The tea market - Italy (2025)

1.2 The Global Market

The value of the global tea market will grow from $**.** billion in **** to $**.** billion in **** (***).

Growth is supported by trends toward health teas, sustainability, innovation in formats, and direct-to-consumer sales channels.

Tea market value World, ****-****, US$ billion Thebusinessresearchcompany

China dominates world tea production with **.** million tons in ****, accounting for **.* percent of the global total. India follows with *.** million tons or **.* percent. Together, these two countries cover **.* percent of world production. At a significant distance are Kenya and Sri Lanka, at *.* percent and *.* percent, respectively, highlighting the wide gap between the major producers and other countries.

Major tea producers World, ****, thousands of tons FAOstat Even going to analyze the value of exports of all tea leaf products we notice China in first place, followed by the Netherlands and the United States, with $***.** and $***.** million, respectively. Ireland and Germany record exports of $***.** and $**.** million. Looking at the data, it appears that China, while dominating in both production and export, has a less impressive export value than its massive production. In contrast, countries such as the Netherlands and the United States, which are not among the largest producers, show significant exports of tea leaf products. Interestingly, Sri Lanka, which is the fourth largest ...

1.3 The Italian market

The sold production of tea, herbal teas and extracts in Italy decreased from ***.** million in **** to **.** million in ****, registering a decrease of **.* percent. The most significant decline is observed between **** and ****, when the value dropped from ***.** million to **.** million euros. Should the trend continue, by **** the estimate shows a further decline to **.** million euros.

For accuracy, the analysis covers the prodcom Ateco **** code: [***] Herbal teas, extracts, essences, and preparations based on herbal teas, extracts, essences. concentrates based on tea or mate and preparations of concentrates based on tea or mate.

Sold production of tea, herbal teas and extracts Italy, ****-****, € million Istat

The survey "Italians and well-being: chamomile, herbal teas and infusions elixirs of living well" conducted by AstraRicerche for Bonomelli (***) estimated the total value of the market at €*** million.[***]

The total turnover of companies with ATECO code **.**.**: Processing of tea and other infusion preparations is €***,***,***[***]

1.4 Import-export

Between **** and ****, Italy showed a steady disparity between tea imports and exports. In ****, exports amounted to $*.** million, while imports were significantly higher at $**.** million. In ****, exports decreased to $*.** million, while imports increased slightly to $**.** million.

In ****, exports rose again to $*.** million, with imports peaking at $**.** million for the period. In ****, there was a slight decline in imports, which fell to $**.** million, while exports remained almost stable at $*.** million. In ****, exports grew to $*.** million, with imports remaining stable at $**.** million.

The coverage ratio, which measures the proportion of exports to imports, remained consistently low, fluctuating between *.** and *.**. In **** and ****, the ratio was *.**, falling to *.** in **** and rising slightly to *.** in ****, then reaching *.** in ****. This indicates that Italy exports a very small fraction of what it imports, with a slight trend toward improvement toward the end of the period under consideration.

Tea imports - exports Italy, ****-****, US$ million Uncomtrade

In ****, Spain was the main supplier of tea to Italy, accounting for ** percent of imports, despite not being a major global tea producer or exporter. India and Sri Lanka, important global producers, contributed ** percent and ** percent, respectively. Germany and Austria, which do not produce tea, played a significant role in Italian imports, with ...

1.5 The impact of inflation

The impact of inflation is reflected in industry producer price trends, affecting key sectors such as tea and coffee processing. The price index grew from ***.* in July **** to ***.* in October ****, an increase of nearly ** points. The estimated value for November **** reaches ***, confirming a steady upward trend.

Industry producer price index - monthly data - base ****=*** of tea and coffee processing [***] Italy, ****-****, index Istat

2.1 Demand trends

The production of tea, herbal teas and extracts in Italy declined significantly by **.* percent between **** and ****, dropping from **,*** to **,*** tons. The steepest decline occurred between **** and ****, when production fell by ** percent in a single year, from **,*** to **,*** tons. After a temporary recovery in **** (***), the trend returned to a downward trend. Should this negative trend continue, the estimate for **** is for production of just *,*** tons.

Production sold in quantity of tea, herbal teas and extracts Italy, ****-****, in tons Istat

These data, combined with the production graph of quantity sold in € suggest that despite the drastic reduction in quantities sold , the unit value of the products has increased. From **** onward, while quantities have fallen by more than half, revenues have not followed the same downward trajectory.

In contrast, household spending showed a more complex trend between **** and ****. After a slight increase until **** (***), probably due to the pandemic. Since ****, however, there has been significant growth, culminating in **** with *.** euros, the highest value for the period. Expenditure per tea Italy, **** - ****, in euros Source: ****

2.2 Demand drivers

Consumer preferences in the infusion market focus on a few main trends:

Favorite types of infusions:

Chamomile continues to be the most popular infusion, accounting for ** percent of the * million infusions consumed daily in Italy. This is accompanied by a growing demand for herbal health teas, prized for their draining, relaxing and invigorating properties, which are becoming particularly popular among young people.

An interesting trend is the spread of "tea mixology," which combines infusions with alcohol, broadening their appeal in entertainment and restaurant-related settings. This phenomenon shows how the market for infusions is evolving to meet increasingly diverse needs and preferences.

Consumption motivations:

Consumption of infusions is often motivated by the desire for wellness and health, two central themes in product choice, but young people between the ages of ** and ** also attribute an important role to the pleasure of taste. In this context, product innovations such as new flavors-including red fruits, citrus, mango, caramel, jasmine, turmeric, and ginger-have met with considerable success, satisfying the demand for different sensory experiences. The introduction of pyramid filters has also been well received by consumers.

Drivers of choice for tea purchases Italy, ****, in % mark-up

The main drivers of choice for purchasing tea were taste (***). Naturalness ...

2.3 Geographic Distribution of Demand

The average monthly expenditure on tea is highest in Northern Italy, at €*.**, followed by the Center, where it stands at €*.**. In the South (***), spending is significantly lower, at *.** €.

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2.4 Online interest

Online searches for tea in Italy show significant seasonality between **** and ****, with significant peaks recorded in the first months of the year, such as February **** (***), followed by a steady decline in subsequent months. These increases are related to greater interest in tea during colder periods. Starting in the second half of ****, searches stabilize around **-** points.

The values are calculated on a scale of * to ***, where *** indicates the location with the highest frequency of searches as a proportion of total searches in that location, and a value of ** indicates a location with half as many searches. A value of *, on the other hand, indicates a location for which insufficient data were collected.

Trend of Tea Searches Italy,****-****, index Google Trends, Businesscoot processing

The geographical distribution of searches shows a higher concentration in northern regions, with Veneto in first place (***).

3.1 Market structure and dynamics

In Italy, the sector is highly competitive; large-scale retail monopolizes ** percent of tea volumes[***].

In addition, ** percent of the market is in the hands of industry biggies focused exclusively on selling iced tea, such as Ferrero or San Benedetto. In ****, on the other hand, the market position of Fuze Tea, Coca Cola's new brand, was consolidated.

Among the largest producers of bagged tea emerges Clipper whose bags are unbleached and produced in the UK with FCS or PEFC certified pulp and Manila hemp from the Philippines and Asia[***]. Also in this segment interesting company is Fior di Loto known for high quality organic blends and wide variety of flavors. Or PukkaHerbs, which is a producer of a wide range of teas with total respect for the health of the people and growers of the raw materials.

Among the major producers of soluble tea powderEverton Tea House is one of the top producers, offering different flavor combinations on the market.

There are not very many Made in Italy producers, however, among the few the La via del Tè company in Florence and Everton, an Italian tea producer for more than three generations, stand out in importance.

There are ** companies active in the ...

3.2 Production and value chain

Tea is a beverage made from the leaves of the tea plant, infused in very hot water. The tea plant is an evergreen shrub that belongs to the Theaceae family and is grown mainly on the Asian continent.

