An Outline Of Tea Market Potential In Terms Of Regional, Regulatory, And Strategic Landscape

Tea Market
Tea Market

Tea demand is expected to witness a significant growth on account of its daily consumer consumption behavior. Tea is an aromatic beverage which is prepared by pouring hot water over tea leaves. Historical evidence says that tea originated in China and was mostly used as a medicinal drink. It spread towards the west during the 17th century. The Britons started large scale production and commercialization in India in the 18th century to overthrow the Chinese monopoly. Tea plants are mostly cultivated at an elevation of about 1000 meters about the sea level. Tree plants grow up to 15 meters but are pruned for the ease of picking. Only the top layer leaves of the plant are picked for further processing. Tea consists of caffeine, theobromine, and theophylline. Tea is considered to be the lowest cost and most popular beverage after water. An increase in the number of consumer among different age group is anticipated to be the main motivating factor for the growth of the global tea market. This beverage forms a major part of the daily diet for most of the world population.

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Change in consumer lifestyle and eating habits is expected to boost the market growth over the forecast period. The rise in disposable income of consumers is anticipated to drive the industry growth over the next eight years. Increase in the number of livelihoods through the processing and production is expected to boost industry growth. Instant tea consumption in developing economies is anticipated to further increase the market growth.

Growing popularity of tea leaves in the field of medicine industry, as well as an increase in health awareness among consumer as tea leave act as a perfect antioxidant for the treatment of cancer, will further augment the industry growth. Other major advantages of this beverage include reducing the risk of heart attacks, controlling in blood pressure, improving bone density, decreasing headaches, help in fat lessening and preventing arthritis. These aforementioned advantages are expected to further fuel the industry growth in the near future. Changing drinking habits and taste among consumers such as black tea and green tea is estimated to uplift the industry growth exponentially. The existence of a varied variety of flavor among tea product such as basil, jasmine, Aloe Vera, lemon, and vanilla is anticipated to further impact the industry growth over the forecast period.

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Increase in the shelf life of the product in the course of technological advancement will further impact the industry growth predominantly. Increasing concern over skincare and beauty products is motivating the consumer to shift towards green tea which is anticipated to open opportunities for the market growth predominantly. However, availability of alternatives in the market is anticipated to challenge the market growth in the near future. Beverages including coffee have been offering a continuous challenge to the overall market growth.  The tea market is segmented on the basis of product type which includes crush, curl and tear and leaf tea. Leaf tea accounted for maximum market share out of the total market share in 2015. Leaf tea is further segmented into green tea, black tea, and oolong tea. Increase in beauty concerns has accounted green tea as the market leader in the leaf tea section.  Further, the beverage is segmented based on product consumption which includes loose and packaged tea. Although loose tea holds the maximum market share but producers are increasing its focus on producing high quality of packages tea and increasing in a number of flavors in the course of its higher shelf life ability.

Regional demand was dominated by Asia Pacific mainly on account of increasing population and rich tradition of this beverage consumption in countries, especially in India and China. As per the Food and Agriculture organization of the United Nations, in 2015, China and India accounted for more than 50% global tea production. The regional demand is followed by North America and Europe mainly on account of new instant tea making techniques. Africa and South America is expected to show a steady growth owing to increasing tea consumption among the youth. The Middle East has been a lucrative market with this product forming their major imports. Russia, the United States, and the United Kingdom are the leading importers of tea in recent years.  Key players present in the tea manufacturing are DSM Nutritional products, Tetley, Northern Tea Merchants, Oregan Chai, Arizona tea, Hankook tea, metropolitan tea, Nestle, Tata Tea and Associated British foods. Major countries producing tea are China, India, Kenya, Sri Lanka, Vietnam, Turkey, Indonesia, Argentina, and Japan. Companies should concentrate on new innovations which include instant tea and tea bags to increase the consumption of tea through convenient usage.

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