Tea Market Size, Share & Trends Analysis Report By Product (Black, Green, Oolong, Herbal) By Distribution Channel (Hypermarkets, Convenience Stores, Specialty Stores) By Region, And Segment Forecasts, 2024 - 2030

Tea Market Size & Trends

The global tea market size was valued at USD 56.27 billion in 2023 and is projected to grow at a CAGR of 7.4% from 2024 to 2030. The increasing growth in the tea market is due to its many health benefits and the introduction of several flavors. Rapid growth in green tea consumption, valued for its antioxidant properties, continues to expand the market. In addition, the demand for organic tea increased, driven by consumer demand for alternatives to natural and environmentally friendly products.

Cultural significance furthermore contributes to the rising demand for tea. Traditional tea-drinking ceremonies and practices in countries like China, Japan, India, and the UK have fostered a deep appreciation for tea as more than just a beverage but a cultural experience. As globalization spreads these cultural practices, interest in authentic teas and tea-related rituals has grown, driving demand for premium and specialty teas sourced from specific regions known for their tea production expertise.

Moreover, the tea market has evolved with a focus on variety and innovation. Consumers today have access to a wide range of tea flavors, blends, and functional varieties such as detox teas or energy-boosting blends. This diversity caters to different tastes and preferences, appealing to consumers seeking novelty and unique sensory experiences in their beverage choices. Additionally, ready-to-drink tea formats have gained popularity due to their convenience, particularly among urban populations and younger demographics seeking healthier alternatives to sugary drinks.

Another driver is the expanding cafe culture and the global proliferation of coffee and specialty tea shops. These establishments offer a wide selection of teas, often emphasizing quality, craftsmanship, and the art of tea preparation. This trend caters to tea enthusiasts and introduces new consumers to premium and exotic tea varieties, enhancing overall tea consumption. Furthermore, the convenience factor continues to influence tea consumption patterns. Ready-to-drink tea products, including bottled and canned teas, have gained popularity due to their accessibility and portability. These products cater to busy lifestyles and on-the-go consumption preferences, appealing particularly to urban populations and younger demographics who value convenience without compromising on health benefits.

Product Insights

The black segment held the largest market revenue share of 39.1% in 2023. Black tea, derived from the camellia sinensis plant, is preferred by a large population worldwide due to its strong flavor and high caffeine content. According to the World Tea Export Council, black tea is the most consumed tea in the world, accounting for approximately 75% of the total tea consumption. Its growth is driven by several benefits, such as antioxidant properties that protect from free radicals and reduce cell damage. Moreover, black tea contains flavonoids similar to those found in fruits, red wine, and dark chocolate, improving heart function. In addition, black tea lowers low-density lipoproteins cholesterol levels, thus dropping the risk of heart disease. These advantages are expected to drive increased demand and growth in the black tea market in the coming years.

The herbal segment is expected to witness the fastest CAGR of 8.2% in the forecast period. The global market for herbal tea is anticipated to experience growth during the forecast period due to factors such as a growing working population, increasing demand for ready-to-use products, and expanding retail markets. The herbal tea market is also expected to grow as the popularity of herbal tea as a natural ingredient in personal care products is increasing. Additionally, the herbal tea market is projected to benefit from increasing disposable income levels, higher food and beverage expenditure, and growing consumer awareness of following healthy lifestyles.

Distribution Channel Insights

Hypermarkets & supermarkets segment held the largest market revenue share in 2023. The demand for hypermarkets and supermarkets in the distribution channel segment of the tea market is increasing due to consumer preferences and market dynamics. Hypermarkets and supermarkets offer a wide range of tea varieties from various brands, providing consumers with ample choices to explore different flavors, blends, and packaging sizes, all under one roof. This convenience enhances consumer shopping experiences, allowing them to compare products easily and make informed purchasing decisions. These large retail outlets often provide competitive pricing and promotional offers, making tea products more accessible and affordable to a broader customer base.

Online segment is projected to witness the fastest CAGR over the forecast period. Consumers are increasingly turning to online platforms for convenience and accessibility, allowing them to browse a wide range of tea varieties and brands from the comfort of their homes. This trend is particularly pronounced among younger tech-savvy demographics who prefer the ease of ordering products online. Additionally, online channels provide a platform for tea producers, especially small and artisanal brands, to reach a broader audience beyond their local markets, expanding their customer base and boosting sales.

Regional Insights

North America held a substantial market share in 2023. Health consciousness among consumers has driven a shift towards beverages perceived as healthier alternatives to traditional options like coffee. Tea, known for its antioxidant properties and various health benefits, has gained popularity as part of this trend. Furthermore, cultural diversification has introduced a wider range of tea varieties and flavors to the market, appealing to a broader audience beyond traditional tea drinkers. Innovations in tea preparation methods and packaging, such as convenient tea bags and ready-to-drink options, have also increased popularity among busy consumers seeking convenience without sacrificing health benefits.

