Industry Analysis & Industry Trends
A hot commodity
Herbal teas have been growing in popularity for several reasons over the past five years, including increased awareness of their health benefits, an aging population and a greater number of people without healthcare. Consistent demand from the aging population is partly attributable to the intense marketing on the part of industry operators in an effort to boost awareness about the health benefits of herbal teas. And the economic recession benefited industry operators as Americans faced mounting difficulty in accessing and paying for conventional healthcare. Even as people return to work and healthcare programs in the coming years, demand for industry products will be resilient since its consumer base has already expanded. Competition will grow, though, so producers will increasingly innovate and expand distribution networks.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry for the Herbal Tea Production industry are at a medium level. One barrier to entry is the moderate degree of market share concentration in the industry. Major companies Unilever and Hain Celestial Group together account for nearly 40.0% of the market.
Furthermore, companies' ability to forge relationships with suppliers of input goods and key downstream markets creates another barrier. Industry manufacturers must develop strong contacts with suppliers of the key inputs that are required for herbal tea production. In addition, industry operators must develop relationships with distribution networks, such as grocery wholesalers and large supermarket and grocery store chains, which are key downstream markets for the industry. The... purchase to read more