Decaffeinated tea refers to a specialized tea variety that has low levels of caffeine. It is derived from black or green using carbon dioxide, water, or natural solvents.
Rising Proclivity for Healthy Lifestyles to Boost the Market
The global decaffeinated tea market is set to surge during the forecast period owing to the growing adoption of healthy lifestyles. Such lifestyles mainly include developing nutritional diets, drinking healthy beverages, and exercising. These concerns have recently emerged as lifestyles are becoming more sedentary, which is giving rise to various chronic health conditions such as obesity and diabetes. Decaf tea can counter the effects associated with these chronic ailments such as aiding fat burning.
Awareness about Numerous Health Advantages Provided by Decaffeinated Tea to Increase Market Demand
Decaffeinated tea offers a variety of health benefits. For example, decaf tea is rich with flavonoids which are potent antioxidants. It can also lower blood cholesterol levels which can lower the risk of heart attacks and strokes. The University of Maryland Medical Centre estimates that by having 3 cups of tea daily, a person can reduce the risk of heart attack by 11 percent. This augurs well for the global decaffeinated tea market as keeping fit has become a key aspect of life among the working population.
High Cost of Decaf Tea May Lead to Restrained Market Growth
Compared to regular tea, decaffeinated tea is more expensive as it is prepared using natural processes. Prolonged preparation periods increase the production cost, which marks up the retail price of the product. Moreover, traditional tea drinkers still prefer to drink regular tea with milk and therefore, the global decaf tea market is yet to find a solid ground in key regions.
Furthermore, decaf tea can also contain undesirable chemicals such as ethyl acetate, which are also the most affordable methods of decaffeinating tea. This may make consumers wary of buying decaf tea, thereby hampering the global decaffeinated tea market.
Product Innovation and Acquisitions to Spur Market Competition
The global decaffeinated tea market is anticipated to witness intense competition as key market players aim to gain a competitive edge through innovative products and strategic acquisitions. For example, in March 2019, Martin Bauer announced the acquisition of BI Nutraceuticals in a bid to diversify their product portfolio and gain greater market presence in the US. In June 2019, Tetley released its “Sleep Easy” tea bags that contain decaffeinated tea along with sleep-inducing ingredients such as vanilla and lavender. Such innovations are expected to attract more participants into the market and enhance the market potential.
Some of the key players in the global decaffeinated tea market, as identified by Fortune Business Insights, include Novo Agriculture Limited, Celestial Seasonings Inc., Martin Bauer GmbH and Co., Elixir Biosciences Private Limited, Tetley, AVT Natural Products Limited, and a few others.