Pandan Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Pandan Tea Market is projected to expand from USD 348.80 Million in 2025 to USD 545.86 Million by 2031, reflecting a CAGR of 7.75%. This market is characterized by the trade of beverages created from the leaves of the Pandanus amaryllifolius plant, which are brewed either as pure herbal infusions or blended with traditional tea bases to provide a unique sweet, floral, and nutty flavor often compared to Asian vanilla. Key drivers fueling market growth include a growing global preference for caffeine-free, functional wellness beverages packed with natural antioxidants, as well as the rising influence of Southeast Asian culinary tourism, which has introduced exotic regional flavors to Western café culture. These drivers indicate a structural shift in flavor preferences and health-conscious habits rather than temporary trends, underpinning the product's long-term commercial viability.

A significant obstacle to rapid market growth is the logistical complexity of preserving the volatile aromatic compounds of pandan leaves during export and processing, which frequently results in inconsistent product quality in international markets. While supply chain stability in key production regions is vital, overcoming this hurdle remains critical. According to the Vietnam Tea Association, the country's tea cultivation area totaled 128,000 hectares in 2024, yielding 230,000 tons of dried tea. Although this strong agricultural infrastructure in Southeast Asia is essential for meeting the increasing international demand for specialty tea blends, including those with pandan, ensuring consistent aroma retention across such large volumes remains a major technical challenge for exporters.

Market Drivers

The increasing consumer demand for functional herbal beverages acts as a primary market driver, with health-conscious individuals actively seeking caffeine-free alternatives that offer therapeutic value. Pandan leaves, known for their antioxidant profile and natural cooling properties, fit seamlessly into this demand for clean-label wellness infusions. This trend is evident in the financial results of major companies prioritizing health-centric products; for example, Tata Consumer Products noted in their 'Integrated Annual Report 2023-24' that revenue from growth businesses, including functional innovations, rose by 40% in fiscal year 2024. This growth helps mitigate broader market volatility and is supported by robust regional output; the Trade Policy and Strategy Office reported in January 2025 that Thailand's exports of agro-industrial products increased by 6.0 percent in 2024, ensuring a reliable supply of raw botanicals for global markets.

Concurrently, the global spread of Southeast Asian culinary trends has elevated pandan from a niche ethnic ingredient to a recognized flavor in Western markets. Frequently referred to as "Asian vanilla," pandan is gaining popularity through specialty retail channels and bubble tea franchises that feature exotic regional ingredients. This infrastructure is crucial for introducing pandan-based beverages to new demographics. As reported by QSR Media Asia in April 2025, the tea chain Gong cha achieved record system-wide sales exceeding USD 600 million for the fiscal year 2024. Such expansion in specialty outlets provides the necessary platform to familiarize global consumers with pandan's distinct floral and nutty characteristics, securing its position within the premium tea landscape.

Market Challenges

A major barrier to the expansion of the Global Pandan Tea Market into premium international segments is the logistical difficulty of preserving the volatile aromatic compounds of pandan leaves during processing and export. The commercial value of pandan relies heavily on its unique fragrance, often described as "Asian vanilla," which is highly unstable and prone to degradation during the extended transit times required for global distribution. If this aroma diminishes before reaching the consumer, the product loses its defining sensory appeal, resulting in inconsistent quality that fails to meet the rigorous standards of high-end retailers and Western café culture.

This volatility creates a disconnect between the robust production capabilities of Southeast Asia and the quality expectations of global importers. For instance, the Vietnam Tea Association reported that the country's tea exports reached nearly 133,000 tons in the first 11 months of 2024. While this figure highlights substantial export capacity, the technical complexity of maintaining aroma retention across such vast volumes restricts the scalability of high-value pandan blends. Consequently, the inability to guarantee a uniform sensory experience limits the market’s ability to transition from a niche ethnic product to a mainstream staple, directly hampering broader commercial growth.

Market Trends

The market is being transformed by the emergence of Ready-to-Drink (RTD) and sparkling pandan tea variants, which address the demand for convenient, effervescent wellness beverages featuring unique regional flavors. Manufacturers are increasingly carbonating pandan infusions to offer refreshing, non-alcoholic alternatives to traditional sodas, leveraging the ingredient’s natural sweetness for clean-label formulations. This trend aligns with a wider consumer shift toward healthier hydration, particularly in the beverage sector where low-sugar options are outperforming sugary competitors. As noted by China Daily in May 2025, sales of low-sugar tea drinks grew by 41 percent year-on-year in 2024, signaling a robust appetite for the functional tea categories that pandan is poised to capture.

Simultaneously, the adoption of pandan tea in premium mixology and craft mocktails is elevating the ingredient from a niche botanical to a staple in sophisticated beverage programs. Bartenders and mixologists are utilizing pandan’s complex, grassy, and vanilla-like profile - often dubbed "Asian Vanilla" - to add depth to cocktails and nostalgia-driven non-alcoholic drinks without relying on artificial syrups. This application capitalizes on rising visual and flavor-focused trends in social media culture. According to the 'Pinterest Predicts 2025' report from December 2024, search interest for 'cream soda aesthetic' increased by 105 percent, a trend that directly benefits pandan-based beverages which naturally mimic these creamy, aromatic notes in high-end, photogenic serves.

Key Players Profiled in the Pandan Tea Market

• Tsaa Laya
• ETTE TEA Pte Ltd.
• DIASPORA TEA & HERB COMPANY, LLC
• Gryphon Tea Company
• Future Generation Co. Ltd.
• Sinouk Coffee Co. LTD.
• Zhejiang Chunli Tea Co., Ltd.
• WILD & TEA
• Thienthanhtea Ltd.
• My Blue Tea

Report Scope

In this report, the Global Pandan Tea Market has been segmented into the following categories:

Pandan Tea Market, by Product Type:

• Loose Leaves
• Powder
• Tea Bags

Pandan Tea Market, by Distribution Channel:

• Online
• Offline

Pandan Tea Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Pandan Tea Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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