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The global tea market is known for very high competition that comes from including many small and big tea suppliers. According to Transparency Market Research (TMR), all the involved parts of tea supply chain compete with each other on the basis of quality, reputation, service, innovation, price, and means of distribution. The leaders of the global tea market are Kusmi Tea, Davids Tea, Tea Forte, Tata Global Beverages, and Unilever Plc.

This global tea market is expanding every year as people are returning back to this traditional natural beverage. The market is expanding by about 5% each year and is estimated to rise from US$12.8 billion in 2017 to US$20 billion by 2025. The crush, tear, curl (CTC) tea is the leading type, and not only by value, but also by volume. Asia Pacific is, of course, the leading region for tea growing and production. The growth expected there is 6.8% from 2017 to 2025.

Traditional tea remains the most popular and widely consumed. The main reason for that is the price and affordability of traditional tea versus premium tea. That is not to say that premium tea is doing poorly. White, yellow, oolong, and others are growing steadily too and reaching more and more consumers. The more income expansion people are experiencing around the globe, the more fine teas are consumed.

Tea market is now full of various kinds and flavors of teas, enticing more people to enjoy this wonderful beverage. People are re-discovering again that tea helps aid healthy body functioning and has various benefits. This encourages the consumer base to widen steadily. Another important factor in the tea market growth is the presence of antioxidants, flavonoids, and phytochemicals in various teas. It has been discovered that tea helps fight and prevent cardiovascular diseases, fight off arthritis, and control blood pressure naturally.

The fastest growing segments of the tea market currently are green, herbal, and organic teas. The demand for tea is increasing worldwide thanks to infusion of various flavors and creation of innovative blends that appeal to so many people. Consumer preferences are constantly changing, wages are shifting, and some areas are experiencing unavailability of labor – all these factors also help tea market grow. There are some threats too – growth of coffee popularity in the U.S. and South American markets.

Some external factors, like climate change, resource depletion, and changing demographic conditions impact tea market negatively. Despite those threats, experts agree that tea consumption is expected to rise simply because it has a lot to offer for health-conscious consumers. This especially applies to herbal and organic teas. The costs for teas are low on average and teas are affordable for wide masses worldwide. These two factors ensure that tea is finding its way into every country and every home.


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