Tea, consumed as a social and
medicinal drink, is considered to be the second most preferred beverage after
water. It has become an inherent part of various cultures with several
intricate ceremonies revolving around tea preparation and consumption. This
popularity of tea can be attributed to its various health benefits and
refreshing quality. According to IMARC
Group, the global tea market reached a volume of more than 5 Million Tons in
2015, exhibiting a CAGR of 4.6% during 2008-2015. Currently, the consumption of
tea is increasing worldwide as a result of the increasing demand for
ready-to-drink as well as premium tea products, growth of the retail sector,
economical pricing and innovative blends. As a result of these factors, the
global production of tea is expected to reach a volume of nearly 7 Million Tons
by 2021 exhibiting a CAGR of nearly 4% during 2016-2021.
Black Tea Accounts for the
Majority of the Global Tea Consumption
While tea commonly refers to any
infusion of herbs that provides appealing aromas and tastes, technically only
the leaves of Camellia sinensis
qualify as tea. The various tea types are a result of the different rates of
oxidation and the ways in which tea leaves are processed. The major tea types include
- black, green, oolong and white.
Out of these, black tea has the
largest market share accounting for more than two-thirds of the total tea
produced and consumed globally. It is more oxidised than other tea types and
brews to a red-brown colour with a stronger flavour. Some of the countries with
a high per capita consumption of black tea include – Ireland, UK, Russia and
Turkey.
The second most popular type of
tea is green tea. It can have a colour ranging from yellow to green with a
delicate grassy flavour. Different growing conditions, time of harvest and
production processes result in diverse types of green tea. Some of the
countries with a high consumption of green tea include – China, Japan, North
Africa, Turkey, etc.
Oolong tea is semi-oxidised and
falls between green tea and black tea. The rate of oxidation can vary from
brand to brand and also influences the colour and flavour of the tea. It can
range from a green to golden brown colour with a delicate or strong flavour.
The most popular varieties of oolong tea come from China and Taiwan.
White tea is a rare type of tea
picked only twice a year when the tea buds are partially open. It is the least
oxidised variety of tea and brews to a pale green colour with a very delicate
flavour. White tea and oolong tea together account for a very small share of
the global tea market since they are considered to be premium tea varieties as
a result of being rarer and expensive.
China Dominates the Global
Tea Production and Consumption
Tea can only be cultivated in
certain regions as it has specific soil and climatic requirements. Majority of
the tea is cultivated in the developing regions of the world. Currently, China represents
the world’s biggest producer of tea accounting for more than a third of the
total global production. It is followed by India, Kenya, Sri Lanka, Turkey and
Vietnam. Around 55%-60% of the total tea produced is consumed domestically in
the producing regions while the rest is exported. China also represents the
largest consumer of tea, by volume, accounting for around a quarter of the
total global consumption. The countries with the highest per capita consumption
of tea include – Turkey, Ireland, UK, Russia and Morocco.
Unilever Represents the Biggest Player in the Market
Tea leaves go through a number of
stages such as processing, blending, trading, marketing, etc. before they are
ready to be sent to the market. Numerous
tea companies are involved in this value chain process. Some of the major
players involved in the processing and production of tea include Unilever, Tata
Tea, McLeod Russel, James Finlay and John Keells. The processed tea is then
sold to various tea companies which further blend and market it under their
brands. At the global level, four companies dominate the tea trade, namely, Unilever,
Van Rees, James Finlay and Tata Tea. The final stages of blending and marketing
constitute the most lucrative operations of the tea manufacturing process. Unilever
is currently the biggest player in the global tea market with brands such as
Lipton, Brooke Bond, Bushells, etc. It is followed by Tata Beverages and Twinning’s.
About IMARC Group: IMARC Group is a
leading market research and consulting company that offers management strategy
and market research worldwide. The company has done multiple projects on the tea
industry, which has enabled the clients to successfully setup and expand their
businesses. Some of the company’s offerings include:
·
Market
Research
·
Plant
setup
·
Plant
Expansion
·
Marketing
and sales
·
Procurement
and Distribution
·
Innovation
and Product Development
For more
information, please visit: http://www.imarcgroup.com/tea-market