The tea market is one of the most dynamic and rapidly expanding sectors in the beverage industry. Tea, a beloved drink consumed by millions of people worldwide, is deeply rooted in cultures and traditions, making it a staple beverage in many regions. Its versatility, wide range of varieties (black, green, white, oolong, herbal), and health benefits have contributed to the rise in demand for tea over the years. With increasing consumer awareness about healthy lifestyle choices, the market for tea is witnessing robust growth. As a result, the global tea market is expected to reach USD 59.59 billion in 2025 and grow at a steady compound annual growth rate (CAGR) of 6.20% during the forecast period of 2026–2035, reaching an estimated USD 108.75 billion by 2035.

The tea market is influenced by factors such as changing consumer preferences, innovation in product offerings, health and wellness trends, and the growing demand for organic and specialty teas. As a beverage, tea’s appeal extends beyond its traditional consumption, with consumers exploring new flavors, blends, and functional benefits.

Tea Market Size

The global tea market is projected to be valued at USD 59.59 billion in 2025, reflecting the growing consumption of tea across various regions. Asia-Pacific remains the largest market for tea, driven by countries like China, India, and Japan, where tea is a part of daily life and cultural heritage. However, demand for tea is also on the rise in North America and Europe, as health-conscious consumers turn to tea for its numerous health benefits, including antioxidants, hydration, and digestive support.

The market size includes both the traditional tea segment (black, green, and oolong teas) as well as specialty and herbal teas, which are gaining popularity due to their perceived health benefits. The demand for premium and organic teas, especially in developed countries, is also contributing to the growing market size. By 2035, the market is expected to grow to USD 108.75 billion, driven by increasing global consumption, new product offerings, and the rising trend of functional beverages.

Tea Market Trends

Several key trends are shaping the future of the global tea market:

Health and Wellness Focus: Consumers are increasingly looking for beverages that contribute to their health and well-being. Tea, especially varieties like green tea, herbal tea, and functional teas, is gaining popularity for its antioxidant properties, weight management benefits, and potential to improve digestion and boost immunity.

Rise in Organic and Specialty Teas: There is a growing preference for organic and specialty teas, as consumers become more concerned about sustainability, ethical sourcing, and the avoidance of pesticides. Organic teas, often marketed as being healthier and more environmentally friendly, are driving a shift in consumer purchasing behavior.

Premiumization of Tea Products: The demand for high-quality, premium tea is on the rise, especially in mature markets. Consumers are willing to pay a premium for exotic blends, single-origin teas, and teas with specific functional benefits, such as detox or relaxation properties. The premiumization trend is reflected in both loose-leaf and tea bag offerings, as well as in ready-to-drink (RTD) tea products.

Functional and Flavored Teas: There is a noticeable rise in flavored and functional teas, such as those infused with herbs, spices, and other botanicals. These types of teas offer consumers unique experiences, as well as potential health benefits. Examples include teas with adaptogens, CBD-infused teas, and stress-relief blends.

Sustainability and Ethical Sourcing: The tea industry is placing a greater emphasis on sustainability and fair trade practices. Consumers are increasingly aware of the environmental impact of their purchases and are seeking brands that engage in ethical sourcing, support fair wages for workers, and minimize their carbon footprint. Brands are responding by implementing eco-friendly packaging and supporting organic and fair trade certifications.

Tea Market Growth

The global tea market is expected to grow at a strong CAGR of 6.20% during the forecast period of 2026–2035. Several factors are driving this growth:

Increasing Consumer Demand for Healthy Beverages: The global shift toward health-conscious living is a major driver for the tea market. With its health benefits, including its antioxidant and anti-inflammatory properties, tea is considered a natural alternative to sugary soft drinks and caffeinated beverages like coffee.

Growing Popularity of Tea in Developed Markets: While tea consumption has been historically popular in Asia, it is becoming increasingly popular in North America and Europe, where consumers are adopting tea as part of their wellness routines. This growth is driven by the increasing awareness of the health benefits associated with tea and its versatility as a beverage.

Expansion of Ready-to-Drink (RTD) Tea: The ready-to-drink tea segment is experiencing rapid growth, particularly in developed regions. Consumers are looking for convenient and healthy beverage options, which RTD teas are able to provide. This market is expected to grow further, driven by innovations in flavor, health-conscious formulations, and packaging.

Growth in E-commerce and Direct-to-Consumer Sales: The rise of online retail platforms has opened up new opportunities for tea brands to reach a wider audience. Direct-to-consumer sales, subscription services, and specialty tea shops are becoming more popular, offering consumers easy access to a wide variety of tea options.

Innovations in Packaging: There is a growing focus on sustainable and innovative packaging solutions in the tea market. Consumers are increasingly interested in brands that use eco-friendly packaging, including biodegradable tea bags and recyclable containers.

Tea Market Forecast

The global tea market is expected to reach USD 108.75 billion by 2035, growing at a CAGR of 6.20% during the forecast period. The growth forecast is driven by several factors, including:

Global Tea Consumption: As global tea consumption continues to rise, particularly in emerging markets, the demand for both traditional and specialty tea varieties will continue to increase. The rise in consumer interest in health and wellness will contribute to the steady growth of the market.

Premium and Organic Segment Growth: The premium and organic tea segments will continue to see significant growth, driven by consumer preferences for high-quality, sustainable, and ethically sourced products. Organic and specialty teas, in particular, will drive this segment's growth in developed regions.

Expansion of Functional Teas: As consumers increasingly seek beverages that offer health benefits, functional teas will continue to gain popularity. Functional tea products that focus on weight management, stress relief, or energy boosting are expected to see high demand.

E-commerce and Online Retail: The e-commerce channel will continue to grow as consumers seek convenience and access to a wide range of tea options. Direct-to-consumer sales and online tea subscriptions will provide brands with more opportunities to engage with customers.

Competitive Analysis

The global tea market is highly competitive, with several key players vying for market share. Leading companies in the tea market include:

Barry’s Tea: A well-known Irish tea brand, Barry’s Tea is recognized for its premium blends and high-quality tea products. Barry’s Tea offers a range of traditional black tea blends and is expanding into the organic tea market to meet the growing demand for healthier, more sustainable options.

SAC Leão: SAC Leão, a Brazilian tea brand, has a strong presence in Latin America and is known for offering high-quality traditional teas and herbal blends. The brand focuses on sustainability and the use of natural ingredients to meet consumer preferences for wellness products.

The Hain Celestial Group, Inc.: The Hain Celestial Group, with brands like Celestial Seasonings, is a major player in the global tea market. The company offers a wide variety of herbal, green, and black teas, focusing on natural, organic ingredients and health-focused products.

Tenfu’s TEA: Based in China, Tenfu’s TEA is one of the largest tea manufacturers in the country, offering premium and specialty teas, including oolong, green, and black teas. The company focuses on quality and authenticity, leveraging its expertise in tea cultivation to offer a unique product.

Others: Other key players in the tea market include Lipton (Unilever), Tetley (Tata Global Beverages), and Twinings (Associated British Foods). These companies have established themselves as leaders in the tea market through extensive distribution networks, innovative product offerings, and strong brand recognition.