MARKET OVERVIEW OUT OF HOME TEA MARKET
The out-of-home tea market has been experiencing steady growth and transformation. With the increasing demand for healthier and diverse beverage options, tea has gained popularity as a refreshing and nutritious choice. This market encompasses various settings, including cafes, restaurants, airports, workplaces, and vending machines, where consumers purchase tea for immediate consumption outside their homes. The out-of-home tea market has witnessed innovation in product offerings, such as specialty teas, iced teas, and ready-to-drink (RTD) tea beverages. The rise of tea-focused establishments and the expansion of global tea chains have further fueled this growth. Moreover, consumers' growing interest in sustainable and eco-friendly practices has led to a surge in demand for ethically sourced and organic tea options. However, it is essential to note that market dynamics might have evolved beyond my last update. It is advisable to refer to more recent sources for the latest developments in the out-of-home tea market.
MARKET DRIVERS
The out-of-home tea market has been driven by several key factors, contributing to its growth and popularity. Firstly, the increasing health consciousness among consumers has shifted preferences towards healthier and natural beverage choices like tea. Tea is often perceived as a better alternative to sugary soft drinks, aligning with the rising demand for nutritious options. Secondly, the growing trend of convenience and on-the-go consumption has boosted the demand for ready-to-drink (RTD) tea products, making them readily available in various out-of-home settings like cafes, kiosks, and vending machines. Moreover, the emergence of specialty tea cafes and the diversity of tea offerings, including exotic blends and flavors, has captured the interest of younger and adventurous consumers seeking unique taste experiences. Additionally, the incorporation of sustainable and eco-friendly practices in tea production and sourcing has appealed to environmentally conscious customers, further driving the market's growth.
Finally, the global tea culture and its rich history have also played a significant role in promoting tea consumption outside of homes, as consumers seek to explore different tea varieties and rituals in social settings.
MARKET OPPURTUNITY
The out-of-home tea market presents a promising opportunity for growth due to several factors. As consumers increasingly seek healthier beverage choices and unique taste experiences, tea fulfills these preferences. With the rising trend of on-the-go consumption and the proliferation of specialty tea cafes, there is a growing demand for convenient and diverse tea offerings in various out-of-home settings. Additionally, the emphasis on sustainability and eco-friendly practices in tea production appeals to environmentally conscious consumers. As the tea culture continues to evolve and expand globally, the out-of-home tea market is poised to capitalize on these trends and create exciting opportunities for businesses to cater to a growing customer base.
MARKET GROWTH CHALLENGES
The out-of-home tea market, while presenting growth opportunities, also faces certain challenges that could impede its expansion. Firstly, intense competition from other beverage categories, such as coffee and energy drinks, poses a threat to tea's market share. Convincing consumers to choose tea over well-established alternatives may require innovative marketing and product differentiation. Secondly, fluctuations in the cost and availability of tea leaves due to climate change and geopolitical factors can impact the pricing and supply chain stability, leading to potential cost pressures for businesses. Additionally, consumer preferences and trends are continually evolving, and businesses must adapt swiftly to meet changing demands for new flavors, health-oriented options, and sustainable practices. The out-of-home tea market also faces regulatory challenges, including health and safety standards, labeling requirements, and compliance with regional restrictions, which can vary across different locations. Furthermore, the ongoing global pandemic and economic uncertainties have disrupted consumer behaviors and spending patterns, posing short-term challenges to the out-of-home tea market's growth. Overall, overcoming these challenges requires industry players to remain innovative, flexible, and responsive to emerging trends and market dynamics.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the out of home tea market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. the increasing health consciousness among consumers is fueling the growth of the market and are expected to witness growth at a specific CAGR from 2023-2029.
OUT OF HOME TEA MARKET SEGMENTAL OVERVIEW
The out of home tea market comprises of different market segment like product type, packaging format, end users and geography.
OUT OF HOME TEA MARKET BY PRODUCT TYPE
- Herbal tea
- Green tea
- Black tea
- Oolong tea
- Others
Based on the product type market is segmented into herbal tea, green tea, black, oolong tea and others. Due to the high volume of black tea consumption, the black tea category is anticipated to account for a significant portion of the market. The tea association of the USA said that 84% of all tea consumed in America in 2021 was of the black tea variety. Additionally black tea helps people focus and concentrate better, which contributes to segments growth.
OUT OF HOME TEA MARKET BY PACKAGING FORMAT
- Pouches
- Tea bags
- Canned tea
- Bottled tea
- Others
The market is divided into pouches, tea bags, canned tea, bottles tea and others categories based on packaging format. Due to its convenience compared to other forms, the tea bags category is predicted to hold a major share of the market. Additionally, there is a high demand for this type of tea packaging due to widespread use of tea bags that are simple to brew.
OUT OF HOME TEA MARKET BY END USERS
- Tea stalls and cafes
- Hotels and restaurants
- Offices and institution
- Others
On the basis of end users’ market is segmented into tea stalls and cafes, hotels and restaurants, offices and institution and others categories. Owed to the easy accessibility and prompt service of tea beverages in these establishment, the tea stalls and cafes segment is predicted to account for a sizable portion of the market. The tea stalls lower tea pricing points than those of the competition also contribute to this segment higher sales.
OUT OF HOME TEA MARKET BY GEOGRAPHY
- North America
- Europe
- Asia pacific
- South America
- Middle east and Africa
Asia pacific is anticipated to dominate the business from 2022 to 2029, followed by north America, according to the most recent projection for the out of home tea market. Leading tea include China and India. Due to busy lives, there is anticipated to be an increase in demand for continent and healthful products, which would benefit market statistics in Asia pacific. The industry north America and Europe is anticipated to grow as tea becomes more popular than coffee. Due to numerous health risks associated with coffee, a lot of individuals in this area choose tea instead.
COVID-19 IMPACT ANALYSIS ON THE GLOBAL OUT OF HOME TEA MARKET
The COVID-19 pandemic had a profound impact on the out-of-home tea market, leading to significant disruptions and challenges. Government-imposed lockdowns and social distancing measures resulted in the closure or limited operations of cafes and tea outlets, causing a sharp decline in foot traffic and sales. Consumers shifted their preferences towards at-home tea consumption, affecting the demand for out-of-home tea experiences. To adapt to the changing landscape, tea businesses pivoted towards delivery and takeaway services, emphasizing contactless options for customers. Ready-to-drink (RTD) tea beverages gained popularity as consumers sought convenient and hygienic on-the-go options. However, the economic downturn and financial uncertainties affected consumer spending, potentially impacting premium and specialty tea sales. The out-of-home tea market faced intense competition from other beverage sectors as consumer preferences evolved during the pandemic. As the situation continues to evolve, businesses must remain agile and innovative to navigate the ongoing challenges and opportunities in the post-pandemic landscape.
COMPETATIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the out of home tea market is primarily focused on expanding the global growth of the out of home tea market through new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the market has led to growing demand for the market. Besides, the market offers a range of products to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
Key players studied in market are:
- Unilever group
- Tata global beverages Ltd
- Associated British foods
- Celestial seasonings, Inc
- The republic of tea
- Tenfu corporation
- Peets coffee and tea
- Betty and Taylor’s group limited
- Kusmi tea
- Dilmah Ceylon tea company PLC
- Starbucks corporation
- Costa Ltd
- Nestle S.A.
- The coca cola company
- PepsiCo, Inc
