    Global Herbal Tea Historical Market: Breakup by Distribution Channel (USD Million), 2018-2023 9.    Global Herbal Tea Market Forecast: Breakup by Distribution Channel (USD Million), 2024-2032 10.    Global Herbal Tea Historical Market: Breakup by Region (USD Million), 2018-2023 11.    Global Herbal Tea Market Forecast: Breakup by Region (USD Million), 2024-2032 12.    North America Herbal Tea Historical Market: Breakup by Country (USD Million), 2018-2023 13.    North America Herbal Tea Market Forecast: Breakup by Country (USD Million), 2024-2032 14.    Europe Herbal Tea Historical Market: Breakup by Country (USD Million), 2018-2023 15.    Europe Herbal Tea Market Forecast: Breakup by Country (USD Million), 2024-2032 16.    Asia Pacific Herbal Tea Historical Market: Breakup by Country (USD Million), 2018-2023 17.    Asia Pacific Herbal Tea Market Forecast: Breakup by Country (USD Million), 2024-2032 18.    Latin America Herbal Tea Historical Market: Breakup by Country (USD Million), 2018-2023 19.    Latin America Herbal Tea Market Forecast: Breakup by Country (USD Million), 2024-2032 20.    Middle East and Africa Herbal Tea Historical Market: Breakup by Country (USD Million), 2018-2023 21.    Middle East and Africa Herbal Tea Market Forecast: Breakup by Country (USD Million), 2024-2032 22.    Global Herbal Tea Market Structure

What was the herbal tea market value in 2023?

The market reached a value of USD 3.81 billion in 2023.

What is the growth rate of the herbal tea market?

The market is estimated to grow at a CAGR of 6.6% between 2024 and 2032.

What is the forecast outlook of the herbal tea market for 2024-2032?

The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach a value of USD 6.77 billion by 2032.

What are the major market drivers?

The growing transition towards healthy beverage consumption, heightened awareness about the health benefits of herbal teas, and increasing availability of herbal teas in different packaging are the major drivers of the market.

What are the key trends of the market?

The key trends in the market include the innovations in flavours, rising sales of herbal teas via online distribution channels, and increasing prevalence of lifestyle conditions.

What are the different raw materials of herbal tea in the market?

Green tea, black tea, and yellow tea, among others, are the different raw materials of herbal tea in the market.

What are the significant types of herbal teas in the market?

Chamomile, peppermint, lemongrass, ginger, hibiscus, and turmeric, among others, are the significant types of herbal teas in the market.

Is everyday consumption of herbal tea healthy?

Yes, it is healthy to consume herbal tea every day.

What are the side effects of herbal tea?

Herbal teas typically don’t have side effects, particularly when consumed in moderation, however, potential side effects can include headache, soreness of mouth, and vomiting.

Who are the key market players, according to the report?

The Hain Celestial Group, Inc., Pukka Herbs Limited, Tielka Pty Ltd, Culinary Teas, Harney & Sons Fine Teas, Twining and Company Limited, Numi, Inc., ORGANIC INDIA USA, LLC, Bigelow, and MJF Group (Dilmah), among others, are the key players of the herbal tea market, according to the report.

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Active leasing and headline deals energize Houston’s office market, despite a rise in vacancies

Executive summary.

Q4 In Review By the end of Q1 2024, the overall vacancy rate in the Houston office market rose 80 basis points year-over-year, from 24.3% to 25.1%. Net absorption dipped back into negative territory for the quarter at a negative 552,926 sq. ft. Still, leasing activity has increased over recent quarters, with several big deals announced, like Dow Chemical’s planned move-in to the yet to be built, CityCentre Six office property. Dow Chemical will be the lead tenant, taking 258,363 sq. ft. of the 308,000-sq.-ft. project that is scheduled to be completed in 2026. Also, Norton Rose Fulbright is scheduled to move into Discovery West (1550 Lamar St) in mid-2024, they are taking 117,454 sq. ft. of just completed office property in the Houston CBD.

Houston Economic Update Houston’s unemployment rate has held steady over the past few months and remains at 4.4% as of December 2023. Houston employment grew 0.8%, annualized, from September through December 2023, a net increase of 6,517 jobs. Education and health services led growth, rising 6.7%(7,405 jobs) and offsetting declines in other sectors. Overall, the decline in trade, transportation and utilities, professional and business services, leisure and hospitality, and manufacturing amounted to a loss of 4,342 jobs in the fourth quarter. Since the pandemic spike, Houston unemployment has been higher than both the state and nation, likely due to the slower recovery of oil and gas jobs and strong labor force growth. Among the major sectors, oil and gas is one of three that remained below January 2020 employment levels in Texas in December 2023 (the others are construction and manufacturing). Houston’s labor force has grown by 3.8% since attaining its pre-pandemic level of employment in April 2022, aided by migration to the region. By comparison, labor force growth was 3.8% in Texas and 2.2% nationally since April 2022.