U.S. Tea Market Trends

U.S. market dominated the regional market in 2023.  Increasing health awareness among consumers has led to a surge in tea consumption, particularly for green tea, herbal tea, and fruit tea. The introduction of diverse flavors has attracted tea enthusiasts, driving the market expansion. For instance, In June 2024, Y'all Sweet Tea announced the launch of seven new flavors and expanded its presence in grocery retail outlets. This expansion marks a significant step for the brand, which aims to capture a larger market share by diversifying its product offerings. The demand for natural and organic ingredients has driven interest in specialty teas. In addition, continuous tea consumption throughout the year, regardless of seasonality, contributes to market growth.

Europe Tea Market Trends

Europe market is anticipated to witness a substantial growth. The growing trend towards healthier beverage choices among European consumers is driven by increasing awareness of the health benefits associated with tea, such as antioxidants and potential weight management properties. Additionally, tea is perceived as a versatile drink that caters to a variety of tastes and preferences, including herbal and specialty teas that appeal to health-conscious and adventurous consumers alike. Moreover, European cultural diversity has led to a broader acceptance and integration of tea traditions from different regions, contributing to its popularity across various demographics.

The UK tea market is projected to witness rapid growth. Changing lifestyles increasingly emphasize the importance of herbal tea, as many people prefer herbal options over caffeinated ones. Green tea's substantial nutritional benefits and fat-burning properties are contributing significantly to the expansion of the tea market. This rising demand for tea enables producers to offer a range of natural and infused flavors tailored to health-conscious consumers.

Germany market is anticipated to witness a substantial growth. Tea is perceived as a healthier alternative to other beverages like coffee, aligning with German consumers' growing trend towards health and wellness. Additionally, the variety of tea flavors and types available, including herbal teas and specialty blends, appeals to a diverse consumer base seeking unique taste experiences. Cultural influences also play a significant role, as Germany has a longstanding tradition of tea consumption, particularly in regions influenced by British and Eastern European tea-drinking customs.

Asia Pacific Tea Market Trends

Asia Pacific held the largest market revenue share of 35.2% in 2023. Tea has a significant cultural and social value across many regions in Asia Pacific. Moreover, tea is often perceived as more beneficial than other drinks, attracting health-conscious individuals to choose tea over carbonated beverages. The increasing popularity of tea among millennials has led to a rising demand for flavored varieties like clove, pepper, cinnamon, masala, mixed fruit, and more, driving market growth in the Asia Pacific region.

India tea market held a substantial market share in 2023. India has a deep-rooted cultural inclination towards tea, making it a staple beverage across various demographics. This cultural preference fuels consistent domestic consumption. Rising disposable incomes and urbanization have also expanded the consumer base for tea products, including premium and specialty teas. Health consciousness among consumers also drives the market demand, with herbal and green teas gaining popularity for their perceived health benefits.

China tea market held a substantial market share in 2023. With the rising health consciousness among consumers, tea is increasingly valued for its perceived health benefits, including antioxidants and potential medicinal properties. Additionally, China's growing middle class and urbanization have led to higher disposable incomes and changing lifestyles, contributing to greater consumption of premium tea varieties and innovative tea products. Moreover, tea tourism and the promotion of tea culture as part of China's heritage have boosted domestic consumption and driven demand for high-quality teas across different regions of the country.

Middle East and Africa Tea Market Trends

The Middle East and Africa is projected to witness the fastest CAGR over the forecast period. Tea consumption in these regions is deeply rooted in cultural and social traditions, where tea symbolizes hospitality and is often an integral part of daily life and social gatherings. Additionally, the growing population and urbanization in many parts of the Middle East and Africa have led to a larger consumer base with increasing disposable incomes, thereby boosting tea consumption.

Key Tea Company Insights

Some of the key companies in the tea market include Dilmah, Bigelow Tea Company, Yorkshire Tea, Unilever, Caraway Tea

• Dilmah offers unblended, garden fresh Ceylon tea picked and packed directly at the source. Dilmah organic tea is produced from raw material that is free from pesticides and fertilizer, available in individually foil wrapped bags and bulk food service pack.

• Bigelow Tea Company is a specialty tea manufacturer. It provides Bigelow plus Vitamin C teas considering the importance of health and wellness trend. This tea provides the 100% of the daily required value of Vitamin C in one serving. Below also provides green and black tea with healthy antioxidants Vitamin C.

Recent Developments

• In June 2023, Bigelow Tea announced the launch of three new tea varieties: Lavender Chamomile Plus, Orange & Spice Herbal Tea, and Matcha Green Tea with Turmeric. Each new tea is crafted to offer unique flavor profiles and health benefits, catering to diverse consumer preferences. Bigelow Tea aims to continue its tradition of providing high-quality teas.

• In March 2024, PepsiCo announced a partnership with Unilever to launch Pure Leaf Zero Sugar Sweet Tea, a new product aimed at meeting the growing demand for zero-sugar beverages. This latest addition to the Pure Leaf brand offers a sweet tea flavor without added sugars, providing a healthier option for consumers conscious of their sugar intake.

Tea Market Report Scope

Global Tea Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global tea market report based on product, distribution channel, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Black

  • Green

  • Oolong

  • Herbal

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Specialty Stores

  • Online

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • UAE