Market Trends of Single Origin Tea Industry
This section covers the major market trends shaping the Single Origin Tea Market according to our research experts:
Rising Popularity of Organic Tea Products
The growing popularity of organic tea is driving the demand for single origin tea in the market. Consumers are rooting for organic tea that is produced ethically and is processed at the source of production. They also prefer labels on product packaging showing the origin of production and processing, thereby, enhancing their trust in a particular brand. A majority of single origin tea companies source their product from the Asia-Pacific region. This has led to an increase in demand for organic single origin tea from these regions, in turn, increasing the export of products from the region. For instance, according to the Ministry of Agriculture, Forestry, and Fisheries, the export volume of organic certified tea from Japan increased from 0.45 million kilograms in 2017 to 1.02 million kilograms in 2020. Along with organic tea, the demand for fair trade certified tea also increased, owing to the consumer demand for ethical sourcing of single origin tea. As per the statistics of FairTrade Germany, the share of organic tea in the sales volume of fair trade certified tea increased from 85% in 2016 to 89% in 2021 in Germany. Therefore, the escalating demand for organic tea is estimated to increase the growth of single origin tea in the market.
Asia-Pacific Holds the Largest Share in the Market
The production, as well as consumption of tea, is very prominent in different countries of the Asia-Pacific region like China, Japan, and India, among others. China is the world's top producer as well as consumer of green tea. But the country is now exploring its preference for black tea from different countries of origin like Sri Lanka, India, and China itself. The health benefits associated with tea like the presence of antioxidants, along with the traditional association of the region with tea beverage, is driving the growth of single origin tea in the regional market. According to the United States Food and Agriculture Organization, China was the largest producer of tea in the Asia-Pacific region, having produced 2.97 million metric tons of tea in 2020. In fact, as per the statistics of UN Comtrade, China was the leading tea exporting country in 2021, followed by Sri Lanka and India. In 2021, China exported USD 2,299.19 million of tea to different countries. Therefore, the high quality tea produced in the Asia-Pacific region has catered to the demand of consumers in the region as well as global consumers to prefer single origin tea, harvested and processed in the regional market.
