February 25, 2024

The Rising Popularity of Specialty Tea Will Boost the Custom Tea Packaging Market

The custom tea packaging market is estimated to be valued at US$ 2.41 Bn or in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Customized tea packaging involves specially designed packaging for specific tea products to enhance their appearance and marketability. From K-cups and tea bags to loose leaf varieties and innovative pyramids, custom packaging helps tea brands differentiate their products and build emotional connections with consumers. Various packaging formats such as cartons, pouches, cans, jars and bottles are used for packaging black, green, oolong and herbal teas. Protective and presentable packaging plays a crucial role in maintaining tea freshness and quality while attracting consumer attention on retail shelves.

Market Dynamics:

The growing health consciousness among consumers is fueling the demand for different types of specialty teas around the world. As more people opt for herbal infusions and flavored tea blends for their purported health benefits, customized packaging helps communicate the unique functional properties and flavours of such niche tea products. Furthermore, rising disposable incomes are allowing consumers to pay premium prices for high-quality artisanal teas packaged in elegant, sustainable formats. Tea brands are utilizing customized rigid boxes, pouches, jars and bottles made of glass, aluminum and bioplastics to differentiate their premium products. Additionally, the thriving online tea retail market requires intuitive yet sustainable packaging solutions to ship single-serve and bulk tea quantities without oxidation or breakage. This presents lucrative opportunities for packaging companies to partner with specialty tea brands through innovative, shelf-stable designs.
Segment Analysis:

The customized tea packaging market can be segmented by packaging material type into paper & paperboard, plastic, and others. Among these, the paper & paperboard segment dominates the market and accounts for more than 60% share in 2023. This is because paper and paperboard have high barrier properties against moisture, are lightweight and have attractive printability which is required for tea packaging.

PEST Analysis:

  • Political: Packaging regulations regarding the use of plastic and material approved for food contact are influencing the customized tea packaging market.
  • Economic: Rising disposable incomes in developing nations are increasing the demand for premium packaged tea. Additionally, growing urbanization is fueling the market growth.
  • Social: Changing consumer preferences towards innovative and visually appealing tea packaging solutions are favoring the customized tea packaging market.
  • Technological: Advances in printing and material science are allowing customized tea packaging manufacturers to offer products with enhanced graphics, barrier properties and recyclability.

Key Takeaways:

The global customized tea packaging market is expected to witness high growth, exhibiting CAGR of 3.5% over the forecast period, due to increasing demand for mono-material packaging and focus on sustainable solutions.

The Asia Pacific region is expected to dominate the customized tea packaging market during the forecast period. This is attributed to factors such as growing consumption of tea, prevalent culture of tea ceremonies, and presence of major tea producing countries including China, India, and Sri Lanka in the region.

Key players operating in the customized tea packaging are Solaris Tea, Blue Ridge Tea & Herb Company Ltd., Clipper Tea Co., THE CUSTOM PACKAGING, Roastar, SWISS PACK PVT LTD, Salazar Packaging, Inc., Pacific Bag, Custom Co-Pak, LYNNPAK PACKAGING LTD., and Scholle IPN. Key players are focusing on developing innovative packages produced from sustainable materials to attract consumers and gain competitive advantage.