Something's brewing: The aging population and rising tea consumption will keep revenue growth hot

The Herbal Tea Production industry has contracted over the past five years. Despite positive consumer trends, including a rise in health consciousness, the industry faltered at the start of the period due to declines in general tea consumption. Nonetheless, rising awareness surrounding the health benefits of herbal tea and the improving economy have bolstered demand for the industry in the latter half of the period. Consistent demand from the aging population is partly attributable to intense marketing on the part of industry operators in an effort to boost awareness about the health benefits of herbal teas. The industry is expected to grow over the next five years. Continuing health trends and the aging population will boost domestic demand...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Mainstream retailers are progressively stocking herbal teas as consumer demand heightens
  • Aggressive media promotion has supported belief in the health benefits of tea consumption
  • The aging population and rising per capita tea consumption will contribute to growth
  • Industry Report - Industry Analysis Chapter

    The Herbal Tea Production industry faced some challenges early in the current period. Over the five years to 2017, revenue has been volatile due to swings in demand and raw input prices. Nevertheless, the widely publicized health benefits of herbal tea have boosted demand, particularly for premium-varieties, in the second half of the period. Consumers purchase herbal teas because they are perceived as healthier than traditional black tea; however, black tea still remains the most consumed type of tea in the United States. Unfavorable trade conditions plagued the industry with a sharp rise in imports and a steep decline in exports. Overall, in the five years to 2017, industry revenue is expected to decrease at an annualized rate of 2.3% to $595.0 million. The...purchase to read more.

    Additional Insights for the Herbal Tea Production Industry

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

  • Supply contracts in place for key inputs
  • Ability to alter goods and services produced in favor of market conditions
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita tea consumption and Per capita disposable income in the Herbal Tea Production industry impact industry performance..

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    What's in this report

    What is the Herbal Tea Production Industry?

    Companies in this industry blend and package plant infusions made from any leaf, root, fruit or flower that comes from a plant other than the tea plant. The industry does not include iced and ready-to-drink herbal teas.

    Industry Products
  • Rooibos tea
  • Mate tea
  • Chamomile tea
  • Senna tea
  • Ginger tea
  • Other herbal teas
  • Industry Activities
  • Importing herbs
  • Blending herbs
  • Packaging herbal teas
  • Packaging medicinal teas
  • 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
  • Per capita disposable income
  • Healthy eating index
  • Number of adults aged 20 to 64
  • Trade-weighted index

  • Current Performance
  • Alternative remedies on the rise
  • Health awareness combats declining consumption
  • Strong international competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing consumer base
  • International trade
  • Development and profit
  • Table: Herbal Tea Production Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Baking Mix & Prepared Food Production
  • Fruit & Nut Farming
  • Plastic Bottle Manufacturing

  • Products & Services
  • Other herbal teas
  • Chamomile tea
  • Senna tea
  • Ginger tea
  • Rooibos tea
  • Mate tea
  • Chart: Herbal Tea Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grocery wholesalers
  • Retail trade
  • Exports
  • Food service industry
  • Direct sales
  • Chart: Major Market Segmentation for the Herbal Tea Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesLabor and capitalOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Herbal Tea Production

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Herbal 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 Herbal Tea Production Industry
  • 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)
  • Per capita tea consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ready-To-Drink (Rtd)
  • A beverage produced and packaged for immediate consumption.
  • Rooibos
  • A South African shrub with leaves that can be dried and used to make herbal tea.
  • Tisane
  • Another name for herbal tea; it can also go by the name infusion.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Herbal 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

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