Hemp tea is a refreshing herbal tea that is made from various parts of hemp plants such as hemp leaves, stems, flowers, or buds. Hemp is a cannabis variety that refrains the origination of THC but contains CBD and CBDA, especially when they are prepared from hemp flowers. The CBD in the tea favors relaxation, relieving stress, and accelerating mental clarity. Hemp contains terpenes like linalool and pinene that significantly help in enhancing sleep quality whilst fighting inflammation.
Forecast Analysis of the Global Hemp Tea Market
The global hemp tea market is expected to witness a noteworthy growth during the forecast period (2022-2031), owing to the various health benefits provided by the consumption of hemp tea. They substantially soothe and relax the body of an individual, reducing anxiety, stress, and depression. Immense presence of nutrients in hemp tea like antioxidants, minerals, and vitamins further promote vitality and boost the overall health of an individuals. These factors are expected to drive the growth of the market during the forecast period. In addition, increasing inclination of health-conscious people around the globe towards herbal tea and persistent product launches on various new flavors of hemp tea by prominent players are further expected to create massive opportunities for the growth of the market during the forecast period. However, stringent regulations imposed by the government of various nations on the cultivation and commercial use of cannabis products is expected to impede the growth of the hemp tea market during the forecast period.
According to the report published by Research Dive, the global hemp tea market is expected to generate a revenue of $392,802.0 million by 2031, growing rapidly at a CAGR of 22.9% during the forecast period. The major players of the global market include Buddha Tea, Traditional Medicinals, Its Hemp, Clipper Tea, Willie’s Remedy, Colorado Harvest Company, Cannabiniers, Tranquility Tea Company, The Tea Can Company Specialty Teas, and Neo Australia.
Hemp Tea Market Trends and Developments
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global hemp tea market to grow exponentially. For instance:
- In July 2019, Chemesis International Inc., a global pharmaceutical company offering cannabis cultivation, extraction, and distribution services, announced a partnership with Happy Tea, an innovative brand of CBD infused sachets and shots, in order to expand Happy Tea’s product offering by leveraging Chemesis’ extraction, finished goods manufacturing and retail distribution.
- In November 2020, Chiques Creek, a creative hemp tea brand, launched four new line of unique, all-natural organic hemp iced tea drinks that are derived from a special blend of hemp seed oil without any artificial preservatives or sweeteners. The four flavors include the original recipe, passion fruit+ mint, apricot+ orange blossom, and peach+ lemon+ dandelion.
- In April 2021, LIFEBRANDS Natural Food GmbH, a Germany-based manufacturer dealing with healthy and sustainable food, acquired Revolution Tea, a Phoenix-based company providing high-quality tea products, in order to enter the U.S Hemp Tea market, maximizing LIFEBRANDS’ presence in the global market.
Most Profitable Region
The North America region accounted for the largest market share in 2021 and is anticipated to be most dominant during the forecast period. Relaxation of rules concerning the cultivation and commercial use of cannabis in this region is expected to accelerate the growth of the hemp tea market. In addition, presence of established players of the market and their innovative product launches are further expected to bolster the growth of the global hemp tea market.
Impact of COVID-19 on the Market
The outbreak of coronavirus has had a negative impact on the global hemp tea market, owing to the prevalence of lockdowns in various countries cross the globe. Lockdowns led to the closure of factories and manufacturing units in order to curb the spread of the virus during the pandemic. Stringent travel restrictions imposed by the government on the import and export of raw materials for procurement and production further decreased the demand for hemp tea.