Piping hot: Revenue will heat up as the wave of health consciousness supports growth

Bolstered by rising health consciousness and disposable income among consumers, industry revenue for the Tea Production industry grew over the five years to 2017. Tea manufacturers are marketing the various health benefits of tea consumption, such as its effect on lowering cholesterol, while an emphasis on healthy living has shifted consumer dietary patterns toward healthier beverages, to the industry's benefit. Additionally, differentiated tea offerings have enabled industry players to charge premium prices for unique blends, boosting industry revenue and profit. Over the next five years, industry revenue is expected to continue to grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
0.2%
Forecast Growth 17-22
Profit
Employment
2,621
Businesses
44

Industry Threats & Opportunities

  • Tea is becoming more popular thanks to the growing variety of flavors, strengths and sweeteners offered by manufacturers
  • Growing tea demand and consumption motivated several small, niche players to enter the industry
  • Consumers are changing their dietary patterns to incorporate low-fat and low-sugar products, like tea
  • Industry Report - Industry SWOT Analysis Chapter

    The Tea Production industry is in the growth stage of its life cycle, supported by an increase in consumer awareness about tea and its benefits. Over the 10 years to 2022, the industry's value added (IVA), which measure's the industry's contribution to the economy, is forecast to increase an annualized rate of 3.0%. Comparatively, GDP is projected to grow at an annualized rate of 2.0% during the same 10-year period. IVA growth that outpaces GDP growth is a key indicator that this industry is in a growing life cycle stage, as it signifies that demand for tea and the overall size of the industry are increasing rapidly.New players have entered the industry in an attempt to capitalize on robust demand. Add...purchase to read more.

    Additional Insights for the Tea Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tea Production Industry are

  • Supply contracts in place for key inputs
  • Ability to adapt to change
  • Product differentiation
  • IBISWorld analysts also discuss how external factors such as Per capita tea consumption and Demand from supermarkets and grocery stores in the Tea Production industry impact industry performance..

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    What's in this report

    What is the Tea Production Industry?

    This industry comprises businesses that blend and package tea, excluding iced and ready-to-drink tea.

    Industry Products
  • Bagged black tea
  • Loose black tea
  • Bagged green tea
  • Loose green tea
  • Other teas
  • Industry Activities
  • Importing tea leaves
  • Tea leaf oxidation
  • Blending tea
  • Packaging tea
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita tea consumption
  • Demand from supermarkets and grocery stores
  • Trade-weighted index
  • Healthy eating index
  • Per capita disposable income
  • Number of adults aged 65 and older

  • Current Performance
  • Innovative growth
  • Tea trade trends
  • Chart: Revenue Growth

  • Industry Outlook
  • More exposure
  • International trade grows
  • Table: Tea Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tea Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Food Service Contractors
  • Street Vendors

  • Key Selling Industries
  • Baking Mix & Prepared Food Production
  • Plastic Bottle Manufacturing
  • Wholesale Trade

  • Products & Services
  • Bagged black tea
  • Bagged green tea
  • Other teas
  • Loose black tea
  • Loose green tea
  • Chart: Tea Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers age 20 to 39
  • Consumers age 40 to 59
  • Consumers over 60
  • Consumers under 20
  • Exports
  • Chart: Major Market Segmentation for the Tea Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tea Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tea Production Industry

  • Industry Globalization
    Starbucks Corporation, Bigelow Tea Company, Unilever, Hain Celestial Group Inc.,
  • Table: Starbucks Corporation - financial performance
  • Table: Bigelow Tea Company - financial performance
  • Table: Unilever - financial performance
  • Table: Hain Celestial Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tea Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tea Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Demand from Supermarkets and Grocery Stores (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    North American Free Trade Agreement (Nafta)
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Oolong
  • A traditional tea, originating in China, which ranges between green and black tea in terms of oxidation.
  • Oxidation
  • Describes a state where tea leaves undergo a change in molecular structure.
  • Ready-To-Drink (Rtd)
  • A beverage produced and packaged for immediate consumption.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tea Production Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Tea Production industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tea Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tea Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tea Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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