Global Organic Green Tea Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Organic Green Tea Market is expected to record a CAGR of 17.5% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 334.6 million. By 2032, the valuation is anticipated to reach USD 536.9 million.

The Organic Green Tea market refers to the segment of the tea industry that focuses on the production, distribution, and consumption of organic green tea. Organic green tea is grown and processed without the use of synthetic chemicals, pesticides, or genetically modified organisms (GMOs). It is cultivated using environmentally friendly and sustainable farming practices that promote soil health, biodiversity, and natural pest management.

Organic green tea has gained popularity due to increasing consumer awareness about the potential health benefits of consuming organic products and the desire to support sustainable and eco-friendly agricultural practices.

Green tea, in general, is known for its potential health-promoting properties, including antioxidants, polyphenols, and other bioactive compounds that may have positive effects on metabolism, heart health, brain function, and more.

The organic green tea market encompasses various aspects:

• Production: This involves the cultivation of tea plants using organic farming methods. Organic green tea is typically grown without the use of synthetic pesticides, herbicides, or chemical fertilizers.

• Processing: After harvesting, the tea leaves are processed using organic methods, which may include steaming, pan-firing, rolling, and drying. These processes preserve the natural compounds and flavors of the tea leaves.

• Packaging: Organic green tea is packaged and labeled as organic, complying with relevant organic certifications and regulations.

• Distribution: Organic green tea is distributed through various channels, including supermarkets, health food stores, specialty tea shops, and online platforms.

• Consumption: Consumers purchase and consume organic green tea for its potential health benefits and as a choice aligned with their environmental and ethical values.

• Varieties: The organic green tea market offers various varieties and blends, such as matcha, sencha, genmaicha, jasmine green tea, and more.

• Health and Wellness: The market often emphasizes the potential health benefits of consuming organic green tea, which may include antioxidant properties, weight management, and relaxation.

Organic Green Tea Market – Significant Growth Factors

• Health Consciousness: Growing awareness among consumers about the potential health benefits of consuming organic products, including organic green tea, has driven demand. Green tea is often associated with antioxidants and other bioactive compounds that may contribute to overall health and well-being.

• Rise in Organic and Natural Trends: The broader trend toward organic and natural foods has influenced the demand for organic green tea. Consumers are seeking products that are free from synthetic chemicals and are produced using sustainable farming practices.

• Environmental Concerns: Increasing concerns about the environment and sustainability have led consumers to choose products that are produced using eco-friendly methods. Organic farming practices used in cultivating green tea align with these environmental considerations.

• Preference for Specialty Teas: As consumers become more discerning about their tea choices, there has been a growing interest in specialty teas like organic green tea. These teas offer unique flavors, aromas, and potential health benefits that appeal to a diverse range of consumers.

• Positive Perception of Green Tea: Green tea, in general, has a positive reputation for its potential health-promoting properties. The perception that organic green tea offers even greater health benefits due to its organic cultivation methods has contributed to its growth.

• Increased Availability: The availability of organic green tea has expanded through various distribution channels, including supermarkets, health food stores, specialty tea shops, and online platforms. This increased accessibility has made it easier for consumers to find and purchase organic green tea products.

• Cultural and Traditional Associations: Green tea has deep cultural and traditional roots in countries such as China, Japan, and India. As these cultural influences spread and gain appreciation in other parts of the world, the demand for authentic organic green tea has risen.

• Marketing and Education: Marketing efforts and educational campaigns that highlight the benefits of organic green tea, its production methods, and its potential impact on health and the environment have contributed to its growth.

• Innovation and Product Diversity: The organic green tea market has seen innovation in terms of product offerings, such as flavored organic green teas, blends, and convenient packaging formats. This diversification appeals to a wider consumer base.

• Media and Celebrity Endorsements: Positive coverage in media, as well as endorsements from celebrities and influencers, have helped raise awareness and interest in organic green tea.

Organic Green Tea Market – Mergers and Acquisitions

In June 2019, Sariwangi, an Indonesian tea brand under the ownership of Unilever, unveiled an innovative addition to its product portfolio. This new line of 3-in-1 organic green tea products introduced two enticing flavors of powdered milk tea: caramel and Teh Tarik.

During the month of May 2019, Wagh Bakri Tea Group, a prominent premium tea company headquartered in Gujarat, India, made a significant announcement as part of its centennial festivities. The company introduced novel packaging solutions for its assortment of organic teas, showcasing its commitment to quality and innovation.

In a strategic move aimed at leveraging technology and expanding market presence, Ajinomoto General Foods Inc., a key player in the organic green tea market, collaborated with the global technology leader, Accenture plc, in November 2019. This joint venture took shape in Japan and reflects a convergence of strengths to capitalize on opportunities in the organic tea industry.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Organic Green Tea Market	Organic Coffee Market	Tea Tree Oil Market
CAGR 17.5% (Approx)	CAGR 9.5% (Approx)	CAGR 6% (Approx)
USD 536.9 Million by 2032	USD 14.55 Billion by 2032	USD 85 Million by 2030

Organic Green Tea Market – Significant Threats

• Competition from Conventional Tea: Conventional tea products, which may be cheaper due to non-organic production methods, can pose a threat by attracting price-sensitive consumers away from organic options.

