Europe Tea Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2018 - 2022 |
| CAGR | 4.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Tea Market Analysis
The European tea market is projected to register a CAGR of 4.9% during the next five years.
The European tea market is witnessing a premiumization trend. Customers are seeking a high-quality, one-of-a-kind tea experience. This opens up chances for suppliers of specialty tea. The market for these specialty teas in Europe is still relatively small and is expanding gradually. According to "Agriculture and Agri-Food Canada," between 2016 and 2021, the European tea market witnessed sluggish growth, a compound annual growth rate (CAGR) of 3.4%, with total retail sales of USD 10.9 billion in 2021.
Western European countries dominate organic tea retail sales. France, the United Kingdom, Germany, the Netherlands, and Italy were the top five organic tea markets in Europe in 2021, accounting for 75.4% of total organic tea retail value sales in Europe. These countries are predicted to lead growth during the forecast period. Health benefits associated with consuming tea and an increase in awareness related to carbonated drinks among people are some of the major factors increasing the demand for tea in the region. Moreover, the increasing work culture and busy schedules of consumers are dragging the per capita spending toward the market.
Also, according to the CBI Ministry of Foreign Affairs, the main European tea markets with a strong tea tradition are West European countries and Poland. The United Kingdom is the world's largest tea market. There has been a rise in the popularity of specialty teas with unique flavors and higher quality across Europe. Green tea and herbal/fruit teas are also gaining traction in European markets due to their supposed health benefits.
Europe Tea Market Trends
This section covers the major market trends shaping the Europe Tea Market according to our research experts:
Rising Demand for Herbal Tea
The demand for green tea and herbal tea in the country is growing at a faster rate due to aggressive marketing and campaigns showcasing the health benefits of tea. Consumption of tea improves blood flow in the body by broadening the key arteries and reducing the risk of clots, thereby reducing the risk of heart attacks. It has a high capacity to absorb oxygen radicals in the human body, which further helps to destroy the free radicals that are harmful. Such health benefits associated with the consumption of tea drive the demand for tea in the country. Moreover, the popularity of tea is continuously increasing in the food services sector. Herbal tea can help in promoting the immune system. The preference for herbal tea is growing because many consumers use herbal tea as a medicine that can help improve the digestive system of the body.
The United Kingdom is the Largest Market
The United Kingdom is the largest market. The changing lifestyles of people are gradually amplifying the importance of herbal tea, and a large part of the population now prefers herbal tea over caffeinated forms of tea. High nutritive content and fat-burning properties in green tea play a significant role in driving the growth of the tea market. The rising need for tea enables manufacturers to introduce natural and infused tea flavors targeted toward health-conscious consumers. For instance, Lipton Herbal Tea is mostly used for the treatment of liver problems by supporting the release of toxins from the body. Due to the engagement of the individuals in several works, the stress level rises eventually. Thereby, consumers of this region prefer tea as a stress-reliever drink, as tea reduces cortisol, the stress level hormone. Therefore, consumer demand for tea is rising in this region, thereby driving the market.
Europe Tea Industry Overview
The European tea market is highly competitive in nature. This is due to the presence of domestic and international players in this sector. The major players in the industry are Unilever PLC, Associated Britsh Foods PLC, Dilmah Ceylon Tea Company PLC, Nestlé SA, and Cafedirect PLC. Key players are majorly focusing on product development and product innovation to meet the needs of customers. They are keen on offering quality and a variety of tastes to maintain premiumization. Some of the major players use mergers and acquisitions as their key strategy to sustain and secure a leading position in the industry. This will enable the companies to maintain dominance over other players, and the companies can remain a strong competition for other players in the market.
Europe Tea Market Leaders
Associated Britsh Foods PLC
Dilmah Ceylon Tea Company PLC
Unilever PLC
Nestlé S.A.
Cafedirect PLC
*Disclaimer: Major Players sorted in no particular order
Europe Tea Market News
- September 2022: JDE Peet's, a company based in the Netherlands, announced its plans to pay an unknown sum to buy the French tea company Les 2 Marmottes. This would increase the company's range of tea brands, according to a statement from JAB Holding. Additionally, JDE Peet's had guaranteed that the Haute-Savoie-based business would maintain its independence and 90 employees.
- November 2021: Unilever revealed its plans about CVC Capital Partners Fund VIII reaching an agreement for the sale of ekaterra, a worldwide tea company, in a debt-free and cash-free transaction.
- March 2021: Ahmad Tea and Caffè Corsini announced their partnership. The Hampshire-based English tea company Ahmad Tea, which sells some of the classic varieties of tea and infusions, announced Caffe Corsini as a new official distributor in Italy.
Europe Tea Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Form
5.1.1 Leaf Tea
5.1.2 CTC Tea
5.2 By Type
5.2.1 Black Tea
5.2.2 Green Tea
5.2.3 Herbal Tea
5.2.4 Other Types
5.3 By Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Convenience Stores
5.3.3 Specialty Stores
5.3.4 Online Retailers
5.3.5 Other Distribution Channels
5.4 By Geography
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Russia
5.4.5 Italy
5.4.6 Spain
5.4.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Unilever PLC
6.3.2 Associated British Foods PLC
6.3.3 Dilmah Ceylon Tea Company PLC
6.3.4 Bettys & Taylors of Harrogate Limited
6.3.5 Nestlé S.A.
6.3.6 Typhoo Tea Limited
6.3.7 Group Orientis
6.3.8 Clipper Teas
6.3.9 Cafedirect PLC
6.3.10 Ekaterra
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Tea Industry Segmentation
Tea is a drink that is produced from the combination of cured leaves of the Camellia sinensis (tea) plant with hot water. Tea is the second most popular beverage in the world, after water. The European tea market is segmented by form, type, distribution channel, and geography. Based on form, it is segmented into leaf tea and CTC tea. By type, the market is segmented into black tea, green tea, herbal tea, and other types. Based on distribution channel, it is segmented into hypermarkets/supermarkets, specialist retailers, convenience stores, online retailers, and other distribution channels. Furthermore, based on geography, it is segmented into Spain, the United Kingdom, France, Germany, Russia, and Italy. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| By Form | |
| Leaf Tea | |
| CTC Tea |
| By Type | |
| Black Tea | |
| Green Tea | |
| Herbal Tea | |
| Other Types |
| By Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Specialty Stores | |
| Online Retailers | |
| Other Distribution Channels |
| By Geography | |
| Germany | |
| United Kingdom | |
| France | |
| Russia | |
| Italy | |
| Spain | |
| Rest of Europe |
Europe Tea Market Research FAQs
What is the current Europe Tea Market size?
The Europe Tea Market is projected to register a CAGR of 4.90% during the forecast period (2024-2029)
Who are the key players in Europe Tea Market?
Associated Britsh Foods PLC, Dilmah Ceylon Tea Company PLC, Unilever PLC, Nestlé S.A. and Cafedirect PLC are the major companies operating in the Europe Tea Market.
What years does this Europe Tea Market cover?
The report covers the Europe Tea Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Tea Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Tea Industry Report
Statistics for the 2024 Europe Tea market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Tea analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
