Tea Packaging Market Size, Share & Industry Analysis, By Material (Plastic, Paper & Paperboard, Metal, and Others), By Type (Recyclable and Non-recyclable), By Packaging Type (Primary and Secondary), By Product Type (Bags, Pouches, Stick Pack & Sachets, Jars & Containers, Boxes & Cartons, and Others), and Regional Forecast, 2024-2032

The global tea packaging market size was valued at USD 5.73 billion in 2023. The market is projected to grow from USD 5.99 billion in 2024 to USD 8.94 billion by 2032, exhibiting a CAGR of 5.12% during the forecast period. Asia Pacific dominated the tea packaging market with a market share of 40.31% in 2023. Moreover, the tea packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.09 billion by 2032, driven by the growing concern about the health benefits of tea.

Tea is one of the oldest and most widely consumed non-alcoholic beverages worldwide. Packaging plays a crucial role in maintaining the freshness, aroma, and taste of the tea. Furthermore, increasing demand for high-quality packaging to attract customers and provide more product details is driving the growth of this market. The demand for packaging with lower environmental impact is increasing at a significant pace, fueling the growth of this market. Furthermore, the rise of the e-commerce industry has led to an increase in tea sales through online channels, resulting in lucrative growth of the market.

The sudden onset of the COVID-19 pandemic impacted the growth of the tea packaging industry. Tea producers worldwide were greatly affected due to national lockdowns and social distancing policies. Trade restrictions created uncertainty in the tea market, and producers were undertaking emergency response measures to prevent the spread of COVID-19 in tea communities. This directly caused a decline in the tea packaging market's growth.

Tea Packaging Market Trends

Augmenting Demand for Natural and Flavored Tea to Become Major Market Trend

The initiative for innovation by manufacturers has gradually increased the demand for natural and organic ingredients in different tea flavors, blends, and settings, along with enhanced freshness, quality, and visual appeal, to gain market share. There is also an emerging interest in higher-quality specialty teas with distinctive flavors. In addition, green tea, herbal tea, and fruit-based teas are becoming increasingly popular in various regions, particularly in Europe, due to their health benefits. At the same time, public interest in locally grown, organic, and specialty premium teas has also increased. Factors such as innovation and premiumization characterize the market, which is attracting more young customers from an emerging middle-class population.

The increasing demand for natural products with a premium appearance is encouraging manufacturers to invest in research and development and innovate their packaging to make it sustainable and eco-friendly while giving it a luxurious look. Additionally, luxury tea packaging designs can be simple or extravagant, offering manufacturers the opportunity to position their products, reflect their branding, resonate with their target audience, and increase their customer base.

Tea Packaging Market Growth Factors

Increasing Demand for Single-Serve Packaging to Enhance Market Growth

Tea bags have become the most popular choice for consumers due to their ease of use. These bags are available in various options, including green, black, and herbal tea. The increasing use of tea bags for single-serve purposes, such as in corporate offices, railways, and restaurants, is accelerating the use of tea packaging products.

However, earlier, tea bags contained some amount of plastic that was gradually harming the human body. Thus, biodegradable tea bags were introduced, which were made up of cellulose, starch, or abaca fibre. They offer a more environmentally friendly alternative to traditional tea bags. Such tea bags not only prevent the plastic from moving to the human gut, but also avoid it from going to the landfills, thus safeguarding the surroundings and contributing to the adoption of tea packaging products.

Rising Consumption of Tea Owing to Its Benefits to Fuel Market Growth

Tea is one of the most popular and oldest drinks available in several varieties, and the use of different flavoring ingredients is becoming more common. People have started consuming tea every day across the world due to its benefits. Natural substances called polyphenols are found in both caffeinated and herbal teas. These substances are antioxidants, compounds that may help diminish the risk of certain chronic diseases.

Additionally, the consumption of flavan-3-ols, a plant compound found in real teas, has positive effects on heart health, including lowering cholesterol, blood pressure, and blood sugar. Tea also has anti-inflammatory properties that can support the health of the immune system. People's inclination toward healthy drinks due to increasing health risks is also driving the growth of this market.

RESTRAINING FACTORS

Impact of Incorporating Plastic in Tea Packaging on Customers’ Health and Environment May Impede Market Growth

Most tea bags are made of plastic, nylon, or bleached paper and sealed with glue. While traditional tea bags are made of paper, many new ones are made of plastic. Though the plastic does not melt when placed in hot water, it erodes over time and releases microplastics into the tea.

The paper tea bags are also not completely safe unless they are manufactured using sustainable materials. Even though they are made of paper, they are often bleached paper, and the tea bags are sealed with either staples or glue, both of which can have damaging effects on the human body and, thus, hinder the growth of this market. For instance, according to a study from McGill University, researchers found that a single plastic tea bag releases about 11.6 billion microplastic and 3.1 billion nanoplastic particles into the water at brewing temperature.

These tea bags are harmful to the individual's health and the environment. They often contain a small amount of non-biodegradable polypropylene to seal the bag. In some cases, excluding tea, plastic makes up about 25% of the tea bag. This can lead to enormous amounts of single-use plastics ending up in the environment, hindering the adoption of plastic-based tea packaging products.

Tea Packaging Market Segmentation Analysis

By Material Analysis

Increasing Demand for Tea Bags Boosts the Growth of the Paper & Paperboard Segment

Based on material, the market is segmented into plastic, paper & paperboard, metal, and others.

The paper & paperboard segment holds the largest share of this market. Paper packaging is an effective and eco-friendly way to package tea. It is made from recycled packaging materials and is 100% biodegradable. Paper tea packaging protects the freshness and quality of tea while also providing a sustainable option for tea lovers. In addition to this, the increasing use of paper in the manufacturing of tea bags is one of the main driving factors of this segment’s growth.

