Asia-Pacific Tea Market Outlook, 2028

Tea is one of the most popular beverages in Asia, particularly in India. It is derived from the leaves of the Camellia sinensis plant. It has numerous health benefits because of the presence of polyphenols, which act as antioxidants, vitamins, trace minerals, and various amino acids, resulting in higher immunity, decreased cholesterol, increased metabolism, and other benefits. The shift in demand from conventional tea to premiumization is projected to accelerate in the coming years. Tea is widely consumed in India, China, and Japan. The tea market is primarily driven by the health benefits connected with tea drinking and the growing awareness of the negative effects associated with the consumption of carbonated beverages. Furthermore, the increase in disposable income, as well as changes in tastes of people, and the introduction of additional healthy ingredients in tea by different market players are the other factors that fuel market growth. There is a growing trend of health consciousness among individuals all over the world, urging customers, particularly millennials, to choose tea over carbonated beverages. The increased demand for tea is attributed to the health advantages of tea as well as increased understanding of the herbal elements found in it. China and India, the world's largest tea growers, were able to meet rising demand by exporting tea around the world. Green tea, black tea, oolong tea, white tea, and herbal infusions are all popular in the Asia-Pacific region. Each of these tea varietals has distinct flavours and qualities that appeal to a wide range of consumer tastes. The region's rising urbanisation has resulted in more hectic lifestyles. Tea, being a practical and easy-to-prepare beverage, is a popular choice for those on the go, whether they want a quick energy boost in the morning or a calming time during the day. According to the research report, “Asia-Pacific Tea Market Outlook, 2028” published by Bonafide Research, the Asia-Pacific Tea market is expected to grow with more than 6% CAGR from 2023 to 2028. The rise of café culture in many Asian cities has increased demand for specialised tea beverages such as bubble tea, milk tea, and tea lattes. Furthermore, ready-to-drink tea products have grown in popularity as a practical option for on-the-go refreshment. Several Asian countries are well-known for their tea production, and they are actively extending their export markets. Exports to countries outside the region, mainly Europe and North America, have increased demand for high-quality teas produced in these regions. Tea has been a part of Asian culture for thousands of years. Its historical significance is firmly established in the customs and rituals of countries like China, Japan, India, and Sri Lanka. These customs have been passed down through centuries, and tea consumption is an important part of daily life. Tea usage has been sustained by cultural links, making it an enduring and cherished beverage. Many Asian countries are well-known for their tea production and actively export tea goods to worldwide markets. This has increased demand for high-quality teas from the region, cementing its position as a global leader in tea production and commerce. Different countries in the Asia-Pacific area have diverse tea tastes and customs. China, for example, is known for its delicate green teas, whereas India is known for its robust black teas, such as Assam and Darjeeling. This regional variation in tea preferences contributes to a lively and diverse market. The Asia-Pacific area has a sizable and expanding youth population. Younger generations are increasingly embracing tea as part of a modern and healthy lifestyle, fueling tea consumption growth. They are also open to novel tea items, such as tea-flavoured snacks and beverages. Tea production and processing methods have advanced throughout the Asia-Pacific area, resulting in higher quality and consistency. These advancements ensure that tea products meet or surpass consumer expectations, fostering continued growth in the market.

