Instant Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Black Tea, Green Tea, Herbal Tea, Fruit Tea, Others), By Form (Powder, Granules, Paste, Others), By Application (Commercial, Residential), By Region & Competition, 2020-2030F

Market Overview

The Global Instant Tea Market will grow from USD 2.58 Billion in 2024 to USD 3.45 Billion by 2030 at a 4.98% CAGR. Instant tea is a dehydrated tea extract product offering convenient and rapid preparation by dissolving in hot or cold water. The global instant tea market's growth is primarily driven by increasing consumer demand for convenience, extended product shelf life, and ease of storage. Furthermore, rapid urbanization and evolving consumer lifestyles, which prioritize quick and accessible beverage options, significantly contribute to this expansion.

However, a significant challenge impeding market expansion is the persistent consumer perception regarding the flavor profile and quality consistency compared to traditionally brewed tea. According to the International Tea Committee (ITC), global tea production reached 6.604 million metric tonnes in 2023, encompassing various tea types including instant tea.

Key Market Drivers

The increasing global demand for convenient beverage solutions significantly influences the instant tea market. Modern consumer lifestyles, marked by busy schedules and a need for quick preparation, actively drive its appeal. These offerings eliminate the traditional brewing process, providing a rapid and effortless way to enjoy tea. This shift towards convenience is evident in broader consumption patterns; according to the International Food Information Council (IFIC), in their 2024 Food & Health Survey, 56% of Americans replaced traditional meals with snacks or by eating smaller meals, underscoring a pervasive preference for easy, time-saving options. Instant tea directly addresses this, enabling consumers to prepare beverages efficiently at home, in the office, or while traveling, thereby sustaining market growth.

Product innovation and flavor diversification represent another critical driver, allowing instant tea to capture broader consumer interest and new demographics. Companies are continuously expanding their instant tea portfolios beyond traditional black tea, introducing diverse flavors, functional ingredients, and new formats. For instance, according to QSR Media Asia, in June 2025, Malaysian bubble tea brand Tealive launched its first 3-in-1 instant drinks sachet beverage range, including milk tea, coffee, and chocolate variants, showcasing a strategic move towards diversifying offerings. Such developments counter perceptions of instant tea as a less premium alternative. The overall dynamism of this sector is reflected in its scale; according to Future Generation Co. Ltd., in 2023, the global consumption value of instant tea was approximately USD 1.44 billion, highlighting its established presence and potential for further expansion.

Download Free Sample Report

Key Market Challenges

A significant challenge impeding the expansion of the global instant tea market is the persistent consumer perception regarding its flavor profile and quality consistency when compared to traditionally brewed tea. Consumers frequently prioritize the authentic taste and aroma associated with a freshly brewed cup, often perceiving instant alternatives as a compromise in sensory experience. This qualitative difference leads many to favor conventional tea formats, directly limiting the growth potential of the instant tea sector.

Despite the inherent convenience offered by instant tea, its market penetration remains constrained by these established preferences. For instance, according to the United States Department of Agriculture (USDA), instant varieties captured approximately 18% of total tea consumption in the U.S. in 2024. This statistic highlights that a substantial majority of tea consumers continue to opt for non-instant forms, directly impacting the sales volume and overall market share achievable by instant tea products. The challenge underscores that while convenience is a key driver, it does not fully overcome deeply ingrained consumer expectations for superior taste and quality in tea.

Key Market Trends

Functional and health-enhanced instant tea formulations represent a significant growth trajectory, driven by consumers actively seeking beverages that provide benefits beyond basic hydration. This trend reflects a broader consumer awareness regarding the link between diet and health, extending to instant tea products fortified with ingredients known for specific wellness properties such as immunity support, stress reduction, or digestive health. According to the Tea Association of the U.S.A. Inc.'s 2024 Tea Fact Sheet, consumers frequently consumed tea to alleviate stress, promote relaxation, and enhance their overall well-being. This focus encourages manufacturers to innovate with functional ingredients, thereby catering to a discerning consumer base. For instance, Lipton, in November 2025, expanded its offerings to include herbal teas and concentrates, specifically targeting functional benefits such as digestion with mint and relaxation with chamomile.

The increasing demand for organic and sustainably sourced instant tea is another pivotal trend, stemming from a heightened consumer consciousness towards environmental impact and ethical production practices. Consumers are increasingly willing to pay a premium for products that assure transparency, ecological responsibility, and fair labor throughout the supply chain. The Ethical Tea Partnership (ETP), a global membership organization, in its 2024 Annual Report, highlighted reaching almost 360,000 individuals through its initiatives aimed at fostering a socially just and environmentally sustainable tea sector. This demonstrates the collective industry commitment towards more responsible sourcing. Furthermore, in October 2025, the Ethical Tea Partnership welcomed Finlay Beverages as a new member, underscoring the growing industry-wide adoption of sustainable practices to drive systemic change within the global tea sector.

