The tea market - Italy (2024)

1.2 The Global Market

SI expects the global tea market to grow from $**.** billion in **** to $**.** billion in **** with a compound annual growth rate (***) of *.* percent.

This growth is attributed to cultural factors, health trends, globalization, rising incomes, e-commerce, product innovation, and sustainability. Future trends include premium and specialty teas, improved packaging, subscription services, and technology integration in retail.

Tea market value World, ****-****, US$ billion Thebusinessresearchcompany

In ****, China is confirmed as the world's leading tea producer, with an output of **,***.** thousand tons. India follows with *,*** thousand tons, accounting for about ** percent of China's production. In third place is Kenya, with *,*** thousand tons, accounting for about ** percent of India's production. Sri Lanka and Turkey contribute *,*** and *,*** thousand tons, respectively. Other major producers, such as Vietnam, Indonesia, Bangladesh, Argentina and Uganda, produce more modest amounts, ranging from *** to *,***.** thousand tons. Chinese production is more than four times that of the second largest producer, India, and more than eleven times that of Kenya.

Major tea producers World, ****, thousands of tons FAOstat Even going to analyze the value of exports of all tea leaf products we notice China in first place, followed by the Netherlands and the United States, with $***.** and $***.** million, respectively. Ireland and Germany record exports ...

1.3 The Italian market

The sold production of tea, herbal teas and extracts in Italy showed considerable variability between **** and ****. In ****, the value was ***.** million euros. After an increase to ***.** million in ****, the value dropped to ***.** million in **** and further to ***.** million in ****. In ****, there is a recovery to ***.** million euros, followed by a significant drop in ****, with a value of **.** million euros. Between **** and ****, production sold remained stable at around ** million euros. In ****, a strong increase is observed to ***.** million euros, but this is not maintained in ****, when the value drops to **.** million euros.

Analyzing the entire period, there is an overall decrease of **.* percent from **** to ****. However, the trend has been characterized by fluctuations rather than a steady decline, with peaks of growth alternating with significant declines.

For accuracy, the analysis covers the prodcom Ateco **** code: [***] Herbal teas, extracts, essences and preparations based on herbal teas, extracts, essences. tea or mate concentrates and preparations of tea or mate concentrates.

Sold production of tea, herbal teas and extracts Italy, ****-****, € million Istat

The survey "Italians and well-being: chamomile, herbal teas and infusions elixirs of living well" conducted by AstraRicerche for Bonomelli (***) estimated the total value of the market at €*** million.[***]

The total turnover of ...

1.4 Import-export

Between **** and ****, Italy showed a steady disparity between tea imports and exports. In ****, exports amounted to $*.** million, while imports were significantly higher at $**.** million. In ****, exports decreased to $*.** million, while imports increased slightly to $**.** million.

In ****, exports rose again to $*.** million, with imports peaking at $**.** million for the period. In ****, there was a slight decline in imports, which fell to $**.** million, while exports remained almost stable at $*.** million. In ****, exports grew to $*.** million, with imports remaining stable at $**.** million.

The coverage ratio, which measures the proportion of exports to imports, remained consistently low, fluctuating between *.** and *.**. In **** and ****, the ratio was *.**, falling to *.** in **** and rising slightly to *.** in ****, then reaching *.** in ****. This indicates that Italy exports a very small fraction of what it imports, with a slight trend toward improvement toward the end of the period under consideration.

Tea imports - exports Italy, ****-****, US$ million Uncomtrade

In ****, Spain was the main supplier of tea to Italy, accounting for ** percent of imports, despite not being a major global producer or exporter of tea. India and Sri Lanka, important global producers, contributed **% and **%, respectively. Germany and Austria, which do not produce tea, played a significant role in Italian imports, with * percent ...

1.5 The impact of the Russia-Ukraine conflict

This sector, like many others, has been affected by the economic turmoil and disruptions in global supply chains caused by the conflict. So let us analyze the monthly index data, with base ****=***, for the period ****-****. The producer price index of the tea and coffee processing industry in Italy shows a significant increase between January **** and December ****. In January ****, the index was at ***.*, while in December **** it reaches ***.*. This represents an increase of **.* percent over two years. During the period analyzed, there were some peaks, such as in April **** when the index reached ***.*, and October **** with an index of ***.*. After a slight stabilization in mid-****, the index continued to rise until it reached ***.* in September ****, before falling slightly to ***.* in October and rising again to ***.* in December ****.

Industry producer price index - monthly data - base ****=*** of tea and coffee processing [***] Italy, ****-****, index Istat

2.1 Demand trends

In ****, production was **,*** tons, but declined steadily in the following years, reaching **,*** tons in **** and falling further to **,*** tons in ****. Between **** and ****, production stabilized around **,*** tons. From **** onward, the decline was more pronounced, with a drop to **,*** tons in ****, followed by further reductions in the following years: **,*** tons in ****, **,*** tons in ****, a slight recovery to **,*** tons in ****, and finally a further decline to **,*** tons in ****. Overall, between **** and ****, production sold decreased by ** percent.

