Hemp Tea Market Report
Hemp Tea Market by Distribution Channel (Online/Direct-to-consumer, Convenience Stores, and Others) and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028
Global Hemp Tea Market Analysis
The global hemp tea market size is predicted to reach $245,541.33 thousand in the 2021-2028 timeframe, growing from $50,315.29 thousand in 2020, at a healthy CAGR of 22.9%.
Rising awareness about the benefits of consuming hemp tea on person’s health is expected to drive the hemp tea market trend in the future.
However, stringent regulations by the governing bodies in many countries on the cannabis plant use for different product manufacturing are likely to hinder the market growth.
According to the regional analysis of the market, the Asia-Pacific hemp tea market is anticipated to grow at a CAGR of 24.10%, by generating a revenue of $46,652.85 thousand during the review period.
Hemp Tea Overview
Hemp tea market trend has increased in the recent years owing to growing hemp tea demand among people. Hemp tea is a type of herbal tea which is made from different parts of the hemp plants like hemp bud, leaves, stems, flowers, or seeds tea. The hemp tea variation offers a comforting aroma, accompanied with an earthy and slight bitter taste. Hemp tea is harvested at the time when the hemp plant reaches its matured stage. This is mainly done to ensure that the tea contains good number of antioxidants and high CBD (cannabinoid) content.
COVID-19 Impact on Global Hemp Tea Market
The COVID-19 pandemic has severely affected the business sector, across the world. The hemp tea market trend also faced negative impact in the pandemic period. To limit the transmission of the deadly corona virus, governments across the world imposed strict regulations and travel restrictions due to which the procurement and transportation of raw material to the hemp product manufacturing companies reduced. This factor led to a decrease in the production of hemp products such as hemp tea which led to fluctuations in their revenue. Also, lack of man power in the companies for manufacturing hemp tea further affected the market growth of the hemp tea. These factors are expected to impede the hemp tea market demand in the pandemic time.
Rising Awareness about the Health Benefits of Hemp Tea to Surge the Hemp Tea Market Demand
The demand for hemp tea is increasing across the world at a rapid pace. Hemp tea offers many health benefits such as maintaining body weight, reducing depression, and anxiety. Also, hemp tea is a rich source of nutrients such as vitamins, minerals, and antioxidants which further boosts the health of the person. Such benefits of hemp tea has attracted many customers to try such new plant based herbal products. This factor is likely to drive the market of hemp tea in the forecast time period.
To know more about global hemp tea market drivers, get in touch with our analysts here.
Strict Regulations for the Commercial Use of Hemp Tea to Restrain the Market Growth
Hemp tea is made from cannabis plant, which is popularly known source of marijuana. Due to this, people misinterpret hemp tea as cannabis products which can make people ‘high’. Therefore, most consumers refrain themselves from using hemp tea. This factor is likely to hamper the hemp tea market demand in future. Also, government in many countries have restricted the cultivation and commercial use of cannabis products in their countries. Such factors are further anticipated to restrain the growth of hemp tea market share.
New Product Launches by the Major Market Players likely to Fuel the Market Growth
Catering the rising demand for new flavors and source beverages is likely to provide a huge opportunity for the key market players to develop their product portfolios and launch new flavors in hemp tea. For instance, according to a news published in FMCG Magazine, food and drinks industry magazine, on April 17, 2020, Hatter’s Hemp Tea expanded its product portfolio by launching a new line of CBD-infused tea to reduce anxiety and stress in the people. The company has launched in four different flavors like English breakfast, classic flavors, chamomile, and green, lemongrass & rosehip boost. Such factors are likely to drive the market of hemp tea in the future.
To know more about global hemp tea market opportunities, get in touch with our analysts here.
