Tea Capsule Global Market Report 2024

The tea capsule market size has grown rapidly in recent years. It will grow from $1.28 billion in 2023 to $1.51 billion in 2024 at a compound annual growth rate (CAGR) of 17.4%. The expansion observed during the historical period can be attributed to factors such as the convenience and portability offered by tea capsules, the increasing emphasis on sustainability, and the growth of e-commerce, making these products more accessible to consumers.

The tea capsule market size is expected to see rapid growth in the next few years. It will grow to $2.61 billion in 2028 at a compound annual growth rate (CAGR) of 14.7%. The anticipated growth in the forecast period can be linked to the influence of health and wellness trends, the impact of digital marketing, and the continued expansion of e-commerce channels. Notable trends expected during the forecast period encompass a focus on premiumization, increased innovation and product diversification, customization options, the adoption of eco-friendly packaging, and advancements in technology within the tea capsules market.

The tea capsules market is anticipated to witness growth driven by the increasing consumption of tea. Tea has become the second most popular beverage globally, with a staggering 3 billion cups consumed daily, according to the International Institute of Sustainable Development (IISD). For example, data from the Global Dubai Tea Forum reveals that per capita tea consumption is expected to reach 37.7 liters by the end of 2021. This rise in per capita consumption is poised to fuel the demand for tea capsules in the foreseeable future.

The tea capsules market, as covered in this report, is categorized by product type into various types, including red tea capsules, oolong tea capsules, black tea capsules, yellow tea capsules, and others. Furthermore, it is segmented by distribution channel, encompassing hypermarkets and supermarkets, specialty stores, online stores, convenience stores, and other retail outlets. Additionally, the market is classified by application, with a focus on residential and commercial use.

The tea capsules research report is one of a series of new reports that provides tea capsules statistics, including tea capsules industry global market size, regional shares, competitors with tea capsules share, detailed tea capsules segments, market trends and opportunities, and any further data you may need to thrive in the tea capsules industry. This tea capsules research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The growing number of the working population is expected to be a key driver of the tea capsules market. The working population, comprising individuals of working age either employed or actively seeking employment, can benefit from the convenience and time-saving attributes of tea capsules. These capsules offer a quick and easy solution for busy professionals to enjoy high-quality tea at work, providing an energy and focus boost during hectic workdays. As per the U.S. Bureau of Labor Statistics, total employment is projected to increase by nearly 4.7 million from 2022 to 2032. Hence, the expanding working population is a driving force behind the tea capsules market's growth.

The high prices of tea capsules are likely to act as a hindrance to market growth. Additionally, evolving consumer preferences towards healthier hot beverage options, such as almond & maple hot chocolate, warm spiced coconut-almond milk, hot lemon water, and apple cider with cinnamon, may dampen the demand for tea capsules in the forecast period. Moreover, the rising cost of tea is expected to negatively impact the tea market, encompassing both powdered tea and capsule tea. For example, the average tea price per kilogram increased to $3.09/kg in Q3 2020 from $2.57/kg in Q2 2020, as per a commodity market outlook report published by the World Bank in April 2021.

The dynamic business environment, companies involved in the manufacturing and sale of tea capsules are employing various strategies, including mergers and acquisitions, launching new products, and expanding plant capacity. For instance, in June 2023, Singha Park Chiang Rai, a prominent tea business in Thailand, introduced 'Tea Capsules by Singha Park Chiang Rai.' These high-quality tea capsules are the result of innovative production processes and unique blending techniques, resulting in six premium tea flavors tailored to modern consumers' lifestyles.

Major companies in the tea capsules market are focusing on the introduction of advanced technologies, such as customization technology platforms, to offer customers personalized options. These platforms are digital frameworks or software that enable businesses and individuals to create tailor-made products or services according to their specific preferences, requirements, or design choices. In July 2021, Keurig Dr Pepper Inc., a U.S.-based beverage brewing system manufacturer, unveiled a next-generation technology platform that enables customization. The K-Supreme Plus SMART brewer with BrewID is the first brewer to feature this technology, now available on Keurig.com. Users can choose from various settings, such as strength, temperature, and cup size, and conveniently adjust and store their preferences via their smartphones.

In December 2021, Unilever PLC, a UK-based consumer packaged goods company, announced its acquisition of a majority stake in Pukka Herbs, a UK-based organic tea company, for an undisclosed amount. This strategic move aligns with Unilever's goal of expanding its tea portfolio and meeting the rising consumer demand for organic and sustainable products.

Major companies operating in the tea capsule market include Dualit Limited, Teespresso, Nestle Nespresso, Lipton, Corsini, Bonini S.r.l., Red Espresso USA, Tazo Tea Company, Harney & Sons Fine Teas, Celestial Seasonings, Keurig Dr Pepper Inc., Tassimo, Teavana Corporation, Caffitaly System SpA, Illycaffè SpA, Gourmesso, Ethical Bean Coffee, Gloria Jean's Coffees, Café Escapes, Solimo, Grove Square, SOUL&SOUL, The Republic of Tea, Grenera Nutrients Pvt Ltd., Bonhomiaworld, Herbadiet, Raab Vitalfood GmbH, Lamie Wellness LLC, Puro Fairtrade Coffee, Segafredo Zanetti Coffee System SpA

Asia-Pacific was the largest region in the tea capsules market in 2023. Western Europe was the second-largest region in the tea capsules market. The regions covered in the tea capsule market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the tea capsule market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The tea capsule market consists of sales of red tea capsules, oolong tea capsules, black tea capsules, yellow tea capsules, and other tea capsules. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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