Organic Tea Market

Global Organic Tea Market Overview

Organic Tea Market Size was valued at USD 1.15 billion in 2023. The organic tea industry is projected to grow from USD 1.21 Billion in 2024 to USD 1.72 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.95% during the forecast period (2024 - 2032). The key market drivers enhancing global market share are a shift in consumer preference for organic beverages, an increase in innovative product launches, and an increase in the availability of organic tea in various tastes and flavors.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Organic Tea Market Trends

• Various health benefits associated with organic tea to drive market growth

Organic tea is widely consumed due to its numerous health benefits. This type of tea is toxin-free, which means that the harmful substances used in the tea's processing will not enter the user's body. It is also appropriate for people with heart disease and high cholesterol. Organic tea contains antioxidants that boost immunity, detoxify the body, and aid in weight loss. It is also known to benefit digestive health by improving healthy gut bacteria. It also contains theanine, which promotes relaxation without causing drowsiness. As a result of organic tea's advantageous properties, the Organic Tea Market CAGR is expected to expand in the coming years.

Exports of green tea in instant packings of less than or equal to three kilos increased from USD 1.12 billion in 2016 to USD 1.23 billion in 2020, according to ITC (International Trade Centre) statistics. The chemical epigallocatechin gallate (EGCG), also widely used in many dietary supplements, is also known to be present in large quantities in organic green tea. Such factors are expected to boost the green organic tea segment's growth. Besides, organic tea contains theanine, which helps to reduce anxiety. It also increases relaxation by reducing drowsiness and decreasing heart rate. Caffeine is a component of these products that improve human focus and attention. As a result of their ability to improve physical and mental stress responses, such products have elevated functional teas to a new level that is more suitable for modern lifestyles. Thus, global demand for organic tea is anticipated to increase significantly among urban professionals, people in their later years, and competitive athletes. The growing consumer preference for safe, natural, chemical-free & healthy consumables drives organic tea industry revenue.

Segment Insights

Organic Tea Type Insights

Based on type, the Organic Tea Market segmentation includes green, black, and others. The black tea segment held the majority share in 2022, contributing to around ~50-52% of the organic tea industrry revenue owing to the antioxidant properties present in the type of tea, which increase its nutritional value. Organic black tea has other health benefits, including lowering bad LDL cholesterol and heart and gut health. It is produced most abundantly in Asian countries such as China, India, and Japan. Consumers are increasingly choosing black organic tea over conventional teas due to increased awareness about the safer alternatives of organically grown teas. The rapidly increasing demand for clean-label and natural products will drive the black market of organic tea growth in the coming years.

Figure 1: Organic Tea Market, by Type, 2022 & 2030 (USD Billion)Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Further, green tea is the fastest-growing segment of the global organic tea industry over the forecast period, owing to its growing popularity among consumers due to its numerous health benefits. Green tea is becoming more popular due to its high antioxidant and flavonoid content. It is becoming increasingly popular among consumers for weight loss, detoxification, and immunity boosting. Adopting a healthy lifestyle and a strong demand for refreshing hot beverages have facilitated the robust growth of organic green tea.

Organic Tea Form Insights

The form has bifurcated the Organic Tea Market data into dried leaf, powder, and others. The powder segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period 2022-2030. The growing popularity of convenient and portable food and beverages has contributed to the global expansion of the organic tea powder segment. This is due to the first-mover advantage associated with powder variants. Besides, these products allow consumers to choose the flavor of their tea, which can be strong or mild. Buyers are more likely to choose such products as they are more cost-effective. Customers nowadays seek out novel flavors in a variety of organic tea varieties. The growing trend of on-the-go healthy hydration and ready-to-drink beverages has aided the global expansion of the organic tea powder segment.

Organic Tea Distribution Channel Insights

The global organic tea industry has been segmented based on distribution channels into store-based and non-store-based. Store-based held the most prominent segment share in 2022 due to the extensive product selection of these supermarket/hypermarket stores. Modern storage techniques have made it possible for these stores to provide customers with comfort, making for an easy shopping experience. The investors are dedicated to implementing modern floor equipment that will assist retailers in providing quality products to customers. Finding a specific product that suits one's tastes in the market can take time due to the abundance of products. As a result, supermarkets and hypermarkets that provide various options may be considered the best place to shop for these products, resulting in store-based distribution channel market growth.

