Organic Tea Market - Forecasts from 2020 to 2025

The organic tea market is projected to grow at a CAGR of 7.63% to reach US$1,623.624 million by 2025, from US$1,044.444 million in 2019. Organic tea refers to tea that is grown using natural processes and is devoid of any synthetic chemicals. The numerous health benefits associated with organic tea is inclusive of but not limited to the less likely to develop atherosclerotic cardiovascular disease, lower blood pressure, reduction of oxidative stress due to its richness in flavonoids, bioactive compounds, protection of teeth and sustenance of healthy heart as well as aid in easy digestive functions. Moreover, through the means of environmentally sustainable methods that contribute to the already healthy attribute of this wonder of human discovery, the market for global organic tea is expected to witness healthy growth during the forecast period. Further, the rise of varies health disorder are also enthusing the erstwhile non-tea drinkers to switch to organic tea varietals.

The Health and wellness aspiration of consumers across the world is increasingly influencing the food and beverage consumption. Further, the growing trend of a perceived need to reduce the consumption of beverages with chemicals and sugars and increase the inclusion of healthy beverages as a part of the regular diet is another aspect that is contributing to the purchasing proclivities of an informed consumer in present times. Moreover, the current state of indisposition which the world has succumbed to, also known as CoVid19, is further enthusing consumers to lead a life that is devoid of any sort of chemically induced production process and all the way natural. Other than health the problems like soil acidification and autotoxication have emerged as top concerns among today’s environmentally conscious consumers. Further, a lot of families have embraced organic farming as a means of earning a living. A recent example of specialty tea company English Tea Shop had secured funding from HSBC Under HSBC UK’s £14m lending fund which supports small and medium-sized enterprises (SMEs) in the country. English Tea Shop is engaged in the production and distribution of artisan teas in the country. It sources organic teas, among others from small organic farmers in Sri Lanka, as well as 20 other countries worldwide. Further as of March 2020, Rishi Tea & Botanicals a known source of Direct Trade organic tea and botanicals, has just released a groundbreaking new product line called Sparkling Botanicals into the explosively growing RTD market, that honors the ancient wisdom of herbal infusions and merges with modern culinary technique.

The organic tea preferring consumers are not only limited to the fitness-centric millennials but also comprise a myriad of consumers which is one of the prime factors that is expected to drive the growth of the global organic tea market during the forecast period. Moreover, the propensity to purchase organic tea varietals is not only limited to the affluent only, but also it includes households who have just started a family, nuclear as well as joint families as well as independent singles, established couples, young adolescents who wish to transition into more healthy consumption, and senior couples who want to try out a new form of beverage. The rationale behind such a consumption ranges from the need for compensating for not consuming products that have been grown without any chemicals, lose weight, complement a healthier diet that has been recently embraced, achieving fitness goals as well as due to health reasons i.e. considering possible health complication that may arise among the geriatric population. Further, the extensive industrialization and indiscriminate use of agriculture chemicals have led to many governments bring about policies that are offered to embrace organics methods of cultivation and in the case of some nations bring about a revival of organic farming. For India, the latter has been the case.

India’s agriculture sector accounts for around 15.9% of the country’s $2.7 trillion economies and 49% of total employment (2018-19). The Government of India has recently set an ambitious target to double the income of farmers by 2022-23, which corresponds to targeted annual agricultural growth of more than 14 percent per year. Organic farming by Village Producer Organizations (VPOs) and Farmer Producer Organization (FPOs) is being encouraged in large clusters. Further with the largest number of organic producers in the world, It is home to more than 30 percent of the total organic producers in the world (835,000 vs 2.7 million). With 1.5 million ha area under organic agriculture, out of 10 countries in the world, India stands at the ninth place [Source: Report on Policies and Action Plan for a Secure and Sustainable Agriculture, Government of India]. Further India has seen the launch of Typhoo, the British tea brand, in October 2019. Thus, despite the aforesaid elaboration are not exhaustive the organic tea market across the world is poised to witness exponential growth as more and more value-driven individuals take over the consumer pool and raise the bar of values that resonates with their own.

Segmentation

By Type
- Black
- Green
- Others

By Packaging
- Cans
- Cartons
- Pouches
- Sachets
- Tea Bags
- Others

By Distribution Channel
- Online
- Offline

By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- UK
- Germany
- France
- Others
- The Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- Japan
- China
- India
- Others