Pandan Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Loose Leaves, Powder, Tea Bags), By Distribution Channel (Online, Offline), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 348.80 Million
CAGR (2026-2031)	7.75%
Fastest Growing Segment	Loose Leaves
Largest Market	North America
Market Size (2031)	USD 545.86 Million

Market Overview

The Global Pandan Tea Market will grow from USD 348.80 Million in 2025 to USD 545.86 Million by 2031 at a 7.75% CAGR. The Global Pandan Tea Market is defined by the trade of beverages derived from the leaves of the Pandanus amaryllifolius plant, which are brewed as a pure herbal infusion or blended with traditional tea bases to impart a distinct sweet, floral, and nutty flavor often likened to Asian vanilla. The primary drivers supporting market growth include the rising global consumer inclination toward caffeine-free, functional wellness beverages rich in natural antioxidants and the expanding influence of Southeast Asian culinary tourism which has popularized exotic regional flavors in Western café culture. These fundamental drivers are distinct from temporary trends, as they represent a structural shift in flavor preferences and health-conscious consumption habits that underpin the product's long-term commercial viability.

One significant challenge impeding rapid market expansion is the logistical difficulty of preserving the volatile aromatic compounds of pandan leaves during processing and export, which can lead to inconsistent product quality in non-native markets. The stability of the supply chain in key production regions remains critical for overcoming this hurdle. According to the Vietnam Tea Association, in 2024, the country's total tea cultivation area reached 128,000 hectares, with 230,000 tons of dried tea produced. This robust agricultural infrastructure in Southeast Asia is essential for supporting the growing international demand for specialty tea blends, including those incorporating pandan, yet ensuring consistent aroma retention across this volume remains a technical hurdle for exporters.

Key Market Drivers

Rising consumer preference for functional herbal beverages serves as a primary driver, as health-conscious buyers increasingly seek caffeine-free alternatives with therapeutic benefits. Pandan leaves, utilized for their natural cooling properties and antioxidant profile, align perfectly with this demand for clean-label wellness infusions. This shift is visible in the performance of major players focusing on health-centric portfolios; according to Tata Consumer Products, in the 'Integrated Annual Report 2023-24', revenue from their growth businesses, including functional innovations, expanded by 40% in fiscal year 2024. This surge helps offset broader market volatility, supported by strong regional output; according to the Trade Policy and Strategy Office, January 2025, Thailand's exports of agro-industrial products grew by 6.0 percent in 2024, ensuring a steady supply of raw botanical materials for global markets.

Simultaneously, the global expansion of Southeast Asian culinary trends has transitioned pandan from a niche ethnic ingredient to a recognized flavor in Western markets. Often termed "Asian vanilla," pandan is gaining traction through the proliferation of specialty retail channels and bubble tea franchises that feature exotic regional ingredients. This infrastructure is critical for introducing pandan-based beverages to new demographics. For instance, according to QSR Media Asia, April 2025, the tea chain Gong cha reported record system-wide sales exceeding USD 600 million for the fiscal year 2024. Such expansion in specialty outlets provides the necessary platform to familiarize global consumers with pandan's distinct floral and nutty characteristics, securing its place in the premium tea landscape.

Download Free Sample Report

Key Market Challenges

The logistical difficulty of preserving the volatile aromatic compounds of pandan leaves during processing and export acts as a primary barrier to the Global Pandan Tea Market's expansion into premium international segments. Pandan’s commercial value relies heavily on its unique fragrance, often described as “Asian vanilla,” which is highly unstable and prone to degradation during the extended transit times required for global distribution. When this aroma diminishes prior to reaching the consumer, the product loses its defining sensory appeal, resulting in inconsistent quality that fails to meet the stringent standards of Western café culture and high-end retailers.

This volatility creates a disconnect between the robust production capabilities of Southeast Asia and the quality expectations of global importers. For instance, according to the Vietnam Tea Association, in the first 11 months of 2024, the country's tea exports reached nearly 133,000 tons. While this figure demonstrates substantial export capacity, the technical complexity of maintaining aroma retention across such vast volumes restricts the scalability of high-value pandan blends. Consequently, the inability to guarantee a uniform sensory experience limits the market’s ability to transition from a niche ethnic product to a mainstream staple, directly hampering broader commercial growth.

Key Market Trends

The emergence of Ready-to-Drink (RTD) and sparkling pandan tea variants is rapidly transforming the market by addressing the demand for convenient, effervescent wellness beverages that offer unique regional flavors. Manufacturers are increasingly carbonating pandan infusions to create refreshing, non-alcoholic alternatives to traditional sodas, leveraging the ingredient’s natural sweetness to formulate clean-label products. This shift aligns with a broader consumer movement towards healthier hydration options, particularly in the beverage sector where low-sugar formulations are outperforming sugary competitors. According to China Daily, May 2025, in the article 'Healthy drinks make inroads into country's beverage market', sales of low-sugar tea drinks grew by 41 percent year-on-year in 2024, signaling a robust appetite for the functional tea categories that pandan is poised to capture.

