The global fermented tea products market was valued at USD 8.9 billion in 2022 and is projected to expand at a CAGR of 6.8% from 2023 to 2030. The rising demand for functional teas and health benefits associated with fermented tea products are driving the growth of the market. Fermented tea products are gaining popularity, owing to their various health benefits, such as reducing oxidative stress, improving digestion, and providing anti-inflammatory effects. Moreover, the increasing availability of these products in local supermarkets and online stores is boosting the demand. Furthermore, companies are launching innovative products with unique flavor profiles to attract customers and gain a competitive edge in the market. For instance, in February 2021, Nestlé launched a new range of black and oolong tea-based beverages known as Teavigo.

The rising awareness about the benefits of tea is driving the demand for fermented tea products. According to a survey conducted by the Tea Association of the USA, in 2020, more than 157 million Americans consumed tea, out of which 85% reported drinking at least one cup of tea per day. Furthermore, the rising trend of consuming tea-based beverages is propelling the demand for organic, green, and herbal teas. The growing trend of healthy eating is also contributing to the growth of the market.

The increasing demand for convenience food is driving the demand for ready-to-drink (RTD) fermented tea products. The rising number of working-class individuals across the globe is propelling the demand for RTD tea products, as they seek convenient solutions for their meals. The availability of RTD tea in various flavors is further creating opportunities for the market. For instance, in April 2021, Ready to Drink Tea & Coffee (RTD Tea & Coffee) launched a range of flavored tea beverages in India. The brand offers a wide variety of flavors such as lemon, ginger, and honey, among others.

The growing trend of premiumization in the global fermented tea market is expected to drive the growth of the market. Companies are launching new varieties of functional teas and using natural ingredients to differentiate their products from those of competitors. For instance, in April 2021, Twinings launched a range of herbal, green, and black teas with natural flavors. The company is focusing on delivering products with natural ingredients, such as lavender, rose petals, and jasmine, among others.

The kombucha segment is projected to witness the fastest growth rate during the forecast period. The increasing awareness among consumers regarding health benefits associated with fermented tea products is one of the major factors driving the growth of the segment. According to an article published by Food and Drug Administration, in May 2019, kombucha is a fermented tea beverage, which is known as an ancient beverage with a slightly sour and fizzy flavor. The health-promoting properties of kombucha, such as its antioxidant content and its ability to improve digestion, are driving its demand among consumers.

The kefir segment is expected to expand at a moderate CAGR during the forecast period. Increasing consumer preference for probiotic-rich products is the major factor driving the growth of the segment. According to an article published by The Kefir Company, in April 2020, kefir is a fermented dairy product, which is made from a combination of kefir grains and fresh milk. It is a rich source of probiotics and has several health benefits, such as improved digestion, enhanced immunity, and reduced inflammation. The health benefits associated with kefir are driving its demand among consumers.

The supermarkets and hypermarkets segment captured the major share of over 43.2% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets for buying food and beverages products. According to a study by FoodBev Media in 2020, consumers are more likely to buy fermented tea products after touch and feel the experience in supermarkets & hypermarkets. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required fermented tea product.

The online segment is anticipated to expand at the highest CAGR of 12.7% over the forecast period. E-commerce development in the food and beverage industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in December 2022, Amazon launched Amazon Fresh, an online grocery store for delivering food and beverages products. In addition, it will also offer the best brands and products for fermented tea along with expert advice and opinions on choosing the best product.

The traditional fermented tea segment accounted for the largest market share of 72.6% in 2020. Traditional brewed tea is the most popular among fermented tea products, and this segment is mainly driven by the rising demand for health and wellness products. For instance, according to the World Health Organization (WHO), tea is the healthiest beverage on the planet, and it contains antioxidants, which helps reduce the risk of cancer, heart disease, and diabetes. In addition, the increasing penetration of the internet and e-commerce platforms has made it easier for consumers to purchase traditional fermented tea products.

