Authored by Shammi Agarwal, Director, Pansari Group
In a rich, traditional nation like India where people are completely obsessed with tea, a new wave of tea culture – ‘Wellness Tea’ has made its way, sweeping the nation off its feet with its benefits and also keeping the tea spirit of India alive. As consumers are becoming more health-conscious, the trend of wellness tea is reflecting a large movement towards beverages that offer flavours that contribute to holistic well-being.
In this pursuit, Shammi Agarwal the director of Pansari Group says “As consumers are gaining knowledge about the possible health benefits of ingesting wellness tea, the demand for it is taking an upward trajectory. Recent data suggests that the wellness tea market size was valued at USD 7.1 Billion in 2023 and is expected to reach a market size of USD 12.2 Billion by 2032 at a CAGR of 6.1%. Looking at the growing demand in this industry, we recently launched the TVOY Wellness Flavour Teas which comes in four distinct flavours, each offering an exquisite tea-drinking experience. This product combines tradition with wellness, catering to health-conscious consumers who seek indulgence and I firmly believe that it will be one of the most beloved beverages for the generations to come.”
Why is Wellness Flavour Tea in Demand? – Opportunities
Among the wellness flavour teas, one highly popular tea is ‘Green Tea’ and one of the major reasons behind green tea becoming so much in demand is its well-documented health benefits. Green tea’s rich content of antioxidants, particularly epigallocatechin gallate EGCG (epigallocatechin gallate), has gained recognition for its potential to combat free radicals and reduce oxidative stress. This has contributed to its appeal in the market. Additionally, it also has the potential to reduce the risk of chronic diseases, improve brain function, aid in weight loss, and promote heart health.
The pandemic is another factor which has caused a steady rise in the green tea market. Ever since the pandemic the trend of maintaining overall health and wellness has immensely increased, people are now more health-conscious, and their choices have now shifted more towards nutrient-rich food and beverages as it minimise the risk of the occurrence of lifestyle-related health concerns. According to the Food & Drug Administration, the global production of green-type tea is projected to increase at a rate of 7.5% annually. One of the major factors driving this is the emerging trend of antioxidant-rich beverages.
Involvement of Technology in the Production
The involvement of technological advancements in the green tea market like spectroscopic techniques, artificial sensors, big data, the internet of things, and blockchain not only improves efficiency, transparency, and traceability but also enhances the quality and yield of green tea. Today, almost every other brand is working towards continuous innovation and significant R&D investments, propelling market growth and making Green Tea products more efficient and accessible to everyone. Furthermore, innovations in processing techniques, such as the development of matcha and cold-brew green teas, are expanding the green tea market’s entire product range and appealing to health-conscious consumers.
Challenges in Sustaining the Uptrend
Despite the opportunities, the green tea industry faces several challenges. Ensuring consistent quality across diverse production regions is a significant concern. Variations in climate, soil, and cultivation practices can lead to differences in flavor, aroma, and nutritional content. This often leads to difficulty in maintaining consumer trust, stringent quality control measures and adherence to international standards.
Another major challenge that this market faces is the high cost of green tea. The production of this tea variety is the highest in Asian countries which include China, Japan and India. Additionally, the lack of awareness regarding good farming practices and the safe use of agrochemicals among farmers generally limits production, thereby, increasing the cost of the overall product.
Increase in Market Competition
As the wellness tea market grows, so does competition. Established brands and new entrants are vying for market share, leading to increased marketing and promotional activities. This intense competition can drive innovation but also poses the risk of market saturation. Brands that are already established need to differentiate their products through unique value propositions, such as superior quality, ethical sourcing, or novel flavors, to stand out in a crowded market.
With numerous opportunities for growth and expansion, the future of wellness tea is bright. However, sustaining this uptrend requires addressing challenges related to quality control, sustainability, market competition, and consumer education. But by adopting technological advancements embracing sustainable practices, and boosting innovation, the green tea industry can continue to thrive and meet the evolving needs of health-conscious consumers worldwide.
