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Global Tea Trends 2025, Forecast To 2034

12 Mar, 2025

What Has Been the Growth of the Tea Market So Far?

The tea market has seen considerable growth due to a variety of factors.
• In recent times, the size of the tea market has significantly expanded. This market is projected to grow from a worth of $55.67 billion in 2024 to $59.23 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 6.4%.
The dynamism experienced in the past era is attributable to factors like cultural relevance, wellness fads, globalization and diversification, a lift in available incomes, and concerted marketing endeavors.

What Are The Predictions for The Tea Market Size In The Coming Years?

The tea market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the tea market, with a predicted significant increase in size over the next few years. By 2029, it's projected to expand to a value of $75.5 billion, growing at a compound annual growth rate (CAGR) of 6.3%.
This forecasted growth can be connected to several factors including the rise of premium and specialty teas, teas with health-boosting properties, sustainability in sourcing, and innovative tea formats. E-commerce and direct-to-consumer channels are also driving this expansion. Upcoming trends set to occur during the predicted period are the exploration of culinary uses for tea, improved packaging and presentation, growing popularity of tea subscription services, use of technology in tea retail, and an increased interest in cultural and region-specific teas.

What Are The Leading Drivers Of Growth In The Tea Market?

The tea market's future growth is anticipated to be driven by the increasing popularity of herbal tea. Herbal tea, a caffeine-free beverage, encompasses a variety of dried herbs and spices and is made by steeping leaves from various plants. The benefits of this type of tea extend to a range of areas, from reducing inflammation and stress levels to enhancing immunity. It also complements a healthy diet. Canada Statistics, a government agency in Canada, published data in October 2022 revealing that the projected retail value sales of fruit or herbal tea for the same year were $144.1 million. This figure is expected to nearly double, reaching $286.1 million by 2026. Consequently, the escalating demand for herbal tea is fuelling the expansion of the tea market.

What Are The Core Segments Of The Globa Tea Market?

The tea market covered in this report is segmented –
1) By Type: Green Tea, Black Tea, Oolong Tea, Fruit Or Herbal Tea, Other Types
2) By Packaging: Plastic Containers, Loose Tea, Paper Boards, Aluminum Tins, Tea Bags
3) By Distribution Channel: Super markets Or Hyper markets, Special Stores, Convenience Stores, Online Stores, Other Distribution Channels
4) By Application: Residential, Commercial Subsegments:
1) By Green Tea: Loose Leaf Green Tea, Bagged Green Tea, Matcha
2) By Black Tea: Loose Leaf Black Tea, Bagged Black Tea, Flavored Black Tea
3) By Oolong Tea: Loose Leaf Oolong Tea, Bagged Oolong Tea
4) By Fruit Or Herbal Tea: Fruit Blends, Herbal Blends, Caffeine-Free Options
5) By Other Types: White Tea, Pu-erh Tea, Rooibos Tea, Specialty Teas

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Which Emerging Trends Are Reshaping The Tea Market?

Leading businesses in the tea market are concentrating their efforts on generating fresh product innovations such as specialty iced teas in order to consolidate their market position. Specialty iced teas are specially crafted tea blends meant to be consumed cold over ice. These types of teas typically offer invigorating and fruity flavors, prepared with an assortment of ingredients like fruits, herbs, and spices. For example, in September 2022, Honest Tea Inc., an organic tea and beverages enterprise based in the US, launched a specialty iced tea called ‘Just Ice Tea’. With a ready-to-drink organic iced tea, Just Ice Tea aims to advocate for ‘Justice’ by adhering to Fair Trade premiums and workplace standards that pertain to a range of environmental and working conditions. The company is committed to environmental conservation through its organic accreditation, which precludes the use of artificial pesticides, herbicides, insecticides, and fertilizers.

Who Are the Key Players in the Tea Market?

Major companies operating in the tea market include:
• Nestlé S.A.
• Unilever PLC
• Associated British Foods plc
• ITO EN Ltd.
• Hain Celestial Group Inc.
• Godrej Consumer Products Limited
• Tata Global Beverages Limited
• Twinings of London Ltd.
• McLeod Russel India Limited
• Tazo Tea Company
• RC Bigelow Inc.
• DavidsTea Inc.
• Yorkshire Tea Ltd.
• Barry's Tea Limited
• Traditional Medicinals LLC
• Rishi Tea & Botanicals
• Celestial Seasonings Inc.
• Harney & Sons Fine Teas
• The Republic of Tea Inc.
• Dilmah Ceylon Tea Company PLC
• Apeejay Surrendra Group Limited
• Typhoo Group Limited
• M.M. Ispahani Limited
• The Jasmine Pearl Tea Company
• Mighty Leaf Tea
• The Tea Spot
• Big Heart Tea Company
• Taetea Group Co Ltd.
• Numi Organic Tea

What are the Regional Insights into the Tea Market?

Asia-Pacific was the largest region in the tea market in 2024. Europe is expected to be the fastest-growing region in the global tea market report during the forecast period. The regions covered in the tea market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.