Global Organic Tea Market - 2023-2030

Market Overview

The global organic tea market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 7.2% during the forecast period (2023-2030).

The global organic teas market is growing significantly in developed regions. However, developing and underdeveloped regions are still struggling to build the market due to reduced aftermarket demand and the presence of cost-effective substitutes.

Organic tea is grown without synthetic fertilizers, pesticides or herbicides. It focuses on biological processes, biodiversity and cycles tailored to local conditions rather than harmful inputs. Toxic chemicals are avoided in organic tea production, protecting the soil from hazardous herbicides and pesticides. Compost, natural organic materials and plants provide ground cover and nutrients. Because there is a growing notion that clean-label products are safe and healthful, there is a greater demand for organically cultivated tea to maintain general health and well-being.

Market Dynamics

The increasing health awareness among consumers drives global organic tea demand. However, the lack of knowledge about organic tea production is a significant market restraint.

Increasing health awareness among consumers globally

Tea is a popular beverage worldwide; it is created by boiling the leaves and buds of the plant Camellia Sinensis. This plant produces tea leaves and buds. Organic tea is grown without pesticides and fertilizers, which are harmful chemicals. Tea is a relaxing drink that helps lower cholesterol and relieves stress. Organic tea has antioxidants, increasing consumer demand during the projection period. A prospective cohort study also found that consuming black tea was related to a modestly lower mortality risk. Those who drank two or more cups of tea daily had the lowest chance of dying. The findings were published recently in the journal Annals of Internal Medicine.

According to research presented at this year's European Association for the Study of Diabetes Annual Meeting in Stockholm, Sweden, drinking at least four cups of tea per day is associated with a 17% lower risk of T2D over ten years. This research demonstrated the benefits of tea with lesser risk, boosting the market growth during the predicted period. Moreover, growing awareness of the health benefits of organically grown tea would considerably contribute to an increase in demand for organically grown tea. Sustainability has become a prominent trend in the developed countries of North America and Europe projected to boost the organically grown tea market's rise in the following years.

Furthermore, the growing trend of healthy hydration has increased demand for ready-to-drink nutritionally rich specialty tea. As a result of these developments, leading tea companies have begun to offer organic versions of a wide range of specialty teas.

The lack of knowledge about organic tea production

The lack of understanding about optimal farming procedures for producing this tea impedes the market growth. Tea farmers generally require skills to transform traditional farming practices into more productive and sustainable ways. Furthermore, the production cost of this tea is higher than that of ordinary tea, which limits market expansion.

In addition, the certification process for organic tea production and sales worldwide is prohibitively expensive. Farmers are frequently discouraged from adopting organic farming due to the high certification cost and the three-year time lag. In India, for instance, most organic tea comes from Darjeeling. Darjeeling has seen the introduction of organic tea cultivation for more than three decades. In Darjeeling, around 62 gardens out of 87 recognized by the tea board cultivate organic tea. Individual farmers spend between Rs.25,000 and Rs.40,000 to obtain organic certification, while farmer organizations spend between Rs.40,000 and Rs.1,000,000.

COVID-19 Impact Analysis

The COVID-19 pandemic had a wide-ranging impact on the worldwide economy. There is still an influence in organic tea manufacturing and in pandemic times, its demand is increasing since it benefits health. Organic tea drinks are also appealing to customers due to the different health benefits claimed by makers. People are more health-conscious during pandemics; therefore, they prefer organic products and consume more, making pandemics ideal for organic tea manufacturers. Despite the COVID-19 outbreak, the tea industry has significantly increased consumption and prices. Restrictions on farming activities in the early stages of the lockdown to mitigate the pandemic's effects negatively influenced tea output in tea-producing countries like China and India.

The COVID-19 pandemic has tremendously impacted tea manufacturers worldwide due to statewide lockdowns and social distancing policies. Import and export restrictions created uncertainty in the tea market, prompting manufacturers to take emergency measures to stabilize the demand-supply ratio. However, during the pandemic, the popularity of at-home consumption increased retail sales of tea bags, which is expected to drive market growth in the coming years.

Segment Analysis

The global organic tea market is classified based on type, form, taste, distribution channel and region.

The convenience of tea bags and the desire to eliminate mess are major factors that boost the demand for tea bags in the global organic tea market

A tea bag is a porous, sealed small bag or packet, which typically contains tea leaves or other herbs, fully immersed in water to steep and make an infusion. They were once only made with tea (Camellia sinensis), but today various tisanes (herbal teas) are also used.

Tea bags are usually composed of filter paper or food-grade plastic, with silk cotton or silk used sporadically. The tea bag serves the same purpose as an infuser for tea. Tea bags can be refilled until there is no more extraction. Some tea bags come with a piece of thread attached and the top of the string has a paper label that identifies the brand or type of tea within.

