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Summary
The tea market is a robust global industry experiencing significant trends and growth, with Asia-Pacific, spearheaded by China and India, driving the majority of production and consumption due to their large populations and cultural integration of tea. The global tea market is valued at $45.4 billion, with black tea owning the largest share at $18.6 billion. Despite black tea's dominance, green tea is the fastest-growing segment, expected to sustain a 7.5% annual growth rate and likely to hit 3.7 million tons by 2027. Per capita tea consumption is estimated to rise by 6.6% by 2021.
Emerging Trends in Italy’s Evolving Tea Landscape
In recent years, Italy's tea market has experienced an upsurge, with burgeoning consumer interest and positive growth projections. Historically noted for a relatively low tea consumption level compared to other European nations like the United Kingdom, the Italian tea scene is rapidly evolving, influenced by global trends and shifting domestic consumption patterns. The Italian market has registered a steady increase in retail sales of tea, climbing to an approximate value between €450 and €470 million, indicating an 8% growth compared to previous years.Historical data corroborate this growth trend. Consumption habits in Italy reflect a modest tea culture, with the average Italian consuming between 0.06 and 0.08 kg of tea per month, which roughly translates into about three cups, a stark contrast to the significantly higher consumption rates in the UK.
However, the Italian tea culture is steadily flourishing, demonstrated by the popularity of events such as the Bologna Tea Festival, which has shown consistent growth in both supply and attendance year over year. While traditional beverage choices such as coffee continue to dominate, Italians are increasingly embracing the tea-drinking lifestyle, often associated with health, relaxation, and spirituality. Tea's association with a healthy lifestyle has been gaining traction, with emphasis on the benefits of herbal and fruit teas, which constitute the most profitable segments within the national tea turnover. These varieties are touted for their health benefits and have found favor among Italians, with nearly half the population opting for tea as a superfood. This focus on health is elevating tea's profile as a healthier alternative to carbonated and soft drinks.
Finally, the digital revolution has not spared the tea market. The proliferation of e-commerce has created alternative purchasing channels, with a notable portion of Italians turning to online platforms to buy their coffee and tea products. This preference for online shopping indicates changing consumer habits that prioritize convenience and personalization.
Key Players Shaping the Italian Tea Market
The Italian tea market is characterized by a constellation of leading brands and distributors that have established themselves as pivotal players in the industry. While Italy has seen a slower embrace of tea culture compared to other European nations, these corporations are instrumental in catering to the evolving tastes and preferences of the Italian consumer.
- Bonomelli: A household name, Bonomelli stands as a beacon of the Italian tea market, with its rich history and diverse line of tea and herbal products that cater to various preferences.
- Everton: Known for their range of flavorful teas, Everton holds a respected place in the market, contributing to the growing tea trend in Italy with their quality products.
- Yogi Tea: With a focus on herbal and wellness teas, Yogi Tea has made significant inroads into the Italian market, appealing to the health-conscious demographic with their organic ingredients and Ayurvedic blends. -
- Star: As a part of the Massimo Zanetti Beverage Group, Star brings to the table an array of aromatic teas that resonate with Italian consumers, solidifying its position in the market. -
- Pompadour: An integral player, Pompadour is known for its broad assortment of both traditional and innovative tea flavors, aligning with the Italian palate and market demand. -
- Aboca: With a global presence, Aboca taps into the wellness segment of the market, specializing in organic and natural tea blends that appeal to the modern, health-minded customer. -
- Erba Vita: With a focus on herbal health, Erba Vita offers a variety of natural tea products, highlighting the growing trend towards wellness and natural living in the Italian beverage market. -
- San Benedetto Thé: Regarded as a titan in the beverage industry, not only does San Benedetto produce mineral water but has also popularized its iced tea line, leveraging the brand's widespread recognition. -
- Ferrero: An emblematic conglomerate, Ferrero's expansion into the tea segment through the acquisition of Estathe has allowed them to capitalize on the ready-to-drink tea craze in Italy.
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Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 02/02/2022
Summary and extracts
1 Market summary
1.1 Definition and Presentation
Tea is an aromatic beverage made by brewing the tea plant - originally found in East Asia over five thousand years ago. Initially associated with an oriental lifestyle and culture, tea is now the second most consumed beverage after water and has lost its dependence on the seasons, as it is now a common drink in both summer and winter. There are different varieties of tea that can be extracted from the plant - depending on the cultivation and fermentation process - which contributes to the diversity of flavors and colors of the drink.
The most common teas in Western European countries are:
- Green tea
- Black tea
- Fruit/Herbal tea
Tea cultivation is extremely sensitive to climate change and has specific requirements. The plant is therefore largely grown in tropical environments, which are characterized by torrential rainy seasons. Therefore, China is the world's largest producer of tea as well as the largest exporter with almost one third of total exports. The world market is driven by Asia-Pacific, and particularly by countries with large populations such as China and India, where tea cultivation is omnipresent. The rising population is expected to continue to drive the tea market in the coming years.
Its consumption, at the same time, has become more popular, reaching the Italian scene as well. Today, growth prospects are positive, with an estimated +22% growth by 2022, favored by a standardization of beverage choices, an increase in tourism as well as a growing awareness of the health benefits, accentuated by the Covid 19 health crisis.
Although the black tea segment still holds the largest share of the market, new consumption patterns, mostly driven by millennials, are becoming more widespread. Carbonated tea drinks, democratized by Lipton, Copenhagen Sparkling Tea or San Benedetto, as well as flavored teas, will promote the growth of the market.
1.2 A Global projected increase
The four giants dominating the tea market
Globally the tea market is valued at $**.* billion - black tea covering the biggest market share with (***) [***].
