Tea Market - Growth, Trends, Forecasts (2023 - 2028)

The Tea Market is segmented by Form (Leaf Tea, and CTC Tea); Product type (Black Tea, Green Tea, Herbal Tea, and Other Product Types); Distribution Channel (Supermarkets/Hypermarkets, Specialist Retailers, Convenience Stores, and Other Distribution Channels); and Geography (North America, Europe, Asia-Pacific, South America, Middle East, and Africa). The report offers market size and values in (USD million) during the forecasted years for the above segments.

Tea Market Size

Tea Market Summary
Study Period: 2017-2027
Fastest Growing Market: Europe
Largest Market: Asia Pacific
CAGR: 5.7 %

Major Players

Tea Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Tea Market Analysis

The tea market is projected to witness a CAGR of 5.7% during the forecast period.

  • Health benefits associated with consuming tea and increased awareness related to carbonated drinks among people are some of the major factors boosting the demand for tea globally.​ The flavonoids, antioxidants, and phytochemicals present in tea help improve various functions of the human body. 
  • The increasing knowledge about the benefits of drinking tea for patients suffering from combat arthritis, cardiovascular diseases, and high blood pressure is likely to pave the way for the market’s growth in the coming years.​ Moreover, a rise in disposable income, a shift in the tastes of people, and the introduction of additional healthy ingredients in tea by different market players are the other factors that fuel the market growth.​
  • The introduction of specialty iced teas is likely to be one of the major trends that will gain traction in the tea market over the forecast period. Vendors are introducing specialty iced teas by customizing different blends.​ Additionally, the popularity of organic label and herbal teas is also rising owing to increasing popularity. This can be attributed to their health benefits and enhanced benefits of ingredients such as basil, tulsi, etc., shifting consumer preferences toward natural ingredients-based products. 
  • For instance, in 2021, the German Tea & Herbal Infusions Association reported a surge in sales of organic quality teas, herbal infusions, and fruit infusions, with 15.9% of teas sold bearing the organic label. Also, from 2020 to 2021, the percentage of organic herbal and fruit infusions rose by 10.4%, reflecting a shifting consumer preference. This, in turn, is boosting the overall market for tea globally.

Tea Industry Segmentation

This tea market accounts for tea beverages commonly prepared by pouring hot or boiling water over cured or fresh leaves of Camellia sinensis and other teas like black tea, green tea, and herbal tea. 

The tea market is segmented by form, product type, distribution channels, and geography. Based on form, the market studied is segmented into leaf tea and CTC tea. Based on product type, the market is segmented into black tea, green tea, herbal tea, and other product types. Whereas based on distribution channels, the market is segmented into supermarkets/ hypermarkets, specialist retailers, convenience stores, and other distribution channels. Based on Geography, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle-East & Africa. 

For each segment, the market sizing and forecasts have been done based on value (in USD million).

Leaf Tea
Other Forms
Product Type
Black Tea
Green Tea
Herbal Tea
Other Product Types
Distribution Channel
Specialist Retailers
Convenience Stores
Other Distribution Channels
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
South Africa
United Arab Emirates
Rest of Middle-East and Africa

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Tea Market Trends

This section covers the major market trends shaping the Tea Market according to our research experts:

Healthy Hydration is Propelling the Market Growth

  • Tea consumption is majorly driven by consumers’ search for new non-alcoholic beverages over fruit juices and carbonated drinks. Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates. 
  • Healthy hydration refers to the ability of tea to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee and other energy drinks. The organoleptic versatility associated with tea makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in North American and European markets.
  • The linkage between tea and its healthful properties remains strong in the market. The tea market is propelled due to its health-promoting profile, the variety of herbal variants, new pack sizes, and organic options. Tea has been projected as an all-natural and environment-friendly product from a renewable source. It is a refreshing beverage that contains no sodium or fat. 
  • The prime healthy hydration properties offered by any tea beverage prove its ability to maintain proper fluid balance in the body and its metabolism-regulating traits. Besides providing healthy hydration, tea can offer many other benefits that are expected to fetch sustainable sales globally.
Tea Market: Import of Green lea in Immediate Packings of 5 kg and more (in thousand USD), United States, 2017-2021

Strong Inclination Toward Tea in the Asian and Europe Regions

  • Health benefits associated with consuming tea and increasing awareness of the harmful effects of carbonated drinks among people are significant factors increasing the demand for tea in the Asia-Pacific region. The incresaing knowledge about the benefits of drinking tea for consumers with arthritis, cardiovascular diseases, and high blood pressure is likely to pave the way for market growth in the future. Black tea remains the most popular bottle, with green tea gaining popularity primarily due to the preferences of health-conscious consumers.
  • Europe has a generation disparity in tea consumption, where traditionalists associate tea with a ‘builders’ brew,’ while modern consumers see tea as a sensory experience with much more diversity. In the year 2021, according to the German Tea & Herbal Infusions Association, German tea consumption soared, with almost 95,000 cups consumed every minute here due to the growing demand for tea (Camellia sinensis), herbal infusions, and fruit infusions.
  •  In the meantime, the already high per capita consumption increased by 1.5 liters to 71.5 liters (61,954 tons) in 2021 from 70.0 liters in 2020. Furthermore, the European market is changing with consumer perception, and there is a growing preference for afternoon tea, a part of a social and celebratory experience. Therefore, these factors are increasing tea consumption in Asia and Europe.
Tea Market Size (%), Global, 2021

Tea Industry Overview

The global tea market is highly competitive, with strong competitors with a diversified product portfolio, leading to intense competition among the existing players. The leading players in the tea market enjoy a dominant presence across the region. Brand loyalty among consumers gives these companies an upper edge. The consumers in the market are craving new and innovative products to accommodate their personal life. Companies are constantly trying to offer consumers new and innovative launches that meet their demands to capitalize on this trend. Key players have intensely embarked on the industry consolidation by leveraging their distribution network, entering partnerships with local distributors, especially in emerging economies, and developing new products.

Tea Market Leaders

  1. Tata Group

  2. Associated British Foods plc

  3. RC Bigelow Inc

  4. Apeejay Surrendra Group

  5. Unilever plc

*Disclaimer: Major Players sorted in no particular order

Tea Market Concentration

Tea Market News

  • July 2022: CVC Capital Partners Fund VIII completed the purchase of Ekaterra, the tea business owned by Unilever. A cash-free, debt-free sale of Ekaterra was agreed upon between Unilever and CVC in November 2021 for EUR 4.5 billion (USD 4.83 billion).
  • June 2022: The UK-based Clipper Tea Company expanded its product range in the United States with new packaging and flavors. The newly added flavors include organic earl grey black tea, organic orange & turmeric herbal tea, organic green tea & lemon, organic winter apple and cinnamon herbal tea, and organic winter berries herbal tea.
  • September 2022: As part of its entry into the premium tea category, Dabur India introduced a new premium black tea category under the health supplements section of the market called Dabur Vedic Tea. This is a premium category of black tea.

Tea Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Form

      1. 5.1.1 Leaf Tea

      2. 5.1.2 CTC Tea

      3. 5.1.3 Other Forms

    2. 5.2 Product Type

      1. 5.2.1 Black Tea

      2. 5.2.2 Green Tea

      3. 5.2.3 Herbal Tea

      4. 5.2.4 Other Product Types

    3. 5.3 Distribution Channel

      1. 5.3.1 Supermarkets/Hypermarkets

      2. 5.3.2 Specialist Retailers

      3. 5.3.3 Convenience Stores

      4. 5.3.4 Other Distribution Channels

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.4.2 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Spain

        5. Italy

        6. Russia

        7. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.4.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. South Africa

        2. United Arab Emirates

        3. Rest of Middle-East and Africa


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Tata Group (Tata Tea, Tetley, Good Earth, Teapigs, Vitax, and Joekels)

      2. 6.3.2 Associated British Foods PLC (Twinings)

      3. 6.3.3 RC Bigelow Inc. (Bigelow Tea)

      4. 6.3.4 Apeejay Surrendra Group (Apeejay Tea and Typhoo India Tea)

      5. 6.3.5 Yogi Tea (Yogi Tea)

      6. 6.3.6 Hain Celestial Group (Celestial Seasonings)

      7. 6.3.7 Bettys & Taylors of Harrogate Limited (Taylors of Harrogate, Bettys, and Yorkshire Tea)

      8. 6.3.8 Reily Foods Company (Luzianne)

      9. 6.3.9 Ekaterra Company (Lipton Tea, Red Label, PG Tips, TAZO, Pukka Herbs, and T2)

      10. 6.3.10 Dabur India Limited (Dabur Tea)

      11. 6.3.11 Clipper Tea Company (Clipper Tea)

    4. *List Not Exhaustive

**Subject to Availability
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Tea Market Research FAQs

The Tea Market is studied from 2017 - 2027.

The Tea Market is growing at a CAGR of 5.7% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Tata Group, Associated British Foods plc, RC Bigelow Inc, Apeejay Surrendra Group, Unilever plc are the major companies operating in Tea Market.

Tea Industry Report

Statistics for the 2023 Tea market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tea analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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