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 2.1 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 3.1 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 4.1 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 ...