Tea Pods Global Market Report 2024

The tea pods market size has grown strongly in recent years. It will grow from $6.17 billion in 2023 to $6.5 billion in 2024 at a compound annual growth rate (CAGR) of 5.3%. The growth observed during the historical period can be attributed to factors such as the convenience offered by tea pods, increasing health awareness among consumers, growing environmental concerns leading to eco-friendly packaging, and effective marketing and branding strategies employed by tea pod manufacturers.

The tea pods market size is expected to see steady growth in the next few years. It will grow to $7.73 billion in 2028 at a compound annual growth rate (CAGR) of 4.4%. The anticipated growth in the forecast period can be linked to the increasing emphasis on sustainability, the growing focus on health and wellness, and the expanding markets for tea pods, particularly in emerging regions. Notable trends expected during the forecast period encompass a wide variety of flavors, customization options for consumers, the integration of smart technology in tea pod brewing, and the emergence of wellness and functional teas within this market.

The tea pods market is expected to experience growth, primarily driven by the increasing global consumption of tea. Statistics from the Tea Association of the USA Inc. reveal that over 159 million Americans enjoy tea on any given day. In July 2022, Americans consumed a remarkable 84 billion servings of tea, equivalent to more than 3.8 billion gallons. The majority, about 84%, of tea consumed was black tea, with 15% as green tea, and the remaining small portion consisting of oolong, white, and dark tea. Projections indicate a 2.2% annual increase in black tea production over the next decade, reaching 4.4 million tons by the end of 2027. This surge in tea production is expected to drive demand for tea, consequently benefiting the growth of the tea pods market.

The primary types of tea pods can be categorized as soft tea pods and hard tea pods. A soft pod typically refers to a teabag that is enclosed within filter paper, characterized by its round, flat shape, which is usually soft and flexible. These tea pods are distributed through various channels, including supermarkets, hypermarkets, independent retailers, convenience stores, and specialty tea retailers. The different types of tea found in these pods include green tea, black tea, herbal tea, and other varieties.

The tea pods research report is one of a series of new reports that provides tea pods statistics, including tea pods industry global market size, regional shares, competitors with tea pods share, detailed tea pods segments, market trends and opportunities, and any further data you may need to thrive in the tea pods industry. This tea pods research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tea pod market is poised for growth due to the increasing demand for herbal tea. Herbal tea, made from dried herbs and spices, is typically caffeine-free and is associated with health, wellness, variety, and convenience. The appeal of offering caffeine-free alternatives, eco-friendly packaging, and unique flavor profiles has fueled the demand for herbal tea pods. Data from Euromonitor International in 2022, published by Canada Statistics, forecasts that retail sales of fruit/herbal tea will reach $286.1 million in 2026, up from $144.1 million in 2022. Hence, the rising popularity of herbal tea contributes to the growth of the tea pod market.

The increasing cost of tea presents a challenge to the growth of the tea pods market. As tea serves as the raw material for tea pods, any rise in tea prices directly impacts the cost of finished tea pod products. For instance, in a commodity market outlook report by the World Bank in April 2021, the average tea price per kilogram increased from $2.57/kg in Q2 2020 to $3.09/kg in Q3 2020. The combined effect of escalating tea prices and higher tea pod costs is expected to constrain market growth during the forecast period.

An emerging trend in the tea pods market is the availability of a wide range of flavored teas. Major players in the market are focusing on introducing new flavors and products tailored to consumers' preferences. For example, Teavana Corporation, a U.S.-based tea company, introduced white chocolate peppermint tea sachets in June 2021, expanding its existing selection of premium tea sachets. These sachets are expertly crafted with real fruit, botanicals, and full pieces of tea, creating a layered blend of flavors. The new herbal blend features delightful notes of creamy white chocolate, cocoa, and smooth rooibos, complemented by refreshing peppermint. This trend of introducing a variety of flavored teas is anticipated to shape the tea pods market.

Major companies in the tea pods market are embracing advanced technology, such as customization technology platforms, to offer customers tailored options. A customization technology platform is a digital framework or software that empowers individuals and businesses to create personalized products or services according to their specific preferences, needs, or design choices. In July 2021, Keurig Dr Pepper Inc., a U.S.-based beverage brewing system manufacturer, unveiled a next-generation technology platform that enables consumers to customize their tea experience. The K-Supreme Plus SMART brewer with BrewID is the first to feature this technology, and it is compatible with iOS 13 and higher and Android 8 and higher. This technology empowers users to adjust settings like strength, temperature, and cup size while conveniently storing their preferences via their smartphones.

Major companies operating in the tea pods market include Unilever PLC, Bigelow Tea Co, Nestle SA, Keurig Dr Pepper Inc., Cornish Tea & Cornish Coffee Ltd., Tata Global Beverages Ltd., Red Diamond Inc., TEEKANNE GMBH & CO. KG, The Republic of Tea Inc., Jacobs Douwe Egberts, Mother Parkers Tea & Coffee Inc., Starbucks Corporation, Reily Foods Company (RFC), Sidsam Group, VitaCup Inc., Celestial Seasonings Inc., R Twining and Company Limited, Tazo Tea Co, Lipton Teas and Infusions, Harney & Sons Fine Teas, Mighty Leaf Tea, Numi Inc., Yogi Tea, Stash Tea Co, Traditional Medicinals & WorldPantry.com LLC, Rishi Tea & Botanicals, Zhena's Gypsy Tea, The Tea Spot Inc., Two Leaves and a Bud, Davidson's Organic Tea

Asia-Pacific was the largest region in the tea pods market in 2023. Western Europe was the second-largest region in the tea pods market. The regions covered in the tea pods market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the tea pods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The tea pods market consists of sales of soft tea pods and hard tea pods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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