[182 Pages Report] The Out-of-home Tea Market size was estimated at USD 43.29 billion in 2023 and expected to reach USD 45.41 billion in 2024, at a CAGR 5.73% to reach USD 63.95 billion by 2030.
The out-of-home tea includes tea-based beverages served in locations and establishments beyond individual households. This includes tea served at cafes, restaurants, hotels, offices, events, serve-yourself stations in supermarkets or gas stations, and various other venues where tea is consumed by individuals away from their homes. Increasing health consciousness among consumers preferring healthier beverage choices and rising disposable incomes allowing for indulgence in premium experiences at specialty cafés is driving the demand for out-of-home tea. Growing appreciation for diverse cultural cuisines, with tea becoming a popular choice for social gatherings and relaxation, is expanding the demand for out-of-home tea. Rising variability in raw material prices due to unpredictable weather patterns affecting crop yields is hampering market growth. The rising introduction of rare and exotic teas with diverse flavors by market vendors is expected to create opportunities for market growth. The ongoing collaboration activities by market vendors with popular local or international brands to offer exclusive products or promotions and the rising adoption of environmentally-conscious practices such as sustainable packaging solutions and ethically sourced ingredients are anticipated to expand the scope of the market.
Consumer preferences are shifting toward healthier choices, and the high adoption of tea in various nations, such as the U.S., UK, Germany, China, Japan, and India, is significantly contributing to the growth of the out-of-home tea market. Furthermore, the U.S. is a technologically advanced country with advanced production facilities, including high-speed tea bagging machines, automation, and robotics to drive the production efficiency of out-of-home tea, subsequently expanding the market scope. Furthermore, worldwide, China produces 40% of the tea, approximately 2.4 million tonnes, and most tea is cultivated in Yunnan, Guangdong, and Zhejiang areas. Additionally, in Asian countries, including India, Sri Lanka, and Vietnam, the tea market is huge, with a significant number of tea gardens distributed across the country, further creating opportunities for the market to grow across this region. In the European Union (EU) countries, the out-of-home tea sector is fueled by growing interest in unique flavors and wellness attributes. Countries, including the United Kingdom, are witnessing an increase in specialty tea lounges and cafes that cater to these preferences.
Black tea is a widely consumed tea variety globally due to its strong flavor profile and versatility in blends. It is generally associated with energy-boosting effects, owing to its higher caffeine content as compared to other tea types. Green tea has become popular in recent years due to its health benefits, such as antioxidative properties and improved metabolism. It appeals particularly to health-conscious consumers preferring a milder taste compared to black tea. Green tea comes in various forms, including matcha powder, sencha leaves, and flavored varieties infused with fruits or herbs. Herbal tea refers to beverages made from the infusion of herbs, fruits, and spices that do not contain tea leaves. As they are naturally caffeine-free, these teas cater to consumers with specific dietary restrictions or those seeking relaxation and stress relief. Herbal tea encompasses a wide range of flavors and benefits, such as chamomile for sleep aid, ginger for digestion, and hibiscus for blood pressure support.
In the hotels and restaurants segment, consumers expect high-quality tea offerings that align with the establishment's overall ambiance and service standards. Premium blends are often sought after in this sector, along with an assortment of flavors to cater to varying tastes. Tea consumption in offices and institutions revolves around convenience and efficiency while maintaining taste consistency. The preference leans toward easy-to-prepare options such as tea bags or sachets instead of loose-leaf tea. The tea stalls and café's segment is characterized by the need to serve diverse customer preferences while maintaining cost-effectiveness.
Bottled tea caters to consumers seeking convenience, portability, and variety in flavors. It is an ideal choice for on-the-go consumption as it offers a ready-to-drink (RTD) format with resealable caps. Canned tea is another popular RTD option that stands out for its longer shelf life than bottled tea due to aluminum's effectiveness in preserving freshness and preventing light-induced degradation. Tea pouches provide an alternative for consumers who prefer the experience of brewing their tea while ensuring ease of use and minimal mess. This segment often appeals to eco-conscious customers due to its reduced packaging waste compared to other formats. The most traditional format in the out-of-home tea market is tea bags, which offer consumers familiarity and control over the brewing process while being portable and easy to store. The various packaging segments cater to distinct consumer preferences and occasions. Bottled and canned teas dominate the RTD market due to convenience factors, making them popular for busy or on-the-go individuals. On the other hand, tea pouches and tea bags attract those who enjoy personalized brewing experiences with enhanced environmental benefits. Recent trends reveal growing demand for innovative flavors, functional ingredients, eco-friendly packaging solutions, and sustainable sourcing practices, creating market expansion and differentiation opportunities among manufacturers. Other forms of packaging, including tea pods, have also gained considerable popularity in recent years as manufacturers explore new packaging solutions to attract consumers.
