The tea market - United States

1.1 Definition and presentation of the market

Three billion cups of tea are consumed every day, making it the second most consumed beverage in the world after water. Tea was born in China, introduced to Japan in the end of the 8th century, is an integral part of the British and other cultures, and also has a strong presence in the culture in the Middle Eastern.

Tea derives from the leaves of the tea plant (about 200 species) whereby it is infused in hot water. There are different types of teas (black, green, Oolong, yellow, white and post-fermented) which differ according to the treatment of the harvested leaves. Rooibos or "red tea" is actually an infusion obtained from the leaves of Aspalathus linearis, which is only found in South Africa, and not from the tea plant.

The global tea market is projected to be worth around $16.48 billion in 2025. The United States is the third largest importer of tea in the world. In 2018, 84% of all tea consumed in the US was black tea, 15% was green Tea, and the small remaining amount was oolong, white and dark tea. [teausa] Driven by the health trend, tea is expected to continue growing in the US. Moreover, factors such as continued innovation and the discovery of unique, flavorful and high-end specialty tea will also be crucial for growth. 

The following study analyses the development of the market, as well as the typology of consumers. In the process, the market structure and the competitive situation are also examined in order to be able to provide informative information. 

1.2 A rapidly growing world market

In recent years, global tea cultivation has developed rapidly, as shown by recent statistics. Globally, tea acreage has grown steadily, driven by increasing demand and consumption of tea in many parts of the world.

Anbaufläche von Tee Weltweit, ****, In **** Hektar Quelle: fao.org

The statistics show that tea cultivation areas ...

1.3 Growing market in the U.S. tea industry

The pandemic had both positive and negative effects on the tea market. In ****, the market saw growth, with tea imports rising by over *% through September. Black tea, in particular, saw an increase of over *% compared to the previous year. According to a study sponsored by the tea industry, consumers sought refuge ...

1.4 Foreign trade

In ****, the United States exported tea worth $**.* million and was among the top ** tea exporters in the world. Tea was ranked ***th among the most exported products of the United States in the same year. The main destinations of tea exports from the United States were Canada (***).

The fastest-growing export markets ...

2.1 Tea consumption in the U.S.A.

Tea, the second most popular beverage in the world after water, is present in nearly **% of American households. This unique beverage can be enjoyed hot or cold, at any time, any place, and for any occasion. On a typical day, more than *** million people in the United States consume tea. In ...

2.2 Tea consumption by age and gender

The tea industry is an ever-growing market that appeals to a wide range of consumers worldwide. Tea is considered one of the most consumed beverages in the world, and its popularity spans across different age groups and cultures.

Teekonsum betrifft nicht nur ältere Generationen USA, ****, in % Quelle: Silver Tips

In terms ...

2.3 Growing demand for iced tea and ready-to-drink (RTD)

Tea is a popular beverage enjoyed in various forms and flavors worldwide. In the following, we will focus on the three main categories of tea, based on the tea Association of the U.S.A:

Ready-to-Drink (***) tea iced tea and tea bags herbal & loose tea, growing popularity of specialty teas.

The ...

3.1 Value Chain for tea

The following diagram shows a simplified value chain of the tea industry, with a focus on sustainable and socially just value creation.

Source: ****

In the past, tea products were primarily sold to end customers through supermarkets, drugstores, and wholesalers. However, in recent years, a declining trend in the distribution of tea ...

3.2 A competitive market dominated by big brands in particular

The tea market is a diverse and multifaceted business area that ranges from small family-owned factories to large globally operating companies. The industry is highly fragmented, meaning that there are a variety of players operating in different areas and market segments.

On one hand, there are small family-owned factories that specialize ...

3.3 the most popular brands for ready-to-drink tea

In ****, Lipton Pure Leaf was the top-selling ready-to-drink (***) tea brand in the United States, with sales exceeding *** million dollars. The brand, which originated from Sir Thomas Lipton in ****, is now owned by Unilever and sold by Pepsi Lipton International.

Meist Konsumierte Teemarken im Bereich Ready-to-drink Tee United States, ****, in Million USD Quelle: ...

4.1 A varied offer based on several types of tea

All types of tea, including black, green, oolong, white, pu-erh, and purple, come from the same plant, known as Camellia sinensis. However, the distinct taste, aroma, and appearance of each tea are a result of various factors such as the specific varietal of the plant, the region where it's grown, and ...

4.2 development of tea prices

The tea market has experienced various price fluctuations over the years, which can be attributed to different factors such as supply and demand, weather conditions, and global economic trends. From **** to ****, daily price updates were made to reflect the market's dynamics. The prices are given in US dollars (***).

The current price ...

5.1 Regulation and challenges

Challenges in the international tea trade

The current situation in international trade is characterised by various challenges that also affect the tea trade. These include:

Disruptions in the global supply chain: delays and bottlenecks in the movement of goods, especially due to the current COVID ** pandemic, lead to increased transport costs ...

6.1 Segmentation

• Bigelow Tea Company
• Red Rose Tea
• Salada Tea
• Harney & Sons
• Red Diamond Inc.
• Royal Cup
• Argo Tea Inc.
• Harris Tea Co
• Capital Teas