Tea Bags Market Overview

Global Tea Bags Market reached US$ 7.80 billion in 2022 and is expected to reach US$ 13.81 billion by 2030, growing with a CAGR of 7.4% during the forecast period 2023-2030.

Increasing health consciousness among consumers is increasing the demand for healthy and immunity-booting drinks such as green tea and herbal tea. According to the Food and Agricultural Organization 2023, global annual tea production amounts to over $18 billion with around 13 million producers involved in it. The availability of tea bags in various shapes such as pillow, round, square and pyramid provides consumers with a convenient way of having their favourite tea.

Manufacturers are developing innovative packaging and aromatic flavours to attract more consumers. The launch of natural and eco-friendly tea bags into the market is positively influencing the expansion of the global tea bags market. For instance, in April 2023, Eshanya Beverages, a Mysuru-based start-up, introduced Betel leaf tea bags that were developed at the NITTE DST Technology Enabling Centre.

Manufacturers are adopting the use of emerging marketing techniques to spread their product reach to a wide range of customers, increasing the market size. For instance, in 2022, Luxmi Tea Company Private Ltd., an Indian tea manufacturer that produces different types of tea such as green tea, black tea and others in different forms including loose-leaf and tea bags scaled up operations and started selling its teas directly to consumers both through its online site, and other marketplaces and through retail stores.

Tea Bags Market Scope

Metrics	Details
CAGR	7.4%
Size Available for Years	2021-2030
Forecast Period	2023-2030
Data Availability	Value (US$)
Segments Covered	Type, Shape, Package Material, Distribution Channel, End-User and Region
Regions Covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Fastest Growing Region	North America
Largest Region	Asia-Pacific
Report Insights Covered	Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights.

 

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Tea Bags Market Dynamics

Availability of Healthy and Aromatic Tea Options

Tea is one of the most popular drink in the world. The high consumer awareness regarding the consumption of various types of healthy teas such as green tea, black tea and herbal tea is increasing the tea demand in the market. According to the Food and Agriculture Organization, world tea consumption has increased by 3.5% over the past decade. The high demand for tea is one of the primary driving factors for tea bags due to its ready-to-use nature.

The launch of healthy products into the market is driving the market growth. For instance, in August 2022, Dabur, India’s leading Ayurvedic and Natural Health Care Company announced the introduction of a new product offering with the launch of Dabur Vedic Green Tea Detox Kahwa. This green tea tag is incorporated with ayurvedic herbs and rock salt. The tea bag is infused with 8 real Ayurvedic herbs and rock salt that help in detoxification.

In November 2022, Numi Organic Tea introduced its new Roasted Japanese Green Tea Line featuring small-batched processed and custom-sized whole-leaf grade organic tea sourced from Japan. The new line of tea bags consists of small-batch processed and custom-sized whole-leaf grade organic tea that is sourced from Japan. The company offers distinctive and nuanced flavours of high-quality roasted green teas highlighting umami and yuzu flavours.

Introduction of New and Innovative Tea Bag

Tea bags are gaining high popularity among global consumers who are looking for a convenient and easy way of preparing their tea. With busy lifestyles and tight schedules, consumers are looking for easy and ready-to-use beverage options. Tea bags are easy to use provide a single-serving tea experience and reduce the tea preparation from scratch. New and innovative launch of various types of tea bags is driving the market growth.

In October 2023, Nepal Tea Collective announced the launch of plastic-free whole-leaf tea bags. The tea bags are made of 100% non-GMO sugarcane fibre, which is a plant-based material. These free tea bags, make it easy for consumers to tea flavor without any problem of microplastics. Additionally, these tea bags are reusable, allowing for multiple servings of tea.

In June 2023, SAYSO, the world's first craft cocktail tea bag, unveiled the new product packaging and two new flavors. The new packaging is a result of the brand's commitment to offering a more eco-friendly product at an even more affordable price point, following a successful retail expansion across 36 premium specialty stores and boutiques nationwide. The brand announced the replacement of its current box packaging with pouches made from post-consumer recycled materials in June 2023.

High Cost of Tea Bags and Substitute Product Availability

The high cost of the teabags compared to loose tea leaf powder or granules is one of the major restraining factors for the market growth. The bags that are used for packing the loose tea leaves are made of various materials of paper and plastic, which can add more manufacturing costs to producers. The additional packaging costs can make the tea bags more costly than the conventional loose tea available.