HOUSTON OFFICE MARKET OVERVIEW

Negative Net Absorption in Q1 2024 Net absorption—move-ins minus move-outs—was a negative 552,926 sq. ft. for the quarter. This was a reversal from the fourth quarter of 2023 when 1.5 million sq. ft. was absorbed. For early 2024, Class B properties made up the bulk of the negative net absorption (347,357 sq. ft.). Notable move-ins for the quarter include EnLink Midstream taking 61,682 sq. ft. of sublease space at Hess Tower and SynergenX Health taking 54,247 sq. ft. at Viva Center.

Leasing Down 14% Year-Over-Year Quarterly leasing velocity—comprised of new leases and renewals—stood at 2.6 million sq. ft. This is up 3.5% over the previous quarter, but still well below the historic norm. Notable leases signed in early 2024 include Kraken taking 48,040 sq. ft. at 945 Bunker Hill and Enstor Gas signing a 43,598-sq.-ft. sublease deal at CityWestPlace. Additionally, Westlake Corp. extended their lease at Westlake Center (155,403 sq. ft.) and R.G. Miller Engineers signed a new lease at Eldridge Oaks for 28,791 sq. ft.

Vacancy Rate at 25.1% The overall vacancy rate in Houston’s office market is 25.1%. Quarter-over-quarter, the vacancy rate increased 30 basis points from 24.8%. Year-over-year, the vacancy rate increased 80 basis points from 24.3%. Class A and Class B properties have vacancy rates of 26.2% and 24.6%, respectively. With leasing activity increasing slightly and construction trending downward, the total vacancy rate is likely to be relatively flat for the remainder of 2024.

Only a Single Delivery so far in 2024, 27,000 Sq. Ft. Construction deliveries were almost non-existent in the first quarter of 2024, with only a single 27,000-sq.-ft. medical office completed in Northwest submarket. The multi-tenant property is currently 85.9% leased. The construction pipeline has been trending downward over the past few quarters and is down 55% over the past year.

Investment Sales Trends CoStar Capital Market Analytics reports the cumulative 12-month sales volume was at $186 million, this is down sharply from previous volumes. Over the past year, 122 deals were completed in the Houston office market with an average transaction price of $69 and an average cap rate of 9.2%. In early 2024, Granite properties sold The Tower at 290, a 245,846-sq.-ft. office building, for $11.8 million or $48 per square foot. The building was 62% leased at the time of sale and went for an 8.5% cap rate.

Class A Record High Asking Rent Overall, asking rates were mixed with Class A properties reaching a new record high, while Class B rates decreased moderately. Overall, rates decreased slightly from last quarter but were still up year over year. Houston’s overall full-service average currently stands at $30.22 per sq. ft.—This is up 1.2% from the first quarter of 2023, when rates were $29.86 per sq. ft. Asking rents for overall Class A and Class B space are at $35.48 per sq. ft. and $22.86 per sq. ft., respectively. The CBD still currently has the highest overall average asking rate at $39.16, an almost 30% premium over the overall market rate. Given the market’s current leasing environment and a 27.9% availability flat overall rates are expected throughout 2024.

Steve Trivolet SVP of Research and Market Forecasting tel 214 223 4008 [email protected]

Office Project Leasing Spotlight

Partners Real Estate Awarded Prestigious Leasing Assignment for San Felipe Plaza. Partners’ Office Project Leasing team of Vince Strake, Senior Vice President; Lesley Rice, Senior Vice President; and Andy Parrish, Senior Vice President, will spearhead leasing initiatives for the iconic 1 million-sq.-ft. Class A office landmark in Houston’s highly sought-after Galleria/Uptown submarket.

