Craft Tea Market: Changing consumer trends toward Craft Tea to boost the market growth

Craft Tea market size reached USD 344.07 million in 2022 and is expected to reach USD 458.91 million by 2029, growing at a CAGR of 4.2 % during the forecast period.

Craft tea is high-quality tea made by withering the leaves differently from the others, adding an extra roasting step, using a rare or uncommon cultivar, or aging the leaves. This type of tea is usually slightly different from other tea that is already available on the market. Craft Tea has considered an all-natural and environment-friendly product made from a renewable source.

The healthy hydration properties offered by any craft tea beverage prove its ability to maintain proper fluid balance in the body and its metabolism-regulating traits. Thus, the awareness and demand for craft tea are increasing because of its health benefits, as it helps to burn fat, curbs unhealthy appetite, and acts as a natural appetite suppressant that is expected to fetch sustainable sales of Craft tea all over the world.

Nowadays, Craft teas have become a common beverage seen in many stores and cafes. The consumer can order craft teas at coffee and tea shops as ready-to-drink bottled tea. Starbucks and Teavana have recognized this trend and implemented it in these ways. Starbucks' tea sales rose by 21%, which came from an interest in shaken iced teas and tea lattes. Starbucks creates its "Shaken Iced Teas" by combining tea, botanical blends, fruit, and cane sugar.

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Craft Tea Market Dynamics:
Health benefits associated with the consumption of craft tea to drive the craft tea market growth

Craft tea has quite many properties and researchers have come up with most of the health benefits. Modern-day tea brands have e-commerce sites and are very well acquainted with such medicinal properties. There are so many reputed brands available in the market that provides exotic collections of designer teas and consumer can buy this tea by using online platforms. The fragrant scent of craft tea can activate the parasympathetic nervous system, which produces hormones that help the body relax and relieves stress. Craft tea is also rich in many nutrients, which help to strengthen the immune system.

Craft tea also contains significant amounts of anti-inflammatory and antioxidant compounds that help to enhance the immune system and fight against colds and flu. Craft tea is also rich in many nutrients, which help to strengthen the immune system. The above-mentioned health benefits are expected to increase the demand for the craft tea market during the forecast period.

New Trend of Craft Tea

Restaurants, café, and hotels are looking to elevate their tea business in the coming years. The vast variety of Craft tea options that are available today combined with increasing consumer demand and strong business models are driving the transformation of tea offerings in restaurants and food service establishments across the world. The flavors of tea offer numerous viable options for hotels, restaurants, and cafés, as an exciting alternative to the most common beverages such as carbonated drinks, coffee, or alcohol.

Another surprise to many restaurateurs and food service providers is that Craft tea yields far higher profits than just about any other beverage in North America Region. Overall, Craft tea is an ideal complement to the current trends and provides opportunities for business growth during the forecast period.
Competitive Landscape
The global Craft tea market is highly competitive with strong competitors with a diversified product portfolio, leading to high competition among the existing players. The key players in the craft tea market enjoy a dominant presence across the world. The global craft tea market is highly influenced by the immense number of new companies that are brought into this market to compete with each other and to bring the graph higher every year.

Companies are constantly trying to provide consumers with new and innovative products that meet consumer demands. Key players have actively started the industry consolidation process by utilizing existing distribution channels, establishing partnerships with local distributors, especially in emerging nations, and developing new products. The research provides an accurate forecast of the market's future state over the next few years.

Constraints in Craft Tea Production Act as a Key Restraint for Craft Tea Market Growth

The lack of knowledge regarding proper farming practices for the manufacturing of craft tea acts as a restraint for market growth. Tea growers generally lack the expertise to convert their conventional farming techniques to become more productive and sustainable. The production cost of craft tea is comparatively higher, which hampers the growth of the craft Tea market.

The certification process involved in craft tea production and sales in the international market is also very expensive. However, Rising efforts by the government to spread awareness regarding advanced agricultural practices among farmers are expected to reduce these constraints and support the growth of the craft tea market during the forecast period.
Craft Tea Market Segment Analysis:
Based on product type, the market is segmented into blooming craft tea, active craft tea, and floating floss craft tea. The active craft tea segment is expected to grow at the highest CAGR during the forecast period, thanks to boosts the immune system, fights off inflammation, and even wards off cancer and heart disease. The blooming craft tea segment held a significant market share in 2022 and is expected to maintain its leadership position during the forecast period.

Based on end users, the individual segment held major share in the market and is likely to maintain its dominance throughout the forecast period, thanks to the regular consumption of craft tea by individuals. The rise in awareness of health benefits and less caffeine in craft tea is boosting the craft tea market growth during the forecast period.

Based on distribution channels, the offline segment held the highest craft tea market share in the market in 2022 because of the availability of a variety of tea in the retail store and departmental stores.
Craft Tea Market Regional Insights
The demand for craft tea in the Asia-Pacific region is increasing in part due to the health benefits of having tea and a growth in public awareness of the risks of carbonated beverages. The development of new products and flavorings, such as ready-to-drink tea, premium tea, and herbal and fruit fusions are all expected to increase the craft tea industry.

Future market growth is likely to be aided by the increasing awareness of the health advantages of drinking tea for people who have high blood pressure, arthritis, and cardiovascular conditions. Green tea is becoming increasingly popular among health-conscious customers. The North American region dominates the craft tea market during the forecast period. The increase in the number of food joints such as hotels & restaurants has fueled the demand for the craft tea market in this region.

The research report focuses on the major driving factors and restraints that affect the craft tea market. Global and regional players in the craft tea industry are discussed in depth, including revenue data and market share information. The craft tea market analysis includes trends in Craft Teas, information about the potential market and needs, and lists of potential competitors.

MMR has segmented the global craft tea market report based on nature, form, application, distribution channels, and region. The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses.
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Craft Tea Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 344.07 Mn.


Forecast Period 2023 to 2029 CAGR:
4.2%
Market Size in 2029:
US $ 458.91 Mn.


 Segments Covered:
by Product Type
1. Bloomingcraft Tea
2. Active Craft Tea
3. Floating Floss Craft Tea


by End-User
1. Commercial
2. Individual


by Distribution Channels
1. Online
2. Offline



Craft Tea Market, by Region
 North America (United States, Canada and Mexico)
 Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
 Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
 Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
 South America (Brazil, Argentina Rest of South America)
Craft Tea Market, Key Players are
1. LUPICIA CO., LTD
2. COFCO, Teasenz
3. California tea house
4. Panella Foods and Beverages Private Limited
5. Bettys & Taylors Group Ltd
6. FMS Consumer Products Pvt Ltd
7. Bharat Group
8. Stash Tea
9. NORD-T
10. AHCOF INTERNATIONAL
11. Blue Lake Group
12. Lupicia
13. Fu Ming Fang
14. Chayuanchuanshi Tea
15. China Tea
16. Fuan Gongfu Tea

FAQs:

1. Who are the key players in the  market?
Ans. Blue Lake Group and Lupicia are some of the market players in the Craft Tea industry.

2. Which product type segment dominates the market?
Ans. The Blooming  segment accounted for the largest share of the global Craft Tea market in 2022.

3. How big is the market?
Ans. The global  market size reached USD 344.07 Mn. in 2022 and is expected to reach USD 458.91 Mn. by 2029, growing at a CAGR of 4.2 % during the forecast period.

4. What are the key regions in the global market?
Ans. Based On the region, the market has been classified into North America, Europe, Asia Pacific, Middle, East and Africa, and Latin America. Asia Pacific dominates the global  market.