Organic Tea Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Organic Tea market accounted for USD 0.52 billion in 2022 and will likely exhibit a significant CAGR growth over the study period, owing to emerging trends such as consuming natural, safe, and clean-label products. Consumers in the region are becoming more conscious of the safety and ethnic diversity of the healthy foods they consume. The popularity of functional organic beverages in the United States and Canada drives north American market expansion. The growing emphasis on creating and commercializing innovative organic tea variants in novel packaging is projected to propel the regional market growth during the forecast period.

Further, the major countries studied in the global market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

Figure 2: ORGANIC TEA MARKET SHARE BY REGION 2022 (%)Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

The European organic tea market accounts for the second-largest market share. The European market is primarily driven by consumer demand for specialty teas. Green and herbal teas grown organically are becoming more popular in European supermarkets. The region's emerging trend of ethically traded and sustainably grown teas is anticipated to accelerate the growth of the market of organic tea. The hectic modern-day lifestyle of consumers is driving the growth of the organically grown tea bag segment in European countries such as the United Kingdom, Germany, and France. Further, the German organic tea held the largest market share, and the UK organic tea industry was the fastest-growing market in the European region.

The Asia-Pacific Organic Tea Market is expected to grow at the fastest CAGR from 2022 to 2030. Most Asian countries regard tea as a delicate topic. Tea has been consumed in the region since the beginning of recorded history. Tea is commonly consumed with breakfast in the morning, during midday breaks, and with friends and family. India, Japan, Myanmar, China, South Korea, and Taiwan all have different forms of consumption. In addition to being the largest consumer, the region is also the largest producer of organic tea product variants. Consumer spending on healthy goods has increased in countries such as India, Japan, China, and Indonesia, which has benefited the organic tea industry. The market expansion in the region is primarily driven by the growing demand for green and herbal tea to enhance beauty and health. Organic tea is perceived to be healthier than other types of tea. The rapid expansion of the region's food and beverage industry has also significantly contributed to market growth in Asia Pacific. Moreover, China’s market for organic tea held the largest market share, and the Indian organic tea industry was the fastest-growing market in the Asia-Pacific region.

Organic Tea Key Market Players & Competitive Insights

Major market players are heavily investing in the R&D of new and innovative organic tea variants that meet the needs of modern consumers who prefer herbal, natural, and clean-label products. These businesses have been concentrating on the introduction of valuable products that place a high priority on wellness, sustainability, and health. This has significantly impacted the overall growth of the key players in the organic tea industry. Market participants are expanding their global footprint through significant market developments such as introducing new products, contractual agreements, collaborations, acquisitions, growing R&D investments, and mergers with other organizations.

The Organic Tea Market major players, including Unilever, Numi Inc, Tata Global Beverages Ltd, Vahdam Teas, and others, are creating tea bags with compostable and biodegradable outer packaging to reduce their carbon footprint. They also launch ready-to-drink variants to diversify their product offering and boost sales volume in the organic tea industry. Competitors in the organic tea industry are also actively investing in innovative marketing techniques and celebrity endorsement strategies, which are expected to accelerate global market expansion in the upcoming years.

Wagh Bakri Tea Company is a leading tea supplier and exporter in India. Since 1892, the Wagh Bakri Tea Group has been a Premium Tea Company in the global tea industry. Wagh Bakri Tea Group, with its headquarters in Gujarat, India, declared in May 2019 that it had launched tea packaging for its selection of organic tea as part of its centennial celebrations.

Also, Unilever currently owns the Indonesian tea brand Sariwangi. In Indonesian, the brand name translates to fragrant essence. The first brand of Indonesian tea to come in bags instead of the typical loose serving was Sariwangi. In June 2019, Sariwangi announced the release of its new 3-in-1 organic tea products. The new product line from the company includes two flavors of powdered milk organic tea: caramel & Teh Tarik.

Key Companies in the organic tea market include

• Tata Global Beverages Limited (India)
• Unilever (UK)
• Associated British Foods plc (UK)
• Vahdam Teas (India)
• Celestial Seasonings Inc (US)
• Bombay Burmah Trading Corporation Ltd (India)
• Stash Tea Company (US)
• Bigelow Tea Company (US)
• Shangri-la Tea (US)
• Yogi Tea (US)
• Republic of Tea (US)
• Mighty Leaf Tea (US)
• Numi Inc (US)
• Harney & Sons Fine Teas (US)
• Hälssen & Lyon GmbH (Germany)

Organic Tea Industry Developments

March 2020: Typhoo expanded its organic herbal tea segment by adding three new products: adaptive immune boosting tea, detoxifying super green tea, and digestive power seeds.

January 2019: Mindful Inc launched an organic electrolyte tea ready to drink. The company has been developing next-generation functional consumer products prioritizing health, wellness, and sustainability.

