The demand in tea is increasing


During the past 100 years, tea production worldwide has increased tenfold and is currently hovering on the 5.4 million tons per year. Happily, all overt the world, the sales of tea follow the same pattern.

Even if the cost of raw materials has tended to rise in the recent years due to unpredictable weather almost everywhere in the producing countries, and even if the always sustained trend and coffee consumption may hamper the growth, a rise in tea demand from health-conscious young population and frequent introduction of new flavors and varieties is expected to provide numerous opportunities for expansion of the global tea market. The new created innovant blends, especially those with additionnal healthy ingredients provide excellent opportunities and support the sales.

This development is also encouraged by rising per capita incomes mainly in China, India and other emerging countries. These two effects combined should offer many opportunities for expanding the global tea market. It is estimated that market growth should be around 5.5% between 2017 and 2023.

The two prominent types of tea include black tea, widely consumed in western nations, and green tea, common in Asian countries. Green tea segment is projected to witness the highest CAGR of 8.8% in revenue terms during the forecast period. Asia is expected to dominante the market due to high grow of population and increase demande in tea and in products around tea. In addition, we are talking about an average annual growth rate of revenues of about 8.8%. China should always come first. In 2014, it was already noted that it reached 34% of world consumption, India being in second place with around 20% of the world total.

In the West, even though green tea is more and more consumed, black tea still holds its place very well. Currently, it is estimated that 70% of people consume black tea against 30% of green tea.

Lipton, the leading brand present on every continent, is the Nr 1 tea and iced tea in the world. In France, it accounts for half the volume of tea purchases.

Specialized French brands represent 20% of the French market and are generally very dynamic in exports. On the domestic market, the French people are very sensitive to the “Made in France ». It is reflected in their buyings as 50% of their purchases are teas produced by French companies. At present, consumption per capita is in France about 230 g per person. 2 out of 3 French person take tea for breakfast and 40% in the day.

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