Global Tea Market 2025-2035

Description

List of Tables

Tea Market Size, Share & Trends Analysis Report by Tea Type (Black Tea, Green Tea, Oolong Tea, and Others), by Packaging (Plastic Containers, Loose Tea, Paperboards, Aluminum Tins, and Tea Bags), and by Distribution Channel (Hypermarkets & Supermarkets, Convenience Stores, Specialty Stores, and Online), Forecast Period (2025-2035)

Industry Overview

Tea market was valued at $16.8 billion in 2024 and is projected to reach $27.7 billion by 2035, growing at a CAGR of 4.7% during the forecast period (2025-2035). The demand for tea increased due to factors such as growing health consciousness, the cultural significance of tea drinking in certain markets, and innovation, all of which contribute to the growth of the tea market. Tea increases antioxidants, diminishes stress, and can assist in weight management, all appealing benefits that align with global trends and the movement towards wellness. Moreover, Urbanization, increasing disposable income, and premiumization are further drivers of tea demand.

According to the Food and Agriculture Organization of the United Nations (FAO), tea production grew from around 4.3 million tons (Mt) in 2008 to 6.3 Mt in 2020, from cultivating 5 million hectares. Tea production has remained more or less steady over the last decade: its CAGR of 3.32% from 2008 to 2020 dropped slightly to 2.31% from 2014 to 2020. A large portion of the tea produced is exported, providing an important source of foreign exchange revenue for exporting countries (Foreign Agricultural Service, 2021). Since 2016, Kenya, China, and India have consistently been the largest producing countries and exporters, exporting approximately 557 Mt, 369 Mt, and 282 Mt, respectively, in 2021, while the European Union, the United States, and Japan have consistently been the biggest importers, importing around 225 Mt, 115 Mt, and 108 Mt in 2021, respectively (United Nations, 2022).

Market Dynamics

Increasing Health and Wellness Revolution

Tea has proven to be a facilitator for de-stressing and generating a feeling of centeredness, especially for Gen Zs and Millennials. Not only did they consume more tea, but subsequent research following COVID showed that approximately 70% would continue this higher consumption by drinking tea at a higher rate. Monitoring demographic behaviors serves as a valuable marketing strategy, providing insights for product development, brand messaging, and the optimization of communication channels alongside marketing campaigns. According to Taste Wise's 2023 trend report, consumers are increasingly prioritizing specific health and wellness benefits from their food and beverages, even above sustainability. While health and wellness, along with international flavors, have been popular trends in the food and beverage industry for years, this report indicates that consumer preferences are evolving, with a focus on more specific niches that capture their interest.

Increasing Partnerships, Collaborations, and Social Media Marketing

Social media has become a necessary part of most people's lives. These platforms enable companies to create a relationship with the customer and thus increase product sales, brand awareness, and customer engagement. Expanding brand partnerships and relationships with social media influencers to further promote market growth and increase brand awareness. Influencers are now encouraged to share a broader range of fun events that highlight the growing market for showcasing products, their unique features, and more. Influencers post these events on their social media outlets. Therefore, social media marketing, partnerships, and collaborations will enhance the continued growth of the market.

Market Segmentation

Based on the tea type, the market is segmented into black tea, green tea, oolong tea, and others.
Based on the packaging, the market is segmented into plastic containers, loose tea, paperboards, aluminum tins, and tea bags.
Based on the distribution channel, the market is segmented into hypermarkets & supermarkets, convenience stores, specialty stores, and online.

Impact of US Tariff Adjustments on Chinese tea

The Trump administration's trade policy included a 25% tariff on about $300 billion in Chinese goods. The agricultural tariff was raised to 30%. Tea, an agricultural product, saw its average tariff climb from 5% to 30%. Premium teas, including Pu'er and oolong tea, faced additional duties of up to 35%. The new tariff was set to be retroactive, meaning it would apply to orders signed from December 31, 2024, that had not yet been cleared by US Customs for this importation. This meant that Chinese exporters could now be losing an additional $1.2 per kilogram in tariffs, creating inventory issues and cash flow problems in some tea companies.

According to China Customs, exports from China of tea to the US from January to April 2025 totaled 12,000 metric tons, a decrease of 12.3% year-on-year. The value of exports decreased 18.6% to $68 million. The decline was even more pronounced in green tea (-15.8%) compared to black tea, which only declined by -9.4% due to increased production domestically within the US.

