Statista predicts that revenue in the tea segment will amount to around US$9.5 billion in 2020. The global tea market is expected to grow annually by 4.9% (CAGR 2020-2023).
The economies predicted to generate the most revenue in the tea market are China (US$40,298m in 2019) and India (US$12,482m). According to Zion Market Research, the Asia Pacific is expected to lead the global tea market. Tea has been the most common and popular beverage consumed in economies like Japan, Thailand, Australia, China, Hong Kong and Singapore. Increasing disposable income, changing standard of living, industrialization, increasing brand awareness, and extensive marketing strategies are expected to fuel the demand for tea in the region.
North America is anticipated to be another prominent regional market, as more health-conscious consumers make the shift from carbonated soft drinks to tea. An increasing tea drinker base in regions like Canada is boosting the tea market in the region. The growth of chains of premium tea shops and food services in developed countries such as the U.S. are also expected to fuel the tea market.
According to World’s Top Exports’ (WTEx) 2017 figures, the highest export surpluses for the international tea market were posted by China and Sri Lanka. This positive cashflow confirms their strong competitive advantage for this specific product category.
The highest export deficits in the international trade of tea were incurred by Pakistan (-US$541.4 million, net export deficit up 77.9% since 2013) and Russia (-$432.7 million, down -22.6%). This negative cashflow highlights both countries’ strong competitive disadvantage for this specific product category, but also signals opportunities for tea-supplying countries to satisfy the powerful demand.
Global Marketing Associates has been helping companies expand globally for over 15 years, in multiple industries all over the globe. We have over 2000 buyers in the tea industry. Contact us for a free consultation to learn more about how we can help your company succeed.