Loose leaf tea remains a popular choice for consumers who prioritize quality, flavor variety, and an authentic tea experience. Loose leaf teas are typically consumed at specialty tea shops or premium cafés, which offer an array of options that cater to diverse personal preferences in taste, aroma, and health benefits. The need-based preference for this segment revolves around consumers seeking a more environmentally friendly packaging option compared to teabags, often containing microplastics. Ready-to-drink tea continues to gain traction as it serves the need-based preference for convenience and on-the-go consumption. RTD tea appeals to consumers who want a refreshing beverage without the hassle of brewing loose leaves or steeping tea bags. Emerging trends in this segment include functional teas that incorporate ingredients with perceived health benefits, such as probiotics and antioxidants, as well as low-sugar and organic offerings.
Conventional out-of-home tea refers to non-organic tea products widely consumed in cafés, hotels, restaurants, and other outdoor establishments. The primary need-based preference for this category is affordability and familiarity since these teas have been part of the market for a long time. Organic out-of-home tea comprises environmentally friendly products made from sustainably sourced ingredients without synthetic pesticides or fertilizers. The need-based preference for organic tea revolves around health-conscious consumers prioritizing environmental sustainability and chemical-free beverages over cost. Conventional and organic teas serve different demographics with distinct preferences in the out-of-home market. While conventional teas dominate most spaces due to their affordability and familiarity, organic teas cater to an increasingly health-conscious and eco-friendly consumer base. The two segments differ in pricing, with conventional tea products typically less expensive than organic options. From a manufacturers' perspective, the organic out-of-home tea market has grown significantly over recent years due to consumers' rising awareness of environmental issues and demand for sustainable solutions. This trend has encouraged specialized organic tea companies and conventional players to expand their product lines and adopt more environmentally friendly practices.
The market dynamics represent an ever-changing landscape of the Out-of-home Tea Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Out-of-home Tea Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Out-of-home Tea Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Out-of-home Tea Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the Out-of-home Tea Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Out-of-home Tea Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Out-of-home Tea Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Out-of-home Tea Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Out-of-home Tea Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Out-of-home Tea Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Out-of-home Tea Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Out-of-home Tea Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Out-of-home Tea Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Tata Tea Chakra Gold Launches Gold Premium Leaf Tea in AP and Telangana Market
Tata Tea Chakra Gold, the tea brand in South India, announced its latest offering - Tata Tea Chakra Gold Premium Leaf tea. This premium blend is now available in the Andhra Pradesh and Telangana markets. The new variant features a refreshing blend of rich taste and delightful aroma, crafted using premium Assam leaf teas combined with long leaves sourced from high-grown regions. Introducing this premium leaf tea blend further enhances the Tata Tea Chakra Gold brand's product portfolio while offering consumers an exceptional tea-drinking experience. [Published On: 2023-09-08]
What's Hitting the Shelves? New Beverage Launches
HRBVOR has recently launched its new lineup of functional iced teas Available in 12oz glass bottles for still tea and BPA-free 8oz cans for sparkling teas. These refreshing beverages are infused with a blend of hand-picked recovery, nootropic, and nervine herbs, offering a clean energy boost, sustained concentration, stress relief, and a sense of centered calmness throughout the day. [Published On: 2023-07-17]
Vahdam India Launches Refreshing Iced Tea Line to Delight Consumers
Vahdam Teas Private Limited, a global wellness brand specializing in organic and premium teas and spices from India, has introduced an innovative new product line of ICED TEAS. Made with 100% real tea, this fresh range is available in two convenient formats - instant premix and pitcher tea bags. These exclusive iced tea blends are infused with fresh, exotic, tropical, and aromatic notes, encapsulating the essence of summer in each sip. The instant premix iced teas are lightly sweetened low-calorie concoctions that provide the perfect refreshment anytime, anywhere. Each package contains 60 individual servings, easy to prepare by simply adding water and ice. [Published On: 2023-06-28]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Out-of-home Tea Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the Out-of-home Tea Market, highlighting leading vendors and their innovative profiles. These include Apeejay Surrendra Group, Asahi Group Holdings, Ltd., Associated British Foods PLC, Barry’s Tea, Betjeman and Barton, Bettys & Taylors Group Limited, Bigelow Tea, Ceylon Tea, Dabur India Limited, DavidsTea Inc., Dilmah Ceylon Tea Company PLC by MJF Exports (Pvt) Limited, Fauchon SAS, Godrej & Boyce Manufacturing Company Limited, Guangzhou Runming Food Technology Co., Ltd, Harney & Sons Fine Tea, ITO EN LTD., Jacobs Douwe Egberts B.V., Julius Meinl Industrieholding GmbH, Kirin Holdings Company, Limited, Kusmi Tea by Orientis Gourmet SAS, Lipton Teas and Infusions, Marvel Tea, Nerada Tea Pty Ltd., Nestle S.A., Numi, Inc., Organic India Pvt. Ltd., Palais des Thés, PepsiCo, Inc., Sancha Tea, Sapat International Pvt. Ltd., Sapporo Holdings Limited, Sugimoto Seicha Usa, Inc., Suntory Holdings Limited, Tata Consumer Products Limited, Tea of Life, Teaxpress, TenFu’s Tea, The Coca-Cola Company, The Daintree Tea Company, The Hain Celestial Group, Inc., The Republic of Tea, Inc., Unilever PLC, Vahdam Teas Private Limited, and Williamson Magor & Co. Limited.