India and Sri Lanka took advantage of the tariff-induced gap, increasing U.S. tea exports by 8% and 6%, respectively. Within the U.S., tea cultivation began to expand-new tea plantations in Texas and California increased low- to mid-tier tea bag volume by 23%. Retail prices of Chinese tea in the U.S. increased by 25-30%, with premium (like Mingqian Longjing, Jin Junmei) (jie's and oolong) loose leaf prices increasing by 40%. A survey conducted by the Tea Association of the USA concluded that 34% of U.S. tea importers either reduced or ceased their purchases of Chinese tea.

Chinese firms began moving into markets such as direct-to-consumer e-commerce (Amazon, TikTok Shop). For instance, Zhejiang Tea Group reported a 45% increase in cross-border e-commerce sales for its products. The share of small-pack products (less than 50g) increased to 68%, thus allowing for higher orders to reduce per-unit costs of tariffs.

Future Outlook and Policy Recommendations

The U.S. Tea Wholesalers Association states that Chinese tea exports will fall 5-8% a year until the end of 2025, although premium styles may recover due to incredible quality. It is estimated that China will again represent 28% of the premium tea market in the United States by 2026, down from 35% in 2024. The Regional Comprehensive Economic Partnership (RCEP) member countries could reduce tariff barriers implemented by origin accumulation regulations through processing sites in Malaysia and Indonesia, for instance, companies in Fujian are trying to develop 500 tons/year Pu'er fermenting sites in Malaysia.

Key Facts

According to the Tea Association of the USA, the US tea market reached nearly $14 billion in 2023, up about $1 billion since 2021.
9 million out of the 13 million people employed in the global tea sector are smallholder farmers in developing countries; they produced 60% of the world's tea in 2022.
Global tea production has surpassed $17 billion annually, with the tea trade valued at $9.5 billion, representing a significant source of export earnings for low-income and emerging economies.
China has the largest tea sector in the world, with a market valued at $10 billion (Bolton, 2022).

Regional Outlook

The global tea market is further divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America is Expected to Significantly Contribute to the Growth of the Tea Market

There is growth in North American markets driven by the adoption of specialty tea, increased health consciousness, and premiumization trends. The market is willing to pay premium prices for organic/specialty/ethically sourced tea products. E-commerce adoption in developed markets is accelerating access to a wide variety of tea and specialty/artisanal brands. For Instance, in the U.S., tea is the most widely consumed beverage in the world next to water, and can be found in almost 80% of all U.S. households. It is the only beverage commonly served hot or iced, anytime, anywhere, for any occasion. In 2021, Americans consumed almost 85 billion servings of tea, or more than 3.9 billion gallons. About 84% of all tea consumed was black tea, 15% was green tea, and the small remaining amount was oolong, white, and dark tea.

Asia-Pacific Holds the Largest Market Share in Tea Production

The Asia-Pacific region holds the largest market share for tea due to strong production and high domestic consumption in countries like China and India, which both produce and consume significant quantities. Growth in this region is further supported by increased exports and employment opportunities in rural areas. The region consumes millions of pounds of tea each day, reflecting a deeply cultivated cultural integration and established consumption patterns. China's market leadership is based on high-level production, historical tea roles, and a volume of native varieties.

Market Players Outlook

The major companies operating in the global tea market include Apeejay Surrendra Group (Typhoo), Associated British Foods PLC (R. Twining and Company Ltd.), Barry's Tea, Tata Consumer Products Ltd., and Unilever (Hindustan Unilever Ltd.), among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

In April 2025, the Republic of Tea announced the debut of its new Regenerative Organic Certified Tea Collection, certified by the Regenerative Organic Alliance. This accreditation ensures that the teas are grown using farming practices that regenerate soil, support biodiversity and empower farmers, and improve equity and animal welfare. The three new teas in this collection include Organic tulsi, organic Assam, and organic Assam black iced tea.
In January 2025, Tree House Foods, Inc., announced that it had completed its acquisition of Harris Tea for approximately $205 million. Harris Tea's capabilities in tea sourcing, blending, and packing, along with industry expertise and customer relationships, align perfectly with our strategic goals.
In April 2021, Harris Tea Company announced the acquisition of Tetley Harris Food Group from Tata Consumer Products Company. By this acquisition of the remaining shares, Harris Tea will provide end-to-end services to foodservice customers with a continued focus on innovative products, consistent quality, and service. The new organization will be named Harris Tea Foodservice.

