Organic Tea Market Size is Accelerating at a CAGR of 8.2% by the Time Period of 2022-2032

The global organic tea market size is expected to accelerate at a robust CAGR of 8.2% between 2022 and 2032. The market is predicted to reach a valuation of US$ 1.2 Bn by the year 2022. The organic tea market accounts for about 1% of the overall functional beverage market, which is predicted to be valued at US$ 122.5 Bn by 2022 end.

According to the historical analysis of the organic tea market, the growth was predicted to surge at 7.5% CAGR owing to the better quality of organically grown tea and its numerous benefits to the environment and human health.

Furthermore, sales of organic tea are expected to have higher price realization resulting in enhancing the socio-economic situation of tea producers. In multiple parts of the world, advances are being made in organic farming owing to the surging food safety awareness and rising demand for organic food & beverage on the global market.

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Key Takeaways

According to the FMI analysis, the organic tea market sales are anticipated to witness moderate growth over the forecast period attributed to the rising demand for flavonoid-based beverages, which are rich in antioxidants. The range of nutritional products extracted from organic crops is expected to broaden owing to the growing concerns about cadmium's harmful effects on human health. In addition to that, numerous benefits of organic tea maintain digestive health and help in activating good bacteria in the gut, therefore, improving gut health.
Consumption of organic tea has grown significantly in order to stay healthy and built a sound immune system against viruses. Retail sales of these tea bags have surged immensely, which is likely to boost the organic tea market growth over the projection period.
The expansion of the global organic tea market is accelerated primarily due to consumer awareness about safer alternatives to conventional products. The growing notion that clean-label products including pesticide-free commodities are both safe and healthy has boosted the demand for organically cultivated tea in order to preserve general health and well-being.
As a result of the surging trend of healthy hydration, the demand for ready-to-drink nutritionally rich specialty tea has risen dramatically over recent years. Owing to these trends, leading tea companies have begun to provide organic versions of a vast variety of specialty teas.
In comparison to traditional black tea, organically cultivated tea consists of more catechins such as epicatechin gallate, epigallocatechin gallate, and epicatechin. Rising awareness about the presence of organically grown tea against the detrimental effects of conventionally produced tea is increasing its demand in nations such as Japan, the United States, Germany, and other European countries.

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Competitive Landscape

Leading manufacturers of organic tea are rapidly investing in the research and development of new and innovative variants of teas that meet the needs of modern consumers who are willing to consume herbal, natural, and clean-label products. These prominent market players have focused on launching functional products that prioritize wellness, sustainability, and health. Attributing to these factors, the overall market for organic teas is anticipated to grow exponentially over the forecast period.

More Insights into the Organic Tea Market

In addition to that, the surging awareness among North American customers and the introduction of novel flavors combined with the demand for convenience has been creating a conducive environment for the organic tea market growth in the U.S.

The East Asian market is anticipated to showcase lucrative growth opportunities in the global organic tea market because countries like China, have a huge population of consumers who prefer tea and tea-based drinks over other beverages. The association of tea with China is traced back to its historical and cultural links. With recent improvements in the organic sector, the tea market in China has a lot of room to grow.

India is yet another emerging market in global organic tea owing to the presence of the largest tea producers and consumers in the country. India has been traditionally consuming organic black tea over the past several years owing to the numerous benefits it holds along with surging health awareness and expanding western influence.

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Organic Tea Market by Category

By Product Type, Organic Tea Market is segmented as:

True Tea
Herbal Tea

By Form, Organic Tea Market is segmented as:

Dried Leaf
Powder Leaf
Liquid

By Packaging, Organic Tea Market is segmented as:

Cartons
Cans
Tea Bags
Paper Pouches
Other Packaging

By Sales Channel, Organic Tea Market is segmented as:

Offline Sales Channel
Online Sales Channel

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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.

This release was published on openPR.