Organic Tea Market to Grow 5% in 5 Years

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Organic Tea Market to Grow 5% in 5 Years

By TGR Edit Desk - 07/06/2017

Technavio’s latest market study indicates the organic tea market in the U.S. is expected to reach $295 million by 2021, growing at CAGR of more than five percent.

The growth is attributable to factors relating to consumer behavior and favorable market condiditons like the availability of organic tea varieties in retail and more organic tea manufacturers entering the market. Sales were up in foodservice and retail as more consumers opt for healthier beverages.

Organic tea market in the U.S.

Demand is increasing in the United States for organic tea as more consumers are increasing aware of the health benefits associated with organic tea and are looking for organic and eco-friendly products. Consumers are also increasingly willing to pay a premium for such products.

“Organic herbal teas such as turmeric, ginger, chamomile, and peppermint have therapeutic values, due to which their demand is expected to increase among the health-conscious consumer base in the US. Therefore, manufacturers are concentrating on various product offerings in organic herbal teas,” said Akash Pandey, lead non-alcoholic beverage research analyst for Technavio.

The organic black tea market is growing as more flavors become available and more consumers become aware of its health benefits, which include antioxidants and polyphenols that help clear free radicals in the body and increase the metabolic rate.

Organic green tea also is seeing a spike, due in large part to its purported weight loss capabilities. Consumption of organic green tea increases fat-burning and boosts metabolic rate and when brewed from loose tea leaves, contain potent antioxidants like epigallocatechin gallate (EGCG).