Barley Tea Market Size and Share

Barley Tea Market Size
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Barley Tea Market Analysis by Mordor Intelligence

The barley tea market size is expected to grow from USD 1.08 billion in 2025 to USD 1.13 billion in 2026 and is forecast to reach USD 1.48 billion by 2031 at 5.54% CAGR over 2026-2031. Demand is supported by consumers seeking caffeine-free, low-sugar hydration options that fit daily routines. The category also benefits from established consumption habits in East Asia, where barley tea is used as an alternative to water and is available in home-brewed and ready-to-drink formats. Product development is moving toward functional ingredients, flavor extensions, and packaging formats that meet summer hydration needs. Online retail can reduce the physical shelf-access barrier for smaller brands and imported products outside Asia. Supply conditions remain a concern because domestic barley availability in Japan has tightened as farmers respond to stronger rice prices.

Key Report Takeaways

  • By product type, roasted barley tea held 55.18% revenue share in 2025, while flavored barley tea is forecast to expand at a 6.29% CAGR through 2031.
  • By form, tea bags held 64.18% revenue share in 2025, while loose barley tea is forecast to expand at a 6.63% CAGR through 2031.
  • By distribution channel, supermarkets and hypermarkets held 43.58% revenue share in 2025, while online retail stores are forecast to expand at a 7.12% CAGR through 2031.
  • By geography, Asia-Pacific held 54.88% revenue share in 2025, while South America is forecast to expand at a 6.54% CAGR through 2031.

Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.

Segment Analysis

By Product Type: Roasted Barley Tea Holds the Core Position

Roasted barley tea accounted for the largest share of the barley tea market by product type, representing 55.18% of revenue in 2025. Its leading position is supported by the established consumer familiarity with roasted barley tea across major Asian markets, where it is traditionally consumed as a daily beverage. The product's distinctive roasted flavor and naturally caffeine-free profile make it suitable for regular consumption across different age groups. Growing consumer interest in non-caffeinated and naturally positioned beverages is further supporting demand for roasted barley tea. In addition, its availability in convenient formats such as tea bags and ready-to-drink products is helping manufacturers reach a broader consumer base beyond traditional loose-leaf consumption.

Flavored barley tea is projected to be the fastest-growing product type, with revenue expected to expand at a 6.29% CAGR through 2031. The segment is benefiting from consumers' growing preference for novel and differentiated beverage experiences while retaining the perceived natural benefits associated with barley tea. Manufacturers are increasingly incorporating flavors to broaden the appeal of barley tea among younger consumers and those who may find traditional roasted barley tea less distinctive. Flavor variations can also support product premiumization by creating opportunities for more diverse and differentiated product offerings. The expansion of modern retail and e-commerce channels is improving consumer access to flavored barley tea and enabling brands to introduce a wider range of variants.

Barley Tea Market Share by Product Type, 2025
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Barley Tea Market Share by Product Type, 2025

By Form: Tea Bags Lead Household Consumption

Tea bags accounted for the largest share of the barley tea market by form, representing 64.18% of revenue in 2025. Their dominant position is primarily supported by the convenience and ease of preparation they offer compared with loose barley tea. Tea bags allow consumers to prepare barley tea quickly with minimal effort, making them well suited to increasingly busy lifestyles and on-the-go consumption occasions. Their standardized portioning also provides consistent flavor and brewing results, which enhances consumer convenience and product reliability. In addition, the widespread availability of tea bags across supermarkets, convenience stores, specialty tea retailers, and online platforms is strengthening their accessibility.

Loose barley tea is projected to be the fastest-growing form, with revenue expected to expand at a 6.63% CAGR through 2031. The segment is gaining traction among consumers who prioritize traditional preparation methods and greater control over the strength and quantity of tea used during brewing. Loose barley tea also appeals to consumers seeking a more authentic barley tea experience, particularly in markets where the beverage has established cultural and consumption traditions. Growing interest in natural and minimally processed beverage formats is further supporting demand for loose products. The format also provides flexibility for household consumption, allowing consumers to adjust brewing quantities according to individual preferences and consumption occasions.

By Distribution Channel: Supermarkets and Hypermarkets Remain the Main Channel

Supermarkets and hypermarkets accounted for 43.58% revenue share in 2025. They are central to household replenishment in Asian and European markets. Their scale supports broad shelf access for tea bags, loose products, and ready-to-drink bottles. Retail promotions and visible shelf placement can also support purchases of familiar brands. Convenience stores have an important secondary role in Japan and South Korea because they meet immediate-consumption needs. Retailer partnerships can give manufacturers a way to match product launches to specific shopper occasions. Large stores can show several pack sizes and formats within one tea aisle. This helps regular consumers select products for home use, travel, or immediate consumption. The channel can also give established brands steady visibility during seasonal demand peaks. 

