India Tea Market to Grow with a CAGR of 4.34% through 2030F

The India Tea Market is driven by factors such as strong domestic consumption, rising health awareness, expanding urbanization, increasing demand for premium teas, and supportive government initiatives.

According to TechSci Research report, “India Tea Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the India Tea Market was valued at USD 11.72 Billion in 2024 and is expected to reach USD 15.12 Billion by 2030 with a CAGR of 4.34% during the forecast period. The India tea market stands as one of the most vibrant and culturally ingrained industries in the country. Tea is not just a beverage in India—it is a deeply embedded part of daily life, social rituals, and hospitality. Across rural villages to metropolitan cities, tea is consumed at all times of the day and in all seasons, making it a staple product in households, offices, and public spaces alike. The country is among the world’s largest producers and consumers of tea, with a robust domestic demand supported by a population that views tea as essential. This cultural affinity provides a solid foundation for the market's consistent growth and resilience, even in the face of economic fluctuations or lifestyle changes.

Traditional milk tea continues to dominate, but there is a growing shift towards healthier variants such as green tea, herbal infusions, and wellness-focused blends. These teas are rich in antioxidants and are perceived to support digestion, immunity, and mental clarity. The rising awareness around lifestyle-related health issues such as obesity, diabetes, and stress has prompted consumers to seek natural alternatives, and tea—especially in its unprocessed and herbal forms—fits perfectly into this evolving health narrative. As a result, brands are introducing innovative products tailored to meet specific health needs, which has not only expanded the consumer base but also added value to the tea market.

Consumer preferences are also evolving toward premium and artisanal tea experiences. As disposable incomes rise and global exposure increases, especially among younger demographics, there is a growing demand for high-quality teas with distinct flavors, origins, and stories. Indian consumers are increasingly drawn to single-estate, handpicked, or small-batch teas that reflect craftsmanship and authenticity. Boutique tea houses, experiential tastings, and curated gift boxes have all found a place in the modern Indian market. Furthermore, the rise in tea tourism and awareness of Geographical Indication (GI) tags for regions like Darjeeling and Assam has deepened consumer appreciation for the uniqueness of Indian teas.

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The India Tea Market is segmented into product type, distribution channel and region.

Based on distribution channel, Supermarkets/hypermarkets dominate the distribution landscape of the Indian tea market due to their wide reach, organized retail format, and ability to offer a diverse range of tea products under one roof. These modern retail outlets provide consumers with easy access to both mass-market and premium tea brands, enabling comparison and informed purchasing decisions. The attractive in-store displays, promotional offers, and availability of various packaging sizes appeal to both budget-conscious and discerning buyers. Additionally, their growing presence in urban and semi-urban areas has significantly boosted visibility and sales of branded teas, making supermarkets and hypermarkets a leading channel for tea distribution in India.

Based on region, South India is emerging as the fastest-growing region in the Indian tea market, driven by a combination of traditional tea culture, evolving consumer preferences, and regional production strengths. While the northern states have historically dominated tea production, South India is witnessing a surge in both consumption and production, particularly in states like Tamil Nadu, Kerala, and Karnataka. The Nilgiri region in Tamil Nadu is renowned for its high-quality black tea, which has gained popularity among consumers seeking aromatic and brisk teas. Additionally, the rise of urban centers such as Bengaluru, Chennai, and Hyderabad has introduced a younger, health-conscious demographic inclined towards green, herbal, and specialty teas. This shift is further supported by the region's growing café culture and the increasing availability of premium tea products in supermarkets and online platforms.

Major companies operating in India Tea Market are:

• Tata Consumer Products Limited
• Harrisons Malayalam Limited
• The United Nilgiri Tea Estates Co Ltd.
• Teesta Valley Tea Company
• Kanan Devan Hills Plantations Company Private Limited
• Kangra Valley Herbals Products
• Dharamsala Tea Company
• Hindustan Unilever Limited
• Organic India Private Limited
• Wagh Bakri Tea Group

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“The India tea market is driven by rising health awareness, increasing urbanization, expanding e-commerce channels, and growing demand for premium and specialty teas. Key trends include the shift toward healthier tea variants like green and herbal teas, the rise of online tea sales, growing preference for sustainably sourced products, and the popularity of artisanal and single-origin teas among younger consumers.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Tea Market By Product Type (Oolong, Green, Black, Others), By Distribution Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Tea Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Tea Market.

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