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The tea market on the planet is nearly $70 billion.
Sylvain Charlebois Senior Director, Agrifood Analytical Sciences Laboratory, Dalhousie University, special collaboration
Did you know that tea is one of the beverages we drink the most? And judging by the latest stats, its popularity isn’t going to wane anytime soon.
Posted at 6:30am
After water, tea is the beverage that we drink the most around the world. The tea market on the planet is nearly $70 billion and in Canada we hardly ever talk about it. The largest tea producers are in China and India, with the latter producing mostly for themselves. Kenya is the largest tea exporter, followed by other countries like Sri Lanka and Argentina.
Canada still has a farm on Vancouver Island that produces tea, but our national production amounts to that. Tea tolerates light frosts and cooler climates, but tea bushes do best in humid weather with heavy rainfall, so Canada does not offer an ideal climate for production.
In Canada, the tea market is worth around $1.8 billion and is expected to grow 8% to 10% in 2022 and 2023, according to Restaurants Canada. Tea has always been perceived as a product for the “little old people”, but the image of this drink is gradually changing.
Per capita tea consumption in Canada ranks 20th in the world. Not too bad considering the choices we have. According to the Tea and Herbal Association of Canada, Canadians drink twice as much tea as Americans.
But young people are more interested in tea and drink it more and more often. According to Statista, the majority of tea drinkers in Canada are between 35 and 44 years old. Tea is becoming increasingly popular among young people for its taste, but above all for its health and environmental benefits. Unlike other beverages, tea has a very good reputation for well-being and sustainability. Production is not affected by crime or cartels like other types of production. Then young people could create a new generation of tea drinkers!
With work at home, the demand for tea explodes. When I think about it, tea is good for a more domestic life, at home, living and working in peace. Tea is quick and easy to prepare, and there is a wide range of types and flavors to choose from. Working from home encouraged other types of drinks, but not necessarily tea. Drinking tea is often a more personal, intimate experience, and working at home provides the perfect context for tea.
But tea has not yet reached its full potential. It remains an affordable drink, maybe even too affordable.
Before Starbucks, few consumers said they were willing to shell out $5 to $7 for a coffee. 30 or 40 years ago, coffee drinkers were associated with smokers congregating in a little corner coffee shop, nothing more. Now many of us don’t even think about it. Coffee inherited a champion who decided to change the image of coffee.
For tea, however, DavidsTea has modulated the deal with its trendy approach that attracts young people. Stepping into a DavidsTea store is a bit like visiting a popular bar. However, as its model is primarily based around physical and experimental business, several of its establishments have closed. DavidsTea is beginning its virtual transition which will hopefully help the channel survive.
Still, there are many occasions to drink tea, but tea needs a champion like coffee did at Starbucks. In fact, the “pumpkin spice” scent, which many people love or hate depending on how infatuated they are with this fall craze, was heavily promoted by Starbucks nearly 20 years ago.