According to Organic Tea Market in the US 2017–2021, a new report by global market researcher Technavio, the U.S. market for organic tea is expected to grow by more than 5 percent over the next five years. By 2021, the market will be worth $295.1 million, the report estimates.
Driving the change is product line extensions, a strategy used by many manufacturers to increase their market shares, gain new consumers, and retain their existing consumer base with interesting new products. Tea-infused chocolate and other interesting infusions will boost demand, according to the report.
It also highlighted the growing demand for organic matcha green tea—a trending product that offers several proven health benefits.
Key vendors in this market space are identified as Ambassador Organics, Celestial Seasonings, Equal Exchange Coop, Newman’s Own, and Numi Organic Tea, with additional prominent vendors including Arbor Teas, Art of Tea, Choice Organic Teas, Davidson’s Organics, Five Mountains, Green Root Tea, Løv Organic, Rishi Tea, The Path of Tea, and The Republic of Tea singled out for their increasingly dynamic offerings.
Organic herbal teas are more preferred by consumers than the more conventional organic black and green teas, says the report. U.S. consumers are looking to organic herbal teas, such as chamomile, peppermint, lemongrass, and yerba mate, to provide health benefits, and are prepared to pay premium prices to purchase organic and eco-friendly products.
According to Technavio’s Akash Pandey, “Organic herbal teas such as turmeric, ginger, chamomile, and peppermint have therapeutic values, due to which their demand is expected to increase among the health-conscious consumer base in the U.S. Therefore, manufacturers are concentrating on various product offerings in organic herbal teas.”
Nevertheless, organic black and green teas are also in increasingly high demand for their health benefits, including the presence of antioxidants and polyphenols, and, in the case of green tea, for its weight loss capabilities.
The major distribution channel for organic tea is supermarkets and hypermarkets, followed by independent retailers, then health food stores, the report found.