Segmental Insights

The "Commercial" segment is rapidly expanding within the Global Instant Tea Market, largely driven by the operational advantages it offers to businesses. Commercial establishments, including cafes, restaurants, and offices, increasingly adopt instant tea due to its inherent convenience and quick preparation time, which are critical for efficient service delivery. This segment benefits significantly from the consistent product quality and taste that instant tea premixes provide across numerous servings, crucial for maintaining customer satisfaction. Furthermore, the availability of diverse flavors caters to varied consumer preferences, while the ability to manage bulk consumption effectively supports high-volume operations within these commercial environments. The ongoing expansion of the foodservice industry and corporate beverage programs further accelerates this growth.

Regional Insights

Asia Pacific leads the global instant tea market due to a combination of deeply ingrained tea-drinking traditions and a large consumer base across countries like China and India. The region's increasing disposable incomes, coupled with rapid urbanization and fast-paced lifestyles, significantly drive demand for convenient, ready-to-prepare beverage solutions. Furthermore, growing consumer awareness regarding the health benefits associated with tea, such as its antioxidant properties, encourages the adoption of instant tea variants. The extensive availability of diverse product offerings and expanding retail channels, including robust e-commerce platforms, further solidify Asia Pacific's dominant position.

Recent Developments

• In October 2025, VeryVery Good Tea officially launched its first product, Energy Tea, marking a significant innovation in the instant tea market. The science-based beverage company introduced tea crystals that dissolve instantly in water, offering a convenient alternative to traditional steeping methods. This initial offering, a Peach-flavored Energy Tea, combines black tea, green tea extract, and L-theanine for sustained energy without the typical jitters. The product can be enjoyed both hot and cold, aligning with evolving consumer preferences for modern, functional tea solutions that are easy to prepare and consume on the go.

• In June 2025, Malaysian bubble tea brand Tealive expanded into the fast-moving consumer goods (FMCG) market with the launch of its first 3-in-1 instant drinks sachet beverage range. This strategic move aims to make Tealive's popular flavors accessible for at-home consumption and convenience. The new product line includes various milk tea, coffee, and chocolate variants. Priced at $3.05 (RM12.90) per box containing five to six sachets, the range was initially made available exclusively at AEON and Tealive locations across Malaysia, alongside e-commerce platforms, before a wider retail expansion in July.

• In March 2025, Kroger introduced a new product to its "Our Brands" lineup: Simple Truth Organic® Instant Mushroom Tea. This innovative instant tea, available in Black and Chai blends, leverages the natural benefits of mushrooms, recognized for their adaptogenic properties and potential to support overall wellness. The launch caters to health-conscious consumers seeking novel beverage options with functional benefits in a convenient, instant format. This introduction signifies Kroger's commitment to product innovation, expanding its range to meet diverse customer demands within the instant tea segment.

• In April 2024, MADRINAS announced a new collaboration, launching a limited-edition "GODZILLA X KONG: THE NEW EMPIRE Boba Tea Collection." This collection features two instant boba milk tea flavors, "Kong's Cookie Crumble Milk Tea" and "Godzilla's Honeydew Milk Tea." The instant boba milk tea powders are designed to be mixed with ice-cold water, offering a quick and exciting boba tea experience. This partnership represents a unique cross-promotional initiative, introducing themed instant tea products to fans and expanding the reach of instant beverage options in the market.

Key Market Players

• Nestle S.A.
• Koninklijke DSM N.V.
• Northern Tea Merchants Ltd.
• Tata Consumer Products GB Limited
• Kerry Group plc
• Associated British Foods plc
• The Coca‑Cola Company
• Hankook Tea Company
• AriZona Beverages USA, LLC
• The Metropolitan Tea Company Ltd.

Report Scope:

In this report, the Global Instant Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Instant Tea Market, By Type:

o   Black Tea

o   Green Tea

o   Herbal Tea

o   Fruit Tea

o   Others

• Instant Tea Market, By Form:

o   Powder

o   Granules

o   Paste

o   Others

• Instant Tea Market, By Application:

o   Commercial

o   Residential

• Instant Tea Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Instant Tea Market.

Available Customizations:

Global Instant Tea Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Global Instant Tea Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]