Organic tea refers to a tea that has grown without using chemicals or pesticides in the whole growing and processing journey. The global organic tea market is projected to grow at a significant CAGR of 7.6% during the forecast period. The key factors that drive the market growth include the shift of the consumers towards the adoption of organic beverages as people are becoming more health-conscious and antioxidant properties offered by the organic tea. In addition, organic tea aids in enhancing immunity, protects the heart, and reduces infections. These benefits possessed by organic tea attract the users and encourages its adoption. 

Additionally, increasing government focus on organic farming is contributing to the growth of organic tea farming practices. For instance, the Indian government is encouraging organic farming through several schemes or programs, which include Rashtriya Krishi Vikas Yojana (RKVY), National Mission for Sustainable Agriculture (NMSA)/ Paramparagat Krishi Vikas Yojana (PKVY), National Mission on Oilseeds & Oil Palm (NMOOP), Mission for Integrated Development of Horticulture (MIDH), and Network Project on Organic Farming of Indian Council of Agricultural Research (ICAR).

Further, increased trends of well-being and focus towards slimming and keeping the body hydrated along with the inclination towards fitness, health and wellness inclines the foremost choices of people towards the organic tea adoption and thereby contribute to the market growth during the forecast period. However, the availability of alternatives such as coffee and other energy drinks may challenge market growth.

Segmental Outlook

The global organic tea market is segmented on the basis of type and packaging type. Based on the type, the market is segmented into black tea, green tea, oolong tea, and others. Based on the packaging type, the market is segmented into tea bags, loose powder, and others. 

Tea Bags to Exhibit Considerable Growth in the Market 

Amongst the packaging type segment of the market, the tea bag segment is projected to contribute a significant share and is estimated to exhibit considerable growthy during the forecast period. The segmental growth of the market is owing to the fact that it is the most convenient form of tea as it is a faster and easier way. In addition, the growing trend of premiumization  pushes the consumers to invest more on the products that are convenient as well as healthy and natural thus escalating the market growth in the overall market during the forecast period. Growing health consciousness among the population regarding chronic diseases is expected to shift the consumer preferences towards the consumption of organic beverages for refreshment, such as organic tea, which in turn fosters the growth of the market.

Regional Outlook

The global organic tea market is geographically segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific region is estimated to grow significantly during the forecast period. The growth of the region is attributed to the wide acceptance of organic tea such as green tea across the region. 

The organic green tea has several health benefits over black tea, and according to the Food and Organization of the United Nations, the output of green tea across the globe is anticipated to increase at a rate of 7.5% annually to reach 3.6 million tonnes in 2027, largely driven by China, where the production of green tea is projected to reach more than double from 1.5 million tonnes in 2015-2017 to 3.3 million tonnes in 2027. Thus, such an increase in consumption is expected to provide growth opportunities for the market in the near future.

Global Organic Tea Market by Region, 2019 (%)

Further, Europe is also estimated to grow significantly during the forecast period, owing to the growing awareness regarding the health benefits associated with tea consumption. Green tea and oolong tea are widely gaining popularity in the region due to their health benefits and thus, driving the market growth during the forecast period. 

Market Players Outlook

Some of the prominent players operating in the global organic tea market include Barry’s Tea, Celestial Seasonings, Inc., Dilmah, Harney & Sons Fine Teas, Numi, Inc., Ito EN, Ltd., Organic India Pvt. Ltd., Tata Global Beverages, Taylors of Harrogate Ltd., Tazo Tea Co., The Republic of Tea, and others. These are the key companies adopting several organic and inorganic growth strategies such as product launches & developments, partnerships, agreements, and acquisitions to strengthen their product portfolios and maintain a competitive position in the global organic tea market. 

In July 2018, Ito EN, Ltd. introduced USDA certified whole green tea leaves, named organic Oi Ocha ready-to-drink in the US market. In 2017, Lipton launched its novel organic line of black tea, manufactured by using Rainforest Alliance Certified black tea leaves.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global organic tea market. Based on the availability of data, information related to products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.