The Report Covers:

Market value data analysis of 2024 and forecast to 2035.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global tea market. Based on the availability of data, information related to new products and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2028891

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
Global Tea Market Sales Analysis - Tea Type | Packaging | Distribution Channel ($ Million)
Tea Market Sales Performance of Top Countries
1.1. Research Methodology
Primary Research Approach
Secondary Research Approach
1.2. Market Snapshot

2. Market Overview and Insights

2.1. Scope of the Study
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Tea Industry Trends
- 2.2.2. Market Recommendations

3. Market Determinants

3.1. Market Drivers
- 3.1.1. Drivers For the Global Tea Market: Impact Analysis
3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For the Global Tea Market: Impact Analysis
3.3. Market Opportunities
- 3.3.1. Opportunities For the Global Tea Market: Impact Analysis

4. Competitive Landscape

4.1. Competitive Dashboard - Tea Market Revenue and Share by Manufacturers
Tea Product Comparison Analysis
Top Market Player Ranking Matrix
4.2. Key Company Analysis
- 4.2.1. Apeejay Surrendra Group (Typhoo)
  - 4.2.1.1. Overview
  - 4.2.1.2. Product Portfolio
  - 4.2.1.3. Financial Analysis (Subject to Data Availability)
  - 4.2.1.4. SWOT Analysis
  - 4.2.1.5. Business Strategy
- 4.2.2. Associated British Foods PLC (R. Twining and Company Ltd.)
  - 4.2.2.1. Overview
  - 4.2.2.2. Product Portfolio
  - 4.2.2.3. Financial Analysis (Subject to Data Availability)
  - 4.2.2.4. SWOT Analysis
  - 4.2.2.5. Business Strategy
- 4.2.3. Barry's Tea
  - 4.2.3.1. Overview
  - 4.2.3.2. Product Portfolio
  - 4.2.3.3. Financial Analysis (Subject to Data Availability)
  - 4.2.3.4. SWOT Analysis
  - 4.2.3.5. Business Strategy
- 4.2.4. Tata Consumer Products Ltd.
  - 4.2.4.1. Overview
  - 4.2.4.2. Product Portfolio
  - 4.2.4.3. Financial Analysis (Subject to Data Availability)
  - 4.2.4.4. SWOT Analysis
  - 4.2.4.5. Business Strategy
- 4.2.5. Unilever (Hindustan Unilever Ltd.)
  - 4.2.5.1. Overview
  - 4.2.5.2. Product Portfolio
  - 4.2.5.3. Financial Analysis (Subject to Data Availability)
  - 4.2.5.4. SWOT Analysis
  - 4.2.5.5. Business Strategy
4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration

5. Global Tea Market Sales Analysis by Tea Type ($ Million)

5.1. Black Tea
5.2. Green Tea
5.3. Oolong Tea
5.4. Others

6. Global Tea Market Sales Analysis by Packaging ($ Million)

6.1. Plastic Containers
6.2. Loose Tea
6.3. Paperboards
6.4. Aluminum Tins
6.5. Tea Bags

7. Global Tea Market Sales Analysis by Distribution Channel ($ Million)

7.1. Hypermarkets & Supermarkets
7.2. Convenience Stores
7.3. Specialty Stores
7.4. Online

8. Regional Analysis

8.1. North American Tea Market Sales Analysis - Tea Type | Packaging | Distribution Channel $ Million)
Macroeconomic Factors for North America
- 8.1.1. United States
- 8.1.2. Canada
8.2. European Tea Market Sales Analysis - Tea Type | Packaging | Distribution Channel ($ Million)
Macroeconomic Factors for Europe
- 8.2.1. UK
- 8.2.2. Germany
- 8.2.3. Italy
- 8.2.4. Spain
- 8.2.5. France
- 8.2.6. Russia
- 8.2.7. Rest of Europe
8.3. Asia-Pacific Tea Market Sales Analysis - Tea Type | Packaging | Distribution Channel ($ Million)
Macroeconomic Factors for Asia-Pacific
- 8.3.1. China
- 8.3.2. Japan
- 8.3.3. South Korea
- 8.3.4. India
- 8.3.5. Australia & New Zealand
- 8.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And others)
- 8.3.7. Rest of Asia-Pacific
8.4. Rest of the World Tea Market Sales Analysis - Tea Type | Packaging | Distribution Channel $ Million)
Macroeconomic Factors for the Rest of the World
- 8.4.1. Latin America
- 8.4.2. Middle East and Africa