Hemp Tea Market
By Distribution Channel
Source: Research Dive Analysis
The online/direct-to-consumer sub-segment is predicted to have both dominating market share and fastest growth in the global market and register a revenue of $162,359.41 thousand during the forecast period. The growth is attributed to increased preference for online shopping among people as it is less tedious and less time consuming. People have a variety of options available while selecting the product of their choice, online. Apart from this, companies provide various new schemes and discounts which further attracts the consumers.
Hemp Tea Market
Source: Research Dive Analysis
The Market for Hemp Tea in North America to be the Most Dominant
The North America hemp tea market size accounted $22,591.57 thousand in 2020 and is projected to register a revenue of $108,038.19 thousand by 2028. The growth is attributed to the rising demand for plant based beverages among people as they help in maintaining good health of the people. Hemp tea, when consumed, helps in reducing body weight and boost immunity system. Also, major market players have focused on launching new products in the market to cater the rising demand for new flavors in the beverages.
The Market for Hemp Tea in Asia-Pacific to be the Fastest Growing
The Asia-Pacific hemp tea market share is anticipated to grow at a CAGR of 24.10%, by registering a revenue of $46,652.85 thousand by 2028. This growth is majorly attributed to relaxation of rules regarding the commercial use of cannabis products in the region. Also, presence of countries like China, Japan, and Australia in the region is likely to boost the market growth as these countries have highly relaxed rules for cannabis products and many major market players like Cresco Pharma are established in the region. These companies are continuously working to launch new hemp tea products. Such initiatives are likely to pace up the hemp tea market trend and register a good revenue in the coming years.
Competitive Scenario in the Global Hemp Tea Market
Product launches and acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
The companies involved in the hemp tea market are Cannaoix, Its Hemp, Clipper’s Tea, Willie’s Remedy, Buddha Tea, Traditional Medicinals, the Tea Can Company, Charlotte's Web, Cannabiniers, and Colorado Harvest Company.
Porter’s Five Forces Analysis for the Global Hemp Tea Market
- Bargaining Power of Suppliers: Considering the less number of suppliers in the market, the market value of the products must be highly regulated and should be able to attract the consumers.
Hence, the bargaining power of suppliers is moderate.
- Bargaining Power of Buyers: Since the hemp tea products are new in the market and are subjected to some strict rules, the buyers have limited choice for selecting product as per their choice.
Thus, the bargaining power of the buyers is low.
- Threat of New Entrants: There is a huge opportunity for the companies to enter the market and introduce new flavors in hemp tea.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There are already well established and products available in the market like green tea which offer same health benefits like hemp tea.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is very high the market for hemp beverages is developing and new products have a high scope to become a popular choice.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Distribution Channel
Key Companies Profiled
Q1. What is the size of the hemp tea market?
A. The global hemp tea market was valued at $50,315.29 thousand in 2020, and is projected to reach $245,541.33 thousand by 2028, registering a CAGR of 22.9%.
Q2. Which are the major companies in the hemp tea market?
A. Clipper’s Tea and Traditional Medicinals are some of the prominent companies in the hemp tea market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific hemp tea market?
A. The share of Asia-Pacific market is anticipated to grow at a CAGR of 24.10%.
Q5. Will hemp tea make you high?
A. No, hemp will not make you high as it does not contain tetrahydrocannabinol, a chemical compound that is responsible for making people high.
Q6. What is hemp tea good for?
