The Germany Tea Market is projected to grow at a CAGR of 16% in the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. In Germany, certain trends, such as the rising awareness of one's physical & mental health, were accelerated by the pandemic & increased the demand for tea. Tea has been able to address the consumer needs for beneficial & healthy drinks, and thus their consumption has boosted significantly in the past few years. However, in Germany, tea struggled from an outdated perception as a hot drink to be consumed to relieve a cold or sore throat. This applies to some flavors, in particular, such as chamomile & fennel, which provoke memories of being ill & staying in bed among many consumers. Hence, the demand for tea has been declining in Germany every summer as consumers tend to shift towards ready-to-drink (RTD) soft beverages.
Besides, Rooibos tea sales in Germany grew noticeably in 2021 due to enhanced consumer health consciousness following COVID-19. Following the pandemic, the market for this tea expanded significantly, owing to its lack of caffeine and high concentration of healthy minerals. It is also an excellent part of a balanced diet due to its numerous beneficial qualities. Furthermore, the pandemic has accelerated many trends in Germany, including an uptick in concern about one's physical & mental health. Hence, tea has been able to satisfy consumers' desire for healthy beverages, which has resulted in a huge shift in customer purchasing behavior across the nation. Thus, the search for beverages that are perceived to be naturally healthy is driving up demand for tea. Young, health-conscious Germans, primarily female, are encouraging tea, particularly fruit/herbal or green tea varieties, as a naturally beneficial beverage. Given how much time people spent at home during the pandemic, tea consumption soared significantly throughout the years.
Nevertheless, these RTD options contain high levels of sugar or sweeteners & are being increasingly challenged by cold brew tea alternatives. Hence, leading players are expanding their product portfolios to suffice the growing demand for cold brew tea that can be consumed during the summer season. Moreover, new launches like this are likely to allow tea companies to diversify their portfolios beyond hot drinks and focus on competitive summer alternatives that could potentially threaten several RTD drinks due to their high sugar content. Furthermore, with expanding numbers of restaurants and cafes serving tea as a beverage, the Germany Tea sector is projected to grow remarkably over the forecast years.
Fruit/Herbal Tea to Dominate the Market Owing to Increasing Consumer Awareness of their Health Benefits
Based on category, the market is further bifurcated into Black Tea, Fruit/Herbal Tea, Green Tea, Instant Tea, and Others. Among them, Fruit/Herbal Tea acquired the largest share of the Germany Tea market owing to the rising demand for naturally healthy drink options, especially among young & health-conscious Germans, mostly females. During the pandemic, consumers spent prolonged hours at their homes, which led to more frequent tea consumption and thus amplified the demand for fruit/herbal teas.
Furthermore, with the growing consumer interest in living sustainable lifestyles, herbal organic teas are gaining immense popularity as more & more brands are offering lucrative offers to customers. Organic tea is likely to move into the mainstream & be regarded as a conventional beverage by many local consumers, who look for responsibly-sourced products that do not contain pesticides. A large number of manufacturers are thus developing organic ranges & promoting them as sustainable options, which, in turn, would uplift the overall market growth in the coming years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Teekanne GmbH & Co KG, Ostfriesische Tee Gesellschaft GmbH & Co KG, Aldi Einkauf GmbH & Co oHG, J. Bünting Teehandelshaus GmbH & Co, Lidl & Schwarz Stiftung & Co KG, Bad Heilbrunner Naturheilmittel GmbH & Co KG, H&S Tee-Gesellschaft mbH & Co KG, Golden Temple Natural Products GmbH, Thiele & Freese GmbH, Alnatura Produktions- & Handels GmbH, and Edeka Zentrale AG & Co KG. are looking forward to strengthening their market position.
Key Questions Answered in the Research Report