Out of Home Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Black Tea, Green Tea, Herbal Tea, Others), By End User (Restaurants, Hotels, Bars & Pubs, Others), By Sales Channel (Supermarket/Hypermarket, Online, Specialty Stores, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 22.16 Billion
CAGR (2026-2031)	9.64%
Fastest Growing Segment	Restaurants
Largest Market	Asia Pacific
Market Size (2031)	USD 38.49 Billion

Market Overview

The Global Out of Home Tea Market will grow from USD 22.16 Billion in 2025 to USD 38.49 Billion by 2031 at a 9.64% CAGR. The Global Out of Home Tea Market comprises prepared tea beverages sold and consumed in foodservice environments, including cafes, restaurants, hotels, and specialty tea lounges. The primary drivers supporting this market’s expansion are the increasing consumer prioritization of health and wellness, which elevates demand for functional and herbal infusions, and the continued proliferation of experiential beverage chains. These structural factors are distinct from temporary consumer fads, as they represent a fundamental shift toward premiumization and quality assurance in the hospitality sector.

However, a significant challenge impeding market expansion is the volatility of the global supply chain, exacerbated by climate change and its impact on crop yields and pricing. Foodservice operators face pressure to maintain consistent procurement costs amidst these fluctuations. According to the 'International Tea Committee', in '2024', global tea export tonnage was recorded at 1.94 million metric tonnes, highlighting the critical reliance of non-producing consumer markets on stable international trade flows to satisfy out-of-home demand.

Key Market Drivers

The rapid expansion of specialty tea shop and café chains is the primary force reshaping the global out-of-home tea market, driving accessibility and brand visibility to unprecedented levels. This growth is characterized by the aggressive scaling of franchise models, particularly within the bubble and fruit tea segments, which allows brands to penetrate diverse urban and tier-two markets quickly. These establishments are moving beyond traditional foodservice roles to become lifestyle hubs, heavily influencing consumer preferences through standardized yet innovative menu options. According to Sichuan Baicha Baidao Industrial Co., Ltd., March 2025, in the 'Annual Results Announcement for the Year Ended 31 December 2024', the company reported operating a network of 8,395 stores across China, illustrating the massive physical footprint achievable through this chained business model.

Simultaneously, rising consumer awareness of health and wellness benefits is fundamentally altering menu compositions and procurement strategies. Diners are increasingly rejecting high-sugar carbonated drinks in favor of functional, unsweetened, or plant-based tea beverages that offer perceived physiological benefits, such as improved digestion or stress reduction. This shift compels operators to prioritize high-quality, natural ingredients and transparent sourcing to retain health-conscious patrons. According to Ito En, Ltd., June 2025, in the 'Financial Results for the Fiscal Year Ended April 30, 2025', the company recorded net sales of 472.7 billion yen, a performance attributed significantly to the robust demand for their sugar-free and health-oriented beverage portfolio. To support this growing global consumption of premium and wellness-focused tea, stable raw material flow is essential. According to the Tea Board of India, in 2025, tea exports from the country reached 257.88 million kilograms for the fiscal year, ensuring a consistent supply for international foodservice markets.

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Key Market Challenges

The volatility of the global supply chain, significantly exacerbated by climate change and its detrimental impact on crop yields, constitutes a critical barrier to the market's trajectory. Foodservice operators, particularly those in the premium segment such as specialty lounges and high-end hotels, rely heavily on the consistent availability of specific high-quality tea grades to maintain menu standards and justify premium pricing. When adverse weather patterns disrupt harvest cycles, the resulting scarcity of these superior leaves forces businesses to contend with unpredictable procurement costs and potential stockouts. This uncertainty complicates long-term contract negotiations and inventory planning, directly undermining the operational stability required for expansion.

The severity of this supply constraint is evident in recent production data from major origin regions. According to the 'Tea Board of India', in '2024', national tea production fell by 108.88 million kilograms compared to the previous year, primarily due to extreme weather events affecting key growing districts. Such a significant deficit in a primary global source tightens international availability, inevitably driving up wholesale prices and compressing margins for out-of-home vendors. Consequently, the inability to secure a reliable volume of quality ingredients hampers the industry's ability to meet growing consumer demand for premium experiential beverages, thereby stalling overall market growth.

Key Market Trends

The Proliferation of Functional and Adaptogenic Wellness Teas is significantly reshaping menu architectures as consumers increasingly demand beverages that offer targeted physiological benefits beyond basic hydration. This trend is characterized by the aggressive integration of high-potency ingredients such as matcha, medicinal mushrooms, and adaptogens into standard service formats, moving these items from niche health food stores to mainstream cafes. The shift is quantifiable; according to The Grocer, September 2025, in the 'The next gen tea drinker: trends in hot beverages 2025' report, matcha products experienced a massive 91% surge in value sales during the first quarter of the year, underscoring the rapid commercial viability of functional tea variants.