A. Hemp tea is a rich source of vitamins, minerals and antioxidants which is helpful in boosting a person’s immunity.
1.1.2.Real-time insights and validation
1.1.4.Assumptions & forecast parameters
CHAPTER 2:EXECUTIVE SUMMARY
2.2.Distribution Channel Trend
CHAPTER 3:MARKET OVERVIEW
3.1.Market definition and scope
3.2.1.Top investment pockets
3.2.2.Top winning strategies
18.104.22.168.Top winning strategies, by year
22.214.171.124.Top winning strategies, by development
126.96.36.199.Top winning strategies, by company
3.2.3.Top player positioning
3.3.Porter's five forces analysis
3.5.1.Increasing demand for healthy beverage alternatives to drive the market
3.6.1.Lack of awareness among people about the qualities of hemp tea to restrict the market growth
3.7.1.New product launches in the beverage market to boost the market growth of hemp tea
3.9.Market value chain analysis
CHAPTER 4:IMPACT OF COVID19 ON HEMP TEA MARKET47
4.2.COVID-19 health assessment
4.3.Impact of COVID-19 on the global economy
4.4.Impact of COVID-19 on hemp tea market
4.5.Hemp tea market size and forecast, by region, 2021-2028
CHAPTER 5:GLOBAL HEMP TEA MARKET, BY DISTRIBUTION CHANNEL
5.1.1.Market size and forecast, by type
5.2.1.Key market trends, growth factors and opportunities
5.2.2.Market size and forecast, by region
5.2.3.Market share analysis, by country
5.3.1.Key market trends, growth factors and opportunities
5.3.2.Market size and forecast, by region
5.3.3.Market share analysis, by country
5.4.1.Key market trends, growth factors and opportunities
5.4.2.Market size and forecast, by region
5.4.3.Market share analysis, by country
CHAPTER 6:GLOBAL HEMP TEA MARKET, BY REGION
6.1.1.Market size and forecast, by region
6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast, by distribution channel
6.2.3.Market size and forecast, by country
188.8.131.52.Market size and forecast, by distribution channel
184.108.40.206.Market size and forecast, by distribution channel
220.127.116.11.Market size and forecast, by distribution channel
6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast, by distribution channel
6.3.3.Market size and forecast, by country
18.104.22.168.Market size and forecast, by distribution channel
22.214.171.124.Market size and forecast, by distribution channel
126.96.36.199.Market size and forecast, by distribution channel
188.8.131.52.Market size and forecast, by distribution channel
184.108.40.206.Market size and forecast, by distribution channel
6.3.9.Rest of Europe
220.127.116.11.Market size and forecast, by distribution channel
6.4.1.Key market trends, growth factors, and opportunities
6.4.2.Market size and forecast, by distribution channel
6.4.3.Market size and forecast, by country
18.104.22.168.Market size and forecast, by distribution channel
22.214.171.124.Market size and forecast, by distribution channel
126.96.36.199.Market size and forecast, by distribution channel
188.8.131.52.Market size and forecast, by distribution chanel
184.108.40.206.Market size and forecast, by distribution channel
6.4.9.Rest of Asia-Pacific
220.127.116.11.Market size and forecast, by distribution channel
6.5.1.Key market trends, growth factors, and opportunities
6.5.2.Market size and forecast, by distribution channel
6.5.3.Market size and forecast, by country
18.104.22.168.Market size and forecast, by distribution channel
22.214.171.124.Market size and forecast, by distribution channel
126.96.36.199.Market size and forecast, by distribution channel
CHAPTER 7:COMPANY PROFILES
7.1.4.Key strategic moves and developments
7.2.4.Key strategic moves and developments
7.3.4.Key strategic moves and developments
7.4.The Tea Can Company
7.5.4.Key strategic moves and developments
7.7.Colorado Cannabis Tea Company
7.8.4.Key strategic moves and developments
7.10.Tranquility Tea Company
Hemp tea is a refreshing herbal tea that is made form 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 Tree Market
The global hemp tea market is expected to witness a noteworthy growth during the forecast period (2021-2028), 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 $245,541.33 thousand by 2028, growing rapidly at a CAGR of 22.9% during the forecast period. The major players of the hemp tea market include Cannaoix, Clipper’s Tea, Cannabiniers, Charlotte’s Web, Buddha Tea, Its Hemp, Traditional Medicinals, The Tea Can Company, Willie’s Remedy, Colorado Harvest Company, and many more.
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, passionfruit+ 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 hemp tea market.
Most Profitable Region
The North America region is anticipated to have the largest market share, and generate a revenue of $108,038.19 thousand 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.