Tea Market By Type (Green Tea, Black Tea, Oolong Tea, Herbal Tea), Form (Loose Leaf, Tea Bags), Category (Organic, Conventional), Distribution Channel (Offline, Online), & Region for 2024-2031

Tea Market Valuation - 2024-2031

The widespread consumption of tea, driven by its health benefits and cultural significance, has become a key trend in the global market. Tea is highly valued for its antioxidant properties, with green and herbal teas particularly popular among health-conscious consumers. This growing focus on wellness and immunity-boosting beverages has surged the demand for tea, enabling the market to surpass USD 60.7 Billion in 2023 and reach a valuation of USD 91.28 Billion by 2031.

The shift toward organic and specialty teas has further fueled market growth, as consumers increasingly prefer premium products with natural ingredients. Additionally, the rising popularity of ready-to-drink tea options and innovations such as tea-based beverages have strengthened the market's expansion. Thus, evolving consumer preferences and product innovations are expected to drive the Tea Market at a CAGR of 5.77% from 2024 to 2031.

Tea Market: Definition/ Overview

The tea refers to the global industry that encompasses the production, distribution, and consumption of various types of tea, including black, green, oolong, white, herbal, and specialty teas. Tea is one of the most widely consumed beverages globally, valued for its versatility, health benefits, and cultural significance. It is available in multiple forms, including loose leaves, tea bags, instant powders, and ready-to-drink variants.

Tea is consumed across households, hotels, cafes, and restaurants for its refreshing taste and energy-boosting properties. Traditional consumption, tea is increasingly used in cosmetic and skin care products for its antioxidant properties, health supplements, and confectionery and food products like iced teas, tea-flavored snacks, and beverages.

The tea is expected to grow steadily, driven by rising health consciousness, consumer preferences for organic and herbal teas, and innovations such as ready-to-drink teas. Increasing demand for sustainable and eco-friendly packaging and expanding e-commerce channels will further shape the future of the market. With growing popularity in emerging markets like India and China, the tea industry is projected to evolve with new blends, functional teas, and health-focused products.

How Is Rising Health Consciousness Driving the Growth of the Tea Market?

Rising health consciousness is significantly driving the growth of the Tea Market as consumers increasingly prioritize wellness and healthy lifestyle choices. Tea is widely recognized for its natural health benefits, such as reducing stress, improving digestion, aiding weight loss, and boosting immunity. Green tea is rich in antioxidants, helping reduce the risk of chronic diseases, while herbal teas like chamomile and peppermint are known for their calming effects.

According to Euromonitor International, the global premium Tea Market is expected to grow at a CAGR of 5.7% from 2021 to 2026. The UK Tea and Infusions Association reports that specialty teas now account for 60% of the total Tea Market value in the UK, despite representing only 45% of the volume.

With growing concerns over sugar consumption and the harmful effects of sugary soft drinks, many consumers are shifting towards low-calorie, caffeine-free herbal teas. Functional teas, such as detox teas and those promoting sleep or digestion, are also gaining traction, appealing to health-conscious individuals. The pandemic further intensified this trend, as people sought beverages that could enhance immunity and mental well-being. This shift in consumer behavior is not limited to developed markets emerging economies like India and China are also witnessing an increase in health-focused tea consumption.

How is Climate Change Affecting the Tea Market?

Climate change significantly impacts the Tea Market by disrupting growing conditions essential for tea cultivation. Changes in temperature, erratic rainfall, droughts, and rising humidity levels can affect crop yields, alter flavor profiles, and reduce the quality of tea leaves. Regions traditionally known for tea cultivation, such as India, Sri Lanka, and Kenya, are experiencing unpredictable weather patterns, leading to production uncertainties. Prolonged heat waves or excessive rain can increase the occurrence of plant diseases and pest infestations, further challenging farmers.

To combat these challenges, tea producers are adopting several strategies. They are shifting cultivation to higher altitudes where temperatures are cooler and rainfall patterns are more stable. Research is also focused on developing climate-resilient tea plant varieties that can withstand harsh conditions. Sustainable farming practices, such as water conservation techniques and agroforestry, are being implemented to reduce the environmental impact of tea production. Producers are also engaging in carbon footprint reduction initiatives to align with global sustainability goals, ensuring the long-term viability of the tea industry despite changing climate conditions.

Category-Wise Acumens

What Factors Are Driving the Increasing Demand for Green Tea in the Tea Market?

The green tea segment stands out as rapidly growing in the Tea Market due to its perceived health benefits and rising consumer awareness around wellness. Green tea is rich in antioxidants, particularly catechins, which are associated with improved metabolism, weight loss, and reduced risk of chronic diseases like cardiovascular ailments. The increasing trend of health-conscious lifestyles has driven consumers to replace sugary beverages with healthier alternatives, further boosting green tea's popularity.

