STiR coffee and tea magazine

STiR coffee and tea 19 Growth in Green Tea Demand Outpaces Black Global consumption of tea is expanding at a healthy single-digit rate, yet green tea is growing faster than black, according to one forecaster. Improvements in packaging and rising interest in wellness are helping boost sales. In a new report, Emergen Research predicts that green tea sales will grow at an 8.1% compound annual rate in the coming years to reach $30 billion in 2030. That would be double the size of the world market for green tea in 2021, by Emergen's estimate. Black tea consumption will grow at a somewhat slower compound annual rate of 5.5% in the coming years, according to the forecast of another consultancy, Industry Research. The firm estimates the global black tea market will be worth $34.7 billion by 2028, up from $25 billion in 2022. Another source, Research and Markets, projects that the global market for all teas will reach $70.45 billion in the five year period ending in 2028, up from $49.25 billion in sales in 2022. That would put compound annual growth at 6.15%. Market researchers attribute fast growth of green tea sales to consumers' rising interest in health and well-being as a result of the Covid-19 pandemic. "During our 2023–24 forecast period, about two-thirds of the growing global demand for tea will come from China, driven by the government's lifting of its stringent zero-covid policy," writes the Economist Intelligence Unit. China consumes 41% of the world's tea, mainly green. Euromonitor International writes, "In developing markets such as India, green tea was the fastest growing category from 2017 to 2022, albeit from a low base, as companies launched green tea variants and strengthened consumer awareness about its health benefits." In the Asia-Pacific region, annual per capita expenditure on tea is set to increase by 9% between 2022 and 2027, to $6.10, Euromonitor says. Long- term expansion in the global tea industry is expected, driven in part by rising in- comes, according to Euromonitor. According to Euromonitor International's Voice of the Consumer: Health and Nutrition Survey, consumers in the Asia Pacific region highly value emotional, Improved packaging and interest in wellness are driving consumption of green tea. mental, and holistic wellbeing. "In 2023, 59% of respondents defined health as having good mental wellbeing and having a healthy immune system," writes Euromonitor. Swift advancements in tea packaging techniques also contribute to growth in the green tea category, according to Emergen analysts. "Packaging innovations have extended the shelf life of green tea and increased its export volume. Conse- quently, the emergence of new brands offering green tea products has seen a noticeable surge. — Dan Bolton Tea Report

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