Functional Tea Market: Global Industry Analysis and Forecast (2024-2030)

  • The Functional Tea Market size was valued at USD 7.28 Bn. in 2023 and the Functional Tea revenue is expected to grow at a CAGR of 6% from 2024 to 2030, reaching nearly USD 10.94 Bn. by 2030.

  • Format : PDF | Report ID : SMR_1956

Functional Tea Market Overview:

Functional Teas are a specialized mixture of teas that address an individual benefit that extends beyond the nutritional value of the tea itself. True teas such as Black, Green, White, & Oolong are full of powerful antioxidants that help the body repair and avoid disease. The oxidative stress that comes as a result of having an imbalance of free radicals is avoided by adding more and more antioxidants to the body.

 

The report offers a detailed overview of the global Functional Tea Market, covering essential industry trends, market dynamics, and competitive analysis. It utilizes tools like Porter's Five Forces, Industry Value Chain, and PESTEL Analysis. Key sections such as Regulatory Framework, Price Trends, and Investment Analysis provide insights into market evolution and future directions. Additionally, the report includes an in-depth pricing analysis covering various types, manufacturers, regional factors, and pricing trends. The report provides a detailed analysis of competitor's strategies, aiding businesses in understanding the competitive landscape and devising effective strategies to enhance the market position.

Functional Tea Market

 

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Functional Tea Market Dynamics:

Growing Horizons in the Functional Tea Market

Growing consumer awareness of the health benefits associated with tea, such as antioxidants and stress reduction, drives demand for functional teas. Increasing awareness about the health benefits of functional teas such as green tea, herbal tea, and other varieties infused with beneficial ingredients like antioxidants, vitamins, and minerals is a major driver.

 

Flavor Innovations in functional tea are driving the market growth.  Experimentation with exotic flavors, botanical infusions, and tea blends appeals to adventurous consumers seeking novel taste experiences. Companies are continuously innovating to offer new flavors and formulations that cater to specific health needs such as detoxification, relaxation, energy boost, and immune support. The innovation keeps the market dynamic and attracts new consumers. In addition, Effective marketing strategies highlighting the health benefits of functional teas, along with endorsements from health experts or influencers, play a significant role in driving consumer interest and adoption.

Functional Tea Market1

Navigating Challenges and Competition in the Dynamic Functional Tea Market

Fluctuations in the supply of key ingredients, such as herbs and botanicals used in functional teas, due to factors like weather conditions, geopolitical issues, or supply chain disruptions, impact production schedules and lead to increased costs. Price sensitivity among consumers, especially in regions where functional teas are considered premium products, limits market penetration. Companies need to balance product quality and pricing to appeal to a broad range of consumers without sacrificing margins.

 

In Addition, the tea market is highly competitive, with numerous players ranging from multinational corporations to small-scale producers, intensifying competition for market share and consumer attention.

 

Functional Tea Market Segment Analysis:

Green tea is a type of tea that is made from Camellia sinensis leaves and buds that have not undergone the same withering and oxidation process which is used to make oolong teas and black teas. Green tea originated in China, and since then its production and manufacture have spread to other countries in East Asia. Several varieties of green tea exist, which differ substantially based on the variety of C. sinensis used, growing conditions, horticultural methods, production processing, and time of harvest. The emerging trend of on-the-go nutrition and healthy hydration has significantly increased the demand for functional beverages among consumers. The Green type of tea contains a high type of antioxidant that helps reduce the aging of the cells and tissues and improves normal body function. The growing demand for nutrient-enriched beverages to reduce the risk of certain health conditions fuels the growth of the market.

 

  • India exports most of its green tea to the United States, United Kingdom, and United Arab Emirates and is the largest exporter of green tea in the World.

Functional Tea Market2

Functional Tea Market Regional Insight:

Asia Pacific held xxx % market share in 2023 for the Functional Tea Market. Increasing health consciousness and a focus on wellness have been major trends in the Asia Pacific. Consumers are increasingly seeking functional beverages that offer health benefits. The cultural inclination towards natural remedies and herbal traditions additionally contributes to the popularity of functional teas in the region. Rising disposable income combined with the escalating cases of arthritis, cardiovascular and osteoporosis diseases have also fostered the product demand in Asia Pacific.

