Global Organic Oolong Tea Market Size (2023 - 2030)

In 2022, the Global Organic Oolong Tea Market was valued at USD 1.13 billion and is projected to reach a market size of USD 2.68 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 11.4%.Demand is rising as more individuals adopt healthier lifestyles and discover the health advantages of organic oolong tea. Market expansion is anticipated to be sparked by rising consumer spending on tea beverage goods and the introduction of new flavor combinations.

Industry Overview:

Oolong tea, which can range from green to black tea and is widely farmed in China, is a type of partially oxidized green tea. In recent years, this Chinese tea has become more well-liked in parts of Europe and North America. Oolong tea comes in a variety of forms, including the Dan Cong, one of the higher grades and frequently offered at a premium. Another type of oolong tea, known as huge red robe because of its robust flavor, is more oxidized than other varieties and resembles black tea in appearance, is one of the most readily accessible. The worldwide oolong tea market is anticipated to grow strongly over the projected period as a result of the increasing popularity of organic oolong tea flavor along with the rise in healthy eating and drinking habits. Among all of its varieties, the green tea drink, which is regarded as a cold-brew oolong tea, is very well-liked, especially among millennials.

Consumption of organic oolong tea helps in the prevention of diabetes, enhances neural and brain function, regulates cholesterol levels, improves cardiac health, and weight management, strengthens teeth and bones, aids in body detoxification, and others. The introduction of new and improved flavors is likely to create enormous prospects to fuel the market's expansion for oolong tea. Consumers are becoming more aware of the negative impacts of chemically treated food products. The introduction of new and improved flavors will also help by creating enormous prospects that will fuel the market's expansion for oolong tea. Consumers are becoming more aware of the negative impacts of chemically treated food products. More individuals are turning to organic food products as an alternative to these.

COVID-19 pandemic impact on the Organic Oolong Tea Market:

Oolong tea is one of the good, healthier foods that people are looking for as they transition to becoming more health-conscious consumers. The demand for organic oolong tea during COVID-19 surged as a result. The fact that the COVID-19 outbreak caused lockdowns, supply chain interruptions and issues with product supply cannot be disregarded, nevertheless. Due to the lockdown situation, which made employees and workers hold back, the oolong tea market also suffered a setback. Due to the closure of the industrial facilities, the rate of supply was severely constrained. Only after the proposed relaxations did the industry begin to function with fewer employees and begin to bring back some equilibrium in the supply and demand ratio. The supply rate resumed its full pace in 2021, and the demand-to-supply ratio was properly proportioned. As a result, the sales rate also increased, which led to a quick increase in revenue.

MARKET DRIVERS:

A growing number of people are turning to healthier lifestyles and the health benefits of organic oolong tea, which is driving up demand:

The market for organic oolong tea is significantly impacted by customers' shifting preferences and interest in leading healthy lifestyles. Over the coming years, the organic oolong tea market is estimated to grow due to the growing relevance of foods and beverages with flavonoid content that has antioxidant characteristics. Furthermore, it is anticipated that the range of food products made from organic crops would increase due to increased concerns about the negative effects of cadmium on human health. Organic tea offers several advantages. It has been discovered through numerous studies that such items are beneficial in enhancing digestive health. Additionally, it aids in enhancing the activity of beneficial bacteria in the gut, enhancing gut health. Furthermore, theanine, which lowers the high degree of anxiety, is known to be present in organic tea. Additionally, it increases relaxation by reducing sleepiness and lowering heart rate. Oolong tea has several health benefits, including increasing heart health, avoiding diabetes, and boosting cognitive function. The adoption of these goods among health-conscious consumers is anticipated to rise in the future due to the aforementioned health benefits. Expanded oolong tea uses in nutraceuticals are also helping to bolster the global organic oolong tea market.

Increasing consumer expenditure on tea beverage products and the launch of new taste combinations are projected to stimulate market expansion:

The market participants are accelerating their production pace due to the increased demand rate. The major industry participants intend to expand their taste offerings with a few more flavors. Cold-brewed oolong tea is one of the popular drinks made with green tea. Several major beverage firms, like Ito En, increasing their production and marketing of ready-to-drink (RTD) teas, including oolong tea. Due to the increasing use of the Internet and social media, people are now choosing to self-medicate. These elements are probably going to fuel the expansion of the oolong tea market on a global scale in the next years. More individuals are turning to organic food items, like oolong tea, as awareness of the negative health impacts of chemically processed food goods grows.

MARKET RESTRAINTS:

The high cost of organic tea in comparison with conventional tea can retrain the market growth:

The expansion of the organic oolong tea market is anticipated to be hampered by the high cost of organic tea compared to conventional tea. Products made using organic tea are more expensive. This is primarily due to the costlier nature of producing organic tea because it doesn't employ any synthetic chemicals. Organic tea is 10-15% more expensive than conventional tea since the certification process for organic products is highly expensive. The export price is also impacted by the expanding demand for organic tea or tea that hasn't been treated with pesticides on the global market. Given all of these aspects, the high price will probably pose a problem for the expansion of this sector.

