Tea Market expected to reach USD 108.457 billion by 2030

Tea Market Trends & Forecast

According to a research study published by Knowledge Sourcing Intelligence (KSI), the tea market will expand from USD 79.765 billion in 2025 to USD 108.457 billion in 2030 at a CAGR of 6.34% during the forecast period.

It is expected to experience significant growth in the coming years because of the increasing tea culture in parts of the world, such as China and India. The increase in the consumption of ready-to-consume products such as iced teas is driven by shifts in consumer behavior, particularly among millennials, and is driving the market. Additionally, the growth in disposable income is also driving the market, particularly in developing countries.

The market is trending towards sustainable tea production, amid the increasing environmental awareness has increased the adoption of Voluntary Sustainability Standards (VSS) to address certain issues in the tea market and propagate market growth. These standards provide tea consumers with more sustainable options. Eventually, the environmental conditions under which it is produced will create greater incentives for investment. The market is also experiencing a significant transition towards instant beverages, such as instant tea.

Tea Market Report Highlights

• The tea market is driven by high tea demand in various countries as part of the culture. The growing product innovation, such as instant tea, focuses on sustainable production and growing product innovation to cater to ethical and health-focused consumers is keeping the market demand to grow.
• The market is trending towards health-focused tea, instant to align with office spaces and commercial demand and is also driving towards sustainable tea production.
• Tea demand is expected to see significant growth in North America. The growing culture of ready-to-drink beverages that offer higher convenience, followed by improved demand for varied flavors based on ethical & sustainable sourcing, has further impacted the overall tea imports in the USA.
• Asia-Pacific is the dominant and fastest-growing market, driven by tea’s cultural adoption, high population, growing disposable income and others.
• The market is fragmented, with many notable players, including Tata Consumer Products Ltd, Associated British Foods plc, Nestlé, ITO EN, LTD, Barry’s Tea, Dilmah Ceylon Tea Company PLC, The Hain Celestial Group, Inc., Harney & Sons Fine Teas, Full Leaf Tea Company, Ohio Tea Company, and Unilever, among others.

Report Coverage:

Report Metric	Details
Tea Market Size in 2025	US$79.765 billion
Tea Market Size in 2030	US$108.457 billion
Growth Rate	CAGR of 6.34%
Drivers	Rising Tea Demand Health Awareness Growth in Urbanization, rising personal disposable income, and an increase in the workforce
Restraints	Presence of Alternative Beverage Options
Segmentation	Type Distribution Channel End-Use Beverage Type Geography
List of Major Companies in the Tea Market	Tata Consumer Products Ltd Associated British Foods plc Nestlé ITO EN, LTD. Barry’s Tea

Tea Market Drivers and Restraints

Growth Drivers:

• Rising Tea Demand: Tea is increasingly being adopted globally by individuals who are health-conscious and by people who prefer non-alcoholic beverages. Besides, there is already a great demand for tea, as in some countries, such as India, it is ingrained in the culture.
• Health Awareness: There is an increase in consumers’ awareness of health benefits associated with tea, which is being aided by the shifting consumer lifestyle, adoption of modern living circumstances, and the abandonment of conventional methods for preparing food and beverages.
• Growth in Urbanization, rising personal disposable income, and an increase in the workforce: The demand for various kinds of beverages has increased as a result of growing urbanization, rising personal disposable income, and an increase in the workforce, particularly female participation, which is also promoting the market. According to the World Bank data, there is a steady increase in the labor force globally from 3.65 billion in 2023 to 3.69 billion in 2024. Meanwhile, female participation in the workforce increased from 39.8 per cent in 2022 to 40.2 per cent in 2023. As more individuals move towards developed cities, the demand for beverage premix and ready-to-drink tea options is expanding continuously.

Restraints

• Presence of Alternative Beverage Options: One of the key competitors for tea is coffee. The fast-growing phenomenon of taking coffee worldwide could hinder market growth during the forecast period.

Tea Market Developments

• Product Portfolio Expansion: In June 2025, Tetley Green Tea announced the launch of two breakthrough green tea variants, Tetley Green Tea Slim Care with added L-Carnitine and Tetley Green Tea Beauty Care with added Biotin.
• Product Launch: In July 2025, Lipton launched its all-new Tea Concentrates. It’s an iced tea, available in three fresh-brewed varieties: Black Tea with Lemon, Green Tea with Lemonade, and Southern Sweet Black Tea – Lipton Tea Concentrates blend high-quality tea with vibrant flavour and is sold in 32 oz ready-to-mix concentrates.

Tea Market Segmentation

Knowledge Sourcing Intelligence has segmented the Global Tea Market based on type, distribution channel, end-use application, beverage type and region:

Tea Market, By Type

• Green Tea
• Black Tea
• White Tea
• Herbal Tea
• Others

Tea Market, By Distribution Channel

• Online
• Offline

Tea Market, By End-Use Application

• Residential
• Commercial

Tea Market, By Beverage Type

• Hot Tea
• Cold/Iced Tea

Tea Market, By Region

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Others

Tea Market Key Players

• Tata Consumer Products Ltd
• Associated British Foods plc
• Nestlé
• ITO EN, LTD.
• Barry’s Tea
• Dilmah Ceylon Tea Company PLC
• The Hain Celestial Group, Inc.
• Harney & Sons Fine Teas
• Full Leaf Tea Company
• Ohio Tea Company
• Unilever