Based on report market is divided into five major countries China, Japan, India, Australia and South Korea. China is expected to lead the market of Asia-Pacific Tea market. The origin of tea, China, has a thriving and diverse tea market that has expanded dramatically in recent years. China is not just the world's largest producer of tea but also its leading exporter. Its significance for the global tea market cannot be overstated. Chinese teas are available in almost every country on earth, and their popularity is increasing. Demand for specialised and premium Chinese teas has increased in Western countries, and many consumers are willing to pay a premium for authentic Chinese tea experiences. China's "Belt and Road" Initiative is strengthening commercial ties, boosting cultural exchange, and increasing China's participation in the global tea market. China is well-known for its numerous tea-producing regions, each with its own distinct tea. Examples include Longjing (Dragon Well) from Hangzhou, Keemun from Qimen, and Tie Guan Yin from Anxi. These regional teas capture the tastes and terroir of their growing locations. Despite the benefits of a rising production and distribution market in China, the industry suffers from a lack of innovation and investment in R&D and new product development. Economies of scale in the sector have yet to be realised. Most domestic manufacturers lack the independent intellectual property and financial resources to develop their own brand-name products. Based on tea type market is bifurcated into green tea, black tea, oolong tea, herbal tea white tea and others. Among them Green tea is predicted to grow at fastest rate in Asia-Pacific tea market. Furthermore based on application market is divided into residential and commercial. Commercial application is expected to register highest CAGR in Asia-Pacific. Green tea is frequently praised for its multiple health advantages, including high quantities of antioxidants and catechins, as well as possible benefits to metabolism and weight management. As health and wellness trends in the Asia-Pacific region gain traction, consumers are increasingly turning to green tea as a natural and nutritious beverage option. Green tea has deep cultural importance in various countries throughout the Asia-Pacific region. Traditional tea ceremonies and rituals centred on green tea can be found in countries such as Japan and China. Green tea's cultural past not only promotes consumption but also adds to its attraction. The Asia-Pacific region is well-known for producing a wide range of green teas, each with its own distinct flavour profile and attributes. Japan, for example, is well-known for its vibrant and grassy sencha tea, while China offers a range of green teas such as Longjing (Dragon Well) and Huangshan Maofeng. These regional varieties appeal to consumers looking for distinct and authentic tea experiences. Café culture has grown significantly in the Asia-Pacific region, with an increasing number of specialty tea and coffee shops sprouting in urban areas. These establishments provide a diverse selection of teas, including artisanal blends, flavoured teas, and one-of-a-kind tea-based cocktails. Consumers are increasingly visiting these cafes for the experience, which is pushing commercial tea consumption. Bubble tea, commonly known as boba tea, has become popular throughout Asia and the Pacific. This sweet and typically creamy tea beverage is available in a variety of flavours and combinations, attracting a younger audience. Bubble tea's novelty and customizable characteristics make it a primary driver of commercial tea applications. Tea stores and commercial applications promote premium and artisanal teas that cater to consumers seeking high-quality and unique tea experiences. These establishments often source single-origin teas and specialty blends, further elevating the commercial tea market. Based on distribution channel market is divided into supermarkets /hypermarkets, speciality stores, convenience stores and online. Online channel is expected to grow at fastest rate in Asia-Pacific tea market. Based on packaging type market is segmented into paper boards, plastic, loose tea, aluminium tin and tea bags. E-commerce has grown significantly in the Asia-Pacific area, owing to greater internet access and an increase in online shopping. Customers are increasingly resorting to e-commerce platforms to buy a variety of things, including tea. Online shopping is a popular choice due to its convenience and accessibility. Green tea, black tea, herbal infusions, specialty teas, and imported teas are all available through online tea stores and marketplaces. This comprehensive selection appeals to a wide range of consumer preferences, allowing customers to experiment with and discover new tea items. Tea subscription services that send selected tea selections directly to clients' doorsteps are regularly available via online channels. These subscriptions offer consumers a handy method to discover new teas and broaden their tea-drinking experiences. Aluminium tin packaging is growing at rapid pace in Asia-Pacific tea market. Tins made of aluminium are an effective barrier against light, moisture, and air. This helps tea retain its freshness, flavour, and aroma for a longer period of time. In humid countries such as Asia and the Pacific, the airtight feature of aluminium tins is very advantageous in keeping moisture from affecting the quality of the tea. Aluminium tins are long-lasting and can be reused to store tea or other products after the original tea has been eaten. This reusability element gives value to consumers while reducing waste, which is consistent with environmental trends. Aluminium tins' outstanding barrier capabilities help to increase the shelf life of tea, which is especially essential in places where tea is exported or stored for extended periods of time.

Companies Covered in this report: Tata Consumer Products, Associated British Foods plc, The Hain Celestial Group, Inc., Starbucks Corporation, McLeod Russel India Ltd, Dilmah Ceylon Tea Company PLC, Lipton Teas and Infusions, Gujarat Tea Processors and Packers Limited, Ito En, Ltd., Apeejay Surrendra Group, Tim Hortons Inc., Organic India Limited. Considered in this report: • Geography: Asia-Pacific • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report: • Asia-Pacific Tea market Outlook with its value and forecast along with its segments • Country-wise Tea market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • China • Japan • India • Australia • South Korea By Tea Type: • Green Tea • Black Tea • Oolong Tea • Herbal Tea • White Tea • Others By Application: • Residential • Commercial By Distribution Channel: • Supermarkets/ Hypermarkets • Speciality Stores • Convenience Stores • Online By Packaging Type: • Paper Boards • Plastic • Loose Tea • Aluminium Tin • Tea Bags The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.