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Organic Tea Market Segmentation by Product Type (Green, Black, White, Oolong, Pu’erh Tea, and Others); by Form (Powder, Dried Leaf, and Liquid); by Taste (Flavored Tea, and Ordinary Tea); by Packaging Type (Teabags, Cans, Cartons, Paper Pouches, and Others); by Distribution Channel (Convenience Stores, Specialty Stores, Supermarkets, and Others); and by End Users (Commercial, Residential, Institutional, and Others) - Global Demand Analysis & Opportunity Outlook 2029

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Extensive insights into the Growth of Organic Tea Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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IN THE NEWS

  • On April 9, 2020, Davidson’s Organics announced a partnership agreement with Dr. Suhas and Dr. Manisha Khirsagar, renowned practitioners of Ayurveda, for the expansion of its Ayurvedic-inspired functional teas.

  • On September 7, 2017, Unilever PLC announced the acquisition of Pukka Herbs Ltd., an organization that is into organic herbal tea business.

Introduction to Organic Tea

Tea is a commonly prepared aromatic beverage which is made by pouring hot or boiling water over tea leaves. Usually, most of the tea leaves belong to the species Camellia sinensis, an evergreen shrub native to East Asia. Organic tea is the tea produced without the use of synthetic pesticides, fertilizers or herbicides. Organic tea farming usually relies on the disintegration of organic matter using methods such as composting and green manure. The cultivation process primarily focuses on the use of natural minerals and nutrients in order to nurture the growth of the plant. There are different types of organic tea, such as organic green tea, organic black tea, white tea, oolong tea, pu’erh tea, and others.

Market size and Forecast

The global organic tea market is anticipated to record a notable CAGR during the forecast period, 2021-2029. The market is thriving on account of the rising awareness amongst individuals for the diseases caused by drinking non-organic tea, which is known to be treated with synthetic fertilizers, herbicides and pesticides. Further, the growing trend for organic beverages, along with the growing preference for premium beverages from several upper socio-economic classes are anticipated to promote the growth of the market in the coming years. On the other hand, rising popularity of cafes which are themed on serving different variants of tea products is also anticipated to raise the demand of the product. The market is also thriving on account of the increasing introduction of new product lines, along with the infusion of organic tea in other products, such as chamomile tea with white chocolate bar to enhance its functionality, coupled with the rising usage of organic green tea for skin care application products, such as body wash, mask and creams among others in the cosmetic industry.

The market is segmented on the basis of product type into green, black, white, oolong, pu’erh tea, and others, out of which, the organic black tea segment is estimated to hold the largest market share in the year 2022 owing to the antioxidant properties present in the type of tea which raises its nutritional value. Organic black tea is also known for possessing numerous other health benefits, such as lowering of bad LDL cholesterol, boosting heart health, improving gut health and others. Alternatively, the organic green tea segment is estimated to foresee a notable CAGR during the forecast period on the back of the numerous benefits of organic green tea, such as improving the functioning of brain, promoting fat loss, lowering the risk of heart disease and others, along with the growing trade on green tea globally. According to the statistics by the International Trade Centre (ITC), exports of green tea in immediate packings of less than or equal to three kilos grew from USD 1.11 billion in 2015 to USD 1.21 billion in 2019.

Exports of Green Tea in Immediate Packings

Moreover, organic green tea is known to have an abundant amount of epigallocatechin gallate (EGCG), a chemical compound which is also used widely in many dietary supplements. Such factors are anticipated to promote the growth of the green tea segment.

Organic Tea Market Share Segmentation by Product Type

Growth Drivers

Numerous Health Benefits Associated with Organic Tea to Boost the Growth of the Market

Organic tea is consumed widely owing to the numerous health benefits possessed by it. This type of tea is toxin free, which means the harmful substances used in the processing of the tea wouldn’t end up in the bodies of the user. Moreover, it is also suitable for people suffering from heart diseases and high cholesterol. Organic tea has antioxidant properties which increases the immunity and detoxifies the body and also promotes weight loss. It is also known to promote digestive health as it helps to improve the healthy gut bacteria. Additionally, it contains theanine which promotes relaxation without drowsiness. Such favorable properties of organic tea are therefore anticipated to drive the growth of the global organic tea market in the coming years. CLICK TO DOWNLOAD SAMPLE REPORT

Benefits of Organic Tea

Restraints

High Price of the Product to Hamper Market Growth

The price of organic tea is very high as the farming process for it is time consuming and requires greater efforts of the farmers for cultivating organic tea. Moreover, the complicated and costly equipment required for farming of organic tea also raises the price of the product. Such factors are anticipated to hinder the market growth in the coming years.

Market Segmentation

Our in-depth analysis of the global organic tea market includes the following segments:

By Product Type

  • Green Tea
  • Black Tea
  • White Tea
  • Oolong Tea
  • Pu’erh Tea
  • Others

By Taste

  • Flavored Tea
  • Ordinary Tea

By Form

  • Powder
  • Dried Leaf
  • Liquid

By Packaging Type

  • Teabags
  • Cans
  • Cartons
  • Paper Pouches
  • Others

By Distribution Channel Type

  • Convenience Stores
  • Speciality Stores
  • Supermarkets
  • Others

By End Users

  • Commercial
  • Residential
  • Institutional
  • Others

By Region

Geographically, the organic tea market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa regions.

Among these markets, the market in North America is estimated to hold the largest market share by the end of 2029 on the back of introduction of various innovative flavors of organic tea by the major key players, along with the rising inclination of people towards organic products. Alternatively, the market in Asia Pacific is anticipated to grow with the highest CAGR during the forecast period on account of the presence of nations such as China, India, Sri Lanka and others, who are world leaders in the exports of tea products. In other statistics by the ITC, China recorded the highest share of exports of 26.05% in the year 2019. Sri Lanka and India captured the 3rd and 4th highest shares with 11.18% and 10.46% respectively in the year 2019. Moreover, the organic tea market in India is projected to grow with the highest CAGR during the forecast period, backed by the increasing focus of the tea planters to grow organically produced tea.

Share of Exports of Tea Products

The global organic tea market is further classified on the basis of region as follows:

  • North America (US, Canada, Mexico and rest of North America) Market size, Y-O-Y growth and Opportunity analysis.
  • Europe (Italy, France, Poland, Russia, Spain, Belgium, UK, Germany and Other parts of Europe) Market size, Y-O-Y growth and Opportunity analysis.
  • Asia Pacific (India, Malaysia, China, New Zealand, Singapore, Japan, Australia and rest of Asia Pacific) Market size, Y-O-Y growth and Opportunity analysis.
  • Latin America (Argentina, Brazil, Chile, Peru, Columbia and other parts of Latin America) Market size, Y-O-Y growth and Opportunity analysis.
  • Middle East & Africa (Saudi Arabia, United Arab Emirates, North Africa and South Africa) Market size, Y-O-Y growth and Opportunity analysis.

Top Key Players Dominating the Market

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