The global tea products market was valued at USD 21.5 billion in 2022 and is projected to expand at a CAGR of 6.3% from 2023 to 2030. Increasing health consciousness among consumers is driving the demand for tea products as they are considered to have numerous health benefits. Furthermore, the rise in disposable income, especially in developing countries such as India and China, has enabled customers to purchase premium tea products. Additionally, a surge in the number of tea cafés and shops that offer customized tea blends is expected to create potential opportunities for the market.

In terms of product type, the market is segmented into green, black, oolong, white, herbal, and others. The black tea segment accounted for the highest market share in 2022 and is expected to witness the highest growth during the forecast period. This is due to its diverse applications in various food products such as cakes, sandwiches, pastries, and others. Black tea is also consumed as a hot beverage and is gaining popularity due to its health benefits, such as its ability to reduce the risk of cancer, heart diseases, and diabetes. Furthermore, increasing availability of black tea in various forms such as ready-to-drink tea, tea bags, and loose tea is expected to drive the segment growth.

The market is also segmented by packaging into loose tea, tea bags, cans, and others. The tea bags segment is anticipated to be the fastest-growing segment during the forecast period. This is due to its convenience of usage and ease of storage. Moreover, tea bags enable customers to enjoy the same flavor and quality of tea without any hassle. Furthermore, the availability of different flavors of tea bags is expected to drive the segment growth.

In terms of distribution channel, the market is segmented into hypermarkets/ supermarkets, convenience stores, online stores, and others. The online stores segment is expected to grow at the highest CAGR from 2023 to 2030. The growth of this segment is attributed to the increasing number of e-commerce websites providing a wide selection of tea products. Additionally, the availability of discounts and offers on online tea products is further creating a high demand for these products.

The green tea segment led the market and accounted for a share of around 28.3% in 2022. The increasing health consciousness among consumers and the growing popularity of green tea around the world are the key factors driving the growth of the green tea segment. According to an article published by the University of Oxford, in January 2020, green tea is the most popular beverage in the world, with around 2.5 billion cups consumed globally every day. Furthermore, the rising demand for organic tea products globally is driving the growth of the green tea market.

The black tea segment is anticipated to expand at the fastest CAGR of 6.7% over the forecast period. The growth of the black tea segment is primarily attributed to the increasing popularity of black tea among the health-conscious consumers. According to an article published by the Journal of Nutrition & Food Sciences, in June 2019, black tea is an excellent source of antioxidants and various health benefits associated with its consumption. In addition, the increasing global demand for premium quality tea products is driving the growth of the black tea market.

The supermarkets and hypermarkets segment captured the major share of over 39.0% in 2022. Tea products are easily available in these stores at reasonable prices, which is driving the growth of the segment. Furthermore, rapid expansion of hypermarkets and supermarkets, especially in developing countries, is contributing to the segment growth. For instance, in 2020, Future Group opened more than 200 stores in India and expanded its retail presence.

The specialty stores segment is anticipated to expand at the highest CAGR of 10.7% over the forecast period. Specialty stores are stores that specialize in a specific product category. These stores are preferred by consumers due to the wide variety of tea products available in these stores. Furthermore, these stores offer personalized services, such as help with selection, that attract customers to purchase tea products from these stores. For instance, in 2020, Tata Global Beverages opened its first specialty tea store in India, which offers more than 100 varieties of tea.

The loose-leaf segment accounted for the largest revenue share of 58.1% in the year 2022. The increasing preference for loose-leaf tea among consumers, due to its superior taste, is the primary factor driving the segment. Moreover, the demand for loose-leaf tea has increased due to its health benefits, as it contains antioxidants, which help reduce inflammation and improve digestion. Furthermore, a variety of flavors available in the loose-leaf tea segment has further contributed to the growth of the segment.

The tea bags segment is anticipated to expand at the highest CAGR of 8.3% over the forecast period. The convenience of brewing tea bags has led to an increased demand for these products, as it requires minimal time for preparation. Moreover, the increased number of health-conscious consumers, who prefer to consume tea for its health benefits, is expected to drive the demand for tea bags over the forecast period. Furthermore, the availability of a variety of tea bags in the market, such as green tea bags, chamomile tea bags, and herbal tea bags, is expected to further drive the growth of the segment in the coming years.

Asia Pacific dominated the market and accounted for the largest revenue share of over 45.2% in 2022. The increasing demand for tea products in this region can be attributed to the rising preference for natural ingredients and the availability of a wide variety of tea products. In addition, the growing trend of consuming tea products for health benefits, such as reducing stress and improving digestion, is expected to drive the growth of the market in the region. For instance, in June 2021, the Chinese firm Fuxing Tea launched a premium tea range in India.

Europe is expected to be the second-largest market for tea products, owing to the increasing demand for herbal tea products in the region. For instance, in April 2021, Twinings launched a range of herbal tea products in the UK, which are made from natural ingredients, such as ginger and turmeric, to provide functional health benefits. Furthermore, the presence of a large number of tea manufacturers in the region is expected to fuel the growth of the tea products market.

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

Revenue Assumptions

The main source of revenues for a tea products business comes from sales of tea products, wholesale, subscription services, and online sales. Here you will find a list of potential sources of income including direct sales to retailers, corporate gifts, and retail events.

Projecting Expenses

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

Some of the key companies operating in the 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 April 2022, Tata Global Beverages launched the Tetley Super Green Tea range which includes a mix of green tea, jasmine and hibiscus.

– In June 2022, Unilever launched a new range of tea bags called the Lipton Linea. The range includes a variety of tea types such as green, white, black and herbal tea.

– In August 2022, Twinings launched a new range of teas with natural ingredients. The range includes green, white, black and herbal tea blends.

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

– Tata Global Beverages
– Unilever
– Associated British Foods plc
– Twinings
– The Republic of Tea
– ITO EN, Ltd.
– R. Twining and Company Limited
– Tata Chemicals Limited
– The Hain Celestial Group
– The Kakuzo Group

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

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

– Black Tea
– Green Tea
– Oolong Tea
– White 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 is the size of the Global Tea Products Market?
[A]: The global tea products market size was valued at USD 31.81 billion in 2020 and is expected to expand at a CAGR of 6.6% from 2021 to 2028.

[Q]: What are the major factors driving the growth of the Tea Products Market?
[A]: The market is driven by factors such as the increasing demand for health-promoting and wellness-boosting products, the growing awareness about the health benefits of tea, and the increasing popularity of tea-based beverages and snacks.

[Q]: What are the major product segments in the Tea Products Market?
[A]: The major product segments in the tea products market include black tea, green tea, oolong tea, white tea, dark tea, and herbal tea.

[Q]: Who are the major players in the Tea Products Market?
[A]: Some of the major players in the market are Unilever, Associated British Foods, Tata Global Beverages, Harney & Sons, ITO EN, Apeejay Surrendra Group, Twinings of London, Zhejiang Tea Group, and PT. Mayora Indah.

[Q]: What are the growth opportunities in the Tea Products Market?
[A]: The growing demand for organic and specialty tea, the increase in health-conscious consumers, the growing popularity of tea-based beverages and snacks, and the introduction of innovative and health-promoting tea products are some of the major growth opportunities in the market.