The modern fermented tea segment is expected to expand at the highest CAGR of 11.3% during the forecast period. The increasing trend of consuming modern tea products such as matcha, genmaicha, and hojicha is driving the growth of the modern fermented tea segment. Furthermore, the rising health consciousness among consumers is also driving the demand for modern fermented tea products. For instance, according to the National Institutes of Health, matcha tea has several health benefits, including weight loss, improved blood sugar control, and improved mental clarity.

Asia Pacific is the leading region in the fermented tea products market and is expected to remain dominant throughout the forecast period. This is mainly attributed to the rising demand for fermented tea products in developing countries such as China, Japan, and India. The changing lifestyle and rising disposable incomes of consumers in the region are further boosting the regional market growth. In addition, the presence of large tea producing and exporting countries in the region is further driving the growth of the regional market.

The market in Europe is expected to grow at a moderate pace over the forecast period. The growing awareness regarding the health benefits of fermented tea, such as improved digestion, is driving the demand for fermented tea products in the region. Moreover, the increasing demand for organic and natural products is also boosting the regional market growth.

North America is expected to witness steady growth in the foreseeable future. The presence of major players, such as The Republic of Tea and Numi, is driving the growth of the regional market. In addition, the increasing demand for ready-to-drink fermented tea products is further contributing to the regional market growth.

In this part of the fermented tea products business plan, we will provide a detailed breakdown of all income and expense categories. These forecasts include cash flow projections and capital requirements for the business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a fermented tea products business comes from the sale of finished products, such as bottled teas, tea bags, and loose-leaf tea blends. Other potential sources of income include special orders, catering services, online sales, and wholesale distribution.

Projecting Expenses
In this section, all the regular expenses related to keeping the fermented tea business running will be described. The list of operating expenses includes purchasing raw materials, packaging, advertising and marketing, wages, utilities, insurance policies, and other related expenses.

Some of the key companies operating in the fermented tea products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In July 2022, Unilever launched the Pure Leaf Tea House Collection, a range of premium teas.

– In August 2022, PepsiCo launched the Kombucha line of tea, a fermented tea-based beverage which is made with a combination of black, green and white teas.

– In September 2022, Nestle launched the Cha-i-chai line of teas, a range of fermented tea-based beverages which is made with a combination of green and black teas.

Some of the prominent players in the fermented tea products market include:

– Unilever
– PepsiCo
– Nestle
– Coca-Cola
– Tsingtao Brewery Company Limited
– Kirin Holdings Company, Limited
– Hangzhou Wahaha Group Co., Ltd.
– Ito En, Ltd.
– Marukyu Koyamaen Co., Ltd.
– Suntory Holdings Limited

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global fermented tea products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Green Tea
– Oolong Tea
– Black Tea
– Pu-erh Tea
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Different Types of Fermented Tea?
[A]: The different types of fermented tea include kombucha, pu-erh, milk tea, black tea, and white tea. Kombucha is a type of fermented tea that is made from a mixture of tea, sugar, and various bacteria and yeast. Pu-erh is a type of fermented tea that is aged for years and has a distinct earthy flavor. Milk tea is a type of tea that is made with milk and typically sweetened. Black tea is a type of tea that is fully oxidized, giving it a darker color and flavor. Lastly, white tea is a type of tea that is minimally processed and has a lighter color and flavor.

[Q]: What are the Key Drivers of the Fermented Tea Products Market?
[A]: Increasing demand for natural and organic products, growing health consciousness among consumers, and rising disposable income are some of the key drivers of the fermented tea products market. Additionally, the development of innovative products, such as flavored and functional fermented tea products, is also expected to drive market growth.

[Q]: What are the Key Regions for the Fermented Tea Products Market?
[A]: Asia-Pacific is expected to be the largest market for fermented tea products, followed by North America, Europe, and the rest of the world. This is due to the large population and increasing demand for health-related products in the region.

[Q]: What are the Different Distribution Channels for Fermented Tea Products?
[A]: The different distribution channels for fermented tea products include supermarkets/hypermarkets, convenience stores, online stores, specialty stores, and others. Supermarkets/hypermarkets and convenience stores are expected to be the largest channels, while online stores and specialty stores are expected to witness the fastest growth over the forecast period.