Europe Tea Market Size (2024 - 2029)

The European tea market is experiencing growth, driven by a trend towards premium and specialty teas, which are gaining popularity despite their relatively small market size. This expansion is supported by increasing consumer awareness of health benefits and a shift in preferences from carbonated drinks to tea. Western European countries, particularly France, the United Kingdom, Germany, the Netherlands, and Italy, lead in organic tea sales and are expected to continue driving market growth. The market's size is further influenced by the strong tea tradition in these regions, with green tea and herbal/fruit teas also becoming more popular due to their health benefits.

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Market Size of Europe Tea Industry

Europe Tea Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2018 - 2022
CAGR 4.90 %
Market Concentration Low

Major Players

Europe Tea Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Tea Market Analysis

The European tea market is projected to register a CAGR of 4.9% during the next five years.

The European tea market is witnessing a premiumization trend. Customers are seeking a high-quality, one-of-a-kind tea experience. This opens up chances for suppliers of specialty tea. The market for these specialty teas in Europe is still relatively small and is expanding gradually. According to "Agriculture and Agri-Food Canada," between 2016 and 2021, the European tea market witnessed sluggish growth, a compound annual growth rate (CAGR) of 3.4%, with total retail sales of USD 10.9 billion in 2021.

Western European countries dominate organic tea retail sales. France, the United Kingdom, Germany, the Netherlands, and Italy were the top five organic tea markets in Europe in 2021, accounting for 75.4% of total organic tea retail value sales in Europe. These countries are predicted to lead growth during the forecast period. Health benefits associated with consuming tea and an increase in awareness related to carbonated drinks among people are some of the major factors increasing the demand for tea in the region. Moreover, the increasing work culture and busy schedules of consumers are dragging the per capita spending toward the market.

Also, according to the CBI Ministry of Foreign Affairs, the main European tea markets with a strong tea tradition are West European countries and Poland. The United Kingdom is the world's largest tea market. There has been a rise in the popularity of specialty teas with unique flavors and higher quality across Europe. Green tea and herbal/fruit teas are also gaining traction in European markets due to their supposed health benefits.

Europe Tea Industry Segmentation

Tea is a drink that is produced from the combination of cured leaves of the Camellia sinensis (tea) plant with hot water. Tea is the second most popular beverage in the world, after water. The European tea market is segmented by form, type, distribution channel, and geography. Based on form, it is segmented into leaf tea and CTC tea. By type, the market is segmented into black tea, green tea, herbal tea, and other types. Based on distribution channel, it is segmented into hypermarkets/supermarkets, specialist retailers, convenience stores, online retailers, and other distribution channels. Furthermore, based on geography, it is segmented into Spain, the United Kingdom, France, Germany, Russia, and Italy. For each segment, the market sizing and forecasts have been done based on value (in USD million).

By Form
Leaf Tea
CTC Tea
By Type
Black Tea
Green Tea
Herbal Tea
Other Types
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Specialty Stores
Online Retailers
Other Distribution Channels
By Geography
Germany
United Kingdom
France
Russia
Italy
Spain
Rest of Europe
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Europe Tea Market Size Summary

The European tea market is experiencing a notable trend towards premiumization, with consumers increasingly seeking high-quality and unique tea experiences. This shift is creating opportunities for suppliers of specialty teas, although this segment remains relatively small and is gradually expanding. Western European countries, particularly France, the United Kingdom, Germany, the Netherlands, and Italy, dominate the organic tea market, driven by health-conscious consumers and a growing awareness of the benefits of tea over carbonated drinks. The demand for green and herbal teas is rising, fueled by aggressive marketing highlighting their health benefits, such as improved blood flow and reduced risk of heart-related issues. The busy lifestyles of consumers are also contributing to increased per capita spending on tea, as it is perceived as a stress-reliever and a healthier alternative to caffeinated beverages.

The competitive landscape of the European tea market is characterized by the presence of both domestic and international players, with major companies like Unilever PLC, Associated British Foods PLC, Dilmah Ceylon Tea Company PLC, Nestlé SA, and Cafedirect PLC leading the industry. These companies are focusing on product development and innovation to cater to the premiumization trend and meet diverse consumer tastes. Strategic mergers and acquisitions are common as companies strive to maintain their market positions and expand their product offerings. Recent developments, such as JDE Peet's acquisition of Les 2 Marmottes and Unilever's sale of ekaterra, highlight the dynamic nature of the market, where companies are continuously seeking to enhance their brand portfolios and maintain competitiveness.

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Europe Tea Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Form

      1. 2.1.1 Leaf Tea

      2. 2.1.2 CTC Tea

    2. 2.2 By Type

      1. 2.2.1 Black Tea

      2. 2.2.2 Green Tea

      3. 2.2.3 Herbal Tea

      4. 2.2.4 Other Types

    3. 2.3 By Distribution Channel

      1. 2.3.1 Supermarkets/Hypermarkets

      2. 2.3.2 Convenience Stores

      3. 2.3.3 Specialty Stores

      4. 2.3.4 Online Retailers

      5. 2.3.5 Other Distribution Channels

    4. 2.4 By Geography

      1. 2.4.1 Germany

      2. 2.4.2 United Kingdom

      3. 2.4.3 France

      4. 2.4.4 Russia

      5. 2.4.5 Italy

      6. 2.4.6 Spain

      7. 2.4.7 Rest of Europe

Europe Tea Market Size FAQs

The Europe Tea Market is projected to register a CAGR of 4.90% during the forecast period (2024-2029)

Associated Britsh Foods PLC, Dilmah Ceylon Tea Company PLC, Unilever PLC, Nestlé S.A. and Cafedirect PLC are the major companies operating in the Europe Tea Market.

Europe Tea Market Report Snapshots

Europe Tea Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)