Tea and coffee bags market size is anticipated to observe promising expansion between 2022 and 2028 impelled by the higher consumption of beverages worldwide. The surging emphasis on high-quality coffee and tea packaging for conserving flavor has increased the demand for laminated paper bags. The increasing intake of coffee to limit the risks of heart diseases on account of their antioxidant properties will also inflate the industry growth.
Tea and coffee bags not only help in maintaining freshness, taste as well as the aroma but also preserve the moisture content of the product, taste, and nutritional properties. They are increasingly used for making tea and coffee easily and instantly. Growing popularity among millennials and younger consumers, the rising number of research and marketing investments along with increasing attention to diversified product portfolio will fuel the tea and coffee bags industry expansion.
With respect to packaging, the Tea and coffee bags market is segmented into tea/coffee bags, instant tea/coffee, loose tea/coffee, plastic box, aluminum tins, and others. Out of these, the market revenue of the tea/coffee bags segment will expand with the increasing emphasis on sustainable and environmentally friendly packaging. Teabags are not only used for brewing tea but are also applicable for soothing your tired eyes, healing sunburns, and treating boils. The emerging trend of instant coffee tea bags is another ideal factor for the segment expansion.
Regionally, North America is set to emerge as a profitable avenue for the tea and coffee bags market on account of the growing production of coffee and the rising preference for black tea, mainly in the U.S. Tea can be considered one of the most popular beverages across the country given the higher availability of a wide assortment of tea types, including Earl Grey and Yunnan Black tea among others. The rising inclination to quick coffee products will also infuse a positive outlook for the industry growth.
Asia Pacific will record significant demand for tea and coffee bags through 2028 due to the robust presence of numerous industry players and the surge in the number of R&D investments. The growing sales of coffee in Japan will add to the product demand. The escalating rate of tea consumption in the region has prompted the rising consumer health awareness and the shift toward international blends. Asia is home to some prominent tea plantations across the world. The increasing number of coffee brands will also drive the regional industry expansion.
Some of the well-known manufacturers and suppliers of tea and coffee bags are Unilever (Unilever plc), Tata Global Beverages (Tata Group, Tata Chemicals), Betjeman & Barton, Tea Trunk, Tazo Tea Company (Unilever), Twining’s, Kumsi Tea, Nestle S.A., Associated British Foods Plc., Celestial Seasonings (Hain Celestial Group), Typhoo, Barry’s Tea, Kazi Tea, and Tea Box.
Strategic team-ups, including acquisitions, partnerships, and capacity expansions, along with other marketing initiatives are largely employed by these tea and coffee bags industry players to reinforce their market position and achieve competitive edges.
For instance, in February 2021, Celestial Seasonings announced updated packaging, fresh advertising campaigns as well as an expanded product line in its tea category for driving the brand market share.
In another instance, in November 2021, Unilever inked an agreement with CVC Capital Partners Fund VIII to sell Ekaterra, its global tea business comprising over 34 brands, for €4.5 billion on a debt-free and cash-free basis. This collaboration is in line with the company’s growth strategy.
Amid the coronavirus pandemic, the consumption of tea and coffee substantially increased driven by the surging awareness about their health benefits in supporting the immune system. This substantially anchored the preference for tea and coffee bags on account of their convenience of use and easy disposal. Rising efforts towards flexible packaging, flavor innovations, and ethically sourced ingredients also added to significant market growth.