Out of Home Tea Market Size, Share & Industry Analysis, By Product Type (Herbal Tea, Green Tea, Black Tea, Oolong Tea, Others), By Packaging Formats (Pouches, Tea Bags, Canned Tea, Bottled Tea, Others), By End-User (Tea Stalls & Cafess, Hotels & Restaurants, Offices & Institutions, Others) And Regional Forecast, 2024-2032

Tea is the most commonly consumed type of beverage across the world. Growing awareness regarding the health benefits of drinking a cup of tea is primarily driving the growth of the market. Tea is a highly essential drink in cough control and also provides antioxidants to the body. Tea is largely consumed by the workers, other professionals, and students at the tea stalls or cafe to energies themselves towards their work.

Tea stall owners are highly concerned about the provision of high quality & hygienic tea service to the people to attract a greater number of people towards them. Additionally, they are keen to expand their business by establishing their various franchise stores and online stores which further provide ease to the consumption of out of home tea packets. For instance, in June 2018, Chai Point, a Bengaluru, India based tea retailer invested USD 1.33 million to install 30 new tea stores across the city.

Increasing demand for instant energy strengthening drinks has given rise to the consumption of the tea products among the tea stalls. Additionally, growing people's preferences towards consuming immunity-boosting food items to fight with pandemic diseases such as COVID-19 is further propelling the demand for the tea packets among the hotels and restaurants. Rising infrastructural facilities related to the hotel & restaurant is driving the growth of the market. According to the report ‘Hospitality, Tourism, and Leisure in the U.A.E.’, presented by Use UAE Business Organisation, as of 2018, Dubai had 703 hotels and 111,864 rooms of apartment properties that are increased by 6% over to that of 2017.

Moreover, recent innovations in the instant tea maker pots and machines are likely to yield the productivity of the tea merchants to fulfill the tea orders of the people, which thereby support the market growth. For instance, in January 2018, Chaayos, a Tiger Global-backed tea machine maker launched IoT enabled tea machines across their 53 outlets.

However, higher prices of the premium tea products are anticipated to restrain market growth. Additionally, rising awareness regarding staying at home for the infection control purposes during the COVID-19 outbreak has temporarily reduced the consumption of the tea at the beverage merchant stores and halted the market growth.

Key Market Driver -

Rising consumer demand for instant energy-boosting drinks to drive market growth.

Key Market Restraint -

Higher prices of premier tea products are anticipated to restrain market growth.

Key Players Covered:

The key players associated with the global out of home tea market are, Unilever Plc., Starbucks Corporation, Tata Global Beverage Ltd., The Republic of Tea, Tenfu Corporation, JAB Holding Company, Hain Celestial Group, Associated British Foods Plc., The Coca Cola Company, Nestle S.A., and others.

The global out of home tea market is segmented based on product type, packaging formats, end-user, and geography.

Based on the product type market is segmented into herbal tea, green tea, black tea, oolong tea, and others. The black tea segment is projected to hold a major share of the market owing to the large consumption volume of the black tea. According to the data published by the Tea Association of the USA, in 2019, 84% of the total tea consumption in America was of a black tea type. Additionally, black tea helps to improve focus and concentration of an individual which further drives the segment growth.

Based on packaging formats, the market is segmented into pouches, tea bags, canned tea, and bottled tea, and others. Tea-bags segment is expected to hold a dominant share of the market as it is most convenient to use over other types. Additionally, large consumption of the easy-to-brew tea bags results in the large demand for such a style of tea packaging.

On the basis of the end-user, the market is segmented into tea stalls & café’s, hotels & restaurants, offices & institutions, and others. Tea stalls & cafés segment is expected to hold a major share of the market owing to the fact that tea drinks are readily available & quickly served in these shops. Additionally, the least tea pricing points of a cup of tea at the tea stalls over others results in the larger revenues from this segment. 

Regional Analysis:

By geography, the global out of home tea market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Asia Pacific region is projected to dominate the global out of home tea market owing to the large on-the-street tea consumption volume across the population in the countries such as China, and India.  According to the report ‘Study of Assam Tea Value Chains’, published by Bureau for the Appraisal of Social impacts for Citizen Information, as of 2019, India is the second most consumer market of tea with the consumption accounted 1.05 million, a 20% of the global tea consumption volume.

Additionally, the rising organized and unorganized chain of café’s & tea stalls in the region is further propelling the demand for the tea from these shops. According to the article ‘Youngsters in China Prefer Tea Houses to Coffee Brands’, published by China Daily News, the number of tea shops in china has increased from 330,000 in the first quarter of 2017 to 570,000 in the third quarter of 2018.

North American market is expected to grow at a faster rate owing to the rising eating & drinking places sales which results in the increase in the revenues from the tea from out-of-home tea service retailers in countries such as United States, Canada, and Mexico.

According to the data presented by the National Restaurant Association, in the United States, eating & drinking places sales have increased from USD 65,800 million as of December 2019 to USD 66,500 million by the end of January 2020. Additionally, the busy working lifestyle of the Canadian millennials has provided a significant shift of the people from consuming tea at households to out-of-home.

Large import volume of green tea & black tea in countries such as the United States, and Canada for consumption purposes has strongly supported the growth of the market in the region. According to the data presented by the Tea Association of the USA, in 2019, the U.S. import of green and black tea has reached USD 339.65 million.

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Segmentation

Key Industry Developments:

• In April 2019, Tata Global Beverage Ltd. acquired Dhunseri Tea and Industries Ltd. with its tea brands ‘Lalghoda’ and ‘Kalaghoda’ to expand their presence in the local markets of Rajasthan, India.


• In August 2019, Hain Celestial Group launched Celestial Seasoning TeaWell, a range of tea products that are made up of a blend of herbs & botanicals that aid the consumers in their digestion, immunity support, and mental vitality.