October 2019: Choice Organic Teas, a leading organic tea manufacturing company, has been acquired by Yogi Tea. This acquisition has strengthened the company's global organic tea industry position.

Organic Tea Market Segmentation

Organic Tea Type Outlook

• Green
• Black
• Others

Organic Tea Form Outlook

• Dried Leaf
• Powder
• Others

Organic Tea Distribution Channel Outlook

• Store-Based
• Non-Store Based

Organic Tea Regional Outlook

• North America

  • US
  • Canada

• Europe

  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe

• Asia-Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Organic Tea Market Segmentation

Organic Tea Type Outlook (USD Billion, 2019-2030)

• Green

• Black

• Others

Organic Tea Form Outlook (USD Billion, 2019-2030)

• Dried Leaf

• Powder

• Others

Organic Tea Distribution Channel Outlook (USD Billion, 2019-2030)

• Store-Based

• Non-Store Based

Organic Tea Regional Outlook (USD Billion, 2019-2030)

• North America Outlook (USD Billion, 2019-2030)

  • North America Organic Tea by Type

    • Green

    • Black

    • Others

  • North America Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • North American Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • US Outlook (USD Billion, 2019-2030)

  • US Organic Tea by Type

    • Green

    • Black

    • Others

  • US Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • US Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • CANADA Outlook (USD Billion, 2019-2030)

  • CANADA Organic Tea by Type

    • Green

    • Black

    • Others

  • CANADA Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • CANADA Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

• Europe Outlook (USD Billion, 2019-2030)

  • Europe Organic Tea by Type

    • Green

    • Black

    • Others

  • Europe Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Europe Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Germany Outlook (USD Billion, 2019-2030)

  • Germany Organic Tea by Type

    • Green

    • Black

    • Others

  • Germany Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Germany Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • France Outlook (USD Billion, 2019-2030)

  • France Organic Tea by Type

    • Green

    • Black

    • Others

  • France Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • France Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • UK Outlook (USD Billion, 2019-2030)

  • UK Organic Tea by Type

    • Green

    • Black

    • Others

  • UK Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • UK Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • ITALY Outlook (USD Billion, 2019-2030)

  • ITALY Organic Tea by Type

    • Green

    • Black

    • Others

  • ITALY Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • ITALY Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • SPAIN Outlook (USD Billion, 2019-2030)

  • Spain Organic Tea by Type

    • Green

    • Black

    • Others

  • Spain Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Spain Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Rest Of Europe Outlook (USD Billion, 2019-2030)

  • Rest Of Europe Organic Tea by Type

    • Green

    • Black

    • Others

  • REST OF EUROPE Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • REST OF EUROPE Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

• Asia-Pacific Outlook (USD Billion, 2019-2030)

  • Asia-Pacific Organic Tea by Type

    • Green

    • Black

    • Others

  • Asia-Pacific Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Asia-Pacific Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • China Outlook (USD Billion, 2019-2030)

  • China Organic Tea by Type

    • Green

    • Black

    • Others

  • China Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • China Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Japan Outlook (USD Billion, 2019-2030)

  • Japan Organic Tea by Type

    • Green

    • Black

    • Others

  • Japan Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Japan Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • India Outlook (USD Billion, 2019-2030)

  • India Organic Tea by Type

    • Green

    • Black

    • Others

  • India Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • India Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Australia Outlook (USD Billion, 2019-2030)

  • Australia Organic Tea by Type

    • Green

    • Black

    • Others

  • Australia Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Australia Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Rest of Asia-Pacific Outlook (USD Billion, 2019-2030)

  • Rest of Asia-Pacific Organic Tea by Type

    • Green

    • Black

    • Others

  • Rest of Asia-Pacific Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Rest of Asia-Pacific Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

• Rest of the World Outlook (USD Billion, 2019-2030)

  • Rest of the World Organic Tea by Type

    • Green

    • Black

    • Others

  • Rest of the World Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Rest of the World Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Middle East Outlook (USD Billion, 2019-2030)

  • Middle East Organic Tea by Type

    • Green

    • Black

    • Others

  • Middle East Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Middle East Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Africa Outlook (USD Billion, 2019-2030)

  • Africa Organic Tea by Type

    • Green

    • Black

    • Others

  • Africa Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Africa Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based

  • Latin America Outlook (USD Billion, 2019-2030)

  • Latin America Organic Tea by Type

    • Green

    • Black

    • Others

  • Latin America Organic Tea by Form

    • Dried Leaf

    • Powder

    • Others

  • Latin America Organic Tea by Distribution Channel

    • Store-Based

    • Non-Store Based