Tea Market Report 2025

The tea market size has grown strongly in recent years. It will grow from $55.67 billion in 2024 to $59.23 billion in 2025 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to cultural significance and tradition, health and wellness trends, globalization and access to varieties, rising disposable incomes, marketing and branding strategies.

The tea market size is expected to see strong growth in the next few years. It will grow to $75.5 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to premiumization and specialty teas, functional and health-boosting teas, sustainability and ethical sourcing, innovation in tea formats, e-commerce and direct-to-consumer channels. Major trends in the forecast period include exploration of tea-based culinary applications, enhancement of tea packaging and presentation, rise of tea subscription services, integration of technology in tea retail, cultural and regional tea exploration.

The surge in demand for herbal tea, characterized by a blend of dried herbs and spices often without caffeine, is expected to be a driving force in the tea market. Herbal tea is created by steeping leaves from various plants, offering benefits such as reduced inflammation, lower stress levels, immune system support, and more. In October 2022, Canada Statistics, a government agency in Canada, forecasted the retail value sales of fruit or herbal tea to increase from $144.1 million in 2022 to $286.1 million in 2026. This substantial growth in the demand for herbal tea contributes significantly to the overall expansion of the tea market.

The increasing awareness of the health benefits linked to tea consumption is another crucial factor shaping the growth of the tea market. Health benefits encompass the positive effects that tea consumption can have on physical and mental well-being. Tea is associated with improved cardiovascular and metabolic health, immune system enhancement, inflammation reduction, and a lowered risk of various diseases, including cancer and heart disease. Antioxidants and flavonoids present in tea contribute to these health benefits, making it a popular choice for individuals seeking to enhance their overall well-being. In September 2022, the National Institutes of Health (NIH) reported a 9-13% lower risk of death among individuals who drank at least 2 cups of tea per day compared to non-tea drinkers. The growing awareness of these health benefits further fuels the growth of the tea market.

Major companies in the tea market are actively focusing on developing new product innovations to fortify their market positions. One such innovation is the introduction of specialty iced teas, which are distinct blends of tea crafted specifically for cold serving over ice. These teas often boast a refreshing and fruity flavor profile, incorporating various ingredients such as fruits, herbs, and spices. For example, in September 2022, Honest Tea Inc., a US-based organic tea and beverages company, launched 'Just Ice Tea,' a ready-to-drink organic iced tea. The initiative behind Just Ice Tea is centered on promoting justice through Fair Trade premiums and adherence to specific environmental and working standards. The company is committed to environmental protection through organic accreditation, avoiding the use of artificial pesticides, herbicides, insecticides, and fertilizers.

Major players in the tea market are dedicated to introducing advanced tea solutions. Tata Consumer Products Limited, an India-based consumer products company, exemplified this approach by launching Tata Tea Premium Street Chais of India in March 2023. This tea range celebrates unique flavors inspired by the streets of India and is expertly crafted for the best enjoyment when prepared with milk.

In July 2022, CVC Capital Partners, a Luxembourg-based private equity and investment advisory firm, acquired Ekaterra, Unilever's tea business, for 4.5 billion euros (USD 4.8 billion). This strategic acquisition is aimed at furthering the development and growth of the tea business. Ekaterra, based in the Netherlands, is a prominent tea and beverage company.

Major companies operating in the tea market include Nestlé S.A., Unilever PLC, Associated British Foods plc, ITO EN Ltd., Hain Celestial Group Inc., Godrej Consumer Products Limited, Tata Global Beverages Limited, Twinings of London Ltd., McLeod Russel India Limited, Tazo Tea Company, RC Bigelow Inc., DavidsTea Inc., Yorkshire Tea Ltd., Barry's Tea Limited, Traditional Medicinals LLC, Rishi Tea & Botanicals, Celestial Seasonings Inc., Harney & Sons Fine Teas, The Republic of Tea Inc., Dilmah Ceylon Tea Company PLC, Apeejay Surrendra Group Limited, Typhoo Group Limited, M.M. Ispahani Limited, The Jasmine Pearl Tea Company, Mighty Leaf Tea, The Tea Spot, Big Heart Tea Company, Taetea Group Co Ltd., Numi Organic Tea.

Asia-Pacific was the largest region in the tea market in 2024. Europe is expected to be the fastest-growing region in the global tea market report during the forecast period. The regions covered in the tea market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tea market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tea is a beverage created by infusing cured leaves from the camellia sinensis (tea) plant with hot water. It is known for its potential health benefits, including immune system strengthening, anti-inflammatory properties, and potential protective effects against cancer and heart disease.

The primary categories of tea include green tea, black tea, oolong tea, fruit or herbal tea, and other varieties. Green tea is marketed as a beverage or nutritional supplement known for enhancing mental clarity, alleviating headaches and gastrointestinal issues, and promoting weight loss. Packaging options for tea encompass plastic containers, loose tea, paper boards, aluminum tins, and tea bags, with distribution channels including supermarkets, hypermarkets, specialty stores, convenience stores, online platforms, and others. Tea serves both residential and commercial purposes.

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

The tea market consists of sales of white tea, pu-erh tea, and yellow tea. 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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