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Partners is one of the largest privately-held and independently-owned full-service commercial real estate firms in the U.S. Partners was founded and is headquartered in Houston and has offices in every major metro area in Texas as well as key geographies in the Southeastern United States; employs more than 250 real estate professionals; and arranges more transactions than any of its competitors, completing nearly 1,000 commercial lease and sale arrangements every year. Partners is a full-service commercial real estate firm providing client solutions via its services business for Office, Industrial, Retail, Land, Life Sciences, and Multifamily product types across Brokerage Services, which includes Tenant Representation, Investment Sales, and Land Sales; Investor Services, which includes Property Management, Project Leasing, Project Management, and Facilities Management; Valuation Services, which includes Valuation & Advisory, Litigation & Expert Witness Testimony, Property Tax Consulting, and Institutional Fund Valuation; and Project Services, which includes Construction Management and Space Management; and creating value for its investors through its Investments line of business, which includes its Partners Capital investment management platform specializing in the acquisition and disposition of office, industrial, and retail multitenant properties via multiple investment funds; Partners Development,  which focuses on creating first-class development projects for our investors; and Partners Finance, which operates as a registered broker dealer offering real estate investment opportunities through qualified and experienced commercial real estate sponsors. Partners is the top Houston-based full-service commercial real estate firm on the Inc. 5000 list of fastest-growing private companies in America; the 3rd-largest Houston-Area Commercial Real Estate Brokerage and #1 Mover of Square Feet among leasing and sales brokerages in Houston; the only commercial real estate firm on the Houston Business Journal’s (HBJ) MidMarket 50 list; and ranks among the largest brokerages in every city we have an office location in. Partners also carries the unique dual designation of being recognized as the #1 company in Houston across all industries per the HBJ’s Best Places to Work (BPTW) competition and the #1 company in the Houston Chronicle’s Top Workplaces ranking. Visit us on the web at www.partnersrealestate.com

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2024 Housing Market Forecast and Predictions: Housing Affordability Finally Begins to Turnaround

As we look ahead to 2024 , we see a mix of continuity and change in both the housing market and economy. Against a backdrop of modest economic growth, slightly higher unemployment, and easing inflation longer term interest rates including mortgage rates begin a slow retreat. The shift from climbing to falling mortgage rates improves housing affordability, but saps some of the urgency home shoppers had previously sensed. Less frenzied housing demand and plenty of rental home options keep home sales relatively stable at low levels in 2024, helping home prices to adjust slightly lower even as the number of for-sale homes continues to dwindle. 

Realtor.com ® 2024 Forecast for Key Housing Indicators

Home Prices Dip, Improving Affordability

Home prices grew at a double-digit annual clip for the better part of two years spanning the second half of 2020 through 2022, a notable burst following a growing streak that spanned back to 2012. As mortgage rates climbed, home price growth flatlined, actually declining on an annual basis in early 2023 before an early-year dip in mortgage rates spurred enough buyer demand to reignite competition for still-limited inventory. Home prices began to climb again, and while they did not reach a new monthly peak, on average for the year we expect that the 2023 median home price will slightly exceed the 2022 annual median.

Nevertheless, even during the brief period when prices eased, using a mortgage to buy a home remained expensive. Since May 2022, purchasing the typical for-sale home listing at the prevailing rate for a 30-year fixed-rate mortgage with a 20% down payment meant forking over a quarter or more of the typical household paycheck. In fact, in October 2023, it required 39% of the typical household income and this share is expected to average 36.7% for the full calendar year in 2023. This figure has typically ranged around 21%, so it is well above historical average. We expect that the return to pricing in line with financing costs will begin in 2024, and home prices, mortgage rates, and income growth will each contribute to the improvement. Home prices are expected to ease slightly, dropping less than 2% for the year on average. Combined with lower mortgage rates and income growth this will improve the home purchase mortgage payment share relative to median income to an average 34.9% in 2024, with the share slipping under 30% by the end of the year.

Home Sales Barely Budge Above 2023’s Likely Record Low

After soaring during the pandemic, existing home sales were weighed down in the latter half of 2022 as mortgage rates took off, climbing from just over 3% at the start of the year to a peak of more than 7% in the fourth quarter. The reprieve in mortgage rates in early 2023, when they dipped to around 6%, brought some life to home sales, but the renewed climb of mortgage rates has again exerted significant pressure on home sales that is exacerbated by the fact that a greater than usual number of households bought homes over the past few years, and despite stories of pandemic purchase regret , for the most part, these homeowners continue to be happy in their homes. 

This is consistent with what visitors to Realtor.com report when asked why they are not planning to sell their homes. The number one reason homeowners aren’t trying to sell is that they just don’t need to; concern about losing an existing low-rate mortgage is the top financial concern cited. Our current projection is for 2023 home sales to tally just over 4 million, a dip of 19% over the 2022 5 million total. 

With many of the same forces at play heading into 2024, the housing chill will continue, with sales expected to remain essentially unchanged at just over 4 million. Although mortgage rates are expected to ease throughout the course of the year, the continuation of high costs will mean that existing homeowners will have a very high threshold for deciding to move, with many likely choosing to stay in place.  Moves of necessity–for job changes, family situation changes, and downsizing to a more affordable market–are likely to drive home sales in 2024. 

