Market Trends of Organic Tea Industry
Consumer Inclination Towards Healthy Beverages
Organic teas are gaining popularity among the global population as they possess the benefits of natural ingredients with the least amount of preservatives and promote the exchange of cultural ethics across the globe. The market is expanding mostly due to consumer awareness of products free of pesticides. Due to the perception that tea grown organically has superior quality and advantages for both the environment and human health, the production of organic tea has significantly increased over the past few years. Additionally, it is anticipated that sales of tea that are grown organically will result in greater price realization and improve the socioeconomic standing of tea growers. Organic farming has advanced in many parts of the world as a result of increased consumer knowledge of food safety issues and rising demand for organic food and drinks on the worldwide market.
In comparison to traditional black tea, organically cultivated tea has a higher concentration of catechins like epicatechin, epicatechin gallate, and epigallocatechin gallate. The increasing health consciousness of consumers regarding the healthfulness of organically grown tea against the harmful effect of conventionally produced tea boosts its demand in countries such as the United States, Japan, Germany, and other European countries. Tea brands increasingly look to diversify their functional offerings, promoting a holistic lifestyle that supports general well-being as well as more specific health benefits.
Supercharged teas, fusing naturally functional ingredients with added nutrients take functional tea to an upgraded level. Lipton introduced a similar product in Germany, which is a flavored green tea with added vitamin C and superfoods like yellow turmeric, aromatic lemon verbena, and a touch of spicy ginger. Moreover, tea consumption is majorly driven by consumers' search for new non-alcoholic beverages over fruit juices and carbonated drinks. Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates. All the above factors are propelling the market growth.
Asia-Pacific is Expected To Be The Largest Market
The Asian-Pacific region turns out to be a potential market as countries like India, Pakistan, and Bangladesh have a major population of people who prefer tea over other beverages. Tea has been traditionally and culturally linked with China and Japan for ages, and with the upcoming developments in the organic sector, the tea market has a great potential to expand even further in the region. Matcha tea, kombucha, lemon tea, and green tea are gaining popularity among fitness freaks as they are both refreshing and have multiple associated benefits.
Associated health benefits of organic teas, with features such as no chemical interaction while production, no artificial flavors or harmful additives, are a few factors driving the demand for organic teas in the region. Moreover, the growing prevalence of premiumization in the industry has been further boosting the value sale of the market studied. Manufacturers are opting for this strategy to primarily cater to the targeted consumers looking for exceptional taste profiles and the luxury experience of a regular beverage. As a result, companies are coming up with exotic flavor blends featuring lavender, hibiscus, ginger, sage rooibos, etc. to gain greater consumer attention.
The Asian-Pacific market is showcasing substantial growth owing to the increasing consumption of tea; For instance, according to the Tea Board of India, the consumption volume of tea in India was approximately 1.2 billion kilograms during the financial year 2022. Consumption of this hot beverage has increased consistently throughout the years. Consumers in countries such as China, India, Japan, and Indonesia have now started spending more on healthful products. The increased consumption is resulting in the growing popularity of green tea and herbal tea to improve the beauty and health, which is primarily fuelling the market growth in the region. This tea is perceived to be healthier as compared to conventional tea variants. The rapid expansion of the food and beverage industry in the region has also significantly contributed to the market growth in Asia-Pacific.
