According to a new report by Allied Market Research, the global Organic Tea Market was at $905.4 million in 2021, and it is projected to reach $2.4 billion by 2031, growing at a CAGR of 10.5% from 2022 to 2031.
Organic tea is a beverage that is free of synthetic substances such as chemical fertilizers, herbicides, insecticides, or fungicides. A permanent source of water, enough shelter, free-draining soil with a pH range of 5 to 5.8, strict limits for the number of pesticides put on plantations, and careful site selection are all part of organic tea care and husbandry management.
Commercial consumption of organic tea is now rising to close the gap between out-of-home tea and coffee consumption.
Reasons for Growth in the Organic Tea Market
One of the key factors fueling market expansion is the growing consumer preference for consumables that are safe, chemical-free, and healthy. An expanding working population, rising demand for products that are ready to use, growing retail channels, and an expansion of products and flavors are some of the other factors that are anticipated to drive market expansion globally during the forecast period.
Expansion of Available Organic Tea Products: Businesses currently engaged in the organic tea sector are launching various types of organic blended leaves products, organic green tea, organic fruit tea, and more in an effort to expand their product lines and boost market sales. There are many other enticing flavors as well, such as organic tiramisu black tea, caramel truffle herbal tea, apple pie à la mode herbal tea, and more. Due to consumer demand, competitors will most likely continue to launch unique organic tea flavors in an effort to boost sales.
Demand for Healthy Options: Organic tea is widely used as a nutritious food and is especially beneficial for those with obesity, heart disease, and high cholesterol. One of the main factors driving the growth of organic teas is the rising customer desire for healthy food and beverage items. Organic tea is well-known for lowering excessive body fat and boosting metabolism without having any unfavorable side effects.
Ready to Use & Portability: The increase in global acceptance of portable and instant foods and drinks is responsible for the surge in tea bag sales. Tea bags also have a considerable market share due to their straightforward preparation process. The growing popularity of ready-to-drink beverages and good hydration has greatly assisted the growth of the tea bag business. Companies able to solve the issue of microplastics in tea bags also stand to benefit.
Organic Tea Types
The green tea product type dominated the global organic tea market in 2021 and is anticipated to maintain its dominance throughout the forecast period.
By type, the green tea segment was the highest revenue contributor to the market, with $392.4 million in 2021, and is estimated to reach $1,072.0 million by 2031, with a CAGR of 10.7%.
Organic Tea Distribution Channels
Organic tea is distributed through supermarkets/hypermarkets, convenience stores, and online stores. The convenience stores segment is anticipated to expand at the highest CAGR during the forecast period. The convenience stores segment was the highest revenue contributor to the market, with $423.6 million in 2021, and is estimated to reach $1,148.6 million by 2031, with a CAGR of 10.7%.
Organic Tea by Region
The Asia-Pacific region is driving the organic tea market since tea use has been documented in the region's history and is still a part of breakfast and midday meals now. Health-related products are becoming more popular among consumers in China, India, Indonesia, and Japan. Compared to regular tea, organic tea is seen as being healthier. Along with being the largest consumer of tea, Asia-Pacific is regarded as the region that produces the most tea.
Asia-Pacific was the highest revenue contributor to the market, accounting for $502.9 million in 2021, and is estimated to reach $1,315.4 million by 2031, with a CAGR of 10.3%.
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