This market research study presents a detailed segmentation of the global tea market by product type (black tea, green tea, and oolong tea), by distribution channel (supermarkets and hypermarkets, independent retailers, specialist retailers, and convenience stores), and by geography (Americas, APAC, Europe, and MEA). The key vendors identified in the market are ABF, Taetea, Ito En, Nestlé, Tata Global Beverages, and Unilever.
Technavio’s market research analysts estimate the global tea market to grow at a CAGR of around 5% between 2016 and 2020. People are increasingly consuming tea owing to its health benefits. Tea contains antioxidants, which aid in protecting the human body from damages of aging and pollution. Tea helps in reducing the risk of stroke and heart attack because it keeps arteries smooth and clog free. APAC is the highest revenue-contributing region in the global tea market, and is expected to occupy around 58% of the total market share. Since tea is the most preferred hot beverage in APAC countries like India, China, and Japan, the growing demand from these countries is primarily responsible for the growth of this segment.
The new market research report from Technavio provides a breakdown and analysis of the tea segments by technology.
“The market is witnessing a considerate shift towards the consumption of flavoured tea. Tea producing companies are actively experimenting with different flavor profiles by adding varied flavors like chocolate, pomegranate, acai and turmeric to tea sachets. For instance, the turmeric tea launched by Numi in 2014 has gained considerable visibility in the market. Also, Teavana offers unique flavors of tea such as acai blueberry and watermelon mint. This recent shift in preference for experimenting with different flavors of tea will aid in the growth this market during the forecast period,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research
Currently, the hypermarkets and supermarkets segment dominates the global tea market with more than 67% of the market share. Factors like availability of a vast array of products at discounted prices and the emergence of organized retail will bolster the growth of this market segment until the end of 2020.
The leading vendors in the global tea market include ABF, Taetea, Ito En, Nestlé, Tata Global Beverages, and Unilever. This market is highly fragmented due to the presence of numerous small and large suppliers. These providers in the market compete on the basis of price, quality, innovation, service, reputation, and distribution. The report predicts that intense competition and declining profit margins constitute significant risk factors in the vendor’s operations.
A more detailed analysis is available in the Technavio report, Global Tea market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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