 

China is the largest producer and consumer of tea in the world, and its market is growing rapidly. India is another major player, and its tea market is expected to double in size through the forecast period. Japan is a key market for premium teas, while Australia and New Zealand are both significant importers of tea. Chinese teas are supplied to a diverse range of countries, establishing China as a global tea powerhouse. China is at the forefront of e-commerce and digital innovations in the tea sector. Tea sales have increased dramatically online, making it easier for consumers to purchase tea from products to reach a broader market. On the other hand, tea plantation acreage in China has been consistently growing, with the most prolific tea-cultivation areas lying around and south of the Yangtze River valley in Guizhou, Yunnan, Sichuan, and Hubei provinces.

 

  • Green tea accounts for the largest proportion of China’s total tea exports. Though Hong Kong is China’s largest tea exporting destination in terms of trade value, the largest amount of tea exports from China went to Morocco, Uzbekistan, and some West African countries. When it comes to imports, Sri Lanka, Taiwan, and India are China’s most crucial tea import partners, and black tea makes up the absolute majority of tea imported to China.

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Functional Tea Market Competitive Landscape:

  • February 2024- Flourishing awareness about women's health requirements during perimenopause and menopause has persuaded several brands to start exploring this space, including the brand-new launch of a functional tea by UK company D'Amazonia.
  • In March 2022, Tata Global Beverages released a new brand of herbal Teas named “Teavana Wellness Teas” which set a footprint of herbal tea around the globe.

 

Functional Tea Market Scope:

Functional Tea Market

Market Size in 2023

USD 7.28 Bn.

Market Size in 2030

USD 10.94 Bn.

CAGR (2024-2030)

6 %

Historic Data

2018-2022

Base Year

2023

Forecast Period

2024-2030

   Segments

By Type

Herbal tea

Green Tea

Fruit tea

Flower tea

Others

By Function

Immunity

Detox

Weight Loss

Gut & Digestive Health

Others

By Distribution Channel

Store Based

Non-Store Based

Regional Scope

North America- United States, Canada, and Mexico

Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe

Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC

Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa

South America – Brazil, Argentina, Rest of South America

 

Functional Tea Market Key Players:

  1. Tata Tea Limited
  2. Koios Beverage Corp
  3. The Mate Factor
  4. New Leaf Brands Inc
  5. Fito Ltd.
  6. Carolina Beverage Group LLC
  7. AUSTRIA JUICE GmbH
  8. Godrej Tea
  9. Herbaty Szlachetne Sp. z o.o
  10. Organic India Private Limited
  11. Numi Organic Tea
  12. Traditional Medicinals
  13. Yogi Tea
  14. The Republic of Tea
  15. Bigelow Tea Company
  16. Harney & Sons
  17. Rishi Tea & Botanicals
  18. The Tea Spot
  19. Pure Leaf Tea (Unilever)
  20. Steven Smith Teamaker
  21. XXX Inc.


Frequently Asked Questions

Growing consumer awareness of the health benefits associated with tea, such as antioxidants and stress reduction, drives demand for herbal and functional teas.

1.    Functional Tea Market: Research Methodology 
2.    Functional Tea Market: Executive Summary
3.    Functional Tea Market: Competitive Landscape

3.1. Stellar Competition Matrix
3.2. Competitive Landscape
3.3. Key Players Benchmarking
3.4. Market Structure
3.4.1.    Market Leaders 
3.4.2.    Market Followers
3.4.3.    Emerging Players

3.5. Consolidation of the Market
4.    Functional Tea Market Import Export Landscape
4.1. Import Trends
4.2. Export Trends
4.3. Regulatory Compliance
4.4. Major Export Destinations
4.5. Import-Export Disparities
5.    Functional Tea Market: Dynamics
5.1. Market Driver 
5.2. Market Trends by Region
5.2.1.    North America
5.2.2.    Europe
5.2.3.    Asia Pacific
5.2.4.    Middle East and Africa
5.2.5.    South America