Tea bags have typically been square or rectangular. They are often made of filter paper, similar to the paper used in milk and coffee filters and a combination of wood and vegetable fibers. The latter is bleached pulp abaca hemp, which is made from a plantation banana plant that is mainly produced in the Philippines and Colombia for its fiber. Some bags' inner tea bag surface is made of heat-sealable thermoplastic fiber, like PVC or polypropylene, which prevents them from decomposing completely. Some paper tea bags that are more recent are shaped like circles.

Customers can also purchase empty tea bags to fill with their tea leaves. These are often long flapped open-ended pouches. These tea bags combine the convenience of a mass-produced tea bag with the greater variety and higher quality control of loose-leaf tea. The tea bag market has shown the highest growth in 2021 and is expected to maintain market dominance in the forecast period due to the associated benefits offered by the segment. For instance, The convenience of tea bags is its most significant advantage. It's simple to put a tea bag in a hot beverage or travel mug and move on with the day-no messing around with tea accessories or extra dishes to wash afterward. The attached string makes clean up easy as the consumer can toss the tea bag into the garbage or compost pile.

Furthermore, Eliminating mess is yet another advantage of using tea bags. A beautiful cup of tea is made by simply removing the tea bag without messing up the kitchen. An infuser or strainer is required in loose tea to get the loose leaves out. As a result, the customer will need more cleaning supplies. Tea bags simplify the process of preparing tea and eliminate the fuss.

In addition, Tea bags work especially well when brewing iced tea. Making iced tea can take much work, especially adding fresh fruit or flavorings. Tea bags make the brewing process quicker and easier, allowing customers to go on to other celebrations or backyard tea party preparations.

Geographical Analysis

The trend of functional organic beverages and growing of healthy food allow North America to dominate the regional segment of the global organic tea market

The North America market is exhibiting robust growth due to some emerging trends such as consuming natural, safe and clean-label products. Consumers in the region are becoming more aware of the safety and ethnicity of the healthy food they choose to consume. The trend of functional organic beverages in U.S. and Canada drives market growth in North America. The growing focus on developing and launching innovative organic tea variants in novel packaging is expected to boost the regional market growth during the forecast period.

U.S. held the largest market revenue share of 74% in 2021. Since the demand for these beverages has increased significantly in recent years and tea is one of the most popular beverages in the country, U.S. has been ranked as the third-largest importer of organic tea in the world. A favorable environment has also been created for U.S. market growth by rising consumer awareness, introducing novel flavors and consumer demand for convenience.

For instance, the Republic of Tea introduced ingenious glamorizing botanicals Beauty Brain Tea in April 2021. The first herbal tea on the market, Beauty Brain, was created to benefit skin and brain health. More than 350 different types of tea are produced and sold across North America by The Republic of Tea, a privately held American tea company with its headquarters in Larkspur, California. In February 2021, Numi Organic Tea introduced the Stay Healthy Line of Functional Herbal Teas. The line is distinguished by fully-grown medicinal herbs that support mental, emotional and physical health.

Competitive Landscape

The global organic tea market is enormous and is becoming increasingly competitive due to the presence of significant players such as Unilever, COFCO, Tata Beverages, Yethai Tea, Sugimoto Tea Company, Ikeda Tea World orgse Tea, Mother Parkers original First Tea and Amelia Bay. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

Unilever

Overview: Unilever is a leading consumer goods company with more than 100 years of market experience. The company was established in 1860 and is currently headquartered in London, UK. Unilever manufactures and owns more than 400 brands in varied industrial sectors, such as beauty & well-being, personal care, home care, nutrition and ice cream. The company has a presence in more than 190 countries and employs more than 148000 people. Unilever is a publicly traded company with a revenue of US$ 61,476.75 million in 2021.

The company's business segments include beauty & personal care, food & refreshment and home care, among which beauty & personal care is the highest earner. Lipton and Brook Bond are the brands under which Unilever sells organic tea.

Brand Portfolio:

• Lipton: Unilever sells a wide range of teas, from packets to tea bags, including green tea, after lunch and Darjeeling tea under the Lipton brand.

Key Development:

• On November 19, 2021, Unilever consented to sell part of its tea-related assets to buyout company CVC Capital Partners for US$ 5.1 billion (4.5 billion euros).

Why Purchase the Report?

• Visualizing the global organic tea market segmentation based on type, form, taste, distribution channel and region and understanding key commercial assets and players.
• Identify commercial opportunities in the global organic tea market by analyzing trends and co-development.
• Excel data sheet with numerous data points of organic tea market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global Organic Tea market report would provide approximately 69 tables, 71 figures and almost 273 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies