The Tea market in Italy

Tea is a beverage made from the infusion of the processed leaves of the Camellia sinensis plant; the leaves can undergo different processing to produce the various types, such as black, green, oolong, white, and pu-erh tea. Leaf processing can include withering, rolling, oxidizing, and drying, each of which affects the flavor and final characteristics of the beverage. This presentation provides an overview of the global tea market, with a special focus on the Italian context.

The value of the global tea market will grow from $55.67 billion in 2024 to $59.23 billion in 2025 (+6.4 percent) and reach $75.5 billion by 2029, with a CAGR of 6.3 percent (+35.5 percent from 2024). This growth is attributed to cultural factors, health trends, globalization, rising incomes, e-commerce, product innovation, and sustainability. Future trends include premium and specialty teas, improved packaging, subscription services, and technology integration in retail.

In Italy, the dramatic reduction in quantities sold and increased unit value of products was noted. This dynamic indicates a structural transformation in the industry, where companies are trying to compensate for the decrease in quantities sold by increasing prices per unit, moving to a more premium market or adopting innovations that justify a higher price. It also indicates an increased focus on quality rather than quantity by consumers.

Sixty percent of the market is in the hands of industry biggies focused exclusively on selling iced tea, such as Coca Cola or St. Benedict. Analyzing the last few years of the we see an overall decrease in production sold, characterized by fluctuations rather than a steady decline. Italians are becoming increasingly interested in high-quality teas and specialty varieties such as green tea, white tea, and oolong tea. This growing interest is fueled by awareness of the health benefits and a desire to try new taste experiences.