The Emergence of Automated and AI-Enabled Tea Brewing Technology is revolutionizing back-of-house operations by standardizing quality and reducing reliance on skilled labor. Major chains are deploying smart brewing robotic arms and automated dispensing systems to ensure consistent flavor profiles across thousands of outlets, a critical capability for rapid franchising. This technological dependency is evident in the scaling strategies of leading brands; according to Nayuki Holdings Limited, March 2025, in the 'Annual Results Announcement for the Year Ended December 31, 2024', the group successfully expanded its network to 1,798 stores by leveraging the "sophistication of the Group's digitalization and automation capabilities on automatic tea-making equipment," allowing for precise quality control even within their newly launched franchise model.

Segmental Insights

The restaurants segment has emerged as the fastest growing category in the global out of home tea market, driven by a significant shift in consumer preference toward healthier hydration options. Diners are increasingly opting for premium herbal, green, and functional teas as alternatives to sugary carbonated beverages during meals. Consequently, food service operators are expanding their beverage menus to include artisanal tea blends that complement specific cuisines, thereby enhancing the overall dining experience. This strategic focus on beverage diversification allows full service and quick service restaurants to capture rising demand for functional drinks, securing their leading position in market expansion.

Regional Insights

Asia Pacific maintains a dominant position in the global out of home tea market, supported by deep-rooted cultural consumption habits and extensive tea production in China and India. The region benefits from rapid urbanization and increasing disposable incomes, which drive consumer spending at specialty tea chains and cafes. Furthermore, the evolving popularity of varied tea preparations, such as bubble tea, sustains commercial demand. Industry organizations like the Tea Board of India contribute to market stability by overseeing production quality, ensuring a consistent supply chain for the growing foodservice sector.

Recent Developments

• In October 2024, Malaysian bubble tea chain Tealive entered into a master franchise agreement with Eureka Restaurant & Café to launch its brand in the United Arab Emirates. The collaboration aimed to introduce the brand's lifestyle tea beverages to the Middle East, starting with a flagship store in Dubai scheduled for early 2025. The agreement outlined plans to open additional outlets across major cities in the UAE within the first year of operations. The company viewed this partnership as a strategic stepping stone for further expansion into the region, leveraging the local partner's expertise in the food and beverage landscape.
• In June 2024, Gong cha, a leading bubble tea brand, finalized a significant franchise agreement with SID Tea LLC to expand its footprint in Puerto Rico. This collaboration involved a development deal to open 30 new stores across the island, with the franchisee planning to invest over $1M in the initial phase. The partnership utilized a direct franchising model, allowing the operator to leverage its existing portfolio of quick-service restaurant brands to drive growth. This move was part of the company's broader strategy to accelerate its presence in the Americas and capitalize on the region's growing appetite for premium tea beverages.
• In May 2024, Starbucks Corporation introduced a significant innovation to its US menu with the launch of the Summer-Berry Refreshers beverages, which featured raspberry-flavored pearls. This new product line marked the coffee giant's first major foray into "texture innovation" reminiscent of the globally popular bubble tea trend. The beverages, including the Summer-Berry Lemonade and Summer Skies Drink, were developed to offer a sweet and summery flavor profile with a popping sensation similar to boba. The company aimed to attract younger consumers and capitalize on the rising popularity of tea-based drinks with chewable or popping toppings in the out-of-home market.
• In March 2024, Peet's Coffee expanded its offerings in the out-of-home tea segment by launching a new spring menu that featured the Honey Almond Matcha Latte. This beverage combined ceremonial grade matcha steamed with almond milk and infused with honey and almond-flavored syrups, available in both hot and iced formats. The launch was part of a seasonal update that also included a cold brew oat latte and a plant-based breakfast burrito, catering to the growing consumer demand for dairy-free and tea-based options. The company emphasized that this addition was designed to provide a fresh, floral flavor profile suitable for the changing season.

Key Market Players

• Tata Global Beverages Ltd.
• Nestle S.A
• Celestial Seasonings Inc.
• Unilever Plc
• Ito En Ltd
• Barry’s Tea
• Associated British Foods
• Dilmah Ceylon Tea Company
• The Republic of Tea
• Bettys and Taylors Group Limited

By Product Type	By End User	By Sales Channel	By Region
Black Tea Green Tea Herbal Tea Others	Restaurants Hotels Bars & Pubs Others	Supermarket/Hypermarket Online Specialty Stores Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Out of Home Tea Market, By Product Type:

• Black Tea
• Green Tea
• Herbal Tea
• Others

• Out of Home Tea Market, By End User:

• Restaurants
• Hotels
• Bars & Pubs
• Others

• Out of Home Tea Market, By Sales Channel:

• Supermarket/Hypermarket
• Online
• Specialty Stores
• Others

• Out of Home 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