The Hemp Tea Market Anticipated to Generate a Revenue of $245,541.33 Thousand, Growing at a CAGR of 22.9% from 2021 to 2028Download Sample Reports Overview
The global hemp tea market size is predicted to reach $245,541.33thousand by 2028, increasing from $50,315.29 thousand in 2020, at a healthy CAGR of 22.9%.
Impact Analysis of COVID-19 on the Hemp Tea Market
The hemp tea market experienced a severe negative impact during the pandemic period. The deadly coronavirus has high transmission capabilities which has severely affected the health of thousands of people, worldwide. Due to increased complications, the consumers preferred to avoid the consumption of cannabis obtained hemp tea product, as they were under wrong impression that hemp tea might worsen their corona symptoms. This factor has decreased the demand for the hemp tea products which has affected the manufacturing capabilities of the major market players. Thus, this factor is likely to impede the market growth in the pandemic time frame. Also, availability of raw material for the production of hemp tea was hindered amid complete lockdown and travel restrictions. This factor has further decreased the revenue of hemp tea market.
Hemp Tea Market Analysis
The global hemp tea demand is likely to experience an exponential rise owing to rising awareness and inclination of people towards health-oriented beverages. Hemp tea is the rich source of antioxidants which is highly beneficial in many health conditions like muscle pain, anxiety disorders, stress relieve, and weight control. Such factors have attracted many young millennials to try new hemp tea products. Also, government in many different countries have also legalized the use of CBD, cannabinoid found in cannabis plant, in the production of many different beverages such as CBD sparkling water and hemp tea. Such factors are likely to drive the market of hemp tea in the coming forecast time period.
The market for hemp tea is likely to face some major hindrance due to high regulations imposed by the government of many countries in the use of cannabis in any such form. Since hemp tea is made from cannabis plant, many people still believe that the product may get them high. This misconception regarding hemp tea among the people is likely to restrain the market growth of hemp tea in the next few years.
However, key market companies are continuously innovating their portfolio to cater the rising hemp tea market demand for new flavors in hemp tea. For this, these companies have started investing a huge amount in their research and development activities and develop new product range. For instance, according to a news published in Nutra Ingredients-Asia, a food blogging site, on February 26, 2018, Phivida, a Canadian cannabinoid company, was given approval by the Japanese authorities to launch its latest hemp product, Nano Iced Tea in the country. Such factors are likely to drive the market of hemp tea in the future.
Hemp Tea Market, Segmentation
The Hemp Tea market is segmented based on distribution channel and region.
The distribution channel segment is divided into online/direct-to-consumer, convenience stores, and others. Online/direct-to-consumer sub-segment is anticipated to have the fastest market growth and the market shall generate a revenue of $162,359.41 thousand in 2028. This growth is because of rising trend of online shopping among the consumers. As the companies have started launching their products online, it has become easier for the customers to purchase goods by sitting at one place. Also, lots of coupons and discounts attract the people to opt for online shopping which has further raised the revenue of the market.
The North America hemp market size accounted $22,591.57 thousand in 2020 and is projected to register a revenue of $108,038.19 thousand by 2028. The regional growth is attributed to the presence of well-established hemp tea companies in the market and their constant efforts to launch new hemp products like hemp tea. As North American countries such as the U.S. and Canada enjoy relaxed regulations regarding the cultivation and use of cannabis plant in the manufacturing of products like hemp tea, many companies have opened their manufacturing units in such areas and are developing their new hemp tea product lines. Such factors are likely to stimulate the market growth in the future.
Top 10 Major Key Players in the Hemp Tea Market are -
- Its Hemp
- Clipper’s Tea
- Willie’s Remedy
- Buddha Tea
- Traditional Medicinals
- the Tea Can Company
- Charlotte's Web
- Colorado Harvest Company.
Porter’s Five Forces Analysis for the Hemp Tea Market
- Bargaining Power of Suppliers: Since the number of suppliers are less in number, they have to optimize their product value to attract the customers.
Hence, the bargaining power of suppliers is moderate.
- Bargaining Power of Buyers: Since the hemp tea products are new in the market, the buyers have less criteria for analyzing the quality and price of the products.
Thus, the bargaining power of the buyers is low.
- Threat of New Entrants: New companies entering the market have great opportunity to introduce new flavors in hemp tea.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: In case of hemp tea, the market is already rich in various different tea variations 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 as the opportunity to expand their business is vast, especially between the global players.
Therefore, competitive rivalry in the market is high.