Production sold in quantity of tea, herbal teas and extracts Italy, ****-****, in tons Istat

These data, combined with the production graph of quantity sold in € suggest that despite the drastic reduction in quantities sold , the unit value of the products has increased. From **** onward, while quantities have fallen by more than half, revenues have not followed the same downward trajectory.

In terms of spending, Italian households allocate less than * percent of their budget to the purchase of Tea [***] with an expenditure of about €* in recent years. Spending on tea Italy, **** - ****, in euros Source: ****

2.2 Demand drivers

Italian Consumers' Preferences for Buying Tea:

Drivers of choice for buying tea Italy, ****, in % mark-up

The main drivers of choice for purchasing tea were taste (***). Naturalness of raw materials was important to **.*% of consumers, while **% indicated other reasons.

2.3 Geographic Distribution of Demand

The Northeast and Northwest regions record the highest spending, with an average of *.** euros, followed by the Center with *.** euros, and finally the Islands and the South with *.** euros. Compared with spending in the Islands and the South, which is the lowest, the Northeast and Northwest spend about **.* percent more. The Center spends about *.*% more than these two southern regions.

Average Monthly Spending ****:

2.4 Trends in tea demand

In May ****, the index was **.*, while in May **** it dropped to **.*, indicating a decrease of **.* percent.

In ****, a peak is observed in December with an index of **.*, followed by a sharp decline in March **** with an index of **.*. The downward trend continues in ****, reaching a low in June **** with **.*, then fluctuating slightly but remaining at low values until May ****.

Trend in Tea Searches. Italy,****-****, index Google Trends, Businesscoot elaboration

Data on searches for the term "Tea" by region in Italy see Veneto leading the ranking with an index of ***, indicating the highest interest. This is followed by Trentino-Alto Adige with **, Lombardy and Liguria both with **, and Valle d'Aosta with **. The regions with the least interest are Basilicata with **, followed by Abruzzo and Molise both with **.

The values are calculated on a scale of * to ***, where *** indicates the location with the highest search frequency as a proportion of total searches in that location, and a value of ** indicates a location with half as many searches. The value *, on the other hand, indicates a locality for which insufficient data were collected.

3.1 Market structure and dynamics

In Italy, the sector is highly competitive, with large-scale retail monopolizing ** percent of tea volumes[***] and *.* percent growth in discount channels.

In addition, ** percent of the market is in the hands of industry bigwigs focused exclusively on selling iced tea, such as Ferrero or San Benedetto. In ****, on the other hand, the market position of Fuze Tea, Coca Cola's new brand, was consolidated.

Among the largest producers of bagged tea emerges Clipper whose bags are unbleached and produced in the UK with FCS or PEFC certified pulp and Manila hemp from the Philippines and Asia[***]. Also in this segment interesting company is Fior di Loto known for high quality organic blends and wide variety of flavors. Or PukkaHerbs, which is a producer of a wide range of teas with total respect for the health of the people and growers of the raw materials.

Among the major producers of soluble tea powderEverton Tea House is one of the top producers, offering different flavor combinations on the market.

There are not very many Made in Italy producers, however, among the few the La via del Tè company in Florence and Everton, an Italian tea producer for more than three generations, stand out in ...

3.2 Production and value chain

Tea is a beverage made from the leaves of the tea plant, infused in very hot water. The tea plant is an evergreen shrub that belongs to the Theaceae family and is grown mainly on the Asian continent.

Tea does not undergo any processing, however, its preparation requires several steps. These are usually carried out near the plantations. Most tea is produced on large farms in Asia: in India, China and Sri Lanka, this production is for large food processors. There are also many plantations, some of them very small, that produce very high quality teas. They are comparable to the best French wines, both in terms of rarity and price.

The main steps in the production process include:

Source: ****

The production of each tea family (***) includes some or all of these steps.

These different production processes have been codified since the ****s, and their mechanization became widespread after World War II. The large plantations are now all mechanized, and the more small producers outsource production and marketing to them For lower quality teas, one process, developed in the ****s, also allows mechanized treatment of the leaves after they have shrivelled: CTC (***). A single machine crushes them to extract their water, ...

3.3 Major players in wholesale trade

The following are the leading companies in the Italian tea and spice wholesale scene:

Dammann Freres: A historic French tea company, it also has a presence in Italy through its affiliation with Domori Spa, a renowned Italian company specializing in high-quality chocolate. Founded in ****, Dammann Frères is one of the oldest tea houses in the world, known for its dedication to quality and craftsmanship. In Italy, it continues its centuries-old tradition, offering a wide range of teas selected from the world's best plantations. Products offered include black teas such as Earl Grey and Darjeeling, green teas such as Sencha and Matcha, white teas such as the delicate Bai Mu Dan, semi-fermented oolong teas, and herbal and fruit infusions. Each product is processed using artisanal techniques to ensure a unique sensory experience. Dammann Frères' presence in Italy is strengthened by its partnership with Domori Spa, which shares the same passion for excellence and innovation. Dammann Frères boutiques in Italy are places where tea enthusiasts can explore a wide selection of blends and taste exclusive products.

Webb James Srl: Based in Livorno, Italy, this is a historic company established in **** by John Webb, an English merchant. The company specializes in ...

