Global Tea Market is projected to Reflect 5.7% during 2017–2025
The global tea market has been predicted by Transparency Market Research (TMR) to exhibit the presence of important players such as Kusmi Tea, Tata Global Beverages, Davids Tea, Unilever Plc., and Tea Forte among others. The level of competition in the market could be intense, as reported by the market research firm, because of the inclusion of several small and large suppliers. Distribution, reputation, service, innovation, quality, and price have been anticipated to be key factors that base the competition amongst market vendors. Weakening profit margins could mean the existence of substantial risk factors in the operations of the suffering vendor.TMR has foreseen the global tea market to expand at a CAGR of 5.7% during the forecast period 2017–2025. By the concluding forecast year, the market could bag an almost US$20.0 bn, a revealing progress from a US$12.8 bn secured in 2017. On the basis of segmentation by type, crush, tear, curl (CTC) tea has been foretold to secure a higher share in the market in terms of both value and volume. Regionally, Asia Pacific could post a colossal CAGR of 6.8% and also a larger revenue by the end of 2025.
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Presence of Antioxidants and Medicinal Benefits Promote Growth
The world tea market is prognosticated to be bolstered by the growing count of various tea flavors and widening consumer base in significant regions of the world. After water, tea has been surveyed to be a commonly consumed beverage which boasts of helping the human body to maintain a healthy functioning and providing medicinal benefits. One of the reasons tea is largely consumed is the presence of advantageous constituents such as antioxidants, phytochemicals, and flavonoids. Preventing the risk of cardiovascular diseases, controlling blood pressure, and combating arthritis are some of the benefits of antioxidants present in tea.
The world tea market has been envisaged to gain a strong push in demand in the near future due to different health benefits associated with the consumption of tea. The increase in the consumption of herbal and green tea could augur well for the growth of the market. Spices, fruits, and herbs used in the manufacture of herbal or organic teas rarely contain caffeine. The infusion of tea with different fragrances and flavors creating new blends have been predicted to set the tone for a valuable growth in the market.
Substitution by Coffee and Resource Constraints Hurt Demand
Despite the growth trends of the international tea market, there could be certain factors dampening the demand. For instance, volatility of labor wages, change in consumer preferences, and unavailability of labor have been envisioned to obstruct the growth of the market. Furthermore, resource constraints, climate changes, and change in demographic conditions could spoil the demand for tea. The surging consumption of coffee in Brazil and the U.S. as an alternative to tea could also decline market growth.
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However, the consumption of tea has been prophesied to regain growth owing to several health and medicinal benefits of certain classes such as herbal and organic. The latest move to the preference for experimenting with various tea flavors could help the market to create ample of favorable prospects for players operating therein. The advent of organized retail and availability of a broad range of tea offerings at discounted prices could also pamper players with bettered opportunities in the coming years.
The information presented in this review is based on a TMR report, titled “Tea Market (Product – Leaf Tea and CTC Tea; Type – Premium/Specialty Tea and Mass Tea) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 – 2025.”
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