Organic Tea Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Black, Green, White, Oolong, Others), By Form (Dried Leaf, Powder, Liquid), By Packaging (Cartons, Teabags, Cans, Others (Sachets, etc.), By Distribution Channel (Departmental Stores, Supermarkets/Hypermarkets, Online, Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 806.77 Million
CAGR (2026-2031)	12.35%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 1622.51 Million

Market Overview

The Global Organic Tea Market will grow from USD 806.77 Million in 2025 to USD 1622.51 Million by 2031 at a 12.35% CAGR. The Global Organic Tea Market comprises beverages derived from Camellia sinensis leaves cultivated without synthetic pesticides, herbicides, or fertilizers, strictly adhering to accredited standards for ecological farming and processing. The primary drivers fueling market expansion include a heightened consumer demand for clean label products free from chemical residues and a growing commitment to environmental stewardship that favors biodiversity and soil health. These fundamental factors distinguish the sector from temporary trends by establishing a loyal consumer base deeply invested in long term wellness and sustainable agricultural practices.

However, the market faces a significant challenge regarding the high operational costs associated with organic certification and labor intensive cultivation, which necessitates premium retail pricing that limits accessibility for price sensitive demographics. Despite these economic hurdles, the sector continues to demonstrate strong performance and resilience against broader inflationary pressures. According to the Organic Trade Association, in 2024, the organic tea category in the United States recorded a sales increase of 10.5 percent, highlighting the continued financial vitality of this segment.

Key Market Drivers

Rising Consumer Preference for Nutrient-Rich and Functional Beverages is a primary catalyst reshuffling the global organic tea landscape. As health consciousness permeates mainstream demographics, consumers are increasingly substituting high-sugar soft drinks with functional teas rich in antioxidants, such as organic green and herbal varieties known for immune-boosting properties. This shift is not merely aspirational but is translating into tangible purchase behaviors where shoppers prioritize wellness attributes over price, compelling retailers to expand their clean-label inventories. This trend is quantified by recent market performance; according to Soil Association Certification, February 2025, in the 'Organic Market Report 2025', organic food and drink unit sales in the United Kingdom grew by 4.7 percent in 2024, significantly outperforming non-organic categories and validating the strong market appetite for health-centric, chemical-free products.

The Surging Popularity of Sustainable and Ethically Sourced Ingredients further accelerates market growth by aligning brand values with environmental responsibility. Modern consumers are scrutinizing supply chains, favoring brands that guarantee fair wages to estate workers and adopt regenerative farming techniques that mitigate climate change impacts. This ethical consumption trend compels manufacturers to obtain rigorous accreditations to maintain market relevance and deepen brand loyalty among eco-conscious buyers. According to the Fairtrade Foundation, July 2024, in the 'Annual Report and Financial Statements', Fairtrade tea sales volumes in the UK increased by 5 percent during 2023, underscoring the resilience of ethically traded goods despite economic headwinds. To support this global trade momentum, according to the Tea Board of India, in 2025, total tea exports from India reached a ten-year high of 255 million kilograms in 2024, reflecting robust international demand that underpins the expanding supply chain for premium and organic varieties.

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Key Market Challenges

The high operational costs inherent to organic tea cultivation constitute a significant barrier to broader market adoption. Unlike conventional farming, organic methods require labor-intensive manual weeding and pest management to strictly adhere to ecological standards, which substantially increases overheads. Furthermore, the recurring expenses associated with obtaining and maintaining official organic certification add another layer of financial burden. These elevated input costs leave producers with little option but to set premium retail prices to preserve profit margins, effectively pricing out a substantial segment of price-sensitive consumers who prioritize affordability over clean-label attributes.

This price disparity severely restricts the market's demographic reach, confining consumption primarily to affluent buyers and preventing the sector from achieving mass-market volume. The economic pressure on pricing strategies is evident in recent industry data which reflects the broader trend of rising costs. According to the Tea Board of India, in the 2024-25 fiscal year, the export price per kilogram of tea increased by 12.65 percent, illustrating the inflationary pricing environment that manufacturers are forced to navigate. Such escalating costs make it increasingly difficult for organic tea brands to expand beyond their niche customer base and compete with lower-cost conventional alternatives in the mainstream retail sector.

Key Market Trends

The Expansion of Ready-to-Drink (RTD) Product Lines is reshaping the organic tea market as manufacturers prioritize convenience to capture on-the-go consumers. This trend is characterized by the rapid emergence of premium, low-sugar organic formulations designed to fill the retail shelf space left by the consolidation of legacy brands, effectively engaging younger demographics who seek high-quality hydration without the brewing time. Innovation in this sector is surging, with brands leveraging agile supply chains and glass packaging to differentiate their offerings in a competitive landscape dominated by synthetic alternatives. According to Inc. Magazine, August 2025, the organic brand Just Ice Tea generated approximately $24 million in revenue in 2024, illustrating the explosive trajectory of new entrants capitalizing on this shift toward convenient, clean-label bottled teas.

