Your ultimate guide to the India Tea Market, offering insights, growth trends, and accurate forecasts for 2025

[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 Indian tea market reduced modestly to $18.1B in 2024, falling by -1.9% against the previous year. The market value increased at an average annual rate of +1.9% over the period from 2012 to 2024; the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, consumption reached the peak level of $20.1B. From 2022 to 2024, the growth of the market remained at a lower figure.

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 420 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 love

Main 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 115 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 ten billion Indian rupees in financial year 2018.

The future

With 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.

The Indian tea market is a thriving industry deeply rooted in the country's culture. With a diverse range of teas produced, from classic black teas to specialty varieties like Darjeeling, Indian tea exports globally. Despite challenges, the industry remains resilient and continues to innovate, ensuring a bright future.

In fiscal year 2024, United Arab Emirates was the leading importer of tea from India, with an export value of about 11 billion Indian rupees. The second leading importer was Iraq, with an export value of more than seven billion Indian rupees. Tea exceeds coffee export Tea estates in India are in moderately humid and hot climatic conditions that are vital for crop yield and quality. Plantation crops such as tea and coffee mainly depend on rainfall for production. In the financial year 2021, Indian tea exports were higher than that of coffee. Tea-loving Indians India is not only the second-largest producer of tea in the world but also has the highest consumption of this hot beverage. Almost three-fourths of tea production is for domestic consumption. As of 2021, the consumption volume of tea in the country was more than one billion kilograms. Tea as a beverage is available in every region of the country, and informal tea vendors cater to most of the working population from daily wage workers to corporates.

Learn about the Indian tea market, its size, growth, and key factors that fuel its expansion. Discover the different segments and major players in this highly competitive industry and the opportunities it presents for both local and international companies.

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Tea Market Size 2025-2029

The tea market size is forecast to increase by USD 19.9 billion, at a CAGR of 5.5% between 2024 and 2029.

The market growth depends on factors such as the functional benefits of tea, which drive its growth by attracting consumers seeking health-conscious beverage options. It also depends on trends like new product launches, with companies introducing innovative tea varieties that offer additional health benefits.
However, the market faces challenges such as the negative impact of overconsumption of tea, which can lead to health issues like caffeine dependence and digestive problems. Despite these challenges, the market continues to grow, fueled by increasing demand for health-promoting and sustainable tea options.

What will be the Size of the Market During the Forecast Period?

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The Camellia Sinensis plant is the source of the popular beverage, tea. Tea is a staple in the food and beverage industry, is renowned for its health benefits. The plant is rich in Polyphenols, including antioxidants, which contribute to its antioxidant properties. Tea also contains essential minerals like Potassium, Manganese, Magnesium, and Calcium. The market is thriving, driven by the consumer base's increasing preference for organic tea and premium tea experiences. Ethical sourcing and sustainability are key factors influencing the market.
Tea production and consumption continue to rise, with innovations in packaging playing a significant role in maintaining the tea's freshness and quality. Moringa Hibiscus and Peppermint Refresh are among the many tea varieties offering unique health benefits, such as weight management and calming effects. The market is a significant export sector, with major tea-producing countries like India and China contributing significantly to global tea production and exports. The market is expected to continue growing, offering opportunities for businesses and consumers alike.

How is this market segmented and which is the largest segment?

The market 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

  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  South America

    Brazil


  Middle East and Africa

By Distribution Channel Insights

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

The market encompasses the distribution and sale of Camellia Sinensis plant-derived functional tea products through offline channels. These channels include brick-and-mortar stores, supermarkets, speciality tea shops, and health food stores. Consumers engage in person-to-person interactions, allowing for product sampling and knowledgeable staff assistance. Teas, such as green, black, and oolong tea, offer health benefits due to their polyphenols, caffeine, antioxidants, potassium, manganese, magnesium, and calcium content. Offline distribution contributes significantly to the food and beverage sector, with B2C enterprises catering to household spending.

Hot drinks remain a popular choice, leading to retail sales in convenience stores, hotels, restaurants, catering companies, cafés, and bars. Sustainability and ethical sourcing are essential considerations for premium tea experiences, attracting a growing consumer base. Organic tea is a significant market segment. Packaging options include plastic containers, paper packaging, and aluminum tin boxes, while tea bags are a convenient choice for consumers. The market continues to expand, with production data indicating a strong industry. Trade press covers industry trends and developments.

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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.

Regional Analysis

APAC is estimated to contribute 62% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region, known for its significant tea production and consumption, is expected to experience substantial growth in the market. China and India, as major manufacturers and exporters of green and black tea respectively, dominate the scene. Other key players include Japan, Sri Lanka, Vietnam, and Indonesia. The rise in tea consumption, driven by economic development and the exp

The organic tea market is expected to expand its roots at a steady CAGR of 8.0% during the forecast period. The market is likely to hold a revenue of US$ 1.24 billion in 2023 while it is anticipated to cross a value of US$ 2.69 billion by 2033.

Country-wise Insights

Category-wise Landscape

Tata Consumer Products Limited, formerly known as Tata Global Beverages had a market share of around 29.6 percent across India in 2016. This was about two percent for Twinings. Tata Tea is one of India's largest packaged tea brand.

Learn about the tea industry in India, the second largest tea producer in the world. Discover the process of tea cultivation and production, and the different types of tea produced in India, including black, green, white, oolong, and chai.

In 2020, shipments abroad of tea from India decreased by -20.6% owing to disruptions in supply chains during the pandemic.

Indian tea, also known as chai or masala chai, is a popular and integral part of Indian culture. It is a type of tea made by brewing black tea leaves with a mixture of aromatic Indian spices and herbs. The resulting drink is flavorful, aromatic, and enjoyed by millions of people across the country. Learn about the history, preparation, flavors, health benefits, and cultural significance of Indian tea.

Forecast: Mate and Tea Market Size Volume Per Capita in India 2022 - 2026 Discover more data with ReportLinker!

The market size of tea amounted to about 130 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 80 percent of the market although the organized sector has seen significant growth in recent years.

Indian tea, also known as chai, is a popular and culturally significant beverage in India. This article explores the history, variations, health benefits, and worldwide popularity of Indian tea, showcasing its unique blend of flavors, aromas, and spices that make it a cherished symbol of Indian hospitality and tradition.

204026 Global export shipment records of Indian Tea with prices, volume & current Buyer's suppliers relationships based on actual Global export trade database.

Learn about some of the leading Indian tea manufacturing companies and their contributions to the global tea industry. Discover how these companies ensure high-quality tea and meet diverse consumer demands in a competitive market.

The Asia-Pacific Tea Market is segmented By Form (Leaf Tea and CTC Tea), Product Type (Black tea, Green tea, Herbal tea, and Others), Distribution Channel (Supermarkets/Hypermarkets, Convenience/Grocery Stores, Specialty Stores, Online Retail Stores, and Other Distribution Channels) and Geography (China, Japan, India, Australia and Rest of Asia Pacific). The market size and forecasts in value (USD million) for all the above segments.

For the fourth year in a row, the Indian extracts of tea market recorded decline in sales value, which decreased by -2.5% to $476M in 2024. Overall, consumption continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak level of $581M. From 2015 to 2024, the growth of the market remained at a somewhat lower figure.