Tea Market to Grow with a CAGR of 5.8% through 2030
The
global tea market is expanding steadily, driven by health-focused consumption,
product innovation, digital distribution, and rising demand for natural,
functional beverages across diverse demographic and cultural segments worldwide.
According to
TechSci Research report, “Tea Market - Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the global tea market was valued at USD 17.24 Billion in 2024 and is expected to
reach USD 24.18 Billion by 2030 with a CAGR of 5.8% during the forecast
period. The global tea market is navigating a dynamic phase of transformation,
shaped by evolving consumer expectations and structural industry pressures.
Beyond the widely discussed health trends and premiumization, a deeper shift is
occurring in consumer motivations, where emotional wellness, cultural
authenticity, and sustainability are becoming key decision drivers. Consumers
increasingly view tea not only as a functional drink but as part of a broader
lifestyle narrative—connected to rituals of mindfulness, digital detoxing, and
social belonging. This emotional resonance is expanding tea’s relevance in both
traditional and non-traditional demographics, including younger urban consumers
who might have previously gravitated toward coffee or energy drinks. At the
same time, the industry is grappling with significant operational and
environmental headwinds. Input cost volatility—driven by energy prices,
transportation challenges, and labor constraints—is tightening margins across
the supply chain. In parallel, geopolitical instability in key producing
regions has introduced new risks to sourcing consistency and trade logistics.
Moreover, the accelerated demand for transparency and ethical sourcing—while
crucial for brand trust—requires significant technological and managerial
investment, especially for smaller producers. Regulatory divergence across
markets further complicates global expansion, with differing safety, labeling,
and sustainability standards requiring customized compliance strategies. Yet,
amid these challenges, the market remains resilient due to its cultural
adaptability and product versatility. Tea’s inherent compatibility with flavor
innovation, functional integration, and digital commerce platforms allows
brands to continuously reinvent their offerings. As such, the market outlook
remains positive, contingent on players’ ability to reconcile growth
aspirations with operational agility and responsible sourcing. Companies that
can innovate beyond product formulation—embedding cultural relevance, supply
chain integrity, and immersive consumer engagement—are likely to lead the next
phase of global tea market expansion, positioning tea not just as a beverage,
but as a sustainable, symbolic, and evolving experience.
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"Global Tea Market.”
The Tea Market
is segmented into product type, form, distribution channel and region.
Based
on product type, herbal tea is the fastest-growing segment, fueled by
increasing global demand for natural, caffeine-free, and functionally targeted
beverages. Unlike traditional teas, herbal teas appeal across demographics by
offering a wide spectrum of flavors and health benefits without containing
Camellia sinensis. Consumers seeking relief from stress, insomnia, digestive
issues, or immunity concerns are turning to herbal infusions like chamomile,
peppermint, ginger, and turmeric. The trend is amplified by the global wellness
movement, post-pandemic immunity awareness, and the growing interest in
Ayurvedic and naturopathic lifestyles. Moreover, the versatility of herbal teas
makes them suitable for hot brews, iced drinks, and RTD formats. As innovation
continues to introduce novel blends and health-specific formulations, herbal
tea’s market share is expanding rapidly, especially among health-conscious
millennials, pregnant women, older adults, and those avoiding stimulants. This
trajectory indicates strong growth potential through 2030 and beyond.
Based
on distribution channel, the online channel is rapidly transforming the global
tea market. E-commerce platforms offer an expansive product variety, easy price
comparison, user reviews, and targeted recommendations. Consumers can now
access rare and international blends, participate in subscription models, and
explore niche or personalized teas not available in physical stores.
Direct-to-consumer (DTC) models and brand-owned websites allow companies to
bypass intermediaries and build deeper relationships with consumers through
storytelling and engagement. Online sales have surged post-COVID-19, and this
trend shows no signs of slowing, especially with younger demographics
accustomed to digital shopping. Advanced analytics, AI personalization, and
virtual tea tasting experiences are adding further momentum to this channel.
Based
on region, The Middle East and Africa (MEA) region is the fastest-growing tea
market, driven by a combination of rising disposable incomes, rapid
urbanization, and expanding young populations. Countries such as Egypt, Iran,
Turkey, Kenya, and South Africa are both significant consumers and producers of
tea. Kenya is a leading global exporter of black tea, while South Africa is
renowned for rooibos, a popular herbal tea. In many parts of the Middle East,
tea drinking is a deeply embedded social and cultural tradition, often
involving black tea, mint tea, or strong brews served in ceremonial fashion.
Increasing demand for packaged and premium tea products is evident,
particularly in urban centers, where Western influences are shaping modern
consumption habits. As retail infrastructure improves and awareness of
functional and organic teas rises, MEA is witnessing a surge in demand for
specialty blends and wellness teas. The region’s dual role as a growing
consumer base and production hub positions it as a critical engine for global
market expansion in the coming years.
Major companies
operating in the global tea market are:
- Ito En, Ltd.
- Associated British Foods plc (Twinings)
- The Republic of Tea, Inc.
- Barry's Tea Limited
- Hain Celestial Group, Inc.
- Unilever plc
- Tata Consumer Products Limited
- Nestlé S.A.
- Harney & Sons Tea Corp.
- Bettys & Taylors of Harrogate Ltd
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“A
marked trend in the global tea market is the increasing crossover of regional
tea styles, flavors, and preparation methods, leading to fusion products that
reflect a globalization of consumer palates. While historically, tea
consumption was rooted in regional customs—e.g., matcha in Japan, masala chai
in India, mint tea in Morocco—modern consumers are increasingly open to
exploring international tea traditions and combining them in novel ways. This
has led to the rise of hybrid offerings such as chai lattes, matcha bubble tea,
yerba maté sodas, or kombucha blended with pu-erh tea. Consumers in the West
are adopting Eastern practices like gongfu-style brewing, while Eastern markets
are showing interest in Western innovations like cold brew or sparkling tea.”,
said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based management consulting firm.
Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Green
Tea, Black Tea, Oolong Tea, Herbal Tea, White Tea), By Form (Powder and Dried
Leaves), By Distribution Channel
(Supermarkets/Hypermarkets, Convenience Stores, Departmental Stores, Online,
and Others), By Region, & Competition, 2020-2030F”,
has evaluated the future growth potential of global 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 global tea market.
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