Online retail stores are forecast to grow at a 7.12% CAGR through 2031. The channel can reduce the shelf-access barrier that affects niche imported products outside Asia. It also allows consumers to search directly for caffeine-free grain tea products. Cross-border sellers and direct-to-consumer brands can use online retail to reach consumers who are already interested in Asian beverages. Digital channels can carry detailed product information, which is useful when the flavor profile needs explanation. Search functions also allow buyers to compare pack sizes and preparation formats before choosing a product. Online listings can make repeat purchases easier after an initial trial. These advantages are relevant for tea bags, loose tea, and ready-to-drink products. 

Barley Tea Market Share by Distribution Channel, 2025
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Barley Tea Market Share by Distribution Channel, 2025

Geography Analysis

Asia-Pacific accounted for the largest share of the global barley tea market, representing 54.88% of revenue in 2025. The region's dominance is primarily attributed to the long-standing consumption of barley tea in countries such as Japan, South Korea, and China, where it is widely recognized as a traditional, caffeine-free beverage. Strong consumer familiarity with barley-based beverages supports recurring household consumption and provides a stable demand base for the market. In addition, growing health consciousness and interest in naturally positioned beverages are encouraging consumers to incorporate barley tea into their daily beverage routines. 

South America is projected to be the fastest-growing regional market, with revenue expected to expand at a 6.54% CAGR through 2031. Growth is being supported by increasing consumer interest in functional and naturally positioned beverages as consumers seek alternatives to conventional caffeinated drinks. Rising exposure to Asian beverage products through international retail, e-commerce, and foodservice channels is also improving consumer awareness of barley tea across the region. The growing availability of imported and locally distributed specialty teas is making barley tea more accessible to consumers beyond traditional tea-drinking segments. 

Europe, North America, and the Middle East & Africa represent emerging markets for barley tea, supported by increasing interest in caffeine-free, natural, and health-oriented beverages. Demand is particularly influenced by Asian consumer communities and growing exposure to international tea products through specialty retailers and online platforms. Product diversification into tea bags, flavored variants, and ready-to-drink formats is also helping broaden consumer appeal. However, comparatively lower consumer familiarity with barley tea than in Asia-Pacific limits the current market size of these regions.

Barley Tea Market Growth Rate by Region
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Competitive Landscape

The barley tea market is moderately fragmented, with competition spread across established tea manufacturers, regional producers, specialty beverage companies, and emerging brands. The presence of multiple domestic and international players limits the dominance of any single company and creates a competitive environment across key regional markets. Established players benefit from strong brand recognition, extensive distribution networks, and consumer familiarity, while smaller companies compete through niche positioning and localized offerings.

Product differentiation is a key competitive strategy among market participants. Companies are expanding their portfolios across roasted, flavored, loose, and tea-bag formats to address varying consumer preferences and consumption occasions. Players are also focusing on packaging innovation, convenient formats, and natural or caffeine-free positioning to strengthen product appeal. The introduction of new flavors and ready-to-consume formats is further helping companies attract younger consumers and expand barley tea beyond traditional consumption patterns.

Companies are also focusing on distribution expansion and geographic penetration to strengthen their market positions. Leading and emerging players are increasing product availability through supermarkets and hypermarkets, convenience stores, specialty tea retailers, foodservice outlets, and e-commerce platforms. Expansion into regions outside traditional barley tea-consuming markets, particularly Europe, North America, and South America, is providing additional growth opportunities.

Barley Tea Industry Leaders

  1. ITO EN, Ltd.

  2. Suntory Holdings Limited

  3. Kirin Holdings Company, Limited

  4. Otsuka Pharmaceutical Co., Ltd.

  5. Sanei Kosan Co., Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Barley Tea Market Concentration
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Recent Industry Developments

  • July 2026: ECHIGO-TSUMARI ART FIELD and Oisix relaunched a pesticide-free, 100% domestically sourced rokujo barley tea, produced by Kawahara Flour Mill. The product uses artisan dual-roasting techniques to create greater flavor complexity and layering, strengthening its positioning as a premium and sustainability-focused barley tea offering.
  • June 2026: ITO EN launched the Kenko Mineral Mugicha MLB Club Mascot Special Edition Bottle through Seven-Eleven and major Japanese retailers. The limited-edition product generated strong consumer engagement, with 25 million units sold within two weeks, demonstrating the effectiveness of sports-themed collaborations and collectible packaging in driving barley tea consumption.
  • May 2026: ITO EN launched Kenko Mineral Mugicha Ice Slurry, a frozen pouch-format barley tea positioned as the first product of its kind in Japan's tea category. The innovative format provides a convenient and refreshing consumption option, particularly suited to hot-weather occasions, while expanding barley tea beyond conventional bottled and brewed formats.

