The green tea market was valued at US$ 12,777.6 million in 2018 and is expected to grow at a CAGR of 6.0% from 2019 to 2027 to reach US$ 21,456.2 million by 2027.

Green tea is prepared from the Camellia sinensis plant. The leaf buds and dried leaves of the Camellia sinensis plant are used in the preparation of the green tea. It is prepared by pan-frying and steaming these leaves followed by drying them. Green tea is generally produced through enzymatic hydrolysis technique. Green tea is known to be beneficial against various health issues such as depression, various types of cancers such as lung cancer, liver cancer, colon cancer, gastric cancer, and many others. Some of the scientific studies have also proven that the consumption of green tea is beneficial in enhancing the thinking skills and also is helpful in lowering cholesterol and triglycerides in the body. In 2018, Asia Pacific region holds the largest share in the global green tea market. The largest market share of the Asia Pacific region is primarily attributed to changes in lifestyle patterns of consumers and preference toward healthy and natural food products. The demand for green tea is expected to increase in the region with the growing awareness of the health benefits attributed with the consumption of green tea. The green tea manufacturers are expanding their production activities in developed countries such as China, India, Japan, and South Korea so as to meet the rising demands of green tea in the region which is further expected to expand the growth of the Green tea market in the region.

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Green Tea Market: Strategic Insights

Green Tea Market

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  CAGR (2018 - 2027)

  6.0%
• Market Size 2018
  US$ 12.78 Billion
• Market Size 2027
  US$ 21.46 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Key Players

• AriZona Beverage Co.
• Associated British Foods plc
• Dilmah Ceylon Tea Company PLC.
• Finlays
• Hankook Tea
• ITO EN
• Kirin Holdings Company Ltd
• Nestle S.A.
• Tata Global Beverages

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Green Tea Bags
• Green Tea Instant Mixes
• Iced Green Tea
• Loose Leaf
• Others

Flavour

• Lemon
• Aloe Vera
• Cinnamon
• Vanilla
• Basil
• Others

Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others

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Market Insights   

Health benefits of flavored green tea is impacting the growth of green tea market

Consumers in developed and developing regions have become more aware of their health these days. Green tea is made from leaves and buds of Camellia sinensis, and it does not involve the process of withering and oxidation. The consumption of green tea is known to prevent cancer, liver cirrhosis, obesity, blood pressure, and many other chronic diseases. It also helps in losing weight as it is composed of bioactive substances, including caffeine and polyphenols that help in breaking down of fat cells and discharging them into the circulatory tract, thereby driving its demand. A drink made combining green tea and lemon offers numerous health benefits as it has several anti-inflammatory and anti-microbial properties. Nutrients such as amino acids, vitamins, minerals, polysaccharides, and enzymes are said to be present in Aloe Vera green tea. Cinnamon green tea helps fight stomach and digestive disorders, and increases digestion by enhancing the ability of your body to properly break down food and efficiently absorb nutrients. Basil green tea is helpful in sharpening memory while reducing anxiety. Tulsi green tea is rich in phytonutrients and antioxidants that help protect body against free radicals. The wide application base of green tea and consistent growth in the supply chain is expected to have a positive impact over market size.

Type Insights

Green tea market on the bases of type is bifurcated into green tea bags, green tea instant mixes, iced green tea, and loose leaf and others. The green tea bags segment accounted for the largest share in the global green tea market. Moreover, the loose leaf segment is projected to show significant growth over the forecast period. The green tea bags are generally made of filter paper, food-grade plastic, or silk cotton. The green tea bags are available in different flavors such as ginger, mint, and lemon. As green tea bags are easy to carry and can be prepared instantly these are much preferred in the urban areas. Additionally, the growing prominence of innovative, unique, and ethnic flavors in green tea are increasing the demand for green tea bags in the market. The increasing use of green tea bags has a positive impact on the market size.

Flavour Insights

The green tea market is segmented on the basis of flavour as lemon, aloe vera, cinnamon, vanilla, basil and others. The global green tea market based on form was led by the lemon segment and held the largest market share. The lemon green tea consists of antioxidants, flavonoids, and other phytonutrients which helps fighting several chronic and acute diseases. It is also available in the form of iced lemon green tea. Adding fresh lemon juice to the green tea also helps to increase its medicinal properties along with enhanced taste. The combination of green tea and lemon juice produces a drink which is rich in vitamin C, which has anti-inflammatory and anti-microbial properties. It also enhances heart health and glowing skin. The soothing aroma of the lemon flavored green tea is consumed by the consumer as they have multiple health benefits.

Distribution Channel Insights

On the basis of distribution channel, the global green tea market is categorized into supermarkets & hypermarkets, convenience stores, online and others. In 2018, supermarkets and hypermarkets segment led the global green tea market. Hypermarkets and supermarkets are self-help shops giving a wide variety of green tea products such as green tea mixes and iced green tea, different flavors of green tea including basil, tulsi, honey, lemon etc. These wide range of products are placed in a very organized way in different sections and shelves to attract customers. These types of stores offer an extensive choice of products to the consumers from different brands at one place and affordable prices as compared to other distribution channels. The wide availability of green tea products from various brands at a lower prices has encouraged customers to buy green tea from hypermarkets & supermarkets. 

Several strategies are commonly adopted by companies to expand their footprint worldwide, which is further impacting the size of the market. The players present in the green tea market adopt the strategy of expansion and investment in research and development to enlarge customer base and to gain significant market share across the world, which also permits the players to maintain their brand name globally.

Green Tea Market Report Scope

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Global Green tea Market - By Type

• Green Tea Bags
• Green Tea Instant Mixes
• Iced Green Tea
• Loose Leaf
• Others

Global Green tea Market - By Flavour

• Lemon
• Aloe Vera
• Cinnamon
• Vanilla
• Basil
• Others

Global Green tea Market - By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Online
• Others

Company Profiles

• AriZona Beverage Co.
• Associated British Foods plc
• Dilmah Ceylon Tea Company PLC.
• Finlays
• Hankook Tea
• ITO EN
• Kirin Holdings Company Ltd
• Nestle S.A.
• Tata Global Beverages
• Unilever