Germany Tea Market Research Report: Forecast (2023-2028)

Market Definition

Tea is one of the most consumed aromatic beverages in the world, which is prepared from the leaves of Camellia sinensis or Camellia taliensis. It comes in a variety of flavors & types, including floral, sweet, nutty, or grassy notes, and provide cool, bitter, or stringent essence.

Market Insights & Analysis: Germany Tea Market (2023-28)

The Germany Tea Market is projected to grow at a CAGR of around 16% during the forecast period, i.e., 2023-28. The growth of the market is projected to be propelled by the fact that the German population consider tea a key part of their daily balanced diet, as they are becoming aware of its health benefits & medicinal properties. Most of them mainly prefer herbal tea over traditional ones, as they are effective against various disorders, including depression & cancer. Also, the consumption of herbal tea helps reduce physical stress and boost the immune system, i.e., another aspect stimulating the market growth, especially after the Covid-19 pandemic. In view of the ever-consuming consumer demand across the country, several manufacturers are expanding their product portfolios and including herbal tea with immunity benefits.

Additionally, the growing adoption of tea as a part of regular lifestyle by social media influencers has also enhanced its demand among consumers, who regularly follow them. Further, the Covid-19 situation has also spurred the tea consumption among people as they spent all their time at homes trying new beverages & recipes. Tea has been able to meet the consumer needs for healthy beverages, which, in turn, changed their buying behavior significantly. The growth of the market is also likely to be driven by the hunt for drinks that are seen to be naturally healthy, where tea, particularly fruit/herbal or green ones, are being positioned as a naturally functional drink among young, health-conscious customers, predominantly females, further aiding in enhancing the Germany Tea Market size.

In 2021, Rooibos teas experienced a notable year-over-year gain in terms of revenues, especially after enhanced health consciousness among consumers after the advent of Covid-19. They are manufactured in the Cape region of South Africa and have an essence of fragrant reddish-brown tea. The demand for Red bush or rooibos increased considerably after the pandemic, majorly because it contains no caffeine contains a high concentration of minerals, which are good for health.

In addition, it is also great as a component of a balanced diet due to a variety of nutritional benefits. The demand for Rooibos tea is increasing specifically among decaf consumers, who prefer decaffeinated drinks on regular basis. Hence, shifting consumer preferences, coupled with the rising awareness among consumers of the health benefits of rooibos tea, are anticipated to escalate the Germany Tea Market in the forthcoming years.

Market Dynamics

Key Driver: Growing Demand for Cold Brew Tea among Consumers

Cold brew tea substitutes are gaining traction among Germans. Leading companies are diversifying their product lines to meet the ever-evolving demand for summer-friendly cold brew teas. These advances are being led by Teekanne & Messmer, but private label manufacturers, are also likely to enter this market as well. For instance, in 2019, Columbus Drinks GmbH launched Puerto Mate® cold-brewed mate iced tea in pomegranate & lemongrass flavors in Germany. As a result, the increasing production of cold-brew tea is anticipated to take over the market of ready-to-drink soft beverages that contain a higher concentration of sugar.

Possible Restraint: Rising Perception of Tea as a Hot Beverage Might Hamper the Market Growth in Summer

Sales of hot beverages like tea suffer significantly in the summers as consumers turn toward iced & soft drinks. Also, due to an outdated belief that tea should be consumed as a hot beverage to heal a cold or sore throat, its adoption has traditionally struggled in Germany. This is especially true for flavors like fennel or chamomile, which for many people evoke terrible memories of being unwell at home. Hence, with the presence of excessive variants of tea that are consumed as hot beverages for treatment purposes, the demand for tea witnessed a downward trend in Germany in the historical years.

Key Trend: Escalating Adoption of Organic Tea across Germany

The rising popularity of organic tea among consumers is well-contributing to the growth of the Germany Tea Market. The share of organic tea in the industry has been growing notably over the past few years, owing to the increased offerings in this segment from different brands.  Organic tea has been regarded as conventional tea by many local consumers who are looking for responsibly-sourced products that do not contain traces of pesticides. Hence, with the growing consumer interest in organic tea, many manufacturers are increasingly launching organic ranges and promoting them as sustainable options suitable for a wide range of consumers. For instance:

• In 2021, Yogi Tea launched its new brand “CHOICE”, which is a sustainable organic tea in Germany to cater to the growing popularity of organic tea across the country.

Consequently, with enhanced inclination of consumers toward organic tea owing to its health benefits, coupled with amplified offerings for these teas by major players, the mounting adoption of organic tea is set to expand the Germany Tea Market during forecast years.

Market Segmentation

Based on Category:

• Black Tea
  • Loose Black Tea
  • Tea Bags Black
• Fruit/Herbal Tea
• Green Tea
• Instant Tea
• Others

Of them all, fruit/herbal tea witnessed increased demand and contributed notably to the Germany Tea Market in the historical years. It owes to the growing awareness among consumers regarding the health benefits of herbal & fruit-flavored teas, as they improve sleep and reduce stress, menstrual pain, & muscle spasms. Also, with the rising availability of different varieties of these teas, their adoption has witnessed a significant surge in recent years. Moreover, amongst young & health-conscious Germans, mostly females, the demand for tea is being increasingly driven by the search for perceived naturally healthy drinks, where fruit/herbal or green tea are positioned as naturally functional drinks.

Recent Developments in the Germany Tea Market

• In 2022, Edeka Zentrale AG & Co KG launched Tea Rich– a private-label ice tea brand in four different flavors, including watermelon, mango-passion fruit, lemon-cactus fruit and raspberry-blueberry.

Gain a Competitive Edge with Our Germany Tea Market Report

1. Germany Tea Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Germany Tea Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions