Latest report highlights global tea market growth
A new report by Global Industry Analysts, Inc. predicts that global tea and coffee sales will reach $70 billion by 2015. The key factors driving growth are health, quality and premiumization. The popularity of tea in particular depends on a greater awareness of its health benefits, according to the report. In terms of production, India and China account for more than half of the world's tea output, with a quarter destined for export. Whereas the economic crisis boosted the sales of low priced varieties of green tea, it had no impact on the growth of the iced tea sector, which remains strong in the US and Japan. In fact, the ready-to-drink tea sector grew faster than soft drinks segment in 2008 due to the impact of increasingly health conscious consumers. Despite a smaller market size, tea is expected to overtake coffee in the long run thanks to price, new flavors and a healthy image.