The global Out of Home Tea Market is estimated to be valued at US$ 23.74 Bn or in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Out of home tea products offer convenience to consumers and satisfy their need to drink tea away from home. They are widely available in retail stores, cafes, restaurants and other public places. Tea bags, ready-to-drink and loose leaf tea are some of the commonly available formats in the out of home tea market.
Market key trends:
The increasing willingness of young generation to experiment with different tea flavors is driving the demand for innovative ready-to-drink tea products in the market. Beverage companies are launching new products blended with natural ingredients and lesser sugar to cater to health conscious consumers. For instance, Nestle India launched Nescafe Taystee tea bottles blended with green tea extracts. The rising popularity of tea cafes is also fueling the sales of loose leaf and artisanal tea for out of home consumption.
Market key trends:
The out of home tea market has been witnessing rising demand for ready-to-drink tea products. The on-the-go lifestyles of consumers have increased the preference for packaged tea products that can be easily consumed outside of home. Leading players have launched various flavors in bottled iced tea drinks and cold brew tea to cater to different tastes and health preferences. Innovation in terms of ingredients and flavors continues to open new avenues for growth in the ready-to-drink segment.
SWOT Analysis
Strength: Established infrastructure for distribution and branding of major tea companies. Dependable supply chain for raw materials.
Weakness: Seasonal fluctuations in tea crop harvests can impact supply. Price volatility of agricultural commodities used in tea.
Opportunity: Growing health-conscious consumer base driving demand for functional varieties with added nutrients. Expanding cafe culture in emerging regions presenting new sales avenues.
Threats: Strict regulatory norms regarding ingredients and packaging waste disposal. Rising environmental awareness increasing preferences for sustainable sourcing and packaging.
Key Takeaways
The global out of home tea market is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing preference for on-the-go consumption. The market size for 2023 is estimated to be US$ 23.74 Bn.
Regional analysis: Asia Pacific is currently the largest and fastest growing market for out of home tea due to rising incomes and expanding café culture in countries like China and India. North America is another major regional market driven by significant sales through specialty tea shops and foodservice outlets.
Key players operating in the out of home tea market are Tata Global Beverages Ltd., Nestle S.A, Celestial Seasonings Inc., Unilever Plc., Ito En, Ltd, Barry’s Tea, Associated British Foods, Dilmah Ceylon Tea Company, The Republic of Tea, and Bettys and Taylors Group Limited. These players are focusing on innovations and expansion into emerging markets to boost their sales revenues.
