The approximately US$15 Bn green tea market (as of 2021) anticipates a strong growth rate through the end of 2027. The number of green tea consumers has been on a consistent rise worldwide and the thriving health food and beverage trend well complements the market growth.
Benefits Associated with Consumption of Antioxidants to Augur Well for Green Tea Market
Recent recognition and awareness with regards to positive health advantages associated with antioxidants has triggered the consumption of food and beverages that contain high quantity of these compounds. This has fuelled the production and manufacturing of products, such as green tea, that supply high amounts of antioxidants. For instance, according to the Food and Agriculture Organization of the United Nations (FAO), the production of green tea is projected to increase at a rate of 6.3% annually largely driven by the growing demand for consumption of antioxidant rich beverages. Global green tea market thus awaits an impressive growth outlook in the next few years.
Consumption of antioxidants can significantly reduce percentage of toxins in the body, can regulate fat burning, can improve cardiovascular health, and can augment the mental and physical stress response rate. In addition, as per Indian Tea Association, consumption of green tea can reduce or eliminate the risks of developing prostate, breast, and oesophagus cancer. That said, rising importance of consumption of antioxidants is expected to drive the growth of the green tea market worldwide.
Inclination Toward Functional Nutrition to Reshape Green Tea Market
Since the recent past, a shift towards functional and nutrient rich food and beverage products to maintain wellness and overall health has been witnessed. Moreover, on-the-go nutrition has gained high traction has fuelled the demand for functional beverages among health conscious consumers. This has also influenced the consumption of green tea that facilitates anti-aging, removal of dead cells and improves all body functions. This has resulted in manufacturers producing green tea based on-the-go functional beverages. This factor backed by rising preference of convenience food and beverage products and increasing inclination towards functional nutrition is expected to influence growth of the green tea market.
Tea Bags Continue to Register Noteworthy Sales in Green Tea Market
On the back of hectic and busy lifestyles, conventional ways of preparing tea have been replaced by more convenient methods such as tea bags. Green tea is widely available in its original leaf form and tea bags. The demand of green tea bags is expected to soar owing to the convenience factor it offers. Moreover, easy availability, portability and storage of green tea bags has pushed its sales among the health conscious consumer group. In addition, with technological advances, manufacturers have developed food-grade and environment-friendly green tea bags thus capitalizing on the growing clean label trend. In this background, rising adoption of tea bags is expected to significantly contribute towards the valuation of the green tea market from a global perspective.
Consumers Asia Pacific at the Forefront in Green Tea Consumption, Developing a Desirable Green Tea Market
The consumption of green tea in emerging economies in Asia Pacific region is expected to increase considerable on the forthcoming years. This is mainly owing to several health benefits associated with green tea consumption coupled with increasing prevalence of lifestyle disorders in the region. For instance, according to the Asian Development Bank Institute, approximately 1 billion individuals are obese and overweight in the Asia Pacific region. Moreover, two out of five adults are either obese or overweight. In addition, according to WHO, in 2020, obesity rate in Malaysia was around 50%, making it a home for the fattest individuals in Asia. The data also indicates that nearly 44% of the adult population is overweight. This factor has triggered awareness apropos to consumption of healthy food and other products that facilitate reduction of excess fats and other toxins from the human body, which is poised to fuel consumption of green tea in the region.
Furthermore, increasing population in Asia Pacific is another factor contributing towards growth of the green tea market. Rising population corresponds to an increased consumer pool. This backed by stable growth in GDP per capita is likely to pave new avenues for the green tea market. Moreover, with growing inclination towards consumption of functional beverages such as green tea, its production is also expected to witness an upswing in Asia. For instance, according to FAO (Food and Agriculture Organization of the United Nations), production of green tea in China is expected to increase significantly with the output projected to approximately double by end of 2030. This increase in production can be attributed towards rising sales of green tea coupled with increased productivity due to better agricultural practices and replanting of superior yielding varieties. Moreover, as per FAO, Vietnam is also expected to showcase an increase in the green tea production reflecting an average rate of growth of 4%. Additionally, exports of green tea grew by 2.3% largely driven by growing sales of the product in Vietnam and China. In this backdrop, it is highly likely that Asia Pacific would reflect high potential and manufacturers of green tea can focus on tapping new avenues in the region in the coming years.
Green Tea Market: Competition Scenario
Major companies involved in the manufacturing and distribution of green tea are focusing on acquisition and collaborations to strengthen their portfolio and position in the market. A few of the major players in global green tea market include Tata Consumer Products Limited, Unilever, ITO EN, Hankook Tea, East West Tea Company LLC, Associated British Foods Plc, Numi Inc., and The Begilow Tea Company.
Recent Notable Developments
The Global Green Tea Market Is Segmented As Below:
By Distribution Channel
Key Elements Included In The Study: Global Green Tea Market
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