The biggest obstacle to market expansion in developing economies is a lack of consumer awareness of the benefits of products:

The advantages of oolong tea are unknown to a sizable public. And strangely, the developing nations that have not yet reached their full potential are impeding the expansion of this market. The main issue impeding the expansion of the world oolong tea market is its lack of consumer acceptance in comparison to other types of tea. The market for oolong tea is also seeing some obstacles to its smooth expansion. The reason for this is that this industry depends heavily on country-wise import markets.

The organic oolong tea market may experience a slowdown in growth due to increased competition from substitute products:

Oolong tea is a useful beverage, but its popularity is declining as a result of black and green tea. Since there is less room for the oolong tea sector to advertise its goods across different regions. However, the main players are highlighting the advantages of both black and green tea to highlight the effectiveness of oolong tea. As a result, addressing this issue is being done with a great deal of balance.

ORGANIC OOLONG TEA MARKET REPORT COVERAGE:

This research report on the global Organic Oolong Tea Market has been segmented based on form, flavor, distribution channel, and region.

Organic Oolong Tea Market – By Form

• Loose Leaf

• Tea Bag

• Powdered

• Others

Based on Form, the Organic Oolong Tea Market is bifurcated into Loose Leaf, Tea Bag, Powdered, and Others. To accommodate the unique needs of a wide range of consumers, it is intended that the major players have variety within their production units. The powder and tea bag forms are predicted to sell in large quantities in the current projection years. The real flavor of loose leaf oolong tea is somehow less demanding.

Organic Oolong Tea Market – By Flavor

• Flavored

• Plain

Based on Flavour, the Organic Oolong Tea Market is bifurcated into Flavored and Plain. The major companies are aware that non-tea drinkers are deterred from consuming this beverage due to its flavor. They are adding flavors to the tea granules and bags as a result. Customers who prioritize simple tea make up a separate customer base. Thus, the major stakeholders balance the production of flavored oolong tea with that of plain tea, rather than slowing it down.

Organic Oolong Tea Market – By Distribution Channel

• Supermarkets & Hypermarkets

• Specialty Stores

• Online Retail 

Based on Distribution Channel, the Organic Oolong Tea Market is bifurcated into Supermarkets & Hypermarkets, Specialty Stores, and Online Retail. In 2021, supermarkets and hypermarkets held the highest proportion, with more than 35.0 %. Finding a certain product that suits one's tastes can be challenging due to the market's wide selection of products. The most practical place to buy these goods is therefore at supermarkets and hypermarkets that provide a wide range of options, which encourages the expansion of the channel.

Online retailers and direct-to-consumer sales are anticipated to increase at the fastest rate throughout the forecasted years, with a CAGR of 17.1% from 2022 to 2030. Leading and small tea brewers have a chance to connect with consumers due to online channels. Online retail is a good option for some specialized tea manufacturers who prefer to sell freshly brewed tea products because the order triggers a speedy creation of the item. The rising popularity of health teas like oolong and matcha tea on social media is one of the reasons that online sales are predicted to increase. Additionally,  consumers are increasingly likely to shop online, where products are available with just a click, especially during the challenging times of the COVID-19 pandemic. Due to the expansion in establishments in the Western European and North American regions, specialty stores are also anticipated to expand their revenue shares during the projected period. 

Organic Oolong Tea Market - By Region

• North America

• Europe

• Asia-Pacific

• Rest of the World

Geographically, North American customers are anticipated to make up a sizable percentage of the market for organic oolong tea as they are accustomed to the robust flavors of herbal tea varieties. The organic oolong tea market is predicted to be dominated by Asia-Pacific. Japan, China, and India have the highest rates of production and consumption among all other nations. Over the past ten years, China has seen a substantial increase in the use of organic oolong tea, which now makes up around one-third of global tea consumption. Japan, China, India, South Korea, Myanmar, and Taiwan are among the countries that consume various types. In addition to being the biggest consumer, the region is also thought to be the biggest producer of organic food varieties. To accommodate the constantly shifting flavor and taste preferences of consumers, all of the major players in these regions are adjusting their production rates.

Major Players in the Market:

The major players operating in the Organic Oolong Tea Market are:

1. Twinings Ceylon Organic ltd

2. Bigelow Tea Company

3. Teas and Theas ltd

4. Sierra Tea

5. Arbor Teas

6. Republic of Tea

7. Dilmah

8. Townshend's tea company

9. The Hain Celestial Group

10. Harney & Sons.

Notable happenings in the Global Organic Oolong Tea Market in the recent past:

• Collaboration- In September 2021, The Republic of Tea, a top supplier of premium teas and herbs, unveiled its newest tea line as a result of a partnership with Calm, the top mental wellness company. The Focus, Relax, and Rest blends were developed with Rooibos, Dandelion, Chamomile, and Lion's Mane among other calming teas and herbs to encourage Citizens (customers) to sip and appreciate them as a part of their daily wellness and self-care activities.

• Product Launch-  In October 2020,  The Republic of Tea, a prominent supplier of premium teas and herbs launched the Mandalorian Tea Collection, which includes three limited-edition specialty tea blends created in partnership with Disney and Lucasfilm,   The second season of The Mandalorian, which is now only available on Disney+, served as inspiration for the collection.