Predominance of the production and consumption of tea is experienced in Asia Pacific, with China dominating the market (***).
Below an overview of the top four producing countries ...
1.3 Tea expansion in Italy
Euromonitor’s **** figures show positive prospects for the Italian market, although it has historically experienced lower level of consumption and import compared to other European countries.
The retail sales of tea have indeed rose to approximately €*** million, an *% growth in value compared to previous years.
The market is expected to grow ...
1.4 International trade
UN Comtrade provides data on production outcomes. For the category “Tea” (***) in Italy exportations were evaluated at around $*.* while imports at around $**. Tea - being a product grown in specific regions of the world must be necessarily imported for most European countries.
Source: ****
United Kingdom is the European country registering the ...
1.5
2 Demand analysis
2.1 Demand Overview
In Italy tea still represents a niche segment of the beverage industry.
On average *,** kg per month – approximately * cups - are consumed by an Italian, whereas in the UK for instance, the number is extremely higher amounting to *,* kg per person a month.
From spirituality to relaxation, tea represents a symbol ...
2.2 Lifestyle and new habits change consumption
Lifestyle of health
Consumers are increasingly becoming aware of the health benefits correlated to these specific products. Either by word of mouth or scientific research, this trend cannot be ignored and is penetrating the Italian market as well. People want to know what ingredients are inside the products they purchase and ...
2.3
3 Market structure
3.1 Organization and dynamics of the market
The tea market in Italy has a structural well-defined image. Competition is fierce, as the market is dominated by few big players.
Production:
Mostly outsourced Few tea plantations in Italy
Supply:
Loacker Star Pompadour Bonomelli
Source: ****
Distributors:
Large scale retailers “Out of home” (***)
Most of the market is in the hands ...
3.2 Production and harvest
Tea production
Production of tea is largely concentrated in the Asian territory. Mostly because the cultivation of the plant is subject to specific geological conditions.
The ideal climate is subtropical, with temperatures ranging from ** to ** degrees, frequent rain and high humidity.
The ideal territory is between *** and **** meters of altitude.
Tea ...
3.3 Distribution
Business to Business
The journey of the product consists of different steps, each one associated to a specific player that takes part in the process. From the producer to the far end of the supply chain.
Business to Consumer
The journey of the product consists of merely direct contact with the ...
3.4
4 Analysis of the offer
4.1 Tea varieties
After a system established in **** by Professor Chen Chuan - Agriculture Institute of Anhui - in China, biggest producer and consumer of tea, six different typologies of tea are recognized.
Yellow Black White Blue Red
The classification refers to six identified treatments for tea leaves that contribute to different colors of ...
4.2 Italian tea supply
Italy has not showed outstanding performances in terms of sales volume and value in the tea market. Although, contrary to some more saturated markets (***), Italy has potential waiting to be exploited precisely because it has not been penetrated largely in the industry. According to FAO senior economist, Jan Luc Mastaki, the ...
4.3 Western versions
Herbal/Fruit Tea
Herbal tea, also known as tisane or herbal infusion, is a beverage made from the infusion of herbs and spices.
This product type has proved itself to be among fastest growing categories in the tea industry and it is extremely popular in European cultures.
According to Euromonitor, herbal ...
5 Rules and regulations
5.1 National and International Regulations
There is two major regulation regarding tea in Italy:
At a European level:
- The ETC (***) which promotes free trade of the commodity and certain guidelines concerning ingredients and transformation processes.
At a national level:
- The Ministero della Sanità with its Decree **/**/****, n. *** which regulates the production of decaf coffee ...
6 Positioning of the actors
6.1 Segmentation
- San Benedetto
- Lipton (Unilever)
- Twinings Foods International
- POMPADOUR TE' S.r.l.
- Clipper Tea
- Star
- Kusmi Tea ORIENTIS
- La Via del Tè
- San Pellegrino
- Unilever Italia
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Latest news
The quality tea brand brings all its manufacturing back to France - 16/04/2021
- 10 employees in 2003, 500 employees in 2020 (including 150 in Le Havre)
- 85 stores in France
- Exports to 35 countries
- Price of 20-bag boxes reduced by 15% after relocation
Kusmi Tea seduces the Elysée Palace. - 05/10/2020
- Kusmi Tea entered the Elysée Palace boutique in summer 2020.
- Kusmi Tea employs around 150 people at its workshops in Saint-Vigor-d'Ymonville (Seine-Maritime), near Le Havre.
- The company repatriated the production of its teas in bags to France in 2018, which were previously manufactured in Morocco.
Kusmi Tea adapts to the environment - 24/08/2020
- Premium tea brand
- Product range goes organic
- Sales of 70 million euros in 2019
- Full switch to organic by early 2021
- Tea bag production repatriated to Le Havre 2 years ago
- 85 stores in France
- 550 employees
Kusmi Tea: from local business to tea empire. - 07/08/2020
- Kusmi Tea is one of France's leading premium tea brands, with over 150 years of history.
- The company was founded by Pavel Mikhailovich Kousmichoff in Saint Petersburg.
- In 2003, Kusmi Tea was acquired by French entrepreneurs Sylvain and Claude Orebi
- Kusmi Tea enters Monoprix stores in 2005
- In ten years, Kusmi Tea has set up some twenty stores in France, including one on the Champs-Elysées in 2012.
- The Orientis Group, owner of Kusmi Tea, has around 70 stores in France and 15 internationally, in 35 countries.
- Kusmi Tea is present in over 250 Monoprix stores and 200 delicatessens in France.
- The company offers over 100 tea blends, produced near Le Havre.
- The aim is to open around 50 stores in Europe over the next five years, and to expand in the United States.
- Within 10 years, Kusmi Tea aims to become the world leader in the premium tea market.
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