Table of Contents for Barley Tea Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Growing demand for caffeine-free beverages
    • 4.2.2 Rising health and wellness consciousness
    • 4.2.3 Strong cultural consumption in East Asia
    • 4.2.4 Growing demand for functional beverages
    • 4.2.5 Preference for low- and zero-sugar beverages
    • 4.2.6 Rising international interest in Asian beverages
  • 4.3 Market Restraints
    • 4.3.1 Limited consumer awareness outside Asia
    • 4.3.2 Gluten-related dietary limitations
    • 4.3.3 Distinct roasted flavor profile
    • 4.3.4 Strong competition from substitute beverages
  • 4.4 Supply Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE )

  • 5.1 By Product Type
    • 5.1.1 Roasted Barley Tea
    • 5.1.2 Flavored Barley Tea
    • 5.1.3 Other Product Types
  • 5.2 By Form
    • 5.2.1 Loose
    • 5.2.2 Tea Bags
    • 5.2.3 Others
  • 5.3 By Distribution Channel
    • 5.3.1 Supermarkets/Hypermarkets
    • 5.3.2 Convenience Stores
    • 5.3.3 Online Retail Stores
    • 5.3.4 Other Distribution Channels
  • 5.4 By Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.1.4 Rest of North America
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 United Kingdom
    • 5.4.2.3 Italy
    • 5.4.2.4 France
    • 5.4.2.5 Spain
    • 5.4.2.6 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 China
    • 5.4.3.2 India
    • 5.4.3.3 Japan
    • 5.4.3.4 Australia
    • 5.4.3.5 South Korea
    • 5.4.3.6 Vietnam
    • 5.4.3.7 Indonesia
    • 5.4.3.8 Rest of Asia-Pacific
    • 5.4.4 South America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Argentina
    • 5.4.4.3 Rest of South America
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 South Africa
    • 5.4.5.2 Saudi Arabia
    • 5.4.5.3 United Arab Emirates
    • 5.4.5.4 Rest of Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Ranking Analysis
  • 6.4 Company Profiles (Includes Company Highlights, Strategic Information, Core Segments, Financials, Products & Services, Recent Developments)
    • 6.4.1 ITO EN, Ltd.
    • 6.4.2 Suntory Holdings Limited
    • 6.4.3 Kirin Holdings Company, Limited
    • 6.4.4 Otsuka Pharmaceutical Co., Ltd.
    • 6.4.5 Sanei Kosan Co., Ltd.
    • 6.4.6 Harada Tea Processing Co., Ltd.
    • 6.4.7 JIN-DA CO., LTD.
    • 6.4.8 Dongsuh Foods Corporation
    • 6.4.9 Nikken Foods Co., Ltd.
    • 6.4.10 Ten Ren Tea Company, Ltd.
    • 6.4.11 Hakubaku Co., Ltd.
    • 6.4.12 Odani Kokufun Co., Ltd.
    • 6.4.13 The Canadian Barley Tea Company
    • 6.4.14 New Mexico Tea Company
    • 6.4.15 The Republic of Tea, Inc.
    • 6.4.16 Sugimoto Tea Company
    • 6.4.17 Pokka Sapporo Food & Beverage Ltd.
    • 6.4.18 Lotte Corporation
    • 6.4.19 Kikkoman Corporation
    • 6.4.20 Uni-President Enterprises Corporation

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

Global Barley Tea Market Report Scope

Barley tea is a caffeine-free beverage made by roasting and brewing barley grains (Hordeum vulgare) in hot or cold water. The barley tea market report is segmented by product type, form, distribution channel, and geography. By product type, the market is segmented into roasted barley tea, flavored barley tea and others. By form, the market is segmented into loose-leaf, tea bags, and others. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. The market sizing has been done in value terms in USD for all the above mentioned segments.

By Product Type
Roasted Barley Tea
Flavored Barley Tea
Other Product Types
By Form
Loose
Tea Bags
Others
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Online Retail Stores
Other Distribution Channels
By Geography
North America United States
Canada
Mexico
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Vietnam
Indonesia
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
By Product Type Roasted Barley Tea
Flavored Barley Tea
Other Product Types
By Form Loose
Tea Bags
Others
By Distribution Channel Supermarkets/Hypermarkets
Convenience Stores
Online Retail Stores
Other Distribution Channels
By Geography North America United States
Canada
Mexico
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Vietnam
Indonesia
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa

Key Questions Answered in the Report

What is the forecast growth rate for barley tea?

The Barley Tea Market is forecast to grow at a 5.54% CAGR from 2026 to 2031, increasing from USD 1.13 billion in 2026 to USD 1.48 billion by 2031.

Which barley tea product type leads sales?

Roasted barley tea led with a 55.18% share in 2025, supported by its established role in daily hydration across Japan, South Korea, and China.

Which form of barley tea is growing fastest?

Loose barley tea is forecast to grow at a 6.63% CAGR through 2031, supported by specialty retail and premium sourcing narratives.

Which sales channel has the highest growth potential?

Online retail stores are projected to grow at a 7.12% CAGR through 2031 because they improve access for imported and specialty products.

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