Organic Tea: Sustainability Enters the Fray

The market has shown signs of susceptibility to market fluctuations

Short-term spikes and troughs have been the story of organic tea, highlighting just how difficult a market it is to operate effectively in. The challenging nature of organic tea production has contributed to both its short term successes and failures. In 2015, North America was at the peak of a growth burst, reinforcing its importance as the largest global market in terms of region, with Western Europe and Asia Pacific lagged slightly behind.

A globally fragmented market has materialised, with smaller brands playing a major role

Multinational companies have entered the market, either by acquiring small organic brands or incorporating niche organic variants into their product ranges. However, given the challenges of producing organic tea on an industrial scale, these companies have shown a reluctance to make any major venture into the category. This has made the market welcoming to small brands willing to commit to organic production.

Comprehending the Millennial effect is key

The success of organic tea is driven in no small part by the highly influential millennial consumers that continue to show a thirst for new flavours, demonstrate a lack of brand loyalty, and place ethics and health at the foundation of their choices. These factors make organic tea and sustainability certification prime considerations for this demographic.

Third party sustainability certification is an attractive alternative for manufacturers

Third party certification, such as Fairtrade, Rainforest Alliance and others continues, to draw the part-time organic consumers towards ethical alternatives, especially in more commodified categories, and will continue to be a threat to the USP of organic tea.