Simultaneously, the adoption of pandan tea in premium mixology and craft mocktail applications is elevating the ingredient from a niche botanical to a staple in sophisticated beverage programs. Bartenders and mixologists are utilizing pandan’s complex, grassy, and vanilla-like profile—often dubbed "Asian Vanilla"—to add depth to complex cocktails and nostalgia-driven non-alcoholic serves without relying on artificial syrups. This application capitalizes on the rising visual and flavor-focused trends in social media culture, where distinct aesthetics drive consumption. According to Pinterest, December 2024, in the 'Pinterest Predicts 2025' report, search interest for 'cream soda aesthetic' increased by 105 percent, a trend that directly benefits pandan-based beverages which naturally mimic these creamy, aromatic notes in high-end, photogenic serves.

Segmental Insights

The loose leaves segment currently demonstrates the fastest growth within the global pandan tea market, driven by shifting consumer preferences toward unaltered flavor profiles and superior aroma retention. Unlike processed alternatives, whole leaves preserve essential oils more effectively, resulting in a more potent sensory experience that appeals to informed buyers. Additionally, the rising demand for environmentally conscious products supports this trend, as consumers increasingly seek to avoid microplastics often found in synthetic tea bags. This preference for purity and sustainability continues to propel the rapid adoption of loose leaf pandan tea across key regional markets.

Regional Insights

North America commands a leading position in the Global Pandan Tea Market, primarily driven by the region's heightened demand for premium, functional herbal beverages. Industry analysis indicates that consumers in the United States and Canada increasingly prioritize natural ingredients with perceived wellness properties, such as stress relief and antioxidant support. This market dominance is further supported by high disposable incomes, which enable the widespread consumption of value-added tea blends and ready-to-drink formats. Additionally, the successful integration of Southeast Asian culinary trends into mainstream retail channels has solidified North America’s status as the top revenue-generating region.

Recent Developments

• In July 2025, the boutique tea brand ARTEASG unveiled its exclusive "Pandan Series" at its outlet in Raffles City, Singapore. This limited-time menu was developed to celebrate local heritage flavors and included refreshing beverages such as the "Pandan Lemon Long Cup," "Pandan Mango Coconut," and "Pandan Coconut Water." By infusing the aromatic pandan flavor into popular fruit and tea bases, the company aimed to cater to the preferences of Singaporean consumers and tourists seeking authentic Southeast Asian taste experiences within the premium tea market.
• In February 2025, Gong Cha, a major international bubble tea brand, launched the "Sweet Corn Pandan Beverage Series" in Vietnam. The new collection featured three distinct drinks: "Pandan Sweet Corn Green Milk Tea," which blends green tea with sweet corn milk and pandan jelly; "Pandan Corn Cream Green Tea"; and "Sweet Corn Matcha Latte." This product lineup utilized the refreshing fragrance of pandan leaves and the familiarity of sweet corn to create innovative flavor combinations, aiming to attract younger consumers and capitalize on the growing demand for unique, dessert-inspired tea beverages.
• In August 2024, the Japanese-based Vietnamese food and beverage brand Betoya launched its "Pandan Leaf Tea" in a convenient tea bag format. Previously available only as a complimentary self-service drink at their dining outlets, the company commercialized the product in response to positive customer feedback regarding its distinctive sweet aroma and flavor profile. The tea bags were made available for purchase at Betoya stores, allowing consumers to enjoy the "vanilla of the East" at home or in the office, thereby expanding the company's retail product portfolio in the herbal tea segment.
• In July 2024, the Chinese tea beverage chain HEYTEA introduced the "Cloud Coconut Blue" drink to mark the opening of its new outlet in Singapore. This limited-edition beverage was designed to offer a visually striking experience with dazzling blue and green hues, combining the rich, tropical flavor of coconut with the aromatic essence of pandan. The launch highlighted the brand's strategy of incorporating regional flavors like pandan into its modern tea-based menu to appeal to local palates in Southeast Asia, reinforcing its position in the competitive global tea market.

Key Market Players

• Tsaa Laya
• ETTE TEA Pte Ltd
• DIASPORA TEA & HERB COMPANY, LLC
• Gryphon Tea Company
• Future Generation Co. Ltd.
• Sinouk Coffee Co. LTD.
• Zhejiang Chunli Tea Co., Ltd.
• WILD & TEA
• Thienthanhtea Ltd.
• My Blue Tea

By Product Type	By Distribution Channel	By Region
Loose Leaves Powder Tea Bags	Online Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Pandan Tea Market, By Product Type:

• Loose Leaves
• Powder
• Tea Bags

• Pandan Tea Market, By Distribution Channel:

• Online
• Offline

• Pandan 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