The Organic Tea Market is expected to expand its roots at a steady CAGR of 8.0% during the forecast period. The market is likely to hold a revenue of USD 1.24 billion in 2023 while it is anticipated to cross a value of USD 2.69 billion by 2033.
| Attributes | Details |
|---|---|
| Organic Tea Market CAGR (2023 to 2033) | 8.0% |
| Organic Tea Market Size (2023) | USD 1.24 billion |
| Organic Tea Market Size (2033) | USD 2.69 billion |
FMI analysis indicates that organic tea sales may witness moderate growth over the forecast period. Owing to the rising demand for flavonoid-based beverages, which contain antioxidants. Growing concerns about cadmium's harmful effects on human health are likely to broaden the range of nutritional products obtained from organic crops. Moreover, the benefits of organic tea include maintaining digestive health and activating good bacteria in the gut thus improving gut health.
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Historically the organic tea market witnessed a growth of around 7.5% owing to the perceived better quality of organically grown tea and its benefits to the environment and human health.
Moreover, sales of organic tea are projected to have higher price realization thereby improving the socio-economic situation of tea producers. Advances in organic farming are being made in various parts of the world due to rising food safety awareness and demand for organic food and drinks on the global market.
However, limitations on farming activities imposed during the lockdown's earliest phase to mitigate the pandemic's impact had a negative influence on tea production in tea-producing countries such as India and China. According to The Economic Times, tea output in India was negatively impacted in the first seven months of 2020. With an expected loss of roughly 22% compared to the previous year.
The pandemic had a huge impact on tea producers all around the world, owing to statewide lockdowns and social distancing policies.
Import and export limitations wreaked havoc on the tea market, forcing manufacturers to adopt drastic measures to keep the demand-supply balance in check.
However, since at-home consumption of organic tea has grown in popularity as a way to stay healthy and immune to viruses, retail sales of these tea bags have surged. This is likely to boost the organic tea market growth over the forecast period.
The global organic tea market is expanding rapidly, primarily due to consumer awareness about safer alternatives to conventional products. The growing notion is that clean-label products, such as pesticide-free commodities, are both safe and healthy. It has boosted the demand for organically cultivated tea to preserve general health and well-being.
The demand for ready-to-drink nutritionally rich specialty tea has risen dramatically as a result of the growing trend of healthy hydration. As a result of these trends, leading tea companies have begun to provide organic versions of a variety of specialty teas.
Compared to traditional black tea, organically cultivated tea contains more catechins such as epicatechin gallate, epigallocatechin gallate, and epicatechin. Awareness about the presence of the aforementioned nutrients in organically grown tea against the detrimental effects of conventionally produced tea.
This is increasing its demand in nations such as Japan, the United States, Germany, and other European countries.
| Countries | Revenue Share % (2022) |
|---|---|
| United States | 17.7% |
| Germany | 3.8% |
| Japan | 6.7% |
| Australia | 3.2% |
| Countries | CAGR % (2023 to 2033) |
|---|---|
| China | 2.9% |
| India | 25.4% |
| United Kingdom | 5.9% |
Higher Import, Expansion of the Organic Element, and Increased Awareness around Herbal Tea are flourishing the Demand for Organic Tea in the Region
The United States has been identified as the world's third-leading importer of organic tea since the demand for these beverages has risen drastically in recent years. Tea is one of the popular beverages in the country.
Additionally, the increasing awareness among North American customers, the introduction of novel flavors, and the demand for convenience have been creating a conducive environment for the market growth in the region. The country held a global market share of 17.7% in 2022.
The organic tea market in the United States is anticipated to grow rapidly, with the demand for herbal and green tea rising remarkably among millennials and Generation Z.
Due to the continuing innovation, convenience, and appeal of high-end organic teas, the market is predicted to expand exponentially. Increased consumer interest, as well as the marketing of organic tea as a healthy beverage, are likely to drive future growth.