Mainstream Growth of Organic Matcha and Green Tea Powder represents a structural pivot from traditional leaf brewing toward versatile, powdered formats suitable for diverse culinary and beverage applications. This segment is being propelled by the widespread integration of matcha into coffee shop menus and functional foods, transforming it from a niche ceremonial product into a global lifestyle staple valued for its distinct flavor profile and sustained energy release. The intensifying demand for authentic, high-grade powder has triggered a substantial surge in export volumes from primary cultivation regions to meet international appetite. According to the Global Japanese Tea Association, July 2025, tea exports from the Kyushu region increased by 24 percent in 2024, a growth rate largely attributed to the booming global consumption of matcha products.

Segmental Insights

The Online segment is anticipated to register the fastest growth in the Global Organic Tea Market, driven by the increasing consumer preference for digital purchasing channels. E-commerce platforms offer superior convenience and allow shoppers to access a wider array of niche products that are often unavailable in physical retail stores. Furthermore, online listings provide extensive product transparency, enabling consumers to easily verify organic certifications from regulatory bodies such as the USDA or the European Commission. This accessibility to detailed information and direct-to-consumer delivery options significantly accelerates the adoption of online channels for organic tea procurement.

Regional Insights

Asia Pacific holds the leading position in the Global Organic Tea Market, primarily due to its extensive production capabilities in major tea-growing nations like China and India. This dominance is supported by a rich cultural heritage of tea consumption and a rapidly expanding demographic of health-conscious consumers. Furthermore, robust regulatory frameworks, such as India’s National Programme for Organic Production (NPOP), have successfully standardized organic cultivation, enhancing the credibility of regional exports. The convergence of high production volumes, increasing domestic demand for clean-label products, and stringent quality certifications underpins the region’s sustained market supremacy.

Recent Developments

• In June 2025, Rishi Tea & Botanicals introduced a new summer collection of organic teas, featuring three distinct blends: Garden Party, Tangerine Hibiscus, and Ritual Green. This launch was executed in partnership with Whole Foods Market, which secured exclusive retail rights for the Garden Party blend for a limited period. The company described the Ritual Green variety as a single-origin tea harvested from old-growth forest gardens in Thailand, emphasizing its commitment to premium, ethically sourced ingredients. These new products were marketed as versatile options suitable for both hot and cold brewing, targeting the evolving taste preferences of health-conscious tea drinkers.
• In January 2025, TreeHouse Foods completed the acquisition of Harris Tea, a leading North American manufacturer of private-label and organic teas, for a purchase price of $205 million. This transaction included the transfer of manufacturing facilities in New Jersey and Georgia, significantly bolstering the acquirer’s vertical integration and production capacity. The Chairman of TreeHouse Foods noted that the deal positioned the company as a leader in the private-label tea category, offering unique blending and sourcing capabilities. The acquisition was expected to be accretive to the company's profit margins and facilitate expansion into higher-growth segments of the beverage market.
• In March 2024, Eat the Change expanded its Just Ice Tea portfolio by launching a new line of ready-to-drink organic teas in recyclable aluminum cans. Unveiled at the Natural Products Expo West, the new format was introduced to cater to the convenience needs of on-the-go consumers. The product line featured three chef-crafted varieties—Lemon Tea, Raspberry Tea, and Dragon Green Tea—sourced from organic tea gardens in Mozambique. The company highlighted that this launch was a direct response to the growing demand for sustainable and fair-trade certified beverages in the natural food channel, aiming to build upon the brand's rapid market growth.
• In January 2024, Tata Consumer Products announced the acquisition of Organic India, a prominent brand specializing in organic teas and herbal supplements, in a transaction valued at approximately ₹1,900 crore. This strategic move was designed to expand the acquirer's presence in the health and wellness sector by integrating a portfolio of "better-for-you" products backed by end-to-end organic certifications. The acquisition provided Tata Consumer Products with access to a robust supply chain involving over 12,000 farmers and a strong distribution network in international markets. The company stated that this collaboration would unlock significant synergies in logistics and drive portfolio premiumization.

Key Market Players

• Tata Consumer Products Limited
• Unilever Plc
• The Hain Celestial Group, Inc.
• SHANGRI-LA TEA COMPANY INC.
• Organic India
• Associated British Foods plc
• Stash Tea Company
• Keurig Green Mountain, Inc.
• Bigelow Tea
• SUNTORY BEVERAGE & FOOD LIMITED

By Source	By Form	By Packaging	By Distribution Channel	By Region
Black Green White Oolong Others	Dried Leaf Powder Liquid	Cartons Teabags Cans Others (Sachets, etc.)	Departmental Stores Supermarkets/Hypermarkets Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Organic Tea Market, By Source:

• Black
• Green
• White
• Oolong
• Others

• Organic Tea Market, By Form:

• Dried Leaf
• Powder
• Liquid

• Organic Tea Market, By Packaging:

• Cartons
• Teabags
• Cans
• Others (Sachets, etc.)

• Organic Tea Market, By Distribution Channel:

• Departmental Stores
• Supermarkets/Hypermarkets
• Online
• Others

• Organic Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE