Tea Pods Market Report 2026

The tea pods market size has grown steadily in recent years. It will grow from $6.74 billion in 2025 to $7.01 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to expansion of pod-based beverage systems, growth in premium tea consumption, rising urban lifestyles, increased availability of specialty retail formats, growing consumer focus on convenience.

The tea pods market size is expected to see steady growth in the next few years. It will grow to $8.25 billion in 2030 at a compound annual growth rate (CAGR) of 4.2%. The growth in the forecast period can be attributed to growing investments in eco-friendly pod materials, rising demand for recyclable packaging, expansion of online tea pod sales, innovation in flavor diversification, increasing adoption in hospitality environments. Major trends in the forecast period include increasing adoption of biodegradable tea pods, rising demand for machine-compatible tea pods, growing preference for flavored and herbal variants, expansion of retail availability across channels, enhanced focus on sustainable packaging design.

Increasing tea consumption is expected to propel the growth of the tea pods market going forward. Increasing tea consumption refers to the rising global intake of tea across various regions and demographics. This trend is growing due to consumers’ preference for convenient and ready-to-brew tea options. Tea pods support this trend by offering a quick, convenient, and consistent way to enjoy tea, thereby reinforcing demand. According to the Tea Association of the USA Inc., on any given day, over 159 million Americans drink tea. For instance, in January 2024, according to the Food and Agriculture Organization, an Italy-based specialized agency, Black tea consumption is expected to increase at an annual growth rate of 1.8%, reaching approximately 4.06 million tonnes by 2032. Therefore, increasing tea consumption is driving the growth of the tea pods market.

Major companies operating in the tea pods market are focusing on introducing innovative solutions, such as compostable tea bag sachets, to meet rising demand for sustainable and eco-friendly products. Compostable tea bag sachets are made entirely from plant-based materials and dissolve in water or soil, ensuring zero plastic waste. For instance, in January 2023, Seven Spring, an India-based tea brand, launched 100% compostable tea bag sachets, reflecting its commitment to reducing carbon emissions and eliminating single-use plastics. These sachets dissolve completely in water or soil, supporting environmentally responsible tea consumption.

In October 2023, Mi Terro, Inc., a U.S.-based sustainable packaging startup specializing in bio-based and edible packaging materials, collaborated with Lipton to develop dissolvable and edible tea pods. Through this collaboration, Mi Terro integrated its edible, bio-based film technology with Lipton’s tea powders to create pre-portioned tea pods that dissolve entirely in water, leaving no packaging waste. This initiative provides a sustainable alternative to traditional tea packaging while supporting the growing demand for convenient and eco-friendly tea pod solutions. Lipton is a Netherlands-based tea and beverage company specializing in branded teas and ready-to-drink beverages.

Major companies operating in the tea pods market are 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.

Asia-Pacific was the largest region in the tea pods market in 2025. Western Europe was the second-largest region in the tea pods market. The regions covered in the tea pods market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the tea pods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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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