Tea Market Size To Reach $24.61 Billion By 2030 | CAGR: 6.0%

Tea Market Growth & Trends

The global tea market size is expected to reach USD 24.61 billion in 2030 and is projected to grow at a CAGR of 6.0% from 2025 to 2030.  Rising popularity of carbonated drinks coupled with rise in consumer disposable income, especially in emerging economies such as India, China, and Brazil will create robust product demand.

Tea, being a widely consumed beverage especially across Asia Pacific (APAC) and Middle East and Africa (MEA). It has gained immense popularity in other parts of the world as well, owing to its antioxidant properties. Presence of polyphenols, antioxidants, vitamins, and a variety of amino acids make it help strengthen the immune system. Additionally, it helps lower cholesterol levels, increase metabolism, and may help prevent cancer. It also contains a small amount of caffeine, which boosts its consumption as a mild stimulant.

Changing demographics, rise in disposable income of middle class population, especially in urban areas is anticipated to drive the product consumption and in turn drive the market. Millennials are anticipated to register the strongest growth, especially in countries such as China, Japan, Brazil, and India. Rising awareness regarding the benefits of drinking tea coupled with willingness to shell out money on the product is anticipated to bode well for the demand. Hence, to leverage this trend, a number of manufacturers are repositioning the product like a lifestyle brand to reach more consumers. They engage in social media campaigns and celebrity advertising to promote their new and premium flavors.

In 2018, black tea held the largest market share of about 39%. The product is predominantly produced and consumed in countries like India, China, Sri Lanka, and Kenya. Green tea is also anticipated to hold a significant market share over the forecast period. The product is a natural and organic detoxifying agent and hence, along with food and beverage, it also finds application in skin care and wellness products. It that has therapeutic properties to cure scars, helps manage weight, and to improves skin texture.

Oolong is a premium-quality product that apart from being used as a weight loss remedy, has innate properties to help prevent type 2 diabetes. Herbal tea includes hibiscus, tulsi, jasmine, and chamomile among numerous other flavors. These products are popular among consumers from European countries such as Germany and U.K. Typhoo, the British packaged tea brand currently owned by Kolkata, India-based, Apeejay Surrendra Group, which manufactures non-tea infusions, including organic herbal mixes due to declining black tea market, especially in the European countries.

Hypermarkets and supermarkets distribution channel segment held the market share of more than 38% in 2018, while convenience stores held the market share of around 32% in the same year. Specialty stores, such as Fabindia and Teafloor provide consumers with premium and exquisite brands and flavors. On the other hand, online channel is expected to expand at the fastest CAGR of 5.9% over the forecast period due to ease of payment methods and availability of a wide variety of products.

Most companies operating in the market engage in product innovation and R&D. They also focus on innovative advertising and social media campaigns to attract more target consumers. Tata Global Beverages entered into Ready-to-Drink segment with the introduction of green tea based drink, led by Tata Tea in India and Tetley in Canada.

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Tea Market Report Highlights

• Black tea dominated the market with the largest revenue share of 38.8% in 2024. Black tea is one of the most popular types of tea worldwide, appreciated for its strong flavor and versatility.

• The hypermarkets & supermarkets channel dominated the market with the largest revenue share in 2024. Hypermarkets and supermarkets offer a wide variety of tea products, providing consumers with the convenience of one-stop shopping.

• Asia Pacific tea industry dominated the global industry with a revenue share of 34.7% in 2024.

Tea Market Segmentation

Grand View Research has segmented the global tea market on the basis of product, distribution channel, and region:

Tea Product Outlook (Revenue, USD Billion, 2018 - 2030)

• Black

• Green

• Oolong

• Herbal

Tea Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

• Hypermarkets & Supermarkets

• Convenience Stores

• Specialty Stores

• Online

Tea Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Ireland

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • South Korea

• Latin America

  • Argentina

• Middle East and Africa (MEA)

  • South Africa

  • Turkey

List of Key Players of Tea Market

• R. Twining and Company Limited

• Dilmah Ceylon Tea Company PLC.

• Bigelow Tea

• PepsiCo

• YORKSHIRE TEA

• Starbucks Coffee Company

• Unilever

• Caraway Tea

• Harris Freeman

• The Republic of Tea