Tea has been in the limelight recently thanks to increasing global demand, especially in emerging economies like China and India. China, India, Kenya, and Sri Lanka are some of the largest producers of tea in the world. An popular beverage among all socio-economic classes, tea is also popular in other Asia-Pacific countries like Thailand, Japan, Singapore, Hong Kong, and Australia. In most of these markets, offering tea to welcome guests is part of cultural hospitality. Tea is regarded as the second most-consumed liquid after water. The global increase in tea consumption can be attributed to the health and wellbeing benefits commonly associated with the beverage and its popularity as a lifestyle product. Other factors include growing teaconsuming populations, an increase in disposable income, lifestyle changes, the growing size of the food and beverage industry, a new variety of flavors, innovations in packaging, and industrialization. Tea has also become a specialty beverage due to a global culture of tea cafés and tea houses, which has also encouraged restaurants to add more tea options to their menus. This has propelled tea into the luxury segment, with companies like Singapore-based TWG Tea converting the high-end teahouse concept into a $120 million business and expanding their business operations to Europe.
According to statista.com, the global tea market is expected to record significant growth. In 2017, the estimated worth of the global tea market was $49.46 billion, and it is expected to reach $73.13 billion by 2024, growing at a compounded annual growth rate (CAGR) of 4.5 percent between 2018 and 2024.
In terms of revenue, the Asia-Pacific region is expected to lead the global tea market. However, a rising preference for tea has been exhibited in North America as well, where consumer preferences are shifting from carbonated drinks to healthier options. The Middle East and Africa region is forecasted to show significant growth between 2017 and 2023. The European tea market is also expected to exhibit impressive growth, with demand primarily driven by the premium tea segment and a variety of flavors catering to the preferences of those with more disposable income.

Questions
1. Consider the different tea markets around the world. What are the main growth drivers of the global tea industry?
2. Discuss the segmentation of the global tea industry. With more tea products and varieties being introduced, do you think the sales growth of the industry will be sustainable?
3. The coffee industry has big brands like Starbucks, Tim Hortons, Nescafé, and Second Cup. How important is branding and positioning for the tea industry?
4. Do you think the bubble tea segment will continue to grow? What can international brands like Coco and Tealive do to strength their global positions?