Worldwide, tea is the second-most consumed nonalcoholic beverage behind packaged water.1 Per capita consumption totaled 35.2 liters in 2017. According to legend, tea was discovered in China in 2737 B.C. by the emperor when leaves from a wild tree blew into a pot of boiling water. He named the drink “ch’a”, which means “to investigate”, to describe the warm feeling he felt when drinking this new beverage as if the liquid was investigating every part of his body. In 200 B.C. the emperor of China at that time ruled that a special written character be used when mentioning tea. The character consisting of wooden branches, grass and a man between the two was meant to symbolize tea bringing nature and humankind into balance in the Chinese culture.
Starting in the 8th century, trade with China introduced this drink to other parts of the world. It is now an important part of the culture in countries such as Japan, the United Kingdom, and Turkey in addition to China. In 2016, Turkey ranked number one in per capita consumption in the world, 6.96 pounds, followed by Ireland (4.83 lbs.), the United Kingdom (4.28 lbs.), Russia (3.05 lbs.), and Morocco (2.68 lbs.). Although the United States ranked 34th in per capita consumption in 2016, tea played an important role in its early history. To capitalize on its popularity in the American colonies, Britain, which exported tea to the colonies, imposed a tea tax. The tax eventually reached 119% of the original price at wholesale. The Boston Tea Party, one of the events that led to the American War of Independence, was a protest against this high taxation.
Today’s market size shows worldwide revenues for tea in 2018 and projected for 2026. In 2017, the last year for which data exists, China was the top producer of tea, followed by India, Kenya, Sri Lanka, and Viet Nam. Black and green are the most popular types globally, commanding 39.2% and 30.5% of the market, respectively. In the United States, sales totaled $19.7 billion in fiscal year 2018, according to Beverage Marketing Corporation. Black tea accounted for 84% of the tea consumed; green tea, 15%. Ready-to-drink tea was the only category to see an increase in both sales volume and value from 2017 to 2018. Ready-to-drink tea represents 46% of the U.S. market by volume, followed by teabags at 44%. Loose leaf tea, tea pods, and iced tea mix account for the rest. Major global manufacturers of tea include Tata Global Beverages, Unilever, Associated British Foods Plc., TAETEA, Barry’s Tea, Apeejay Surrendra Group, Bettys & Taylors Group Ltd., McLeod Russel, ITO EN Inc., and Mighty Leaf Tea Company, among others.
Sales are expected to grow through 2026 due to rising disposable income in many countries and consumers’ growing preferences for organic products and healthier beverages. Some sources claim that the polyphenols in tea, which have anti-inflammatory and antioxidant properties, can lower the risk of type 2 diabetes and cardiovascular disease. Others claim tea can boost one’s immune system, strengthen bones and teeth, reduce the risk of cancer and kidney stones and control blood cholesterol levels. According to Qi Sun, assistant professor in the Department of Nutrition at the Harvard School of Public Health, “Tea consumption, especially green tea, may not be the magic bullet, but it can be incorporated in an overall healthy diet with whole grains, fish, fruits and vegetables, and less red and processed meat.” Sun goes on to warn, however, that any health benefits of tea will likely be negated if one chooses to drink only processed, sugar-sweetened tea beverages.
January is National Hot Tea Month in the United States. May our readers have time to brew a cup, slow down, and savor life’s beautiful moments!
1 Does not include tap water.Geographic reference: World
Year: 2018 and 2026
Market size: $52.1 billion and 81.6 billion, respectively
Sources: Sumesh Kumar and Roshan Deshmukh, “Tea Market by Type (Green Tea, Black Tea, Oolong Tea, Fruit/Herbal Tea, and Others), Packaging (Plastic Containers, Loose Tea, Paperboards, Aluminum Tins, and Tea Bags), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, And Others) and Application (Residential and Commercial): Global Opportunity Analysis and Industry Forecast, 2019-2026,” Allied Market Research Report Summary, December 2019 available online here; “The History of Tea,” Coffee Tea Warehouse available online here; “List of Countries by Tea Consumption Per Capita,” Wikipedia, November 13, 2019 available online here; “Crops,” Food and Agriculture Organization of the United Nations, January 18, 2019 available online here; Dan Bolton, “Tea Consumption Second Only to Packaged Water,” World Tea News, May 1, 2018 available online here; Dan Bolton, “RTD Leads Growth in US Tea Market,” World Tea News, December 17, 2018 available online here; “Tea Market Size, Share & Trends Analysis Report by Product (Black, Green, Oolong, Herbal), by Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, Online), by Region, and Segment Forecasts, 2019 – 2025,” Grand View Research Report Summary, August 2019 available online here; “Tea Fact Sheet – 2018-2019,” Tea Association of the U.S.A. Inc. available online here; “Tea: A Cup of Good Health?” Harvard Men’s Health Watch, August 2014 available online here.
Image source: TerriC, “tea-cup-vintage-tea-cup-tea-cup-2107599,” Pixabay, March 1, 2017 available online here.