The global organic tea market was valued at USD 12.2 billion in 2022 and is projected to expand at a CAGR of 8.7% from 2023 to 2030. Organic tea is becoming increasingly popular due to its health benefits, such as aiding digestion, reducing risk of cardiovascular diseases, and boosting metabolism. This is encouraging consumers to switch to organic tea products and increasing the demand for these products. Furthermore, tea being a major part of the traditional culture in many countries is also driving the market. The consumption of tea is increasing due to the growing need for healthy beverages among consumers.

Moreover, the global organic tea market is driven by the availability of a wide variety of flavors and blends. Companies are launching a variety of tea flavors to attract consumers, such as green tea, black tea, oolong tea, white tea, and herbal tea. For instance, in March 2021, Tata Global Beverages launched a range of organic tea products, including black tea, green tea, and herbal infusions, in India. The launch of new tea flavors is expected to further drive the demand for organic tea.

The emergence of e-commerce platforms is also contributing to the growth of the market. The availability of organic teas on online platforms is enabling the consumers to purchase these products conveniently. Furthermore, the increasing number of organic tea producers is also driving the market. For instance, in October 2021, Organic India launched a range of organic teas, including Tulsi green tea and Tulsi chai. The company offers organic teas in over 30 countries.

The rising trend of health consciousness among consumers is driving the market. Consumers are becoming more health-conscious and are shifting their preferences from regular tea to organic tea. Furthermore, the growing trend of premiumization and the rising disposable income of consumers are fueling the demand for organic tea. For instance, in January 2021, The Republic of Tea launched a premium line of organic teas. The company offers a range of loose-leaf teas and herbal infusions, including green tea, black tea, oolong tea, white tea, and herbal tea.

The increasing demand for organic tea in the hospitality sector is significantly driving the market. The rising awareness among customers regarding the health benefits of organic tea is encouraging them to opt for organic tea products while dining out. Moreover, the expanding café culture, with an increasing number of tea shops, is also driving the market. For instance, in April 2021, Twinings launched a range of organic teas in the UK. The company offers a variety of organic green, black, and herbal teas.

The black tea segment accounted for the highest share of the market in 2022, owing to the increasing demand for flavored tea. Black tea has a strong flavor and contains a high amount of caffeine, which makes it the most popular tea among consumers. Furthermore, the growing demand for organic and healthy beverages is one of the key drivers of the black tea segment. According to a report published by the Tea Association of the USA, Inc. in May 2020, 70% of tea drinkers consumed black tea in the last six months.

The green tea segment is estimated to expand at the fastest CAGR of 10.4% over the forecast period. According to an article published by the Tea and Infusions Organisation in October 2019, green tea is the second-most consumed type of tea, with a share of 20%. Green tea is popular due to its health benefits, such as aiding digestion, and reducing the risk of cancer. In addition, rising health consciousness among consumers is a key factor driving the demand for organic green tea.

The supermarkets and hypermarkets segment accounted for the largest share of the organic tea products market in 2022. The segment is expected to witness significant growth during the forecast period. Supermarkets & hypermarkets are considered as one of the preferred shopping destinations for buying organic tea products as they offer a wide range of products under the same roof. In addition, the presence of private label organic tea products at supermarkets & hypermarkets stores is driving the segment’s growth.

The e-commerce segment is anticipated to be the fastest-growing distribution channel for organic tea products. Online stores are preferred by consumers due to their convenience and greater choice of products. In addition, the growing preference for online shopping among millennials due to discounts and offers available on e-commerce websites is resulting in increased sales of organic tea products through this channel.

The loose leaf segment accounted for the largest revenue share of 76.2% in the year 2022. The loose leaf segment has gained traction due to the growing trend of brewing fresh tea leaves. The convenience of loose leaves allows easy customization of tea leaves, enabling consumers to use the desired quantity and blend of tea leaves for brewing tea. This has led to the increasing demand for loose leaf tea from health-conscious consumers. Additionally, the increasing number of online tea stores that are selling loose leaf tea has also contributed to the growth of the segment.