5.3. Market Drivers by Region
5.4. Market Restraints
5.5. Market Opportunities
5.6. Market Challenges
5.7. PORTER’s Five Forces Analysis
5.8. PESTLE Analysis
5.9. Strategies for New Entrants to Penetrate the Market
5.10. Regulatory Landscape by Region
5.10.1.    North America
5.10.2.    Europe
5.10.3.    Asia Pacific
5.10.4.    Middle East and Africa
5.10.5.    South America

6.    Functional Tea Market Size and Forecast by Segmentations (by Value USD Million)
6.1. Functional Tea Market Size and Forecast, by Type (20232-20320)
6.1.1.    Herbal tea
6.1.2.    Green Tea
6.1.3.    Fruit tea
6.1.4.    Flower tea
6.1.5.    Others

6.2. Functional Tea Market Size and Forecast, by Function (20232-20320)
6.2.1.    Immunity
6.2.2.    Detox
6.2.3.    Weight Loss
6.2.4.    Gut & Digestive Health
6.2.5.    Others

6.3. Functional Tea Market Size and Forecast, by Distribution Channel (20232-20320)
6.3.1.    Store Based
6.3.2.    Non-Store Based

6.4. Functional Tea Market Size and Forecast, by Region (20232-20320)
6.4.1.    North America
6.4.2.    Europe
6.4.3.    Asia Pacific
6.4.4.    Middle East and Africa
6.4.5.    South America

7.    North America Functional Tea Market Size and Forecast (by Value USD Million)
7.1. North America Functional Tea Market Size and Forecast, by Type (2023-2030)
7.1.1.    Herbal tea
7.1.2.    Green Tea
7.1.3.    Fruit tea
7.1.4.    Flower tea
7.1.5.    Others

7.2. North America Functional Tea Market Size and Forecast, by Function (2023-2030)
7.2.1.    Immunity
7.2.2.    Detox
7.2.3.    Weight Loss
7.2.4.    Gut & Digestive Health
7.2.5.    Others

7.3. North America Functional Tea Market Size and Forecast, by Distribution Channel (2023-2030)
7.3.1.    Store Based
7.3.2.    Non-Store Based

7.4. North America Functional Tea Market Size and Forecast, by Country (2023-2030)
7.4.1.    United States
7.4.2.    Canada
7.4.3.    Mexico

8.    Europe Functional Tea Market Size and Forecast (by Value USD Million)
8.1. Europe Functional Tea Market Size and Forecast, by Type (2023-2030)
8.1.1.    Herbal tea
8.1.2.    Green Tea
8.1.3.    Fruit tea
8.1.4.    Flower tea
8.1.5.    Others

8.2. Europe Functional Tea Market Size and Forecast, by Function (2023-2030)
8.2.1.    Immunity
8.2.2.    Detox
8.2.3.    Weight Loss
8.2.4.    Gut & Digestive Health
8.2.5.    Others

8.3. Europe Functional Tea Market Size and Forecast, by Distribution Channel (2023-2030)
8.3.1.    Store Based
8.3.2.    Non-Store Based

8.4. Europe Functional Tea Market Size and Forecast, by Country (2023-2030)
8.4.1.    UK
8.4.2.    France
8.4.3.    Germany
8.4.4.    Italy
8.4.5.    Spain
8.4.6.    Sweden
8.4.7.    Russia 
8.4.8.    Rest of Europe

9.    Asia Pacific Functional Tea Market Size and Forecast (by Value USD Million)
9.1. Asia Pacific Functional Tea Market Size and Forecast, by Type (2023-2030)
9.1.1.    Herbal tea
9.1.2.    Green Tea
9.1.3.    Fruit tea
9.1.4.    Flower tea
9.1.5.    Others

