by The Out of Home Tea Market is estimated to be valued at US$ 23.74 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The out of home tea market comprises various tea products that are consumed outside the home, especially in restaurants, cafes, hotels, and coffee shops. Tea is one of the most consumed beverages globally and the out of home consumption is gaining popularity due to changing lifestyles. People prefer specialized tea beverages while dining out or socializing. Some of the popular products in this market include green tea, black tea, fruit flavored tea, herbal tea, and mixed tea blends that are sold in loose-leaf or bagged formats. Tea cafes are also emerging as trendy hangout places for tea lovers to socialize over a hot or iced tea beverage.
Market Dynamics:
The out of home tea market is primarily driven by the growing health consciousness among consumers and perceived health benefits of tea. Green tea and herbal teas are considered to have antioxidant and anti-inflammatory properties that promote overall well-being. Additionally, the rising demand for specialized tea flavors and customized beverages is also fueling the market growth. Tea shops are introducing novel tea mixtures and unique blends made from rare herbs and spices to cater to evolving consumer preferences. Furthermore, comfortable ambiance and WiFi availability in cafes have made them popular working and meeting places, thereby supporting the out of home tea consumption. Changing work culture and fast-paced life have increased the demand for beverages that provide functional benefits like caffeine in black tea drinks.
Segment Analysis
Content: The out of home tea market can be segmented into hot tea and iced tea. Hot tea dominates the market and accounts for nearly 65% share due to consumers preferring hot beverages while dining out or socializing. Hot tea offers product variety in terms of flavors and ingredients and is widely consumed across regions globally.
PEST Analysis
Political: There are no significant political risks affecting the out of home tea market.
Economic: The growing disposable incomes and increasing consumer spending on food and beverages consumed outside the home is driving the economic growth of the market.
Social: The social trends toward healthier beverage options and coffee culture have increased the popularity and social acceptance of tea consumption outside the home.
Technological: Digital innovations in food ordering and contactless payments have enabled the growth of quick-service restaurants and cafes, fueling the demand for out of home tea.
Key Takeaways
The global out of home tea market is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing urbanization and busy lifestyles leading to more food consumed outside the home. The market size for 2023 is estimated at US$ 23.74 Bn.
Asia Pacific dominates the market with a share of over 35% due to the widespread tea culture and growing food service industry in countries like China and India. North America is the fastest growing region due to rising health awareness and changing dietary patterns.
Key players operating in the out of home tea market include Tata Global Beverages Ltd., Nestle S.A, Celestial Seasonings Inc., Unilever Plc., Ito En, Ltd, Barry’s Tea, Associated British Foods, Dilmah Ceylon Tea Company, The Republic of Tea, and Bettys and Taylors Group Limited. These players are focusing on leveraging the health perception of tea and introducing new product varieties to expand their consumer base.