Plastic is the second-dominating segment of this market. Plastic-based tea packaging has excellent barrier properties that protect the tea from external factors, such as moisture, oxygen, and light. This helps preserve the aroma and flavor of the tea, ensuring that it remains fresh and flavorful for a longer period, thus contributing to the segment’s growth. However, plastic can degrade the quality of the tea as well.

By Type Analysis

Increasing Demand for Sustainable Packaging Drives Use of Recyclable Packaging

Based on type, the market is segmented into recyclable and non-recyclable.

Recyclable is the dominating segment in this market. With sustainability becoming more important than ever, businesses are exploring new ways to reduce their environmental impact. Recycling reduces the need to create new raw materials, which in turn decreases greenhouse gas emissions and conserves energy. Moreover, recycled materials are often cheaper than their virgin counterparts, and one of the biggest advantages of using recycled materials is that they help reduce waste, thus thriving the segment's growth.

Non-recycled is the second-dominating segment of this market. Non-recycled packaging, such as plastic and its films, provides better rigidity and helps increase the product’s life, thereby bolstering the segment’s growth.

By Packaging Type Analysis

Better Product Safety Offered by Primary Packaging Fuels Its Adoption

Based on packaging type, the market is segmented into primary and secondary.

The primary segment holds the largest share of this market. Primary tea packaging plays a central role in extending the shelf life of a product as it directly comes in contact with the product. It provides the necessary details about the products, and eye-catching packaging also helps in attracting consumers, thereby fueling the segment’s growth.

Secondary is the second-dominating segment of this market. Secondary tea packaging helps in the safer delivery of a product during logistics. The increasing trade of tea among countries is driving the growth of this segment.

By Product Type Analysis

Augmenting Demand for Single Serve Packaging Due to its Convenience is helping in the Segment’s Lucrative Growth

The market is segmented by product type into bags, pouches, stick packs and sachets, jars and containers, boxes and cartons, and others.

The bag segment holds the largest tea packaging market share. Bags are strong, durable, and cost-effective. They can be reused, and the materials used in their manufacturing, such as plastic and paper, make them recyclable, thus lessening their impact on the environment and fostering the segment’s growth. The augmenting demand for single-serve tea packaging, such as tea bags, is one of the factors driving the segment’s growth.

Pouches are the second-dominating segment of the market. Pouches are flexible, help with the easy transportation of products, and are convenient for both consumers and vendors. The expanding e-commerce industry and rising sales of tea through online platforms will drive the segment’s growth during the forecast period.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

Asia Pacific holds the largest share of this market. The high production of tea in countries such as India and China and emerging economies such as Indonesia and Bangladesh, along with the high consumption of tea in the region, is fueling the growth of the regional market.

Europe is the second most dominant region in this market due to the presence of countries that consume tea in high quantities. The growing demand for tea bags and sustainable and eco-friendly packaging solutions are some of the main driving factors of the region’s growth.

North America is experiencing significant growth due to the presence of key players in the region.

The Middle East & Africa is experiencing lucrative growth and will witness robust growth during the forecast period. The high production of tea in African countries, such as Kenya and Morocco, among others, and their rising international exports are contributing to this region’s growth.

Latin America is experiencing steady growth due to the high consumption of tea.

List of Key Companies in the Tea Packaging Market

Key Market Participants Witnessing Significant Growth Opportunities

The global tea packaging market is highly fragmented and competitive. In terms of market share, a few major players dominate the market by offering innovative packaging solutions. These major players are constantly focusing on expanding their customer base across regions.

Major players in the market include Amcor, Berry Global, Sealed Air, Printpack, Huhtamaki, and others. Numerous others are focused on delivering advanced packaging solutions.

List of Key Companies Profiled:

• Amcor plc (Switzerland)


• Berry Global (U.S.)


• Sealed Air (U.S.)


• Printpack (U.S.)


• ProAmpac (U.S.)


• Constantia Flexibles (Austria)


• ePac Flexible Packaging (U.S.)


• Swiss Pack (U.K.)


• Huhtamaki (Finland)


• Transcontinental Inc. (Canada)


• NIKITA CONTAINERS PVT. LTD. (India)


• SKS Bottle & Packaging, Inc. (U.S.)


• Packman Industries (India)


• SIG (U.S.)


• SP Group Packaging (Spain)

KEY INDUSTRY DEVELOPMENTS:

• September 2023 - The Mitsubishi Chemical Group introduced BioPBS, a bio-based compostable polymer, in EN TEA teabag pouches. The pouches include a sealant layer, zipper closure including adhesives, and a barrier layer.


• March 2021 - Dorset Tea, a premium tea brand, announced the launch of tea bags that are fully sustainable. These bags are made using PLA, a type of plastic manufactured from vegetable starch and wood pulp.


• January 2020 - Numi Organic Tea launched plant-based tea wrappers. They feature a thin, non-GMO PLA layer made from renewable materials, such as sugarcane and 100% FSC-certified paper. It guarantees no eco-toxicity when it breaks down and requires less carbon than traditional plastic.


• April 2019 - Crown Holdings, Inc. launched a round-to-square-shaped tin for the luxury market. The tins can be used for the packaging of confectionery products for coffee and tea.


• January 2019 - Transcontinental Inc., in collaboration with Harney & Sons, a tea company, launched multilayer stand-up pouches. The pouches are 100% recyclable, which helps reduce the company's carbon footprint while protecting the flavors and freshness of the product.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the above mentioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

REPORT SCOPE & SEGMENTATION