Shoppers Find Even Fewer Existing Homes For Sale

Even before the pandemic, housing inventory was on a long, slow downward trajectory. Insufficient building meant that the supply of houses did not keep up with household formation and left little slack in the housing market. Both homeowner and rental vacancy remain below historic averages . In contrast with the existing home market, which remains sluggish, builders have been catching up, with construction remaining near pre-pandemic highs for single-family and hitting record levels for multi-family . 

Despite this, the lack of excess capacity in housing has been painfully obvious in the for-sale home market. The number of existing homes on the market has dwindled. With home sales activity to continue at a relatively low pace, the number of unsold homes on the market is also expected to remain low.  Although mortgage rates are expected to begin to ease, they are expected to exceed 6.5% for the calendar year. This means that the lock-in effect, in which the gap between market mortgage rates and the mortgage rates existing homeowners enjoy on their outstanding mortgage, will remain a factor. Roughly two-thirds of outstanding mortgages have a rate under 4% and more than 90% have a rate less than 6%.

Rental Supply Outpaces Demand to Drive Mild Further Decline in Rents

After almost a full year of double-digit rent growth between mid-2021 and mid-2022, the rental market has finally cooled down, as evidenced by the year-over-year decline that started in May 2023 . In 2024, we expect the rental market will closely resemble the dynamics witnessed in 2023, as the tug of war between supply and demand results in a mild annual decline of -0.2% in the median asking rent.

New multi-family supply will continue to be a key element shaping the 2024 rental market.  In the third quarter of 2023, the annual pace of newly completed multi-family homes stood at 385,000 units. Although absorption rates remained elevated in the second quarter, especially at lower price points, the rental vacancy rate ticked up to 6.6% in the third quarter. This uptick in rental vacancy suggests the recent supply has outpaced demand, but context is important. After recent gains, the rental vacancy rate is on par with its level right before the onset of the pandemic in early 2020, still below its 7.2% average from the 2013 to 2019 period.  Looking ahead, the strong construction pipeline– which hit a record high for units under construction this summer –is expected to continue fueling rental supply growth in 2024 pushing rental vacancy back toward its long-run average. 

While the surge in new multi-family supply gives renters options, the sheer number of renters will minimize the potential price impact. The median asking rent in 2024 is expected to drop only slightly below its 2023 level. Renting is expected to continue to be a more budget friendly option than buying in the vast majority of markets, even though home prices and mortgage rates are both expected to dip, helping pull the purchase market down slightly from record unaffordability. 

Young adult renters who lack the benefit of historically high home equity to tap into for a home purchase will continue to find the housing market challenging. Specifically, as many Millennials age past first-time home buying age and more Gen Z approach these years, the current housing landscape is likely to keep these households in the rental market for a longer period as they work to save up more money for the growing down payment needed to buy a first home. This trend is expected to sustain robust demand for rental properties. Consequently, we anticipate that rental markets favored by young adults , a list which includes a mix of affordable areas and tech-heavy job markets in the South, Midwest, and West, will be rental markets to watch in 2024.

Key Wildcards:

• Wildcard 1: Mortgage Rates With both mortgage rates and home prices expected to turn the corner in 2024, record high unaffordability will become a thing of the past, though as noted above, the return to normal won’t be accomplished within the year. This prediction hinges on the expectation that inflation will continue to subside, enabling the recent declines in longer-term interest rates to continue. If inflation were to instead see a surprise resurgence, this aspect of the forecast would change, and home sales could slip lower instead of steadying.
• Wildcard 2: Geopolitics In our forecast for 2023 , we cited the risk of geopolitical instability on trade and energy costs as something to watch. In addition to Russia’s ongoing war in Ukraine, instability in the Middle East has not only had a catastrophic human toll, both conflicts have the potential to impact the economic outlook in ways that cannot be fully anticipated. 
• Wildcard 3: Domestic Politics: 2024 Elections In 2020, amid the upheaval of pandemic-era adaptations, many Americans were on the move. We noted that Realtor.com traffic patterns indicated that home shoppers in very traditionally ‘blue’ or Democratic areas were tending to look for homes in markets where voters have more typically voted ‘red’ or Republican. While consumers also reported preferring to live in locations where their political views align with the majority , few actually reported wanting to move for this reason alone. 

Housing Perspectives:

What will the market be like for homebuyers, especially first-time homebuyers.

First-time homebuyers will continue to face a challenging housing market in 2024, but there are some green shoots. The record-high share of income required to purchase the median priced home is expected to begin to decline as mortgage rates ease, home prices soften, and incomes grow. In 2023 we expect that for the year as a whole, the monthly cost of financing the typical for-sale home will average more than $2,240, a nearly 20% increase over the mortgage payment in 2022, and roughly double the typical payment for buyers in 2020. This amounted to a whopping nearly 37% of the typical household income. In 2024 as modest price declines take hold and mortgage rates dip, the typical purchase cost is expected to slip just under $2,200 which would amount to nearly 35% of income. While far higher than historically average, this is a significant first step in a buyer-friendly direction.