• Mislabeling and Fraud: There is a risk of mislabeling or fraudulent claims about the organic status of tea products. Such incidents can erode consumer trust in the authenticity of organic green tea brands.

• Supply Chain Issues: Challenges in the organic green tea supply chain, such as crop failure, weather-related disruptions, or labor shortages, can impact the availability and quality of products.

• Regulatory Changes: Changes in organic certification regulations or other relevant regulations could affect the production, labeling, and marketing of organic green tea.

• Health Scares or Contaminants: Any health-related concerns, such as contamination or the presence of harmful substances, can severely damage the reputation and consumer confidence in organic green tea.

• Consumer Perception Shifts: A shift in consumer preferences away from tea consumption or organic products could lead to decreased demand for organic green tea.

• Economic Factors: Economic downturns or fluctuations can impact consumer spending patterns, potentially leading to reduced demand for premium-priced organic products like green tea.

• Environmental Factors: Climate change and environmental challenges could affect tea cultivation and production, potentially leading to supply disruptions.

• Global Trade and Political Issues: Trade disputes, tariffs, or political tensions can affect the import and export of organic green tea, impacting the market’s global dynamics.

• Changing Lifestyle Trends: Shifts in consumer lifestyles and preferences could lead to changes in beverage consumption habits, impacting the demand for organic green tea.

• Negative Publicity: Negative media coverage, social media trends, or influencer opinions can quickly influence consumer perceptions and impact sales.

• Counterfeit Products: Counterfeit organic green tea products may enter the market, undermining genuine brands’ reputations and sales.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 354.8 Million
Projected Market Size in 2032	USD 536.9 Million
Market Size in 2022	USD 334.6 Million
CAGR Growth Rate	17.5% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Product, Taste, Form, Distribution Channel and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Category-Wise Insights

Based on Product:

In 2023, products derived from Camellia sinensis held the largest market share, comprising over 72.6% of the total. The widespread availability of these products has facilitated their global adoption. Industry players have been dedicating increased resources to create novel offerings within the white, black, green, and oolong tea categories, catering to diverse preferences and health considerations.

The herbal tea segment is projected to experience the most rapid expansion during the forecast period, with a remarkable Compound Annual Growth Rate (CAGR) of 17.1% from 2020 to 2027. This accelerated growth can be attributed to the growing awareness of healthy lifestyles among Generation X, Y, and Z. The herbal tea category encompasses a broad spectrum of options, including chamomile, peppermint, ginger, hibiscus, eBrazilcea, rooibos, sage, lemon balm, rosehip, and passionflower, offering a plethora of choices to consumers.

Based on Taste:

In 2023, the dominant share, surpassing 81.3%, was held by flavored organic products. The infusion of flavor into these products is achieved through the incorporation of inclusions and extracts. Inclusions encompass elements such as dried fruit pieces, herbs, spices, and blossoms, which are directly introduced to the tea leaves. This infusion serves both visual and sensory purposes, enhancing the overall tea experience.

Similarly, a diverse range of extracts and essential oils sourced from leaves, fruits, blossoms, roots, and other plant components are employed. These extracts bear distinct aromas or flavors, contributing to the tea’s unique character.

The process of extracting these essences can be intricate. For instance, the creation of vanilla flavor involves immersing the vanilla bean in alcohol, necessitating a meticulous procedure. In contrast, some flavors are more straightforward to obtain; for instance, the extraction of lemon flavor entails pressing lemon peel to yield oil.

Organic Green Tea Market – Regional Analysis

Asia-Pacific:

• Asia-Pacific holds a significant share of the organic green tea market due to its historical association with tea cultivation, particularly in countries like China, Japan, and India.
• China and Japan are major producers of green tea, both conventionally and organically. The region benefits from its traditional tea culture and growing global demand for organic products.
• Rising health consciousness, urbanization, and export opportunities have contributed to the growth of the organic green tea market in this region.

North America:

• North America has witnessed a growing demand for organic products, including green tea, due to increasing health awareness and preference for natural and sustainable options.
• The United States and Canada are key markets for organic green tea, with consumers seeking products aligned with health trends and ethical considerations.

Europe:

• Europe has shown a rising interest in organic and healthy beverages, driving the demand for organic green tea.
• Countries like Germany, the United Kingdom, and France have notable consumption of organic green tea, often due to their well-established health and wellness markets.

List of the prominent players in the Organic Green Tea Market:

• Compass Tea Company
• Davidson’s Organics
• Little Red Cup Tea Co.
• Numi Inc.
• PepsiCo
• The Coca-Cola Company
• The Hain Celestial Group Inc.
• Tielka
• Unilever
• Wessanen
• Others

The Organic Green Tea Market is segmented as follows:

By Product

• Camelia Sinesis Based
  • White
  • Black
  • Green
  • Oolong
  • Others
• Herbal

By Taste

• Flavored
• Plain

By Form

• Tea Bag
• Leaf & Powder
• Liquid

By Distribution Channel

• Hypermarkets & Supermarkets
• Convenience Stores
• Online & D2C
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America