India Green Tea Market Assessment, By Type, By Form, By Flavour, By Distribution Channel, By Region, Opportunities and Forecast, FY2017-FY2031F

India Green Tea Market size was valued at USD 551.2 million in FY2023, which is expected to reach USD 1475.74 million in FY2031 growing at a CAGR of 13.1% for the forecast period between FY2024 and FY2031. The India green tea market has experienced remarkable growth in recent years, driven by a confluence of factors that reflect evolving consumer preferences and lifestyle changes. Rising health consciousness and a greater emphasis on wellness have propelled green tea to the forefront of beverage choices. The population's increased disposable income, particularly among the younger demographic, has enabled them to invest in healthier alternatives, contributing to the expansion of the market.

This growth is also underscored by changing lifestyles in urban areas, where convenience and healthier options are increasingly sought after. Among the prevailing trends, the fusion of traditional practices with modern preferences is evident in the diverse range of green tea offerings available in the market. Flavored and functional blends, catering to specific health benefits or taste preferences, have gained traction. Furthermore, the emergence of Gen Z as a consumer group has further transformed the market landscape. Gen Z's affinity for healthier choices and its embrace of digital platforms for information and purchasing have prompted companies to tailor their marketing strategies and product offerings accordingly.

As the India green tea market evolves, new developments continue to shape its trajectory. Industry players like Tata Consumer are strengthening green tea portfolios to cater to the growing demand. Innovations in production techniques, flavor profiles, and packaging enhance the overall consumer experience. For instance, in 2022, Tata Consumer Products, an FMCG entity, bolstered its wellness lineup by introducing a novel Tulsi-infused green tea variant under the Tetley brand. This unveiling aligns seamlessly with the company's strategic objective of expanding its presence within the green tea sector.

Growing Popularity of Green Tea as a Refreshing Beverage

The growing popularity of green tea as a refreshing and invigorating beverage in India has surged in recent years. Revered for its numerous health benefits, green tea has transitioned from a traditional drink to a widely embraced lifestyle choice. Its unique flavor profile, combined with an array of potential health advantages, including antioxidants and metabolism-boosting properties, has captivated consumers seeking taste and wellness. As health consciousness gains momentum and individuals seek alternatives to sugary or heavily caffeinated beverages, green tea has emerged as a favored option. The shift toward a healthier lifestyle and the cultural appreciation for tea have solidified green tea's status as a rejuvenating and revitalizing choice for diverse consumers nationwide.

For instance, Chai Point presents its Classic Green Tea, a timeless delight combining tradition and modern wellness. Handpicked leaves from lush tea gardens are expertly curated to deliver a soothing infusion. This classic blend offers a refreshing taste and the natural goodness of green tea, providing a harmonious balance to your day.

The Growing Popularity of Online Channels

The rising popularity of online channels has significantly reshaped the accessibility and reach of India's green tea market. Consumers are increasingly turning to online platforms to explore a diverse range of green tea options, comparing prices, reviews, and product details from the comfort of their homes. The convenience of online shopping aligns well with the busy urban lifestyle, enabling people to discover and purchase their preferred green tea variants easily. This trend particularly appeals to tech-savvy millennials and Gen Z, who value convenience and are inclined towards health-conscious choices. As e-commerce continues to expand and offer personalized recommendations, online channels are becoming pivotal in driving the growth of the Indian green tea market, fostering a dynamic and customer-centric shopping experience.

Wellness and Beauty Trends

Green tea has seamlessly integrated into India's wellness and beauty trends, emerging as a staple for health-conscious consumers. Its potent antioxidants and potential benefits, such as aiding metabolism and promoting skin health, align well with the increasing focus on holistic well-being. As beauty trends emphasize the correlation between inner vitality and external radiance, green tea's inclusion in skin care products has surged. Brands incorporate green tea extracts into formulations, capitalizing on their reputed detoxifying and rejuvenating qualities. Additionally, the surge in demand for natural and sustainable beauty solutions has further propelled green tea's popularity, making it a sought-after ingredient in cosmetics and skincare routines nationwide.

For instance, in 2023, mCaffeine achieved a significant launch milestone, introducing unprecedented products to the market in the previous year. The brand continues its momentum into the new year by presenting a resolution for "healthy and glowing skin." Expanding its Green Tea line, mCaffeine introduces an array of active-infused serums, each designed to bestow the skin with enduring radiance and wellness.

Growing Cafe Culture

India's vibrant cafe culture has ushered in a new era for green tea, expanding its presence beyond traditional consumption. As cafes gain popularity as social hubs and creative spaces, green tea has found its place on menus alongside coffee and other beverages. This cultural shift drives a growing appreciation for healthier alternatives and diverse taste experiences. Green tea's subtle flavors and potential health benefits align well with the cafe ethos, offering patrons a refreshing and mindful option. Whether served hot or iced, plain or flavored, green tea's presence in cafes has diversified beverage options and fostered a broader acceptance of this age-old brew among a more comprehensive range of consumers. The country's major specialized tea cafe chains include Chaayos, Chai Lelo, Chai Point, and many more.

Key Player Landscape and Outlook

The landscape of the India green tea market is characterized by a diverse array of key players, both domestic and international, competing to capture the burgeoning demand for healthier beverage options. These players continuously innovate their product offerings by introducing various flavors, blends, and wellness-oriented teas to cater to evolving consumer preferences. With a strong emphasis on health and wellness, along with the rise of e-commerce and digital marketing, key players are expected to focus on effective branding, product differentiation, and strategic partnerships to maintain their market share and tap into the growing consumer base, making the outlook for the India green tea market promising and competitive.

For instance, in February of 2023, Laval Green Tea made a groundbreaking entry into the market by launching India's first-ever effervescent green tea tablet. This innovative tablet offers unparalleled convenience which can be utilized anytime and anywhere. The simple process involves adding the tablet to a glass of water, causing it to effervesce and dissolve effortlessly.