Tea does not undergo any processing, however, its preparation requires several steps. These are usually carried out near the plantations. Most tea is produced on large farms in Asia: in India, China and Sri Lanka, this production is for large food processors. There are also many plantations, some of them very small, that produce very high quality teas. They are comparable to the best French wines, both in terms of rarity and price.

The main steps in the production process include:

Source: ****

The production of each tea family (***) includes some or all of these steps.

These different production processes have been codified since the ****s, and their mechanization became widespread after World War II. The large plantations are now all mechanized, and the more small producers outsource production and marketing to them For lower quality teas, one process, developed in the ****s, also allows mechanized treatment of the leaves after they have shrivelled: CTC (***). A single machine crushes them to extract their water, ...

3.3 Major players in wholesale trade

The following are the leading companies in the Italian tea and spice wholesale scene:

Dammann Freres: A historic French tea company, it also has a presence in Italy through its affiliation with Domori Spa, a renowned Italian company specializing in high-quality chocolate. Founded in ****, Dammann Frères is one of the oldest tea houses in the world, known for its dedication to quality and craftsmanship. In Italy, it continues its centuries-old tradition, offering a wide range of teas selected from the world's best plantations. Products offered include black teas such as Earl Grey and Darjeeling, green teas such as Sencha and Matcha, white teas such as the delicate Bai Mu Dan, semi-fermented oolong teas, and herbal and fruit infusions. Each product is processed using artisanal techniques to ensure a unique sensory experience. Dammann Frères' presence in Italy is strengthened by its partnership with Domori Spa, which shares the same passion for excellence and innovation. Dammann Frères boutiques in Italy are places where tea enthusiasts can explore a wide selection of blends and taste exclusive products.

Webb James Srl: Based in Livorno, Italy, this is a historic company established in **** by John Webb, an English merchant. The company specializes in ...

3.4 Major brands and companies in the Italian market

Fuze Tea(***): Fuze Tea is an iced tea brand owned by Coca-Cola, launched in **** and introduced in Italy in ****. It combines tea extracts, fruit juices and herbal notes, with Rainforest Alliance-certified sustainable ingredients. Variants include Lemon and Lemongrass, Peach and Rose, and options without added sugar. Globally, the brand is expanding rapidly, with Coca-Cola aiming to strengthen its presence, particularly in Europe. The end of Nestlé's partnership with Coca-Cola on Nestea has solidified Fuze Tea as the company's main iced tea brand.

Nestea (***): Nestea, an iced tea brand launched by Nestlé in ****, has offered several variants over time, from concentrates to ready-to-drink teas. In ****, Nestlé and Coca-Cola formed the joint venture Beverage Partners Worldwide to distribute Nestea globally, but in **** the partnership ended. Nestlé regained control of the brand in many markets, including Italy, where it took over direct management in ****. In ****, Nestea was relaunched with a more natural recipe, with no dyes, artificial flavors or GMO ingredients, using stevia and tea leaves from sustainable sources.

S. Benedetto: San Benedetto, founded in **** in Scorzè (***). In **** it launched an advertising campaign with Elisabetta Canalis to promote freshness and quality, expanding its media presence.

Lipton: Sir Thomas Lipton founded Lipton in **** with ...

4.1 Type of the offer

Although there are more than *,*** varieties of tea in nature, they are all derived from the same plant, Camellia Sinensis. It is the processing, growing conditions and cultivation that determine the variety.

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4.2 Price trends in the market

Increase in the Consumer Tea Price Index:

The consumer tea price index in Italy showed a seesaw trend between **** and ****. After an initial peak of *** in July ****, prices declined steadily until November of that year, reaching a low of ***.*. Then, from December **** to June ****, a gradual recovery is observed, culminating in a new high of ***.*. However, in the second half of ****, prices declined again, stabilizing around *** in the last months of the year.