This research report categorizes the Out-of-home Tea Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Product Type
- Black Tea
- Green Tea
- Herbal Tea
- Packaging
- Bottled Tea
- Canned Tea
- Pouches
- Tea Bags
- Utility
- Loose Leaf Tea
- Ready-to-Drink
- Certification
- Conventional
- Organic
- End-user
- Hotels & Restaurants
- Offices & Institutions
- Tea Stalls & Café’s
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Out-of-home Tea Market, by Product Type
- Out-of-home Tea Market, by Packaging
- Out-of-home Tea Market, by Utility
- Out-of-home Tea Market, by Certification
- Out-of-home Tea Market, by End-user
- Americas Out-of-home Tea Market
- Asia-Pacific Out-of-home Tea Market
- Europe, Middle East & Africa Out-of-home Tea Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 26]
- List of Tables [Total: 464]
- List of Companies Mentioned [Total: 44]
In a world dominated by fast-paced lifestyles and on-the-go consumption, the art of tea-drinking has transcended its traditional boundaries, finding new expression in the realm of out-of-home experiences. From bustling city streets to serene countryside retreats, the allure of enjoying tea beyond the confines of one's home has sparked a renaissance in tea culture, blending tradition with modernity in delightful ways. Out-of-home tea experiences offer a unique opportunity to savor the rich flavors and aromas of tea while immersing oneself in diverse environments and social settings. Whether it's enjoying a steaming cup of Earl Grey amidst the vibrant energy of a bustling café or indulging in a tranquil tea ceremony in a serene garden, each experience adds depth and nuance to the age-old ritual of tea-drinking.
Manufacturers are exploring innovative flavor profiles and ingredient combinations to cater to the diverse preferences of today's consumers. From exotic fruit infusions to botanical blends inspired by traditional herbal remedies, the range of flavors available in out-of-home tea offerings has never been more diverse or exciting.
In November 2023, The Coca-Cola Company partnered with Luxmi Group Makaibari, a Darjeeling-based tea estate, and launched ready-to-drink iced green tea in India. These innovative flavor combinations add a sense of adventure to the tea-drinking experience, inviting consumers to explore new tastes and sensations with each sip.
As consumers seek out memorable and satisfying tea-drinking experiences beyond the confines of their homes, manufacturers are rising to the occasion, shaping the future of out-of-home tea culture with creativity, ingenuity, and a deep appreciation for the timeless tradition of tea-drinking.
High Availability:
One of the main reasons behind the popularity of out-of-home tea is its high availability. Tea is now widely available across cafés, online and offline retail shops, and food outlets. A wide variety of teas is available, from traditional black tea to exotic blends everywhere. With this high availability, tea has become a go-to beverage for many people who prefer it over coffee or other soft drinks. Even in regions where tea is not traditionally consumed, you can find it in many cafés or health-food stores.
Variety of Flavors:
Another factor behind the popularity of out-of-home tea is the variety of flavors available. Tea can be infused with a wide range of flavors, from fruits and flowers to herbs and spices. This variety of flavors means that tea can cater to a diverse audience, from health-conscious tea lovers to those seeking a sweet, refreshing beverage. In addition, flavored tea can also be consumed hot or cold, making it a preferred beverage that can be enjoyed year-round.
Health Benefits:
Beyond its great taste, tea also offers numerous health benefits. Tea is rich in antioxidants, which can mitigate the risk of chronic health complications, including heart disease and cancer. In addition, some types of tea, such as green tea, are known to enhance brain function and boost metabolism. The health benefits of tea have contributed to its popularity as an out-of-home beverage, especially among health-conscious consumers.
Convenience:
The convenience of out-of-home tea has also contributed to its popularity. Tea is easy and quick to prepare, making it an ideal beverage for those on the go. Most cafés and food outlets offer tea that's ready to drink, or that can be prepared quickly. Online and offline retail stores also offer a wide variety of tea bags or loose tea that can be brewed at home. With the convenience of out-of-home tea, you can enjoy a great-tasting beverage anywhere, anytime.
Out-of-home tea has become an increasingly popular beverage around the world. Its high availability, variety of flavors, health benefits, and convenience make it a go-to choice for many people. Tea serves the purpose of a refreshing summer drink and a cozy winter beverage.
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