Organic tea market expected to reach valuation of US $ 2.6bn in 2032

The global organic tea market is set to witness growth at a CAGR of 8.2 percent and is anticipated to reach a valuation of around US $ 2.6 billion by 2032, an analysis by Future Markets Insights (FMI) revealed.

A study carried out by the market intelligence provider highlighted that the organic tea industry is predicted to expand as a result of the rising trend of organic and clean label nutritious beverages.

“Organic products are becoming common among consumers, due to their changing lifestyles and the growing notion that organic products are healthier than conventional ones. 

Moreover, the growing trend of consuming naturally derived and pesticide-free products will help organic tea sales soar across the world,” FMI said.

Based on product type, herbal organic tea is anticipated to account for over 50 percent of the market share over the forecast period.

The North America organic tea market is expected to register growth at 7.9 percent CAGR during the forecast period, while Europe is expected to account for about 40 percent of the global organic tea consumption through 2032.

Organic tea sold in tea bags is expected to hold a market share of over 40 percent in the forecast period.
The supply chain for the organic tea market was severely affected by COVID-19, resulting in a slowdown in sales. However, with the recovery of the economy and rising demand for functional beverages, the market is anticipated to grow significantly, FMI said.

“Consumers seeking authentic tea experience will result in high demand for specialty tea. This is expected to aid the organic tea market growth,” an analyst of FMI said in a report that presented results of the analysis.

The global organic tea market is moderately consolidated with the leading players focusing on launching new and innovative teas while strategically partnering and acquiring established players in the business.

In addition, the FMI pointed out that it is also expanding its production capabilities to allow consolidation in the market.

Food safety has become a critical consideration for consumers thus organic food, which is cultivated naturally without the use of chemical fertilisers, such as organic tea leaf, is regarded safer than conventional tea leaf. This is also helping the organic tea market gain traction.