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Tea and Coffee Bags Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI4739

Tea and Coffee Bags Market size is anticipated to observe promising expansion between 2023 and 2032 impelled by higher consumption of beverages worldwide. As per reliable estimates, about 150 million Americans consume coffee. The increasing intake of coffee to limit the risks of heart disease on account of its antioxidant properties will also inflate the industry growth.

Tea and coffee bags not only help in maintaining freshness, taste as well as aroma but also preserve the moisture content of the product and its nutritional properties. Growing popularity among millennials and younger consumers, the rising number of research and marketing investments along with increasing attention to diversified product portfolios 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 from tea/coffee bags will expand given the increasing emphasis on sustainable and environmentally friendly packaging. Teabags are not only used for brewing tea but are also applicable for soothing tired eyes, healing sunburns, and treating boils. The emerging trend of instant coffee and 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 by 2032 end. The growth can be accounted to the growing production of coffee and the rising preference for black tea, mainly in the U.S. As per 2020 statistics revealed by the U.S. National Library of Medicine, the intake of black tea amongst Americans is nearly 40%. 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 industry growth.

On similar lines, Asia Pacific will record significant demand for tea and coffee bags through 2032 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 rising consumer health awareness and the shift toward international blends. In addition, Asia is home to some prominent tea plantations across the world, presenting lucrative opportunities for the tea and coffee bags market.

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 the key tea and coffee bags industry players to reinforce their market position and achieve competitive edges. Divestments in business are on the rise in the industry, which is complementing the market growth curve.

For instance, Unilever in 2021, announced selling its tea division which includes brands such as Lipton and PG Tips, for a transaction deal worth USD 4.7 billion.

The trend of eco-friendly packaging is poised to support credible expansion of tea and coffee bags market over the span of 10 years. Different coffee and tea vendors are effortlessly working on introducing sustainable packaging options for consumers and the planet. In 2021, Steeped Coffee launched single-serve coffee bags from renewable and compostable materials.

What Information does this report contain?

Historical data coverage: 2018 to 2022; Growth Projections: 2023 to 2032.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.

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