9.2. Asia Pacific Functional Tea Market Size and Forecast, by Function (2023-2030)
9.2.1.    Immunity
9.2.2.    Detox
9.2.3.    Weight Loss
9.2.4.    Gut & Digestive Health
9.2.5.    Others

9.3. Asia Pacific Functional Tea Market Size and Forecast, by Distribution Channel (2023-2030)
9.3.1.    Store Based
9.3.2.    Non-Store Based

9.4. Asia Pacific Functional Tea Market Size and Forecast, by Country (2023-2030)
9.4.1.    China
9.4.2.    S Korea
9.4.3.    Japan
9.4.4.    India
9.4.5.    Australia
9.4.6.    Indonesia 
9.4.7.    Malaysia
9.4.8.    Vietnam
9.4.9.    Taiwan
9.4.10.    Bangladesh
9.4.11.    Pakistan
9.4.12.    Rest of Asia Pacific

10.    Middle East and Africa Functional Tea Market Size and Forecast (by Value USD Million)
10.1. Middle East and Africa Functional Tea Market Size and Forecast, by Type (2023-2030)
10.1.1.    Herbal tea
10.1.2.    Green tea
10.1.3.    Fruit tea
10.1.4.    Flower tea
10.1.5.    Others

10.2. Middle East and Africa Functional Tea Market Size and Forecast, by Function (2023-2030)
10.2.1.    Immunity
10.2.2.    Detox
10.2.3.    Weight Loss
10.2.4.    Gut & Digestive Health
10.2.5.    Others

10.3. Middle East and Africa Functional Tea Market Size and Forecast, by Distribution Channel (2023-2030)
10.3.1.    Store Based
10.3.2.    Non-Store Based

10.4. Middle East and Africa Functional Tea Market Size and Forecast, by Country (2023-2030)
10.4.1.    South Africa
10.4.2.    GCC
10.4.3.    Egypt
10.4.4.    Nigeria
10.4.5.    Rest of ME&A

11.    South America Functional Tea Market Size and Forecast (by Value USD Million)
11.1. South America Functional Tea Market Size and Forecast, by Type (2023-2030)
11.1.1.    Herbal tea
11.1.2.    Green tea
11.1.3.    Fruit tea
11.1.4.    Flower tea
11.1.5.    Others

11.2. South America Functional Tea Market Size and Forecast, by Function (2023-2030)
11.2.1.    Immunity
11.2.2.    Detox
11.2.3.    Weight Loss
11.2.4.    Gut & Digestive Health
11.2.5.    Others

11.3. South America Functional Tea Market Size and Forecast, by Distribution Channel (2023-2030)
11.3.1.    Store Based
11.3.2.    Non-Store Based

11.4. South America Functional Tea Market Size and Forecast, by Country (2023-2030)
11.4.1.    Brazil
11.4.2.    Argentina
11.4.3.    Rest of South America

12.    Company Profile: Key players
12.1. Tata Tea Limited
12.1.1.1.    Company Overview
12.1.1.2.    Financial Overview
12.1.1.3.    Business Portfolio
12.1.1.4.    SWOT Analysis
12.1.1.5.    Business Strategy 
12.1.1.6.    Recent DevelopPulpts

12.2. Koios Beverage Corp
12.3. The Mate Factor
12.4. New Leaf Brands Inc
12.5. Fito Ltd.
12.6. Carolina Beverage Group LLC
12.7. AUSTRIA JUICE GmbH
12.8. Godrej Tea
12.9. Herbaty Szlachetne Sp. z o.o
12.10. Organic India Private Limited
12.11. Numi Organic Tea
12.12. Traditional Medicinals
12.13. Yogi Tea 
12.14. The Republic of Tea
12.15. Bigelow Tea Company
12.16. Harney & Sons
12.17. Rishi Tea & Botanicals
12.18. The Tea Spot
12.19. Pure Leaf Tea (Unilever)
12.20. Steven Smith Teamaker
12.21. XXX Inc. 
13.    Key Findings
14.    Industry Recommendation

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