Consumer tea price index for the whole community (***) - monthly data [***] Italy, ****-****, index Istat

Looking instead at annual averages from **** to ****, the index remained stable around *** until ****, with a slight decline in **** (***), followed by a marked rise to ***.* in ****, marking a ** percent increase in just two years. This long-term trend correlates with the monthly fluctuations observed between **** and ****, where the peak of *** was followed by a decline and stabilization around ***. This trend, when compared to general inflation, is more subdued, with tea prices growing less than other products.

Consumer Price Index for the Whole Community - [***] Tea Italy, ****-****, index ****=*** Istat

Tea can be considered, in some of its declinations, an extremely valuable beverage. To make the difference with the pricing of commercial teas stand out, below ...

4.3 New market trends

In the tea sector, too, there has been an emphasis in recent years on sustainability, not only of the product but along the entire value chain and not only in terms of environmental impact. in fact, it has been studied that the tea market, in some of its value chains, would encounter issues such as the frequent exploitation of child labor, and the huge amount of polluting pesticides used, which are extremely harmful to the workers environment and, to some extent, to the end consumers[***].

In terms of trends in supply, the following are the market-relevant uses of tea:

Bubble Tea: Bubble tea, also known as bubble tea, is a beverage made from tea, usually black or green, to which milk or fruit syrup and tapioca pearls are added. A classic example is pearl milk tea, which combines black tea with milk and tapioca pearls. Another popular variation is passion fruit tea, which uses green tea enriched with passion fruit syrup and tapioca pearls. There is also matcha tea, a modern, healthy version made with matcha tea, almond milk and tapioca pearls.

Ready-to-Drink (***) drinks are ready-to-drink iced teas, often flavored and packaged in convenient bottles or cans. A refreshing example is ...

5.1 Regulatory framework

Regarding the regulatory aspect, Tea does not have specific regulations but follows the following rules like other foodstuffs:

Import Regulations

Current EU import regulations, cover: the Import Rules, which is information for companies on requirements to operate in the EU market, tariff information, rules of origin and other preferential agreements, trade statistics. The EU Tariff and Import Measures, which donate information on tariffs and other measures concerning the import of products into the EU. They also allow for the calculation of customs duties-it includes tariffs and rules of origin. Finally there is an in-depth look at the EU's trade defense policy, statistics and information on investigations against imports into the EU: EU Import Restrictions - including anti-dumping measures

Fairtrade Standard

Fairtrade is an international fair trade certification label. Even in the tea sector, many companies rely on this label to ensure a safe value chain for consumers without negative impacts. Fairtrade, donates the opportunity to, by purchasing branded products, support agricultural producers in developing countries, supporting them economically in improving their living and working conditions. Each year there is an annual report on the work done and benchmarks for evaluating the positive impacts of one's work.[***]

5.2 Conclusion

The global tea market shows growth at a projected CAGR of *.* percent through **** and *.* percent through ****. China and India dominate global production, but countries such as the Netherlands and the United States excel in exporting derivative products. In Europe, the market is benefiting from demand for healthy and sustainable teas, while in Italy there is a structural transformation: unit value has increased in the face of a **.* percent decline in quantities sold between **** and ****. Italy imports most of its tea, with Spain as the main supplier, but exports remain marginal.

Italian preferences focus on chamomile and health teas, while young people prefer innovative varieties. New trends include premium teas, sustainable packaging, functional teas (***) and a few big players such as San Benedetto and Coca-Cola with Fuze Tea. However, small companies such as La Via del Tè and Fior di Loto offer artisanal and organic products. In terms of supply, there is growing interest in sustainable and innovative teas, including RTD and niche teas.

Price trends are influenced by inflation: between **** and ****, the price index has fluctuated, registering a ** percent growth from ****. The premium segment has seen expansion, with teas such as Pu-erh reaching €***/*** g.

Analyst's comment:

The tea market is experiencing ...

6.1 Market segmentation

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• POMPADOUR TE' S.r.l.
• Lipton (Unilever)
• Twinings
• Tetley tea
• Bonomelli Srl
• Webb James Srl
• Teapack Srl Sb
• De Lorenzi Srl
• Dammann Freres (Domori Spa)
• Nestle' Italia
• San Benedetto