How can homebuyers prepare? 

Homebuyers can prepare for this year’s housing market by getting financially ready. Buyers can use a home affordability calculator , like this one at Realtor.com to translate their income and savings into a home price range. And shoppers can pressure test the results by using a mortgage calculator to consider different down payment, price, and loan scenarios to see how their monthly costs would be impacted. Working with a lender can help potential buyers explore different loan products such as FHA or VA loans that may offer lower mortgage interest rates or more flexible credit criteria. 

Although prices are anticipated to fall in 2024, housing costs remain high, and a down payment can be a big obstacle for buyers. Recent research shows that the typical down payment on a home reached a record high of $30,000 .  To make it easier to cobble together a down payment, shoppers can access information about down payment assistance options at Realtor.com/fairhousing and in the monthly payment section of home listing pages. Furthermore, home shoppers can explore loan products geared toward helping families access homeownership by enabling down payments as low as 3.5% in the case of FHA loans and 0% in the case of VA loans .

What will the market be like for home sellers?

Home sellers are likely to face more competition from builders than from other sellers in 2024. Because builders are continuing to maintain supply and increasingly adapting to market conditions, they are increasingly focused on lower-priced homes and willing to make price adjustments when needed. As a result, potential sellers will want to consider the landscape for new construction housing in their markets and any implications for pricing and marketing before listing their home for sale.

What will the market be like for renters?

In 2024, renting is expected to continue to be a more cost-effective option than buying in the short term even though we anticipate the advantage for renting to diminish as home prices and mortgage rates decline. 

However, for those considering the pursuit of long-term equity through homeownership, it’s essential to not only stay alert about market trends but also to carefully consider the intended duration of residence in their next home. When home prices rise rapidly, like they did during the pandemic, the higher cost of purchasing a home may break even with the cost of renting in as little as 3 years. Generally, it takes longer to reach the breakeven point, typically within a 5 to 7-year timeframe. Importantly, when home prices are falling and rents are also declining, as is expected to be the case in 2024, it can take longer to recoup some of the higher costs of buying a home. Individuals using Realtor.com’s Rent vs. Buy Calculator can thoroughly evaluate the costs and benefits associated with renting versus buying over time and how many years current market trends suggest it will take before buying is the better financial decision. This comprehensive tool can provide insights tailored to a household’s specific rent versus buying decision and empowers consumers to consider not only the optimal choice for the current month but also how the trade-offs evolve over several years.

Local Market Predictions:

All real estate is local and while the national trends are instructive, what matters most is what’s expected in your local market. 

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Short Seller Behind Globe Life’s Plunge Has Winning Record

• Fuzzy Panda Research is an anonymous group that shorts stocks
• The group was a top activist short performer in 2023

The record drop in Globe Life Inc. this week extended a streak of wins for the short-selling group that released a report against the insurance company.

Fuzzy Panda Research, an anonymous organization that puts out reports on companies whose stocks it’s betting against, was the best performing activist short seller in 2023, according to an analysis by Breakout Point of firms that made at least two calls. It found that the companies Fuzzy Panda shorted fell 63% last year on average.

• Food and Beverage /
• Hot Drinks /

Iced Tea Market: Industry Size, Share, Competition, Trends, Growth Opportunities and Forecasts by Region - Insights and Outlook by Product, 2024 to 2031

• January 2024
• Region: Global
• OG Analysis
• ID: 5801166
• Description

Table of Contents

Companies mentioned, methodology, related topics, related reports.

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2024 Iced Tea Market Research Report: Navigating Trends, Developments, Competition, Growth Opportunities, and Outlook to 2031

Iced tea market segmentation and growth outlook, future of iced tea market –driving factors and hindering challenges, overarching trends in the food and beverage industry include.

• The exponential growth of plant-based alternatives continues to disrupt traditional markets, fuelled by increasing consumer awareness of health and environmental concerns
• The accelerated adoption of online platforms for Iced Tea purchases is reshaping distribution channels and customer engagement
• Sustainable packaging solutions and innovations in materials are becoming pivotal as the industry addresses environmental concerns
• Increased spending on functional and Healthy foods that help boost the immune system
• Companies are increasingly implementing blockchain and other Internet of Things (IoT) technologies to effectively manage the procurement, processing, and distribution of Iced Tea products
• Organic, Vegan, bio-based, Canned/ Ready-to-Eat (RTE), clean label, and sustainable are identified as the top-performing strategies
• Mergers and acquisitions to acquire new technologies, strengthen portfolios, and leverage capabilities to remain key strategies of top companies in the Iced Tea industry over the outlook period.

