Tea Pods Market Report 2025

This Tea Pods market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The tea pods market size has grown strongly in recent years. It will grow from $6.49 billion in 2024 to $6.83 billion in 2025 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to convenience, health awareness, environmental concerns, marketing and branding.

The tea pods market size is expected to see steady growth in the next few years. It will grow to $8.09 billion in 2029 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to sustainability, health and wellness, emerging markets. Major trends in the forecast period include flavor variety, customization, smart technology, wellness and functional teas.

The tea pods market is expected to experience growth, primarily driven by the increasing global consumption of tea. Statistics from the Tea Association of the USA Inc. reveal that over 159 million Americans enjoy tea on any given day. In July 2022, Americans consumed a remarkable 84 billion servings of tea, equivalent to more than 3.8 billion gallons. The majority, about 84%, of tea consumed was black tea, with 15% as green tea, and the remaining small portion consisting of oolong, white, and dark tea. Projections indicate a 2.2% annual increase in black tea production over the next decade, reaching 4.4 million tons by the end of 2027. This surge in tea production is expected to drive demand for tea, consequently benefiting the growth of the tea pods market.

The tea pod market is poised for growth due to the increasing demand for herbal tea. Herbal tea, made from dried herbs and spices, is typically caffeine-free and is associated with health, wellness, variety, and convenience. The appeal of offering caffeine-free alternatives, eco-friendly packaging, and unique flavor profiles has fueled the demand for herbal tea pods. Data from Euromonitor International in 2022, published by Canada Statistics, forecasts that retail sales of fruit/herbal tea will reach $286.1 million in 2026, up from $144.1 million in 2022. Hence, the rising popularity of herbal tea contributes to the growth of the tea pod market.

An emerging trend in the tea pods market is the availability of a wide range of flavored teas. Major players in the market are focusing on introducing new flavors and products tailored to consumers' preferences. For example, in January 2023, Seven Spring, an India-based tea brand, introduced 100% compostable tea bag sachets designed for a sustainable future. Made entirely from plant-based materials, these sachets dissolve in water or mud, ensuring zero plastic waste. Committed to eco-friendly practices, Seven Spring’s packaging helps significantly reduce carbon emissions and single-use plastic consumption. These sachets highlight the brand's dedication to environmental responsibility.

Major companies in the tea pod market are focusing on introducing advanced flavors and tailoring products to meet consumer tastes and preferences. For example, in March 2024, THE COFFEE BEAN & TEA LEAF, a US-based coffeehouse chain, launched K-CUP PODS. These pods offer a range of flavors inspired by popular beverages, catering to diverse tastes, including coffee, tea, and specialty drinks. Designed to replicate the coffee shop experience at home, they deliver high-quality beverages that reflect the brand’s signature blends. Made from recyclable polypropylene (#5 plastic), these pods are accepted by many recycling programs across North America. Additionally, Keurig introduced a mail-back recycling program for consumers without local recycling options, further demonstrating their commitment to sustainability.

Major companies operating in the tea pods market include Unilever PLC, Bigelow Tea Co, Nestle SA, Keurig Dr Pepper Inc., Cornish Tea & Cornish Coffee Ltd., Tata Global Beverages Ltd., Red Diamond Inc., TEEKANNE GMBH & CO. KG, The Republic of Tea Inc., Jacobs Douwe Egberts, Mother Parkers Tea & Coffee Inc., Starbucks Corporation, Reily Foods Company (RFC), Sidsam Group, VitaCup Inc., Celestial Seasonings Inc., R Twining and Company Limited, Tazo Tea Co, Lipton Teas and Infusions, Harney & Sons Fine Teas, Mighty Leaf Tea, Numi Inc., Yogi Tea, Stash Tea Co, Traditional Medicinals & WorldPantry.com LLC, Rishi Tea & Botanicals, Zhena's Gypsy Tea, The Tea Spot Inc., Two Leaves and a Bud, Davidson's Organic Tea.

A tea pod is a single-serving, pre-packaged container filled with tea leaves or blends, designed for use with specific brewing machines. It offers convenience by eliminating the need for loose tea and measuring. Available in various flavors, tea pods allow users to brew a cup of tea quickly. Some options are biodegradable or recyclable, catering to eco-conscious consumers.

The primary types of tea pods can be categorized as soft tea pods and hard tea pods. A soft pod typically refers to a teabag that is enclosed within filter paper, characterized by its round, flat shape, which is usually soft and flexible. These tea pods are distributed through various channels, including supermarkets, hypermarkets, independent retailers, convenience stores, and specialty tea retailers. The different types of tea found in these pods include green tea, black tea, herbal tea, and other varieties.

The tea pods research report is one of a series of new reports that provides tea pods statistics, including tea pods industry global market size, regional shares, competitors with tea pods share, detailed tea pods segments, market trends and opportunities, and any further data you may need to thrive in the tea pods industry. This tea pods research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Asia-Pacific was the largest region in the tea pods market in 2024. Western Europe was the second-largest region in the tea pods market. The regions covered in the tea pods market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tea pods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tea pods market consists of sales of soft tea pods and hard tea pods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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