The tea bag segment is anticipated to expand at the highest CAGR of 8.6% over the forecast period. The convenience of tea bags and the increasing number of companies offering organic tea bags are propelling the market for this segment. The growing demand for organic tea bags is due to the convenience of brewing tea with tea bags. Moreover, the rising health consciousness among consumers has also propelled the demand for organic tea bags. For instance, in October 2021, Twinings, a brand of Unilever, launched new organic tea bags in the U.K. market.

Europe held the largest share of the organic tea market in 2020 and is expected to maintain its dominance throughout the forecast period. This is primarily attributable to the increasing demand for organic tea from countries such as Germany, the U.K., France, and Italy. The region is also home to some of the leading organic tea companies, such as Twinings, Typhoo, and Pukka, which have established their presence in the region. For instance, in April 2021, Twinings launched a range of organic and caffeine-free teas in the U.K.

Asia Pacific is expected to witness the fastest growth in the forecasted period. This can be attributed to the increasing demand for high-quality organic tea products in countries such as Japan, India, and China. In addition, the presence of leading organic tea manufacturers in the region, such as Yamamotoyama, is expected to further fuel the growth of the market in this region. In June 2021, Yamamotoyama launched a range of organic matcha green teas in Japan.

In this part of the organic tea products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These projections are usually drafted for a 5-year period.

Revenue Assumptions

The main sources of revenue for an organic tea products business comes from the sale of tea products, subscription services, bulk orders, and wholesale purchases. Additionally, you may consider selling tea accessories, and offering tea-tasting events, online classes, and other services to generate income.

Projecting Expenses

In this section, all the regular expenses related to keeping the organic tea products business running will be described. The list of operating expenses includes packaging and shipping costs, marketing and advertising costs, rent, employee wages, insurance policies, product and raw materials costs, utilities, and others.

Some of the key companies operating in the organic tea 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 September 2022, Unilever launched a new line of organic teas, called Lipton Organic. The range includes organic black tea, organic green tea, organic oolong tea, organic white tea, organic chai tea, and organic herbal tea.

– In August 2022, Tetley launched a range of organic teas under its ‘Chill Out’ brand. The range includes organic green teas, organic black teas, and organic herbal teas.

– In July 2022, Twinings launched a range of organic teas including organic green tea, organic black tea, organic oolong tea, and organic herbal tea.

Some of the prominent players in the organic tea market include:

– Unilever PLC
– Nestle SA
– Tata Global Beverages
– Twinings
– The Republic of Tea
– Tetley
– Hain Celestial Group
– Barry’s Tea
– R. Twining and Company Limited
– The Bigelow Tea Company

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 organic tea products market based on product type, distribution channel, and region:

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

– Loose Leaf Tea
– Tea Bags
– Tea Sachets
– Other Products

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

– Supermarkets & Hypermarkets
– Online
– Others

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

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

[Q]: What is the Global Organic Tea Products Market Size?
[A]: The global organic tea products market size was valued at USD 11.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2020 to 2027.

[Q]: Which Region Offers the Largest Opportunity for Sales of Organic Tea Products?
[A]: Asia Pacific is expected to emerge as the most lucrative region for organic tea products market. The region is expected to hold a market share of 40.9% by 2027, growing at a CAGR of 8.2% during the forecast period.

[Q]: What are the factors driving the organic tea products market?
[A]: The global organic tea products market is driven by rising health consciousness among consumers, increasing demand for organic and natural products, growing preference for organic tea and herbal teas, and increasing promotional activities by vendors.

[Q]: Who are the Key Players in the Organic Tea Products Market?
[A]: Major players in the global organic tea products market include The Republic of Tea, Inc., ITO EN (North America) Inc., Barry’s Tea Ltd., Tata Global Beverages Ltd., Twinings of London, Dilmah Ceylon Tea Company PLC, Twinings North America, Inc., R. Twining and Company Limited, Harney & Sons, and The Stash Tea Company.

[Q]: What are the Challenges Faced by the Organic Tea Products Market?
[A]: High cost of organic tea due to its production process, stringent government regulations, and limited availability of organic tea are some of the challenges faced by the organic tea products market.