Organic Tea Market Trends

The global organic tea market is anticipated to record a notable CAGR during the forecast period, 2021-2029. The 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 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.

The 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. According to the statistics by the International Trade Centre (ITC), exports of green tea in immediate packings of less than or equal to three kilos grew from USD 1.11 billion in 2015 to USD 1.21 billion in 2019.

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.

Growth Drivers

Numerous Health Benefits Associated with Organic Tea to Boost the Growth of the Market

Organic tea is consumed widely owing to the numerous health benefits possessed by it. This type of tea is toxin free, which means the harmful substances used in the processing of the tea wouldn’t end up in the bodies of the user. Moreover, it is also suitable for people suffering from heart diseases and high cholesterol. Organic tea has antioxidant properties which increases the immunity and detoxifies the body and also promotes weight loss. It is also known to promote digestive health as it helps to improve the healthy gut bacteria. Additionally, it contains theanine which promotes relaxation without drowsiness. Such favorable properties of organic tea are therefore anticipated to drive the growth of the global organic tea market in the coming years. 

Restraints

High Price of the Product to Hamper Market Growth

The price of organic tea is very high as the farming process for it is time consuming and requires greater efforts of the farmers for cultivating organic tea. Moreover, the complicated and costly equipment required for farming of organic tea also raises the price of the product. Such factors are anticipated to hinder the market growth in the coming years.