Organic Tea Market size was over USD 1.16 billion in 2023 and is expected to cross USD 2.5 billion by the end of 2036, witnessing more than 6.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of organic tea is estimated at USD 1.22 billion.
The organic tea market is thriving on account of the rising awareness amongst individuals for the diseases caused by drinking non-organic tea, which is known to be treated with synthetic fertilizers, herbicides and pesticides. Further, the growing trend for organic beverages, along with the growing preference for premium beverages from several upper socio-economic classes are anticipated to promote the growth of the market in the coming years. On the other hand, rising popularity of cafes which are themed on serving different variants of tea products is also anticipated to raise the demand of the product. The organic tea market is also thriving on account of the increasing introduction of new product lines, along with the infusion of organic tea in other products, such as chamomile tea with white chocolate bar to enhance its functionality, coupled with the rising usage of organic green tea for skin care application products, such as body wash, mask and creams among others in the cosmetic industry.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
6.1% |
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Base Year Market Size (2023) |
USD 1.16 billion |
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Forecast Year Market Size (2036) |
USD 2.5 billion |
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Regional Scope |
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The organic tea market is segmented on the basis of product type into green, black, white, oolong, pu’erh tea, and others, out of which, the organic black tea segment is estimated to hold the largest market share in the year 2022 owing to the antioxidant properties present in the type of tea which raises its nutritional value. Organic black tea is also known for possessing numerous other health benefits, such as lowering of bad LDL cholesterol, boosting heart health, improving gut health and others. Alternatively, the organic green tea segment is estimated to foresee a notable CAGR during the forecast period on the back of the numerous benefits of organic green tea, such as improving the functioning of brain, promoting fat loss, lowering the risk of heart disease and others, along with the growing trade on green tea globally.
Moreover, organic green tea is known to have an abundant amount of epigallocatechin gallate (EGCG), a chemical compound which is also used widely in many dietary supplements. Such factors are anticipated to promote the growth of the green tea segment.
Our in-depth analysis of the global organic tea market includes the following segments
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By Product Type |
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By Taste |
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By Form
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By Packaging Type
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By Distribution Channel Type
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By End-User |
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North America Market Statistics
Geographically, the organic tea market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa regions.
North America industry is expected to account for largest revenue share by 2036, on the back of introduction of various innovative flavors of organic tea by the major companies, along with rising inclination of people towards organic products.
APAC Market Analysis
Alternatively, the market in Asia Pacific is anticipated to grow with the highest CAGR during the forecast period on account of the presence of nations such as China, India, Sri Lanka and others, who are world leaders in the exports of tea products. Moreover, the organic tea market in India is projected to grow with the highest CAGR during the forecast period, backed by the increasing focus of the tea planters to grow organically produced tea.
On April 9, 2020, Davidson’s Organics announced a partnership agreement with Dr. Suhas and Dr. Manisha Khirsagar, renowned practitioners of Ayurveda, for the expansion of its Ayurvedic-inspired functional teas.
Author Credits: Parul Atri
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