Consistently Surging Demand for Tea and Tea Based Drinks Driving Sales in China
East Asia is anticipated to be the leading organic tea market. Because countries like China have a sizeable population of consumers who prefer tea and tea-based drinks over other beverages.
Tea has long been associated with China, both historically and culturally. Whereas, the recent improvements in the organic sector, the tea market in China has a lot of room to grow. The Chinese organic tea is anticipated to thrive at a CAGR of 2.9% between 2023 and 2033.
Organic teas like matcha tea, lemon tea, kombucha, and green tea are popular among fitness enthusiasts in the country.
As they are both refreshing, rich in probiotics, filled with antioxidants, and have other health benefits. In addition, the growing popularity of herbal teas to improve beauty and health is primarily propelling the growth of the market in China. As they are regarded to be healthier than caffeine or soda-based beverages.
Black Organic Tea Sales Soar in India, the Leading Tea Producing Country along with the Cultural Significance
India, the world's leading tea producer, and consumer, is exploring green tea from Japan and China. However, India has been traditionally consuming organic black tea over the years due to its numerous health benefits including polyphenols. These function as antioxidants and help prevent DNA damage caused by cigarettes or other hazardous chemicals. The country thrives at a strong CAGR of 25.4% between 2023 and 2033.
Young Indians today prefer black tea to other caffeinated drinks, owing to increased health awareness and expanding Western influence. Due to rising consumer interest and increased health knowledge about organic tea consumption in the country, black tea demand is expected to expand at a faster rate.
| Category | By Packaging |
|---|---|
| Leading Segment | Tea Bags |
Easy Accessibility Driving True Organic Tea Sales
Due to the ease of accessibility, the true organic tea market is expected to account for a significant share of the market by the end of 2022, resulting in a larger penetration of the product around the world. Furthermore, market participants have been expanding their investments in producing unique products in the black, white, green, and oolong tea categories. To cater to a wide range of tastes and health requirements of consumers.
For instance, green organic tea is beneficial not only when consumed, but also when applied to the skin in the form of masks, body washes, and lotions. As a result, demand for true organic tea is predicted to rise sharply among urban professionals, the elderly, and high-performance athletes.
Focus on Convenient Packaging to Steer Sales of Organic Tea in Tea Bags
Surging sales of tea bags can be attributed to the growing popularity of portable and convenient foods and beverages around the world. It also has a considerable market share owing to its simple preparation technique. The rise of the tea bag market has been aided significantly by the rising trend of ready-to-drink beverages and healthy hydration.
Consumers nowadays are looking for unique flavors in a variety of organic teas and tea bags come in a variety of flavors. Allowing consumers to carry a range of teas with them and consume them on the move.
Manufacturers of organic tea have been able to benefit from the modern trend of safe packaging by increasing their use of food-grade tea bags. A revolutionary packaging style that ensures the safety of packed food. This is projected to propel the segment's expansion in the foreseeable future.
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Manufacturers of organic tea are investing heavily in the research and development of new and innovative variants of teas that meet the needs of modern consumers who seek herbal, natural, and clean-label products.
These companies have been focusing on the launch of functional products that prioritize wellness, sustainability, and health. This has played a crucial role in shaping the overall growth of the players in the organic tea market
Market Developments
The organic tea market held a value of USD 1.2 billion in 2022.
The market holds a value of USD 1.24 billion in 2023.
The market is anticipated to hold a share of USD 2.69 billion by 2033.
The organic tea market is expected to have a CAGR of 8.0% by 2033.
Based on packaging type, the tea bags segment leads in the organic tea market as it held a market share of 58.7% in 2022.
| Expected Market Value (2023) | USD 3,962.7 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 7,693.5 million |
| Projected Growth Rate (2023 to 2033) | 7.3% CAGR |
| Expected Market Value in 2023 | USD 5.7 Billion |
|---|---|
| Projected Market Value in 2033 | USD 10.3 Billion |
| Growth Rate (2023 to 2033) | 6.1% |
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