Market for herbal teas expected to grow 5 percent by 2020.
Adagio Teas, Associated British Foods (ABF), Dilmah Tea, ITO EN, Tata Global Beverages, and Unilever top the list of global herbal tea vendors, according to market analysis conducted by Technavio.
Other prominent vendors in the market include Alvita, Barry’s Tea, Bigelow Tea, Bettys and Taylors of Harrogate, Celestial Seasonings, Harney & Sons, Mighty Leaf Tea, Numi, The Republic of Tea, Tazo Tea Company, and Teavana, according to Technavio’s Global Herbal Tea Market 2016–2020 report.
The report noted that several vendors worldwide are selling customized herbal tea, with Unilever and Tata identified as prominent vendors in this market space.
Overall, the global herbal tea market is expected to grow at a steady pace and post a moderate compound annual growth rate of more than 5 percent over the forecast period.
“The market is highly fragmented because of the presence of numerous small and large vendors. The vendors in the market compete on the basis of factors such as price, quality, innovation, service, reputation, and distribution,” Manjunath Reddy, a Technavio analyst, told Business Wire.
Increasing competition among vendors may lead them to reduce product prices, which will negatively affect vendor margins and market growth. Intense competition among vendors, coupled with rapid technological changes, constitute a significant risk for vendor operations.
Although the brick-and-mortar retail channel remains the key channel in the market, internet retailing is witnessing rapid growth. Factors such as quick delivery services and competitive selling prices are some of the major factors boosting the growth of internet retailing worldwide, the report stated.
Asia Pacific was the highest revenue contributing region and is expected to hold the most market shares by end of 2020, according to the report.
Sources: Technavio, Business Wire