Tea Concentrate Market by Product Type (Black Tea and Green Tea)
Industry: Food and Beverages
Published Date: March-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 272
Report ID: PMRREP21625
The Market for Tea Concentrate can be expected to expand at a value based CAGR of 4.1% and estimated a value of US$ 1,439.7 Million in 2033 and expected to reach US$ 2,151.7 Million by 2033.
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Tea Concentrate Market Size (2023E) |
US$ 1,439.7 Million |
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Projected Sales of Tea Concentrate (2033F) |
US$ 2,151.7 Million |
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Value CAGR (2023 to 2033) |
4.1% |
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Value Share of Top 4 Countries (2022E) |
~60% |
The global tea concentrate market has witnessed significant growth in the historical period registering a CAGR of 2.8% in the historical period and is valued at US$ 2,151.7 Million in 2023.
A tea concentrate is defined as a double-strength brew that is diluted and served. Tea concentrate helps in serving large quantity of product just by adding milk or water. Tea concentrates are available through various modes of distribution channel. Players operating in the tea concentrate market are showing greater emphasis towards product differentiation and product innovation as consumers are particular towards selecting products that are consumed on a daily basis as nowadays ready to drink (RTD) tea, flavored tea has a high concentration in the market. In terms of product innovation in the tea market, companies are offering flavored tea concentrate. Moreover, the manufacturer are more focused towards offering premium and quality tea concentrates as the majority of consumers are seeking specialized tea products. In addition, tea companies have focused their efforts towards offering tea concentrates to the foodservice industry & large scale retailers.
The global market for tea concentrate is estimated to reach an approximate valuation of US$ 2,151.7 Million in the forecast period i.e. 2033.
“Growing Café/Fast Food Culture Driving the Demand for Tea Concentrates”
Tea concentrates are extracted from tea leaves. These are preferred by the food industry as compared to the household. Tea concentrate is essentially a double-strength brew that becomes a ready-to-drink beverage when diluted with boiling water or any other diluents. These tea concentrates are offered in a wide variety of flavors. Flavored tea concentrates are made by blending tea leaves with supplementary spices such as ginger, cinnamon, and berries. Fast food culture is growing across the globe and the demand from the fast food industry has a positive impact on tea concentrates. Each fast food restaurant provides beverages. Global fast food and beverage giants like Starbucks, McDonald's, and Taco Bell among others already incorporate tea beverages as a part of their menu. The demand for tea concentrate is immediately impacted favourably by this expanding fast food culture.
“Constant Innovations in the Tea Processing Industry Increase the Demand for Tea Concentrates”
The constant innovations in the tea market increase demand for tea concentrates. There are a variety of innovations made by tea manufacturing companies to cater to the needs of consumers. Tea is a widely consumed beverage, and its processing produces many value-added products which include tea concentrates, tea bags, instant tea, packet tea, decaffeinated tea, fortified tea, flavored tea, tonic tea, tea cider, tea Kombucha, iced tea, and herbal tea. Nowadays consumers are bold, adventurous, and curious. Consumers want sensorial experiences that are innovative. Tea concentrates achieve that by providing flavor fusions that they wouldn’t otherwise be able to restore at home. Tea concentrates also provide ease of transport, storage, and versatility.
Tea concentrates are products derived from concentrated tea extracts which can be diluted in water. They are available in liquid and solid form in the market. These tea concentrates are available in different flavors. They are used to make hot, as well as cold beverages. Instant and iced teas use different flavors of tea concentrates.
Under health beverage section tea is consider as healthy drink. There are some tea concentrates which contains herbal flavors. Green tea is one of the best drinks used by the people those are concern about health. Adding green tea in daily consumption is beneficial for health and skin. It contains antioxidants which are beneficial for health and skin. These benefits of green tea drive the market for tea concentrates for green tea segmentation.