3.4 Major companies in tea and infusion processing

Lipton: Sir Thomas Lipton founded Lipton in **** with the goal of making tea an affordable daily beverage for everyone. He purchased tea plantations in Sri Lanka (***) to control quality and cost, enabling him to offer high quality tea at affordable prices. It was among the first companies to use ready-made tea packs for direct sale to consumers, making tea more affordable. It offers a wide range of products, which include black tea, green tea, herbal tea, and iced tea. Some of their most popular products include Lipton Yellow Label, a classic black tea known for its rich, full-bodied flavor, and Lipton Green Tea, green tea available in various flavors, prized for its health benefits. Iced tea drinks, such as Lipton Iced Tea, come in various flavors such as lemon, peach and mango. Also known for its packaging innovations, such as pyramid tea bags that allow for better infusion of the tea leaves, improving the flavor and aroma of the drink. Today, it is a global brand with a significant presence in more than *** countries. The company continues to expand its product range to meet the tastes and preferences of consumers in different regions of the world. Lipton is owned by Unilever, ...

4.1 Type of the offer

Although there are more than *,*** varieties of tea in nature, they are all derived from the same plant, Camellia Sinensis. It is the processing, growing conditions and cultivation that determine the variety.

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4.2 Price trends in the market

Increase in the Consumer Tea Price Index: Consumer tea price index for the whole community (***) - monthly data [***] Italy, ****-****, index Istat Starting from ***.* in May ****, the index reaches ***.* in April ****, marking an overall increase of about * percent. After a period of steady growth until July ****, where the index reaches ***.*, there is a slight decline until December ****, with the index falling to ***.*. From January ****, the index rises slightly, stabilizing around ***

Tea can be considered, in some of its declinations, an extremely valuable beverage. To make the difference with the pricing of commercial teas stand out, below is a list of the prices of the main types of premium tea sold in Italy (***):

Type Average Price Range per ***g Name of * Products Sources Black Tea €** - €** Assam Golden Tip, Darjeeling First Flush, Earl Grey Premium Mad Tea Club, AtOnce Green Tea €** - €** Sencha, Matcha Uji, Longjing (***) MadTea Club, AtOnce Oolong Tea €** - €*** Tie Guan Yin, Da Hong Pao, Dong Ding MadTea Club, AtOnce White Tea €** - €** Bai Hao Yin Zhen (***), Shou Mei MadTea Club, AtOnce Pu-erh Tea €** - €*** Pu-erh raw Menghai, Pu-erh mature Yunnan, Pu-erh tuocha MadTea Club, AtOnce, World Tea News Herbal Tea €* - €** Chamomile, Peppermint, Rooibos Vanilla MadTea Club, The ...

4.3 New market trends

In the tea sector, too, emphasis has been placed in recent years on sustainability, not only of the product but along the entire value chain and not only in terms of environmental impact. in fact, it has been studied that the tea market, in some of its value chains, would encounter issues such as the frequent exploitation of child labor, and the huge amount of polluting pesticides used, which are extremely harmful to the workers' environment and, to some extent, to the end consumers[***].

In terms of trends in supply, the following are the market-relevant uses of tea:

Bubble Tea: Bubble tea, also known as bubble tea, is a beverage made from tea, usually black or green, to which milk or fruit syrup and tapioca pearls are added. A classic example is pearl milk tea, which combines black tea with milk and tapioca pearls. Another popular variation is passion fruit tea, which uses green tea enriched with passion fruit syrup and tapioca pearls. There is also matcha tea, a modern, healthy version made with matcha tea, almond milk and tapioca pearls.

Ready-to-Drink (***) drinks are ready-to-drink iced teas, often flavored and packaged in convenient bottles or cans. A refreshing example is lemon ...

5.1 Regulatory framework

Regarding the regulatory aspect, Tea does not have specific regulations but follows the following rules like other foodstuffs:

Import Regulations

Current EU import regulations, cover: the Import Rules, which is information for companies on requirements to operate in the EU market, tariff information, rules of origin and other preferential agreements, trade statistics. The EU Tariff and Import Measures, which donate information on tariffs and other measures concerning the import of products into the EU. They also allow for the calculation of customs duties-it includes tariffs and rules of origin . Finally there is an in-depth look at the EU's trade defense policy, statistics and information on investigations against imports into the EU: EU Import Restrictions - including anti-dumping measures

Fairtrade Standard

Fairtrade is an international fair trade certification mark. Even in the tea sector, many companies rely on this label to ensure a safe value chain for consumers without negative impacts. Fairtrade, donates the opportunity to, by purchasing branded products, support agricultural producers in developing countries, supporting them economically in improving their living and working conditions. Each year there is an annual report on the work done and benchmarks for evaluating the positive impacts of one's work.[***]

6.1 Market segmentation

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• POMPADOUR TE' S.r.l.
• Lipton (Unilever)
• Twinings
• Tetley tea
• Bonomelli Srl
• La via del tè
• Dammann Freres (Domori Spa)
• Webb James Srl
• Teapack Srl Sb
• Laboratori Biokyma Srl
• De Lorenzi Srl