During the forecast period, the organic tea market is expected to grow at an 8.0% CAGR. The market is expected to generate US$ 1.24 billion in revenue in 2023, with a value of US$ 2.69 billion by 2033.
The Organic Tea market is experiencing remarkable growth as health-conscious consumers prioritize natural and sustainable products. With a rising awareness of the potential health benefits and environmental advantages of organic tea, the market is expanding to meet the growing demand for premium and ethically sourced tea products.
- Rising demand for organic products, as well as an increase in the consumption of organic beverages such as matcha, herbal tea, and organic tea. Furthermore, increased organic tea production, import, and export are driving market expansion.
- The increased health advantages provided by the antioxidants in herbal tea support digestive health, a robust immune system, and a balance of good and bad bacteria in the body. The supply chain for the organic tea market is also being improved by the new clean label packaging and tea bag boxes.
- Higher consumption of organic back tea in India and organic and herbal tea in China are proliferating the growth rate due to the higher population and global health trends. The impact of globalization on the import of premium tea is also flourishing the demand for organic tea.
- The growing popularity of herbal, green, and organic tea for weight loss, and anti-cancer properties is flourishing the market growth. Moreover, the new e-commerce channels are promoting discounts and varieties of organic tea. The competitors also promote their products like this.
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Key Points
- The United States market leads the organic tea market in terms of market share in North America. The United States region held a market share of 21.3% in 2022. The growth in this region is attributed to aware citizens, higher production, and exports.
- United Kingdom’s organic tea market is another significant market in the European region. The market thrives at a CAGR of 5.9% between 2023 and 2033. The growth is attributed to the higher tea imports from India, cultural significance, and higher tea-consuming population.
- The Indian organic tea market thrives at a leading CAGR of 25.4% during the forecast period. The market’s growth is attributed to the leading tea production coupled with the presence of leading tea companies.
- Chinese organic tea market also thrives at a CAGR of 2.9% between 2023 and 2033. The growth is attributed to the large tea-consuming population.
- Based on packaging type, the tea bags segment holds the leading market share.
Competitive Landscape
The key vendors work on clean-label packaging that describes the organic benefits. Key competitors and also merge, acquire, and partner with other companies to increase their supply chain, and distribution channel.
Key Players
- Organic India
- Tata Tea Limited
- Davidson’s Organics
- Unilever
- Numi, Inc.
- Twinings
- The Hain Celestial Group, Inc.
- Bigelow Tea Company
- Yogi Tea
- Tielka
- Coca-Cola Company
- PepsiCo
- Harney & Sons Fine Teas
- Republic of Tea
- Hälssen & Lyon GmbH
- Others
Recent Market Developments
- The Republic of Tea has introduced its new organic double matcha, organic single sips, and organic dandelion super herb tea bags. In addition to these, the company has also tried its hands at the production of herbal tea like organic turmeric ginger tea bags and organic mint fields tea bags.
- Yogi tea has added innovative organic tea cakes such as chamomile lavender tea that come with exotic and fresh flavors.
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Key Segments
By Product Type:
- True Tea
- Black Tea
- Green Tea
- Oolong Tea
- Pu-erh Tea
- White Tea
- Herbal Tea
- Chamomile Herbal Tea
- Peppermint Herbal Tea
- Ginger Herbal Tea
- Lemongrass Herbal Tea
- Other Herbal Teas
By Form:
- Dried Leaf
- Powder Leaf
- Liquid
By Packaging:
- Cartons
- Cans
- Tea Bags
- Paper Pouches
- Other Packaging
By Sales Channel:
- Offline Sales Channel
- Supermarkets/Hypermarkets
- Departmental Stores
- Convenience Store
- Other Sales Channel
- Online Sales Channel
- Company Website
- E-commerce Platform
Author
Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.
She has exceptional analytical skills and often brings thought leadership to the table.
Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results.
Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor’s Degree in Electrical Engineering from Nagpur University, India.
Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor.
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