Global Tea Market Reached 5 Million Tons in 2015 with Black Tea Dominating the Global Consumption

f:id:imarcgroup:20161013163203j:plain

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.

Browse full report at http://www.imarcgroup.com/tea-market

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: