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[224+ Pages Report] The India tea market size is expected to grow from USD 10.96 billion in 2023 to USD 15.74 billion by 2032, at a CAGR of 4.10% from 2024-2032

The India tea market attained a volume of 1.34 Million Tons in 2024. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2025-2034. By 2034, the market is expected to reach 2.08 Million Tons.

The rising preference for specialty and premium teas mostly amongst urban consumers is driving the India tea market expansion. Brands are coming up with high-end and responsibly sourced tea items for aligning with the evolving consumer preferences. This trend is supported by thriving disposable incomes as well as the growing middle-class population expenditure on quality. According to industry reports, the number of middle-class individuals in India is estimated to nearly double to 61% by 2046-2047, adding to the market growth.

Of late, consumers are increasingly opting for green, herbal, and organic teas due to perceived health benefits. In June 2024, Organic India’s Tulsi herb and its farming co-ops received the Regenerative Organic Certified label, highlighting its commitment to soil health, fair labour, and sustainable agriculture. This shift is attributable to the surging demand for functional teas containing ingredients.

The surging demand for ready-to-drink (RTD) teas is impacting the India tea market outlook, driven by urban millennials and Generation Z seeking convenience. To that end, several brands are introducing iced tea and other ready-to-consume formats to cater to this increasing segment. In June 2023, premium organic tea provider Vahdam India launched its new ICED TEAS range crafted with 100% real tea and available as instant premix and convenient pitcher tea bags. Such innovations are offering the younger consumers a delightful variety of flavours.

India Tea Market was valued at USD 11.72 Billion in 2024 and is expected to reach USD 15.12 Billion by 2030 with a CAGR of 4.34%.

The India premium tea market was estimated to attain a volume of 1.15 Million Tons in 2024. The market is expected to grow at a CAGR of 4.20% during the forecast period of 2025-2034 to reach a volume of 1.74 Million Tons by 2034. Rising consumer demand for wellness-oriented and functional tea blends is driving rapid growth in the market, boosting specialty offerings, exports, and innovative product development across B2B and retail categories.

The market is expanding rapidly, driven by rising consumer preference for high-quality, specialty teas. Urbanization, increasing disposable incomes, and health-conscious lifestyles are boosting demand for artisanal and single-origin teas. As per the India premium tea market analysis, India's tea exports saw a rise of 9.92% in 2024. Total exports reached 254.67 million kg, reflecting both domestic and global recognition. Cafés, luxury hotels, and online platforms are promoting curated tea experiences, enhancing market growth.

Government initiatives further support market development. For example, the Tea Board of India’s Plantation Development Scheme provides financial and technical support to estates for sustainable cultivation, improving quality and traceability, boosting demand in the India premium tea market. Meanwhile, the APEDA GI certification program safeguards Darjeeling, Assam, and Nilgiri teas, enhancing their premium positioning in international markets. Such measures ensure consistent production standards while helping B2B buyers source authentic, high-value teas.

Innovation is redefining the market landscape. Launches of cold-brew Assam teas, adaptogen-enriched blends, and organic certifications are creating new consumption trends. Additionally, premium ready-to-drink teas are gaining popularity among urban consumers. These developments combine heritage, health, and convenience.

One of the oldest organized sectors in India are tea and coffee. The global production has increased exponentially and the market size of the coffee and tea industry across the nation was around *** billion Indian rupees in 2017. Indian tea is amongst the finest in the world due to the heavy investments and innovations in the processing units and the care taken during harvest and processing owing to the importance the citizens give to chai in their everyday life. Spreading the beverage loveMain tea cultivation areas in the south Asian country are in Assam, Darjeeling and the Dooars region. Almost three-fourths of the produce is consumed locally within the nation. However, a lot of value is also generated through exports. The value of tea and coffee exports from India was over *** billion Indian rupees in fiscal year 2018. Coffee is also a popular commodity that is produced extensively in the country. The nation is the third largest producer of coffee in Asia followed by Vietnam and Indonesia. Italy is the highest importer of coffee from India and generated an export value of over *** billion Indian rupees in financial year 2018. The futureWith majority of the Indian population being between 18 to 46 years of age, the likeliness of these beverages being consumed at work or at the local ‘dhabas’ for a casual gathering remains relatively high. The erratic weather conditions and climate change might be key factors to consider if the nation of chai and filter coffee lovers want to have sufficient quantities for supply for both, the domestic and international markets.

After two years of decline, the Indian tea market increased by 0.1% to $23.3B in 2024. The market value increased at an average annual rate of +2.1% from 2012 to 2024; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. As a result, consumption reached the peak level of $24.1B. From 2022 to 2024, the growth of the market remained at a somewhat lower figure.

The revenue, at home is forecast to experience significant growth in all segments in 2025. As part of the positive trend, the revenue, at home reaches the maximum value for all two different segments at the end of the comparison period. Particularly noteworthy is the segment Tea, at home, which has the highest value of ***** billion U.S. dollars. The Statista Market Insights cover a broad range of additional markets.

Unlock data-backed intelligence on India Bubble Tea Market, size at USD 396 million in 2023, showcasing industry challenges and growth opportunities supported through key players.

India Bubble Tea Market was valued at USD 448.97 Million in 2024 and is expected to reach USD 725.25 Million by 2030 with a CAGR of 8.32% during the forecast period.

The Indian tea industry is anticipated to witness steady growth in the coming years. The market size, valued at million in 2029, is projected to expand at a CAGR of XX% during the forecast period. Rising disposable income, changing consumer preferences, and urbanization are key drivers fueling this growth. The increasing popularity of specialty teas and herbal infusions is also contributing to market expansion. Key trends shaping the Indian tea industry include the emergence of e-commerce platforms, which have facilitated convenient access to a wider range of teas. Additionally, the growing awareness of the health benefits associated with tea consumption is driving demand for premium and organic varieties. However, factors such as fluctuations in tea production and increasing competition from other beverages pose potential challenges to industry growth. Despite these restraints, the Indian tea industry is well-positioned to maintain its strong market presence and continue its growth trajectory in the years to come.

In India Green Tea Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision-making and business growth.

India Orthodox Tea Market was valued at USD 60.65 Million in 2024 and is expected to reach USD 80.58 Million by 2030 with a CAGR of 4.85%.

The organic tea market is expected to grow from USD 1,404.9 million in 2025 to USD 3,089.6 million by 2035, reflecting a CAGR of 9.6%. This robust growth is fueled by increasing consumer awareness around health and wellness.

Country wise Outlook

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Tea Market Size 2025-2029

The tea market size is valued to increase USD 19.9 billion, at a CAGR of 5.5% from 2024 to 2029. Functional benefits of tea increasing its growth will drive the tea market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 62% growth during the forecast period.
By Distribution Channel - Offline segment was valued at USD 44.80 billion in 2023
By Product - Black tea segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 49.47 billion
Market Future Opportunities: USD 19.90 billion
CAGR : 5.5%
APAC: Largest market in 2023

Market Summary

The market encompasses a vast and dynamic industry, marked by continuous evolution and innovation. Core technologies and applications, such as tea processing automation and functional tea blends, are driving growth in this sector. According to recent reports, functional tea beverages account for over 50% of the market share, reflecting consumers' increasing preference for health benefits. However, challenges persist, including the negative impact of overconsumption and the need for stringent regulations. For instance, the European Union's Food Information Regulation mandates clear labeling for tea products.
In 2020, the market witnessed numerous new product launches, with companies focusing on organic and sustainable offerings to cater to growing consumer demand. Despite these challenges, the market continues to unfold, offering ample opportunities for stakeholders to capitalize on emerging trends and consumer preferences.

What will be the Size of the Tea Market during the forecast period?

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How is the Tea Market Segmented and what are the key trends of market segmentation?

The tea industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Offline
  Online


Product

  Black tea
  Green tea
  Others


Form

  Leaf Tea
  CTC Tea
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The offline segment of the market holds a substantial share, with distribution and sales of functional tea products occurring through physical retail channels. Brick-and-mortar stores, supermarkets, specialty tea shops, and health food stores serve as the primary avenues for offline tea sales. Consumers prefer visiting these locations to engage in a tactile experience, interact with knowledgeable staff, and receive personalized recommendations. Currently, organic tea production represents a growing trend, with 30% of consumers expressing a preference for organic teas. Aroma compound identification is crucial for tea manufacturers to cater to this segment, as consumers seek authentic and high-quality tea experiences.

Theaflavin concentration levels, soil health indicators, and microbial community analysis are essential factors in organic tea production. Chemical composition analysis, flavor profile characterization, and disease resistance breeding are essential aspects of tea cultivation. Sustainable farming practices, integrated pest management, and fermentation process control contribute to maintaining quality and ensuring consistent product offerings. Soil nutrient management, sensory evaluation methods, and packaging material selection are crucial for tea manufacturers to meet consumer demands and maintain product freshness. Drying technology advancements, antioxidant capacity measurement, climate change adaptation, and irrigation system design are ongoing areas of innovation in the tea industry.

Byproduct value addition, soil erosion prevention, tea waste utilization, plant stress physiology, catechin analysis methods, and polyphenol content determination are essential for tea manufacturers to optimize their processes and improve yields. Harvesting and processing techniques, yield improvement strategies, and supply chain optimization are ongoing priorities for tea businesses. The market is expected to expand by 25% in the upcoming years, driven by increasing consumer awareness of tea's health benefits and the growing popularity of functional teas. The market's continuous evolution is characterized by advancements in cultivation techniques, processing technologies, and product offerings.

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The Offline segment was valued at USD 44.80 billion in 2019 and showed a gradual increase during the forecast period.

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The market size of tea amounted to about *** billion Indian rupees in 2017. This was specifically for the organized, branded tea market cross the country according to the source. There was consistent growth in the market since 2014. Unorganized retail dominated India with over ** percent of the market although the organized sector has seen significant growth in recent years.

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