In Asia, the color green represents positivity, fertility and happiness—all appropriate adjectives to describe the current state of the global green tea market. According to a new report by Transparency Market Research, growth is predicted across the board over the next few years for this segment of the tea market.
As green tea gains in popularity around the world, convenient and attractive packaging will drive demand and encourage growth while an increasing number of players entering the market is expected to strengthen the sector through 2024, the report states.
The comprehensive Green Tea Market – Global Industry Analysis, Size, Share Growth, Trends, and Forecast 2016–2024 report breaks the market down into flavor categories (aloe vera, wild berry lemon, cinnamon, jasmine, vanilla, basil, and others) and examines product type and geography to estimate growth rate and market share for each one.
“The rising awareness concerning the health benefits and the growing focus of consumers on leading a healthy lifestyle are some of the vital factors that are estimated to encourage the growth of the market throughout the forecast period,” the report states.
It highlights the rise in obesity and cardiovascular disease, which it estimates will boost the demand for green tea worldwide as consumers increasingly turn to healthier options, especially in the west. However, as green tea commands a higher price tag than black tea, its growth is somewhat restricted in less developed economies.
Europe is seen as a particularly robust market, thanks to rising health consciousness among consumers there. China, where most of the green tea is grown, will remain a top consumer, and nearby Hong Kong, Taiwan, and Japan will experience substantial growth in the near future, “thus propelling the Asia Pacific green tea market,” according to the report.
Japan, in particular, is experiencing a green tea renaissance, as trendy cafes pop up dedicated to the beverage in its many forms and even Starbucks has jumped on the bandwagon with its hojicha roasted green tea Frappuccinos recently joining sushi and ramen on the “must-try list of culinary consumables while you’re in Japan.” The world market is quickly opening up to Japanese matcha, the nutrient-rich green tea powder predicted to jump 7.6 percent in the next 8 years from an already healthy market size of $2.62 billion in 2016, according to a recent Grand View Research report, which calls out the U.S., Canada, Germany, the U.K., France and Australia as key consumers of matcha, globally.
Ready-to-drink green tea is a leading contributor to the worldwide growth of green tea. According to market researcher Technavio, the global RTD green tea market size will grow to $3.515 million by 2021, at a CAGR of more than 5 percent over the forecast period.
“Green tea is perceived to be extremely healthy. It helps fight cholesterol and arthritis, promotes the growth of healthy bacteria, prevents prostate cancer, and boosts immunity. The polyphenols, antioxidants, and flavonoids present in green tea are thought to provide these benefits,” said Technavio lead beverage analyst Moutushi Saha.
The Asia-Pacific region will generate more than 62 percent of the overall market revenue in the RTD arena. China and Japan, two of the leading producers in the region, make the most popular and best green tea products, creating a large percent of revenue through exports, according to Saha.
Leading vendors in the RTD green tea market are Associated British Foods, The Coca-Cola Company, Ito En, Tingyi, and Unilever, according to the Technavio report. In the broader green tea market, Transparency Market Research singles out Tetley GB Ltd, Nestle S.A., Tata Global Beverage, DSM Nutritional Products, Associated British Foods LLC, Unilever Group, Oregon Chai Inc., Northern tea Merchants Ltd., AMORE Pacific Corp, and Numi Organic Tea as the key players.