“Utilization in Health Beverages Influencing the Tea Concentrate Market Positively”
People are more conscious about their health. They are more concerned about what they are eating or drinking. Food ingredients in products and beverages have a major impact on consumer buying behavior. These consumer demands are fulfilled by manufacturers in the food and beverage industry by focusing on innovations. Tea, among others, has always been a consumer favourite. Tea has a lot of health benefits, which is a well-known truth among many consumer groups when it comes to healthy beverages. Tea concentrate's ability to be advertised and sold as a health beverage and attract a larger consumer base is directly related to this quality.
“The High Cost of Tea Concentrates Might Hamper the Tea Concentrates Market”
Tea concentrate prices are higher than tea products since qualitatively they have much higher tea content. This puts tea concentrates in a superior price point wherein the consumers from underdeveloped/developing countries don’t make a purchase decision based on convenience, but rather the economic feasibility of the product. Asia Pacific is among the largest region with a strong affinity towards tea and tea-related beverages in general. But more than three forth of the population prefers traditional tea-making practices to procuring tea concentrates. This can be attributed to ethnic development, pricing differences, or just the ease of availability of the region's original variety of tea, as the region also produces the world's finest tea leaves. Due to its exorbitant price, the product thus loses a significant portion of its potential market.
How is the Global Market for Tea Concentrates Projected to Grow in the Forecast Duration?
The market for tea concentrates is benefiting from the expanding fast food culture around the world. Some international fast food and beverage juggernauts, such as McDonald's, Starbucks, and Taco Bell, already incorporate tea beverages as a part of their menu. The demand for tea concentrate is immediately impacted favourably by this expanding fast food culture. The demand for healthy food has been expanding steadily over the world, and the same is true of the desire for healthy beverages. The market for tea concentrates is driven by consumer preference for the use of tea concentrate in health drinks.
How is organic tea concentrate growing with respect to conventional tea concentrate in the global market?
By nature segment, the conventional tea concentrate holds the majority of value share in the nature segment and is currently valued at US$ 1,230.5 Mn and expected to grow at a F-CAGR of 3.9%, whereas the organic tea concentrate is growing at a higher F-CAGR of 5.4% owing to the rise in consumer inclination towards healthy and organic diet prominently in the developed countries.
What is the market scenario for the flavor segment in the global tea concentrate market?
Tea concentrate flavor is segmented into two prominent categories i.e. regular tea concentrate and flavor tea concentrate where flavor tea concentrate is further sub-segmented into three categories which include masala & ginger, fruits & lemon, and vanilla & others; where more than 79% of the market is captured by the regular flavor tea concentrate and flavor tea concentrate exhibits the higher value F-CAGR of 4.3%. Consumer inclination towards versatility can be the prominent reason for the higher growth rate in the forecast period in the flavour category.
Manufacturers operating in the tea concentrate market are more focused on offering tea concentrates through various distribution channels i.e. business to business and business to consumer sales channels, moreover the key player are focusing on various sales channels, for instance, hypermarkets/supermarkets and online retail channels to target consumers seeking premium and organic products, furthermore companies are inclined towards innovative product launch and offering a wide range of flavored tea concentrates such as ginger, masala, vanilla, honey, and fruit-based flavors includes peach, raspberry, lemon, mango, and many others.
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Details |
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Forecast period |
2023 to 2033 |
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Historical data available for |
2018 to 2022 |
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Market analysis |
USD million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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By Product Type:
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The global market for tea concentrate has a value of US$ 1,439.7 Mn in 2023.
The global market for tea concentrate has a value CAGR of 2.8% from 2018-2022.
The global market for tea concentrate has a value of US$ 2,151.7 Mn in 2033.
The global market for tea concentrate has a value CAGR of 5.2% from 2023-2033.
The top players Ingredion Incorporated, Tata Global Beverages, Lipton, MB-Holding GmbH & Co. KG, Synergy Flavors, Inc., and others market share of about 40%-50%.
