Tea Market Size to Reach USD 202.44 Billion by 2030 as Wellness, Organic Labels, and Specialty Tea Cultures Gain Momentum

Introduction: Global Tea Market Outlook 2025-2030

The global tea market continues to show steady progress, supported by rising awareness of tea's wellness benefits, expanding premium categories, and higher adoption of online retail. According to forecast estimates, the market, valued at USD 150.32 billion in 2025, is expected to reach USD 202.44 billion by 2030, advancing at a 6.13% CAGR. This growth reflects the shift toward natural beverages, stronger demand for green and herbal teas, and broad acceptance of specialty tea formats across retail and foodservice sectors.

Tea's popularity is rooted in its affordability, versatility, and cultural relevance. Today, its presence is expanding across both traditional markets and newer consumer groups, including Gen Z, wellness-oriented shoppers, and premium tea enthusiasts. From single-origin leaves and organic certifications to ready-to-drink innovations, the tea market is evolving to meet changing tastes without losing its heritage appeal.

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Key Trends Driving the Global Tea Market

Rising Interest in Green, Herbal & Functional Teas

Consumers are steadily moving toward teas known for wellness attributes, especially green and herbal blends. The shift is largely influenced by health awareness, a preference for antioxidants, and growing encouragement from healthcare bodies promoting such beverages as part of lifestyle improvement. Herbal teas, infused with ginger, chamomile, hibiscus, turmeric, and similar botanicals, are seeing growing popularity thanks to their caffeine-free profile and perceived functional benefits such as digestive support or relaxation.

Growth of Sustainable and Ethical Tea Labels

Sustainability is now a major consideration in tea purchasing decisions. Countries with large tea-growing landscapes are encouraging organic farming, fair-trade certification, and cleaner production methods. These initiatives support stronger consumer trust and align with the increasing demand for ethically sourced and environmentally responsible products. This trend continues to influence packaging improvements as well, especially lightweight and recyclable formats.

Urban Specialty Tea Cafés Fueling Premiumization

Urban centers across the world are experiencing rapid expansion of specialty tea cafés. These spaces offer curated menus ranging from matcha and oolong to artisanal blends and cold-brew teas. Beyond product variety, these cafés serve as lifestyle destinations where consumers explore tea through modern experiences, creative brewing styles, and café culture. Younger audiences are key drivers of this trend as they seek beverages that fit both their wellness goals and social preferences.

Growing Preference for Low-Caffeine & Decaffeinated Tea Among Gen Z

A meaningful shift is taking place among younger consumers who increasingly choose low-caffeine or caffeine-free teas. Blends that promote calmness, better sleep, and daily wellness are gaining traction, especially those featuring botanicals like peppermint, lavender, and hibiscus. Ready-to-drink low-caffeine teas are also gaining visibility due to their convenience and balanced flavor profiles.

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Market Segmentation Analysis

By Form

- CTC Tea continues to dominate due to cost efficiency and suitability for mass consumption and teabag formats.
- Leaf Tea is gaining momentum, supported by premiumization, better quality perception, and rising interest in whole-leaf and artisan blends.

By Product Type

- Black Tea remains the largest contributor, driven by cultural relevance in Asia, the UK, and parts of Africa.
- Green Tea, Herbal Tea & Fruit Infusions are recording higher growth rates as consumers embrace plant-based wellness beverages.

By Category

- Conventional Tea leads the category thanks to affordability and widespread availability.
- Organic Tea is expanding strongly, boosted by clean-label preferences and rising interest in chemical-free farming.

By Flavoring

- Unflavored Teas hold the majority share due to their natural profile and compatibility with traditional tea rituals.
- Flavored Teas are gaining appeal among younger consumers looking for fruity, floral, and innovative blends.

By Packaging

- Box Packaging remains dominant due to its durability, appeal, and suitability for premium presentation.
- Pouches are growing quickly as brands adopt lightweight, flexible, and more sustainable solutions.

By Distribution Channel

- Off-Trade (Supermarkets, Hypermarkets, Grocery, Online Retail) leads due to convenience and growing e-commerce integration.
- On-Trade (Cafés, Restaurants, Specialty Tea Bars) is expanding faster, strongly influenced by urban café culture.
Key Players Shaping the Global Tea Market

The competitive landscape includes multinational corporations, regional producers, and emerging specialty brands. Companies are strengthening their presence through expansion of organic ranges, portfolio diversification, vertical integration, and targeted marketing. Larger players are focusing on quality control, secure sourcing, and product expansions into functional teas, wellness blends, and ready-to-drink formats.

Leading companies in the global tea market include:

Associated British Foods plc
Tata Consumer Products Ltd.
ITO En, Ltd.
The Hain Celestial Group
PepsiCo, Inc.

These companies continue to invest in new flavors, lifestyle-oriented packaging, and sustainability programs to meet evolving demand across mainstream and premium segments.

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Conclusion: Outlook for the Global Tea Market

The global tea market is entering a period of consistent growth driven by the rising shift toward wellness beverages, the popularity of premium and specialty leaves, and broader acceptance of organic and ethically sourced tea. While competition from coffee and sugary drinks presents limitations, tea's cultural relevance, diversity in flavors, and expanding café presence ensure its continued importance worldwide.

With expanding production in Asia-Pacific, growing café culture across cities, and wider e-commerce access, the global tea market is well positioned to strengthen its footprint through 2030. Brands that prioritize authenticity, sustainability, and consumer-centric innovation will be best placed to thrive in the evolving tea landscape.

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