The functional tea market share is expected to increase to USD 3.13 billion from 2021 to 2030, and the market’s growth momentum will accelerate at a CAGR of 6.27%.
This functional tea market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers functional tea market segmentation by type (herbal tea, fruit tea, flower tea, and others) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The functional tea market report also offers information on several market vendors, including Arteasans Beverages LLC, Associated British Foods plc, Barrys Tea, Dilmah Ceylon Tea Co. Plc, ekaterra B.V, Godrej and Boyce Manufacturing Co. Ltd., Harney and Sons Fine Teas, Herbaty Szlachetne Sp. z o. o, Numi Inc., ORGANIC INDIA Pvt. Ltd., PHARMADUS BOTANICALS S.L, Tata Consumer Products Ltd., The Hain Celestial Group Inc., The Organic MerchantsÂ, The Republic of Tea, Tiesta Tea Co., Unilever PLC, and Simple Life International Holdings Sdn Bhd among others.
|Functional Tea Market Report Scope and Segmentation|
|UNIT||Value (USD Million/Billion)|
|BY REGION||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
Functional Tea Market: Key Drivers, Trends, and Challenges
The health benefits of functional tea is notably driving the functional tea market growth, although factors such as the availability of counterfeit functional tea products may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the functional tea industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Functional Tea Market Driver
One of the key factors driving the global functional tea market growth is the health benefits of functional tea. The health benefits include improved immunity, hence protection against cold, and better digestion. Some other functional tea products and their health benefits are mentioned below:
- Yerba mate: It is rich in antioxidants and nutrients, boosts energy and immunity, improves mental focus and physical performance, helps to lose body fat and weight, and lowers blood sugar levels and the risk of heart diseases.
- Hibiscus tea: It is rich in vitamin C and contains flavonoids, reduces blood sugar levels, lowers blood pressure, aids in digestion, helps in reducing menstrual cramps, and keeps the liver healthy.
- Lemongrass tea: It is rich in inflammation-fighting compounds such as disorienting and chlorogenic acid, helps in relieving anxiety and pain, lowers cholesterol levels, prevents infection, boosts oral health, and increases the red blood cell count.
- Chamomile tea: It is rich in flavonoids, helps in reducing menstrual pain, lowers blood sugar levels, and helps with relaxation and sleep.
Therefore, growing awareness among consumers regarding the health benefits of functional tea is likely to propel the growth of the market during the forecast period.
Key Functional Tea Market Trend
Premiumization of functional tea products is one of the key functional tea market trends that is expected to impact the industry positively in the forecast period. Premium functional tea products are marked with quality assurance stamps from the USDA and others, which regularizes the product quality. Several vendors in the global functional tea market offer functional tea products under the premium category. For instance;
- Numi offers a product line of Premium Matcha green tea in two flavors called Citrus Matcha and Ceremonial Matcha.
- World Of Chai offers Bay Leaf Premium Masala Tea under its premium tea offerings.
- Numi offers Petite Bouquet, which is a tea box with four different flowering tea products. Flowering tea buds offered in this box include Dragon Lily, Sunset Oolong, Lavender Dream, and Golden Jasmine.
Therefore, the premiumization of functional tea products is expected to propel the growth of the market in the coming years.
Key Functional Tea Market Challenge
One of the key challenges to the global functional tea market growth is the availability of counterfeit functional tea products, which leads to an uneven competitive scenario among genuine functional tea vendors. The counterfeit functional tea products lack quality and are priced lower than genuine products. Several instances of manufacturing and sales of counterfeit tea products, including functional tea products, have been seen in the global market. For instance; a drug processing laboratory was raided by the Malaysian police in the Seberang Prai Selatan district of Malaysia. Drugs and more than 1000 fake herbal tea boxes were seized by the police from the facility. Consumers are often misled by similar product names and packaging as that of products of established brands, especially in APAC countries, such as China, India, and Thailand, and in Middle Eastern countries, such as the UAE, Saudi Arabia, and Qatar. This may hinder the sales of genuine functional tea products during the forecast period.
This functional tea market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Who are the Major Functional Tea Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Arteasans Beverages LLC
- Associated British Foods plc
- Barrys Tea
- Dilmah Ceylon Tea Co. Plc
- ekaterra B.V
- Godrej and Boyce Manufacturing Co. Ltd.
- Harney and Sons Fine Teas
- Herbaty Szlachetne Sp. z o. o
- Numi Inc.
- ORGANIC INDIA Pvt. Ltd.
- PHARMADUS BOTANICALS S.L
- Tata Consumer Products Ltd.
- The Hain Celestial Group Inc.
- The Organic MerchantsÂ
- The Republic of Tea
- Tiesta Tea Co.
- Unilever PLC
- Simple Life International Holdings Sdn Bhd
Functional tea market, By Type
- Green Tea
- Herbal Tea
Functional tea market, By Form
- Loose Leaves
Functional tea market, By Function
- Weight Loss
- Gut & Digestive Health
Functional tea market, By Distribution Channel
- Supermarkets & Hypermarkets
- Convenience Stores
- Specialty Stores
Which are the Key Regions for Functional Tea Market?
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 affected the market in countries such as the US and Canada. The pandemic affected the supply chain of the regional functional tea market, especially in the US. A rise in the number of COVID-19 cases disrupted the usual market demand for functional tea in several countries, such as the US, Canada, and Mexico. However, the initiation of vaccination drives led to the resumption of business activities in the functional tea market in the last quarter of 2020. This resulted in the restoration of the supply chain and the reopening of manufacturing units of functional tea in the region, which stabilized the growth of the market in 2021. Also, vendors are increasingly adopting e-commerce channels to increase their sales in the region. Thus, all these factors will propel the growth of the regional functional tea market during the forecast period.
What are the Revenue-generating Type Segments in the Functional Tea Market?
The functional tea market share growth by the herbal tea segment will be significant during the forecast period. Herbal tea is witnessing high demand among health-conscious consumers as it has a higher proportion of antioxidants compared to other forms of tea. A variety of herbal tea products are available with different ingredients such as leaves, tree bark, plant roots, seeds, and various spices. The new product launches will further boost the growth of the herbal tea segment of the global functional tea market in the forecast years.
This report provides an accurate prediction of the contribution of all the segments to the growth of the functional tea market size and actionable market insights on post COVID-19 impact on each segment.
What are the Key Data Covered in this Functional Tea Market Report?
- CAGR of the market during the forecast period 2022-2030
- Detailed information on factors that will drive functional tea market growth during the next five years
- Precise estimation of the functional tea market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the functional tea industry across North America, APAC, Europe, South America, and Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of functional tea market vendors