Tea Industry in India (2025-2030)

India, the world's second-largest tea producer, holds a strong global position with its diverse tea varieties, including Assam, Darjeeling, and Nilgiri teas. With tea being an integral part of Indian culture, the industry contributes significantly to employment and exports. Despite fluctuating domestic demand and rising competition from other tea-producing nations, India's tea sector continues to evolve, driven by premiumization, health-conscious consumer trends, and sustainability efforts.

Market insights:

The tea industry in India was valued at INR 1.00 trillion in 2024 and is expected to reach INR 1.47 trillion by 2029, expanding at a compound annual growth rate (CAGR) of 6.98% during the 2025 ─ 2030 period.

The Indian tea market is witnessing steady growth, with rising domestic consumption and strong export potential with a significant share exported to Russia, Iran, and the UAE. Government initiatives like the Tea Development & Promotion Scheme (TDPS) are fostering industry growth by modernizing tea estates and enhancing global competitiveness. However, challenges such as rising production costs, labor migration, and climate change impact overall productivity and pricing dynamics. Sustainable practices, including organic tea farming and mechanization, are gaining traction to counteract these issues.

Market segmentation:

India’s tea industry comprises four segments: black tea, green tea, herbal tea, and specialty teas. As of 2024, the black tea segment dominated the market, accounting for 38.80% of the total sector. By the end of 2030, the black tea segment is expected to hold a share of around 44.11% of the overall market.

Black tea remains the most widely consumed variety, driven by its affordability and deep-rooted cultural significance. Assam and Darjeeling teas dominate both domestic and export markets. Green tea is gaining traction among health-conscious consumers due to its antioxidant properties, with production concentrated in Assam and West Bengal. Herbal tea, infused with Ayurvedic ingredients like tulsi, chamomile, and ashwagandha, is rapidly expanding due to rising demand for wellness beverages. Specialty tea, including organic, oolong, and white tea, is a premium segment targeting high-income consumers and export markets.

Market trends:

The tea industry in India is witnessing notable shifts, including a surge in demand for organic and sustainable tea production, driven by eco-conscious consumers. E-commerce and direct-to-consumer (D2C) models are reshaping sales, allowing small and mid-sized brands to thrive beyond traditional retail. RTD (Ready-to-Drink) tea beverages are also gaining traction, appealing to urban youth seeking convenience and health benefits. Additionally, tea tourism is emerging as a niche industry, particularly in Assam and Darjeeling, attracting domestic and international visitors for experiential tea-tasting tours.