Iced Tea Market Analytics

Iced tea market competitive intelligence, iced tea market geographic analysis:, country-level intelligence includes.

• North America Iced Tea Industry (United States, Canada, Mexico)
• Europe Iced Tea Industry (Germany, France, United Kingdom, Italy, Spain, Rest of Europe)
• Asia-Pacific Iced Tea Industry (China, India, Japan, South Korea, Australia, Rest of APAC)
• The Middle East and Africa Iced Tea Industry (Middle East, Africa)
• South and Central America Iced Tea Industry (Brazil, Argentina, Rest of SCA)

Research Methodology in Brief

Available customizations, some of the customization requests are as mentioned below:.

• Iced Tea Pricing and Margins Across the Supply Chain, Iced Tea Price Analysis/International Trade Data/Import-Export Analysis
• Supply Chain Analysis, Supply – Demand Gap Analysis, PESTLE Analysis, Macro-Economic Analysis, and other Iced Tea market analytics
• Processing and manufacturing requirements, Patent Analysis, Technology Trends, and Product Innovations

Key Questions Answered in This Report:

• What is the current Iced Tea market size at global, regional, and country levels?
• What is the market penetration by different types, Applications, processes/technologies, and distribution channels of the Iced Tea market?
• How has the global Iced Tea market developed in past years and how will it perform in the coming years?
• What is the impact of ongoing wars, geo-political tensions, voyage/trade disturbances, and global inflation, on the Iced Tea market forecast?
• How diversified is the Iced Tea Market and what are the new product launches, untapped geographies, recent developments, and investments?
• What are the potential regional Iced Tea markets to invest in?
• What is the high-performing type of products to focus on in the Iced Tea market?
• What are the key driving factors and challenges in the industry?
• What is the structure of the global Iced Tea market and who are the key players?
• What is the degree of competition in the industry?
• What is the market structure /Iced Tea Market Competitive Intelligence? Who are the key competitors to focus on and what are their strategies?
• Arizona, BOS Brands (Pty)
• 4C Foods Corp
• Harris Freeman

Iced Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

•  Report
• February 2024

Bottled Iced Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F

• September 2023

Green Tea: Global Strategic Business Report

South Africa Iced/RTD Tea Drinks Market Size, Growth and Forecast Analytics to 2026

• South Africa

Germany Iced/RTD Tea Drinks Market Size, Growth and Forecast Analytics to 2026

About the iced tea market.

The Iced Tea market is a segment of the Soft Drinks industry. It is composed of a variety of ready-to-drink beverages, including both sweetened and unsweetened varieties. Iced Tea is typically made from brewed tea leaves, and can be flavored with a variety of ingredients such as fruits, herbs, and spices. It is often served cold, and can be enjoyed both as a refreshing beverage and as a healthful alternative to sugary drinks. Iced Tea is widely available in supermarkets, convenience stores, and other retail outlets. It is also served in restaurants, cafes, and other foodservice establishments. In recent years, the Iced Tea market has seen an increase in demand due to its health benefits and its convenience. Some of the major companies in the Iced Tea market include Unilever, Nestlé, PepsiCo, Coca-Cola, Dr Pepper Snapple Group, and Arizona Beverages. These companies offer a wide range of Iced Tea products, including both traditional and innovative flavors. Show Less Read more

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The bull market in stocks won't be derailed by Fed jitters or Middle East tensions, 4 Wall Street pros say

• The bull market in stocks is alive even as investors fret over numerous headwinds. 
• Stocks dropped last week over Fed rate cut concerns and rising tensions in the Middle East.
• But there are signs stock's long-term bull market is intact, Wall Street experts say.

Investors have grown jittery over the trajectory of stocks in recent weeks, but the bull market hasn't been derailed, Wall Street veterans say. 

US stocks have skidded lower over the past week as investors digested escalating Middle Eastern conflict and monetary policy concerns. Major indexes dropped last week after inflation came in hotter-than-expected in March , causing investors to dial back their expectations for rate cuts in 2024. Stocks took another hit after Iran attacked Israel over the weekend, with investors flocking to safe havens like US Treasurys. 

But the latest concerns may be minor blips in the face of a booming US economy and the potential uplift from artificial intelligence, meaning the bull market in stocks is still far from over, some veteran investors say.

Here's why four Wall Street pros say investors shouldn't sweat over the latest pullback in stocks:

Tom Lee, Fundstrat Head of Research

Investors should buy the dip in stocks , as the March inflation report wasn't as bad as it seems,  according to Fundstrat's Tom Lee.

