by The global Out of Home Tea Market is estimated to be valued at US$ 23.74 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Out of home tea is consumed outside of home, which includes tea consumed in establishments like hotels, restaurants, cafes etc. Tea being the most loved beverage worldwide, its consumption outside of home is increasing steadily owing to rising popularity of specialty tea variants, premiumization and growing café culture. Innovation in flavors coupled with introduction of unique blends by various tea manufacturers have further augmented demand. Presence of functional ingredients in certain variants keep consumers health-oriented while enjoying their beverage of choice. Growing middle class population with increasing disposable income also propel the market growth.
Market key trends:
Health benefits associated with tea consumption is one of the major factor driving its popularity worldwide. Specialty variants infused with ingredients like herbs, spices or fruits claim additional health advantages. Moreover, consumers are willing to pay premium prices for unique tasting blends. This has encouraged manufacturers to focus on exotic flavors made from natural ingredients. Rise of specialty chains instilling tea culture further popularize new types of tea among consumers. Introduction of eco-friendly packaging and promotion of sustainable sourcing practices also aid the market expansion. Clean label and organic certifications on premium products cater to increasing health-conscious demographic.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the out of home tea market is relatively low given the presence of established players and high capital requirements.
Bargaining power of buyers: The bargaining power of buyers is moderate given the presence of several options. However, brand loyalty plays a major role.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute ingredients.
Threat of new substitutes: The threat of new substitutes is moderate as beverages like coffee and other drinks compete with tea.
Competitive rivalry: Intense competition exists between established players.
Key Takeaways
The global out of home tea market is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing demand forReady-To-Drink teas.
Regional analysis: North America dominates the global out of home tea market share due to growing health consciousness among consumers. The Asia Pacific region is expected to grow at the fastest pace owing to rising disposable incomes in countries like China and India.
Key players: Key players operating in the out of home tea market include Tata Global Beverages Ltd., Nestle S.A, Celestial Seasonings Inc., Unilever Plc., Ito En, Ltd, Barry’s Tea, Associated British Foods, Dilmah Ceylon Tea Company, The Republic of Tea, and Bettys and Taylors Group Limited. These companies have been expanding their product portfolio to cater to the rising demand.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