Price-sensitive customers prefer loose tea rather than tea bags, hindering market growth. Consumers are increasing their interest and knowledge in knowing the new and healthy beverage options. The increasing popularity and wide adoption of various healthy tea substitutes, such as lemon water and yoghurt limit the market growth.

Tea Bags Market Segmentation

The global tea bags market is segmented based on type, shape, package material, distribution channel, end-user and region.

 

High Health Benefits of Fruit & Herbal Tea

The global tea bags market is segmented based on the type into fruit and herbal teabags, green teabags, black teabags and others. The fruit & herbal teabags accounted for the largest segment in the global tea bags market due to increased health advantages associated with these tea types. Herbal teas are highly valued due to their high medicinal properties.

The use of various fresh or dried flowers, leaves, fruit and roots in the preparation of fruit and herbal tea bags makes it a healthier option for the global population. Due to the numerous health benefits of fruit-infused products, many tea drinkers are now switching to them. The high demand for fruit and herbal-based teas is driving the market for herbal-based tea bags that can be used conveniently to obtain natural and healthy beverages anywhere.

In November 2022, Netsurf Network, one of India's largest direct-selling players, announced the launch of a new herbal tea line including ginger and cumin, tulsi and liquorice, ashwagandha and lemon and others. These tea bags are highly adopted by health-conscious people driving market growth.

Tea Bags Market Geographical Share

High Tea Consumption in Asia-Pacific

Asia-Pacific dominated the global tea bags market with India and China leading the market growth. The great history of tea culture in this region drives the largest share of the global market. For consumers of this region, especially in India and China tea is considered a popular beverage for daily use and is consumed in large volumes.

The Food and Agriculture Organization reveals that China is the largest tea producer worldwide, contributing 47% of the global output. In 2021, China produced 3.1 million tonnes of tea, which is an increase from the 2.9 million tonnes produced in 2020. India, the second largest producer, accounted for 1.33 million tonnes of tea in 2021. India is one of the top five tea-exporting countries in the world, accounting for approximately 10% of total global exports.

According to the Tea Board, India consumed over 89% of the tea production in 2021. In the year 2020-21, India's tea consumption increased to 1,145 million mkg according to the Tea Board. The high production and consumption of tea in this region, help in the development of various convenient tea products such as tea bags for its use among people with busy schedules.

Competitive Landscape

The major global players in the market include Nestle S.A, Parle Products Pvt. Ltd, Berrymans Sweets, Perfetti Van Melle, Hersheyland, Tootsie Roll Inc., Lotte India, Cavendish & Harvey Confectionery GmbH, Candzey and Sugarless Confectionery Sugarlean PTY LTD.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic had both positive and negative impact on the global tea bags market. The pandemic created various challenges for every industry including the food and beverage sector due to limited production and distribution activities at the industrial level due to limited resources and unfavorable conditions.

The shutdown of various cafes, restaurants, and public tea-time places, reduced the demand for the various tea types on the global level, reducing the sales of tea bags. In addition, the shutdown of various offline stores such as convenience stores and supermarkets, created challenges for the customers to reach out the final product.

The pandemic increased the demand for healthy beverages such as herbal and green tea, to improve their immunity and health conditions. Tea bags were highly in demand due to their convenience and ready-to-use nature. The high use of tea bags at the household level positively impacted the market growth. The increased role of online sales platforms in providing greater options of tea bags raised the sales of the market.

Russia- Ukraine War Impact

Various industries around the world were affected by the Russia-Ukraine war and food and beverage industries were one of them. The industries faced numerous challenges and losses due to improper supply chain activities and decreased product sourcing and distribution among various regions of the world. The interrupted trade transitions at the global level decreased the sales and profit of the industry.

Key Developments

• In January 2023, Seven Spring, a Gujarat-based tea brand, announced the launch of 100% compostable tea bag sachets in India. The product is free from plastic and aluminium foils.
• In January 2021, Sainsbury’s, announced the introduction of its first plant-based own-label tea bags into the market. The new plant-based tea bag is claimed to be produced from polylactic acid, sourced from the sugars in cornstarch or sugarcane.
• In January 2020, Tea India Ltd company, one of the largest tea producers in the world, launched luxurious colored and aromatic flavored tea bags in U.K. The tea bags contain various infused materials such as simmering milk, oats, cashews, and coconut.

 

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