In a recent video update, Lee noted that more components of the consumer price index saw year-over-year price increases of less than 3%. That's a promising sign that inflation is on track to fall to the Federal Reserve's 2% price target, even if prices overall for the economy came in hotter-than-expected last month.

Headline inflation was mainly driven by a surge in auto insurance, he added. That suggests a June rate cut is still possible, he said, though markets have mostly taken that possibility off the table, according to the CME FedWatch tool.

"Believe it or not, this was actually a very good CPI report," Lee said. "It just tells you that this is a timing issue, it's not structural. In other words, nothing else is causing hotter CPI."

James Demmert, Main Street Research CIO

Stocks are still in the midst of a longer-term bull market, and the recent correction represents the latest buy-the-dip moment for investors, Demmert said.

"A stock market correction is unfolding right now triggered by Middle East tensions, rising bond yields, and worries about delayed Fed rate cuts. Stocks have been due for a pullback for quite some time as it has been 6-months since we've seen a pullback of 8-10%," Demmert said in a note on Tuesday.

The size of the pullback will depend on whether Middle East tensions continue to escalate, but even rising tensions can't derail the bull market, he suggested.

"We are buyers of this stock market correction because while the headlines are scary right now, we believe we have entered a new bull market led by the power of artificial intelligence," Demmert said. "This new bull market can last for another 7-9 years, as AI is expected to drive significant productivity gains for companies across the board, which will strengthen corporate earnings." 

Dan Ives, Wedbush Securities analyst

Tech stocks will keep soaring despite recent headwinds, as corporate earnings are poised to come in strong over the first quarter, Ives said.

According to surveys conducted by Wedbush, consumer spending and digital advertising growth trends look "strong" among internet companies over the first quarter. That could be bullish for tech titans, including companies like Alphabet, Amazon, and Meta, Ives said.

Wedbush is also expecting a huge wave of AI spending to boost stocks. The firm anticipates $1 trillion of AI investment over the next decade, with the second, third, and fourth wave of spending poised to hit the sector in the coming years.

"We believe the recent risk-off environment and tech sell-off represent a clear buying opportunity into this upcoming tech earnings season," Ives and other analysts said in a note on Sunday. "While a hot CPI, weak bank earnings, and geopolitical worries has put pressure on stocks, now the Broadway stage and bright lights are focused on a key tech earnings season ahead which we believe will be strong across the board."

John Flood, Goldman Sachs' head of Americas equities sales trading

Stocks still look poised to move higher by the end of the year, Flood said this week . He pointed to a handful of positive catalysts that lay ahead of the market, including a historical post-tax season surge, rising corporate stock buybacks, and strong confidence indicated by inflows to money market funds. 

"There 's still plenty of dry powder out there," Flood said, pointing to the $1.6 trillion inflow to money market funds since 2023.

Stock sentiment also isn't at extreme bullish levels yet, a promising sign that a major pullback isn't imminent, he said. 

Stocks could surge another 15% this year , Goldman strategists said in a previous note. That's due to "exceptionalism" in mega-cap tech stocks, which they predicted could push the S&P 500 to 6,000 by the end of the year.

• Main content

Gen AI training costs soar yet risks are poorly measured, says Stanford AI report

The number of significant new AI models coming out of industry has surged in recent years relative to academia and government. 

The seventh-annual report on the global state of artificial intelligence from Stanford University's Institute for Human-Centered Artificial Intelligence offers some concerning thoughts for society: the technology's spiraling costs and poor measurement of its risks. 

According to the report, "The AI Index 2024 Annual Report," published Monday by HAI , the cost of training large language models such as OpenAI's GPT-4 -- the so-called foundation models used to develop other programs -- is soaring. 

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"The training costs of state-of-the-art AI models have reached unprecedented levels," the report's authors write. "For example, OpenAI's GPT-4 used an estimated $78 million worth of compute to train, while Google's Gemini Ultra cost $191 million for compute."

(An "AI model" is the part of an AI program that contains numerous neural net parameters and activation functions that are the key elements for how an AI program functions.)

At the same time, the report states, there is too little in the way of standard measures of the risks of such large models because measures of "responsible AI" are fractured. 

There is "significant lack of standardization in responsible AI reporting," the report states. "Leading developers, including OpenAI, Google, and Anthropic, primarily test their models against different responsible AI benchmarks. This practice complicates efforts to systematically compare the risks and limitations of top AI models."

Both issues, cost and safety, are part of a burgeoning industrial market for AI, especially Gen AI, where commercial interests, and real-world deployments, are taking over from what has for many decades been mostly a research community of AI scholars. 