9. Company Profiles

9.1. Apeejay Surrendra Group (Typhoo)
- 9.1.1. Quick Facts
- 9.1.2. Company Overview
- 9.1.3. Product Portfolio
- 9.1.4. Business Strategies
9.2. Associated British Foods PLC (R. Twining and Company Ltd.)
- 9.2.1. Quick Facts
- 9.2.2. Company Overview
- 9.2.3. Product Portfolio
- 9.2.4. Business Strategies
9.3. Barry's Tea
- 9.3.1. Quick Facts
- 9.3.2. Company Overview
- 9.3.3. Product Portfolio
- 9.3.4. Business Strategies
9.4. Baghmaritea Industries Ltd.
- 9.4.1. Quick Facts
- 9.4.2. Company Overview
- 9.4.3. Product Portfolio
- 9.4.4. Business Strategies
9.5. Bigelow Tea
- 9.5.1. Quick Facts
- 9.5.2. Company Overview
- 9.5.3. Product Portfolio
- 9.5.4. Business Strategies
9.6. Clipper Tea (Kallo Foods Ltd.)
- 9.6.1. Quick Facts
- 9.6.2. Company Overview
- 9.6.3. Product Portfolio
- 9.6.4. Business Strategies
9.7. Dhunseri Tea & Industries Ltd. (DTIL)
- 9.7.1. Quick Facts
- 9.7.2. Company Overview
- 9.7.3. Product Portfolio
- 9.7.4. Business Strategies
9.8. Dilmah Ceylon Tea Company PLC.
- 9.8.1. Quick Facts
- 9.8.2. Company Overview
- 9.8.3. Product Portfolio
- 9.8.4. Business Strategies
9.9. Dabur India Ltd
- 9.9.1. Quick Facts
- 9.9.2. Company Overview
- 9.9.3. Product Portfolio
- 9.9.4. Business Strategies
9.10. Fortnum & Mason Group
- 9.10.1. Quick Facts
- 9.10.2. Company Overview
- 9.10.3. Product Portfolio
- 9.10.4. Business Strategies
9.11. Goodricke Tea Ltd.
- 9.11.1. Quick Facts
- 9.11.2. Company Overview
- 9.11.3. Product Portfolio
- 9.11.4. Business Strategies
9.12. Harney & Sons Fine Teas
- 9.12.1. Quick Facts
- 9.12.2. Company Overview
- 9.12.3. Product Portfolio
- 9.12.4. Business Strategies
9.13. ITO EN (North America) Inc.
- 9.13.1. Quick Facts
- 9.13.2. Company Overview
- 9.13.3. Product Portfolio
- 9.13.4. Business Strategies
9.14. Jayshree Tea & Industries Ltd.
- 9.14.1. Quick Facts
- 9.14.2. Company Overview
- 9.14.3. Product Portfolio
- 9.14.4. Business Strategies
9.15. JING Tea Ltd
- 9.15.1. Quick Facts
- 9.15.2. Company Overview
- 9.15.3. Product Portfolio
- 9.15.4. Business Strategies
9.16. Mighty Leaf Tea Canada
- 9.16.1. Quick Facts
- 9.16.2. Company Overview
- 9.16.3. Product Portfolio
- 9.16.4. Business Strategies
9.17. Numi, Inc. P.B.C.
- 9.17.1. Quick Facts
- 9.17.2. Company Overview
- 9.17.3. Product Portfolio
- 9.17.4. Business Strategies
9.18. Organic India Pvt. Ltd.
- 9.18.1. Quick Facts
- 9.18.2. Company Overview
- 9.18.3. Product Portfolio
- 9.18.4. Business Strategies
9.19. Stash Tea Company
- 9.19.1. Quick Facts
- 9.19.2. Company Overview
- 9.19.3. Product Portfolio
- 9.19.4. Business Strategies
9.20. The Grob Tea Co. Ltd.
- 9.20.1. Quick Facts
- 9.20.2. Company Overview
- 9.20.3. Product Portfolio
- 9.20.4. Business Strategies
9.21. Tata Consumer Products Ltd.
- 9.21.1. Quick Facts
- 9.21.2. Company Overview
- 9.21.3. Product Portfolio
- 9.21.4. Business Strategies
9.22. Unilever (Hindustan Unilever Ltd.)
- 9.22.1. Quick Facts
- 9.22.2. Company Overview
- 9.22.3. Product Portfolio
- 9.22.4. Business Strategies
9.23. Williamson Fine Teas Ltd
- 9.23.1. Quick Facts
- 9.23.2. Company Overview
- 9.23.3. Product Portfolio
- 9.23.4. Business Strategies
9.24. YOGI TEA GmbH
- 9.24.1. Quick Facts
- 9.24.2. Company Overview
- 9.24.3. Product Portfolio
- 9.24.4. Business Strategies