Global Tea Capsule Market Outlook: Ken Research


Major players in the tea capsule market are Dualit Limited, Teespresso, Nestle Nespresso, Lipton, Corsini, Bonini S.r.l., and Red Espresso.

Global Tea Capsule MarketThe Global Tea Capsule Market is expected to grow from USD 1.04 billion in 2019 to USD 1.06 billion in 2020 at a compound annual growth rate (CAGR) of 1.5%. The slow growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The market is then expected to grow and reach USD 1.42 billion in 2023 at CAGR of 10.24%.

The tea capsule market consists of sales of tea capsules and related services. Tea capsules are encapsulated tea leaves that contain ingredients similar to an ordinary cup of tea. Tea capsules offer convenience and comfort when making tea at home, in public places, or even when traveling.

Asia Pacific was the largest region in the tea capsules market in 2019. North America is expected to be the fastest growing region in the forecast period.

In March 2019, Nestle’s special T brand partnered with Kusmi Tea to create a new range of specialty tea capsules. The collaboration of two companies aimed at expanding the company’s product portfolio to serve the increasing demand for tea in the forthcoming years.

The tea capsules market covered in this report is segmented by product type into red tea capsules, oolong tea capsules, black tea capsules, yellow tea capsules, others. It is also segmented by distribution channel into hypermarkets & supermarkets, specialty stores, online stores, convenience stores, others and by application into residential, commercial.

High prices of tea capsules are projected to hinder the growth of the market. In addition to this, changing consumer preferences towards healthy options in hot beverages such as almond & maple hot chocolate, warm spiced coconut-almond milk, hot lemon water, apple cider with cinnamon, and others are likely to hamper the demand for tea capsules in the forecast period. Additionally, the rising price of tea is anticipated to have an adverse effect on the tea demand including powder tea and capsule tea. According to Trade Economics, the price of tea increased to USD 2.61 per kg in December 2019 up from USD 2.48 per kg in December 2018.

The players engaged in the manufacturing and selling of tea capsules are adopting various strategies such as mergers & acquisitions, new product launch, and plant capacity expansion in order to maintain their position in the competitive business environment. For instance, in March 2019, Nestle’s premium capsule tea system Special.T partnered with Kusmi Tea, a Paris-based tea brand to launch a new range of jointly created tea capsules in Europe and other markets. This scenario of launching new products by the companies is anticipated to attract new customers for the tea capsules market, resulting in increased tea capsules market revenue.

Increasing consumption of tea is predicted to boost the demand for tea capsules market over the forecast period. According to the International Institute of Sustainable Development (IISD), tea has become the second most popular beverage after tea, with 3 billion cups consumed every day across the globe. In 2017, the total tea production accounted for 5.98 million tons worldwide. Furthermore, according to the Global Dubai Tea Forum, per capita consumption of tea is projected to increase from 35.2 liters in 2017 to 37.7 liters by the end of 2021. The growing per capita consumption is likely to propel the demand for tea capsules in the near future.

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Global Tea Capsule Market

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Ankur Gupta, Head Marketing & Communications



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