Also: OpenAI's stock investing GPTs fail this basic question about stock investing

"Investment in generative AI skyrocketed" in 2023, the report notes, as the industry produced 51 "notable" machine learning models -- vastly more than the 15 that came out of academia last year. "More Fortune 500 earnings calls mentioned AI than ever before."

The 502-page report goes into substantial detail on each point. On the first point -- training cost -- the report's authors teamed up with research institute Epoch AI to estimate the training cost of foundation models. "AI Index estimates validate suspicions that in recent years model training costs have significantly increased," the report states. 

For example, in 2017, the original Transformer model, which introduced the architecture that underpins virtually every modern LLM, cost around $900 to train. RoBERTa Large, released in 2019, which achieved state-of-the-art results on many canonical comprehension benchmarks like SQuAD and GLUE, cost around $160,000 to train. Fast-forward to 2023, and training costs for OpenAI's GPT-4 and Google's Gemini Ultra are estimated to be around $78 million and $191 million, respectively.

The report notes that training costs are rising with the increasing size of computation required for the increasingly large AI models. The original Google Transfomer, the deep learning model that sparked the race for GPTs and other large language models, required about 10,000 petaFLOPs, or 10,000 trillion floating point operations. Gemini Ultra approaches a hundred billion petaFLOPs.

At the same time, assessing the AI programs for their safety -- including transparency, explainability, and data privacy -- is difficult. There has been a proliferation of benchmark tests to assess "responsible AI," and developers are using many of them so that there isn't consistency.  "Testing models on different benchmarks complicates comparisons, as individual benchmarks have unique and idiosyncratic natures," the report states. "New analysis from the AI Index, however, suggests that standardized benchmark reporting for responsible AI capability evaluations is lacking."

Also:  As AI agents spread, so do the risks, scholars say

The AI Index examined a selection of leading AI model developers, specifically OpenAI, Meta, Anthropic, Google, and Mistral AI. The Index identified one flagship model from each developer (GPT-4, Llama 2, Claude 2, Gemini, and Mistral 7B) and assessed the benchmarks on which they evaluated their model. A few standard benchmarks for general capabilities evaluation were commonly used by these developers, such as MMLU, HellaSwag, ARC Challenge, Codex HumanEval, and GSM8K. However, consistency was lacking in the reporting of responsible AI benchmarks. Unlike general capability evaluations, there is no universally accepted set of responsible AI benchmarks used by leading model developers.

A table of benchmarks reported by the models shows a great variety but no consensus on which benchmarks for responsible AI should be considered standard.

"To improve responsible AI reporting," the authors conclude, "it is important that a consensus is reached on which benchmarks model developers should consistently test."

Also: Cybercriminals are using Meta's Llama 2 AI, according to CrowdStrike

On a positive note, the study's authors emphasize that data shows AI is having a positive impact on productivity. "AI enables workers to complete tasks more quickly and to improve the quality of their output," the research shows.

Specifically, the report notes that professional programmers saw their rates of project completion increase with the help of AI, according to a review last year by Microsoft . The review found that "comparing the performance of workers using Microsoft Copilot or GitHub's Copilot -- LLM-based productivity-enhancing tools -- with those who did not, found that Copilot users completed tasks in 26% to 73% less time than their counterparts without AI access." 

Increased ability was found in other labor groups, according to other studies. A Harvard Business School report found "consultants with access to GPT-4 increased their productivity on a selection of consulting tasks by 12.2%, speed by 25.1%, and quality by 40%, compared to a control group without AI access." 

Also: Can enterprise identities fix Gen AI's flaws? This IAM startup thinks so

The Harvard study also found that less-skilled consultants saw a bigger boost from AI, in terms of improved performance on tasks, than did more skillful counterparts, suggesting that AI helps to close a skills gap.

"Likewise, National Bureau of Economic Research research reported that call-center agents using AI handled 14.2% more calls per hour than those not using AI." 

Despite the risk of things such as "hallucinations," legal professionals using OpenAI's GPT-4 saw benefits "in terms of both work quality and time efficiency across a range of tasks" including contract drafting.

There is a downside to productivity, however. Another Harvard paper found that the use of AI by professional talent recruiters impaired their performance. Worse, those using more powerful AI tools seemed to see even greater degradation in their job performance. The study theorizes that recruiters using "good AI" became complacent, overly trusting the AI's results, unlike those using "bad AI," who were more vigilant in scrutinizing AI output.

Study author Fabrizio Dell'Acqua of Harvard Business School dubs the phenomenon of complacency amidst AI use as "falling asleep at the wheel."

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