The rising prevalence of lifestyle-related disorders, including obesity and diabetes, has accelerated the demand for green tea, as it is often marketed as an aid for managing such conditions. The introduction of innovative flavors and ready-to-drink green tea products has further expanded its appeal, catering to both traditional and modern consumers.

In countries like China, Japan, and India, where tea is deeply rooted in culture, green tea is being embraced not only for health purposes but also as part of daily routines. As awareness of natural and organic products continues to grow, the green tea segment is expected to witness sustained growth, especially in urban markets, contributing significantly to the overall expansion of the Tea Market.

What Factors are Driving the Growth of the Organic Segment in the Tea Market?

The organic segment in the Tea Market is experiencing significant growth, driven by increasing consumer awareness about health, wellness, and sustainable farming practices. Organic tea is cultivated without the use of synthetic fertilizers, pesticides, or genetically modified organisms (GMOs), making it appealing to health-conscious consumers seeking natural and chemical-free products. Rising concerns about the environmental impact of conventional farming have also motivated consumers to opt for organic options, which promote soil health and biodiversity.

In addition to health benefits, organic tea is gaining popularity due to the global trend toward clean-label and ethically sourced products. Governments and organizations promoting organic certification programs further boost the credibility and demand for organic tea. The surge in organic food consumption, particularly in developed regions like North America and Europe, is also playing a key role in expanding this segment.

The higher production costs and premium pricing associated with organic tea can pose challenges. Nevertheless, as consumers continue prioritizing sustainability and well-being, the organic tea segment is expected to witness steady growth, contributing to the overall expansion of the Tea Market.

Country/Region-wise Acumens

How Are Changing Consumer Preferences Influencing the Tea Market Dynamics in the Asia Pacific Region?

The Asia Pacific region stands out as dominant in the Tea Market, driven by consumers increasingly seeking healthier and more sustainable beverage options. There is a noticeable shift towards organic and premium tea products, driven by growing health consciousness among consumers. This trend has resulted in higher demand for specialty teas, including green, herbal, and wellness-infused blends that promise various health benefits. The younger generation is more inclined toward unique flavors and innovative tea experiences, such as ready-to-drink teas and tea-based beverages. This shift is prompting manufacturers to diversify their offerings and cater to evolving tastes. Sustainability concerns are driving consumers to favor brands that prioritize eco-friendly packaging and ethical sourcing practices, further reshaping the competitive landscape.

Market players are responding by investing in sustainable farming practices and transparent supply chains. This adaptation not only meets consumer demands but also helps brands differentiate themselves in a crowded market. The Asia Pacific Tea Market is witnessing a transformative phase, where health and sustainability are becoming pivotal factors in shaping purchasing decisions.

What Are the Current Trends Driving the Growth of the Tea Market in North America?

North America is anticipated to experience the fastest growth in the Tea Market during the forecast period, driven by various trends that reflect changing consumer preferences and lifestyles. According to the Tea Association of the USA, on any given day, over 159 million Americans are drinking tea. The U.S. Department of Agriculture reports that per capita tea consumption in the United States has increased by 26% since 2000. The U.S. Census Bureau reports that e-commerce sales of food and beverage products, including tea, grew by 27% in 2020 compared to the previous year. The increasing awareness of the health benefits associated with tea consumption. Many consumers are shifting toward healthier beverage options, and teas like green and herbal varieties are particularly appealing due to their antioxidant properties and potential health benefits, including improved digestion and reduced risk of chronic diseases.

The rising popularity of specialty and premium teas. Consumers are becoming more adventurous in their tastes, seeking unique flavors and high-quality products. This shift has led to the emergence of artisanal tea brands and blends, catering to discerning consumers who prioritize quality over quantity.

Competitive Landscape

The competitive landscape of the Tea Market is dynamic and constantly evolving. New players are entering the market, and existing players are investing in research and development to maintain their competitive edge. The market is characterized by intense competition, rapid technological advancements, and a growing demand for innovative and efficient solutions.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the Tea Market include Unilever PLC, Hain Celestial Group, Inc., Nestle S.A., Tata Consumer Products Limited, Associated British Foods plc, Barry's Tea, Bigelow, Inc., The Republic of Tea, Inc., McLeod Russel India Limited, ITO EN, LTD.

Tea Latest Developments

In November 2022, Dabur India Limited announced the launch of Dabur Vedic Tea, a premium black tea that included 30+ ayurvedic herbs aimed at promoting health benefits and boosting immunity. The product featured herbs such as Tulsi, Ginger, Cardamom, and others.

In November 2022, Tata Consumer Products announced the launch of Tetley Green Tea with Tulsi flavor, expanding their green tea portfolio. This green tea was designed to boost immunity and was high in vitamin C.

Tea Market, By Category

• Type:
• Green Tea
• Black Tea
• Oolong Tea
• Herbal Tea
• Form:
• Loose Leaf
• Tea Bags
• Category:
• Organic
• Conventional
• Distribution Channel:
• Online
• Offline
• Geography:
• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa