The global tea market was valued at around *** billion U.S. dollars in 2025, and is expected to rise to *** billion dollars by 2030. Tea has a long history of popularity worldwide. It is thought to have originated in China, with records of its use dating back to the 3rd century AD. Originally used as a medicinal beverage, the drink was popularized for recreational use during the Tang dynasty and spread to other Asian countries. After European traders brought the leaves back to Europe in the 16th century, its popularity spread in the West as well. Production Today, ***** is still the leader in tea production. The country produced over *** million metric tons of it in 2023. Other large producers are India and Kenya. These regions are hospitable to Camellia sinensis, the plant used to produce tea, which needs a tropical or subtropical climate. Consumption While Pakistan and the United States are the ******* importer of tea worldwide, buying over *** billion dollars’ worth in 2024, it is the citizens of Turkey who are most fond of the beverage. In 2016, the average Turkish person consumed nearly ***** pounds of tea during the year.

According to Cognitive Market Research, the global High-End Tea market size will be USD 126841.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 12.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 50736.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 38052.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 29173.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 6342.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2536.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2031.
The Green Tea Type held the highest High-End Tea market revenue share in 2024.

Market Dynamics of High-End Tea Market

Key Drivers for High-End Tea Market

Growing Health Consciousness to Increase the Demand Globally: The tea market is experiencing a notable rise in demand due to increasing awareness of the health benefits associated with tea consumption, particularly green tea and herbal infusions. Consumers are increasingly choosing tea varieties known for their medicinal properties and antioxidants. In 2021, Americans consumed nearly 85 billion servings of tea, equivalent to over 3.9 billion gallons. Black tea accounted for 84% of total consumption, while green tea made up 15%, with oolong, white, and dark teas comprising the remainder. U.S. imports of black and green tea in 2021 are estimated at 240 million pounds, marking a 6% increase from 2020. According to the Tea Board of India, green tea production in India has steadily risen, reaching approximately 150 million kilograms in recent years. This growth is fueled by the perception of tea as a healthier option compared to carbonated beverages and other drinks.

Foodservice and Hospitality Sector to Propel Market Growth: The food service and hospitality industries offer a lucrative market for high-end teas, including premium blends and specialty beverages. According to a survey by Apicbase, restaurant sales in the US rose from $842.3 million in 2021 to $974.9 million in 2022, reaching $1,087 million in 2023. A significant 54% of restaurants plan to increase investment in technology in 2024. Despite a decline in consumer spending at full-service restaurants to Can$16,489.6 million in 2020 and Can$21,157.7 million in 2021 due to the pandemic, spending rebounded to Can$25,913.7 million in 2022, surpassing the pre-pandemic 2019 level of Can$25,812.1 million. Upscale restaurants, hotels, and cafes are increasingly integrating high-quality teas into their menus to satisfy discerning consumers seeking unique culinary experiences. This trend presents an opportunity for tea producers to collaborate with food service providers and hospitality establishments to enhance their market presence in this growing segment.

Restraint Factor for the High-End Tea Market

Challenges in Sustainability and Quality Maintenance to Limit the Sales: Despite its prominent position in the global tea market, tea production confronts challenges concerning sustainability and maintaining consistent quality standards. Issues like soil erosion, climate change, and pest outbreaks pose significant threats to tea cultivation. Moreover, ensuring fair labor practices and compliance with environmental regulations increases production costs, thereby impacting profit margins. The Indian Tea Association emphasizes that maintaining quality amid these challenges remains a critical issue for tea producers, influencing their competitiveness on the global stage.

Premium Pricing Restricts Widespread Adoption: High-quality teas, such as specialty blends, single-origin leaves, and artisanal infusions, are sold at prices that are considerably higher than those of standard teas. This premium strategy limits their availability to a specific consumer group, especially in developing markets where price sensitivity is prevalent and tea is prima...

Tea Market was valued at $70.83 billion in 2023, and is predicted to reach $104.21 billion by 2030, with a CAGR of 5.7% from 2024 to 2030.

The statistic shows the wholesale tea value in the United States from 1990 to 2022. U.S. wholesale tea sales amounted to approximately 1.84 billion U.S. dollars in 1990 and increased to about 13.6 billion U.S. dollars in 2022.

The Tea Market Report is Segmented by Form (Leaf Tea and CTC Leaf), Product Type (Black Tea, Green Tea, and More), Category (Conventional and Organic), Flavoring (Unflavored and Flavored), Packaging Type (Box, Bag, Pouch, and More), Distribution Channel (On-Trade and Off-Trade), and Geography (North America, Europe, Asia-Pacific, South America, and More). The Market Forecasts are Provided in Terms of Value (USD).

The global herbal tea market size reached USD 4.58 Billion in 2025. The industry is further expected to grow at a growth rate of 7.5% over the forecast period.

Semi-Annual Industry Update

Particular	Value CAGR
H1 (2024 to 2034)	7.2%
H2 (2024 to 2034)	7.5%
H1 (2025 to 2035)	7.3%
H2 (2025 to 2035)	7.6%

Country-wise Insights

Countries	CAGR (2025 to 2035)
The USA	4.4%
China	7.3%
Japan	3.3%
Germany	5.67%
Australia	4.3%

Segment-wise Analysis

Segment	Value Share (2025)
Green Herbal Tea (By Raw Material)	35%

Segment	Value Share (2025)
Herbal Tea Bags (By Packaging Type )	45%

Competitive Outlook

Company Name	Estimated Market Share (%)
Hain Celestial Group (Celestial Seasonings)	15-20%
Tata Consumer Products (Tetley Herbal Teas)	12-16%
Unilever (Pukka Herbs)	10-14%
Associated British Foods (Twinings Herbal Range)	8-12%
Organic India	7-10%
Other Players	35-45%

According to Cognitive Market Research, the global Tea Market was valued at approximately USD XX billion in 2025 and is expected to grow to USD XX billion by 2031, expanding at a CAGR of XX% during the forecast period.

North America held largest share of XX% in the year 2025. Europe held share of XX% in the year 2025. Asia-Pacific held significant share of XX% in the year 2025. South America held significant share of XX% in the year 2025. Middle East and Africa held significant share of XX% in the year 2025.

Market Dynamics in the Tea Market

key Drivers For Tea Market

Growing health and wellness trends to drive demand for tea

Wellness tea products, particularly those with functional benefits, experienced a major surge in demand during the global COVID-19 pandemic, as well as tea in general for health benefits and self-care. More people are turning to tea over other beverages not just for its soothing qualities but also for its targeted health benefits such as immunity support, stress relief and improved digestive health. This also led to an explosion of wellness focused tea blends, prepared or infused with natural ingredients like turmeric, chamomile and ginger.

Among the wellness flavor teas, green tea is the most popular due to its health benefits. Green tea’s rich content of antioxidants, particularly epigallocatechin gallate EGCG (epigallocatechin gallate), has gained recognition for its potential to combat free radicals and reduce oxidative stress. Additionally, it also has the potential to reduce the risk of chronic diseases, improve brain function, aid in weight loss, and promote heart health. The rise in awareness of such ingredients and their benefits has contributed to its appeal in the market.

Increasing demand for premium and specialty teas in driving market growth

The global tea market is undergoing transformation, majorly influenced by shifting consumer preferences, innovation and changing lifestyles. There is a growing demand for high-quality, specialty teas like single-origin, organic and artisanal blends. Consumers are willing to pay more for teas that are perceived as premium, often prioritizing ethical sourcing, sustainability and unique flavor profiles. With this trend, there is also a rise in specialty and premium tea shops and brands with formats like cold brew and infusion concentrates gaining popularity. Factors driving premiumization are health and wellness trends, unique taste and experience and sustainable and ethical practices. Global giants and local players alike are gradually expanding into premium segment Key players in the premium tea segment include Twinings, Harney & Sons, Tea Forté, and The Republic of Tea.

key Restraint For Tea Market

Price volatility poses a challenge for growth

The global tea market faces price volatility with restraints stemming from fluctuating raw material costs supply chain disruptions and economic pressures. Fluctuations in weather conditions, labor costs and transportation costs directly impact raw material costs, contributing to tea price volatility. Events like the COVID-19 pandemic and labor shortages have disrupted global supply chains, leading to further price fluctuations in the market. Price volatility in the global tea market creates challenges for producers, consumers and the industry as a whole, by impacting input costs, profit margins, demand and supply chains. This required producers to navigate a dynamic and often unpredictable environment.

key Trend For Tea Market

The tea market is experiencing rapid expansion due to sustainability and health-conscious innovation.

With functional and adaptogenic blends (such as CBD-infused, turmeric-ginger, and nootropic teas) growing in popularity among health-conscious customers, the global tea industry is brewing a wellness revolution. With single-origin, artisanal teas and aged/fermented varieties (like pu-erh) attracting connoisseurs, premiumization is on the increase.

The demand for biodegradable tea bags free of plastic, regenerative farming methods, and carbon-neutral supply chains is driven by sustainability. Ready-to-drink (RTD) cold teas, particularly those with low sugar, probiotics, and fizz, are becoming increasingly popular in convenient channels. Introduction to the Tea Market

Tea is an aromatic beverage prepared by pouring hot or boiling water over cured or fresh leave...

The US Ready to Drink Tea Market is segmented by Soft Drink Type (Green Tea, Herbal Tea, Iced Tea), by Packaging Type (Aseptic packages, Glass Bottles, Metal Can, PET Bottles) and by Distribution Channel (Off-trade, On-trade). Market Value in USD and Volume in Liters are both presented. Key data points observed include market segmental split by soft drink category, packaging type, distribution channel, and region

The tea market attained a value of USD 56.11 Billion in 2024. The industry is expected to grow at a CAGR of 6.20% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 102.40 Billion.

The convenience of ready-to-drink (RTD) beverages and cold brews is driving the growth of the tea market to meet modern consumer demands for quick, portable, and refreshing options. RTD teas are pre-brewed and bottled, making them ideal for busy lifestyles. Cold brews offer a smoother and less bitter flavour profile and are increasingly available in health-conscious formats. Popular among Millennials and Gen Z, these beverages are gaining traction in supermarkets, convenience stores, and vending machines. For instance, in March 2025, 7 Eleven launched Southland Reserve™, a collaborative cold brew tea line with AriZona in four flavours in the United States.

Digital commerce and subscription services are transforming the tea demand growth by offering consumers convenient, personalized access to a wide variety of teas. Through online platforms, brands can directly reach global customers, bypassing traditional retail limits and allowing for tailored experiences. Subscription models build customer loyalty by providing regular shipments of new or favourite blends, encouraging trial and repeat purchases. In July 2024, Fortnum & Mason launched its new tea subscription to deliver monthly loose-leaf blends with personalized mugs and accessories, enhancing luxury and convenience. These strategies increase market reach, improve customer retention, and drive sustained market growth.

Forecast: Tea Market Size Value Per Capita in Germany 2022 - 2026 Discover more data with ReportLinker!

The global Loose leaf Tea market is experiencing steady growth, driven by increasing consumer awareness of its health benefits, a rising preference for premium and artisanal beverages, and the expanding tea culture worldwide. Valued at $9461.57 Million in 2021, it is projected to reach $11484.4 Million by 2025 and a substantial $16919.9 Million by 2033, demonstrating a Compound Annual Growth Rate (CAGR) of 4.963% from 2021 to 2033. Loose leaf tea, known for its superior flavor, aroma, and health properties compared to tea bags, appeals to discerning consumers seeking an authentic tea experience. The market is trending towards specialty and single-origin teas, sustainable and ethical sourcing, and e-commerce penetration, despite challenges from intense competition and the convenience of tea bags.

Key strategic insights from our comprehensive analysis reveal:

The escalating consumer focus on health and wellness, coupled with the desire for natural and antioxidant-rich beverages, is a primary driver for the Loose leaf Tea market.

The increasing appreciation for premium, artisanal, and specialty tea varieties is a key trend shaping product innovation and consumer preferences.

The market faces challenges from the convenience of tea bags and intense competition from other beverage categories, necessitating a focus on differentiation and consumer education.

Global Loose leaf Tea Market Overview & Dynamics

The global Loose leaf Tea market focuses on tea leaves that are not pre-packaged into tea bags, allowing them to unfurl fully during brewing and release a richer flavor and aroma. This market encompasses a wide variety of tea types, including black, green, oolong, white, pu-erh, and herbal infusions, often differentiated by their origin, processing methods, and unique flavor profiles. Loose leaf tea is favored by tea connoisseurs and health-conscious consumers seeking a more authentic and beneficial tea experience.

Global Loose leaf Tea Market Drivers

Increasing Health Consciousness and Wellness Trends: Growing global awareness about the health benefits of tea, particularly its antioxidant properties and potential role in disease prevention, drives demand for loose leaf varieties perceived as higher quality.

Rising Preference for Premium and Artisanal Beverages: Consumers are increasingly seeking unique, high-quality, and authentic beverage experiences, leading to a growing appreciation for specialty and single-origin loose leaf teas with distinct flavor profiles.

Expanding Tea Culture and Rituals: The global spread of tea culture, including traditional brewing rituals and a focus on the sensory experience of tea, encourages consumers to explore and invest in loose leaf tea.

Global Loose leaf Tea Market Trends

Growth of Specialty and Single-Origin Teas: There is a strong trend towards specialty and single-origin loose leaf teas, with consumers showing increasing interest in the provenance, unique characteristics, and ethical sourcing of their tea.

Emphasis on Sustainable and Ethical Sourcing: Manufacturers are increasingly focusing on sustainable and fair trade practices in tea cultivation and processing, appealing to environmentally and socially conscious consumers.

E-commerce and Direct-to-Consumer (DTC) Sales: The market is witnessing significant growth through online retail platforms and direct-to-consumer (DTC) channels, allowing smaller tea purveyors and specialty brands to reach a wider global audience.

Global Loose leaf Tea Market Restraints

Convenience of Tea Bags: The widespread availability and convenience of tea bags, which offer quick and easy brewing, pose a significant competitive restraint for loose leaf tea, particularly for busy consumers.

Higher Price Point for Premium Varieties: High-quality and specialty loose leaf teas often come with a higher price tag compared to conventional tea bags, which can be a barrier for budget-conscious consumers.

Perceived Complexity of Preparation: Some consumers may perceive the preparation of loose leaf tea (e.g., measuring, steeping time, filtering) as more complex or time-consuming than using tea bags, hindering broader adoption.

Strategic Recommendations for Manufacturers

To capitalize on market opportunities and mitigate restraints, manufacturers of Loose leaf Tea should strategically focus on:

Innovate in Specialty and Unique Offerings: Invest in sourcing and marketing rare, single-origi...

Global Tea market size is expected to reach $69.68 billion by 2029 at 5.5%, segmented as by type, green tea, black tea, oolong tea, fruit or herbal tea, other types

The global herbal tea market size reached USD 3.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.4 Billion by 2033, exhibiting a growth rate (CAGR) of 5.67% during 2025-2033. The escalating consumer consciousness regarding health and wellness, the rising demand for organic and natural beverages due to their numerous health benefits, and easy product accessibility through numerous retail channels are some of the major factors propelling the market.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 3.9 Billion
Market Forecast in 2033	USD 6.4 Billion
Market Growth Rate 2025-2033	5.67%

IMARC Group provides an analysis of the key trends in each segment of the global herbal tea market, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, raw material, packaging, and distribution channels.

The demand for Iced Tea market is expected to be valued at USD 7.16 Billion in 2025, forecasted at a CAGR of 6.0%to have an estimated value of USD 12.82 Billion from 2025 to 2035. From 2020 to 2025 a CAGR of 5.4% was registered for the market.

Attributes	Description
Estimated Global Industry Size (2025E)	USD 7.16 Billion
Projected Global Industry Value (2035F)	USD 12.82 Billion
Value-based CAGR (2025 to 2035)	6.0%

Country wise Insights

Countries	CAGR, 2025 to 2035
United States	4.2%
Germany	5.7%
China	7.2%

Category-wise Insights

Segment	Value Share (2025)
Powdered Mixes (Format)	43%

Segment	Value Share (2025)
Retail (End Use)	53%

Tea Market Size Value in the UK, 2021 Discover more data with ReportLinker!

Tea Market was valued at USD 60.7 Billion in 2024 and is projected to reach USD 91.28 Billion by 2031, growing at a CAGR of 5.77% during the forecast period 2024-2031.

Tea Market: Definition/ Overview The tea refers to the global industry that encompasses the production, distribution, and consumption of various types of tea, including black, green, oolong, white, herbal, and specialty teas. Tea is one of the most widely consumed beverages globally, valued for its versatility, health benefits, and cultural significance. It is available in multiple forms, including loose leaves, tea bags, instant powders, and ready-to-drink variants. Tea is consumed across households, hotels, cafes, and restaurants for its refreshing taste and energy-boosting properties. Traditional consumption, tea is increasingly used in cosmetic and skin care products for its antioxidant properties, health supplements, and confectionery and food products like iced teas, tea-flavored snacks, and beverages. The tea is expected to grow steadily, driven by rising health consciousness, consumer preferences for organic and herbal teas, and innovations such as ready-to-drink teas. Increasing demand for sustainable and eco-friendly packaging and expanding e-commerce channels will further shape the future of the market. With growing popularity in emerging markets like India and China, the tea industry is projected to evolve with new blends, functional teas, and health-focused products.

Forecast: Tea Market Size Value in Germany 2022 - 2026 Discover more data with ReportLinker!

The global tea market was valued at USD 17.24 Billion in 2024 and is expected to reach USD 24.18 Billion by 2030 with a CAGR of 5.8%

Pages	110
Market Size	2024: USD 17.24 Billion
Forecast Market Size	2030: USD 24.18 Billion
CAGR	2025-2030: 5.8%
Fastest Growing Segment	Herbal Tea
Largest Market	Asia Pacific
Key Players	1 Ito En, Ltd. 2 Associated British Foods plc (Twinings) 3 The Republic of Tea, Inc. 4 Barry's Tea Limited 5 Hain Celestial Group, Inc. 6 Unilever plc 7 Tata Consumer Products Limited 8 Nestlé S.A. 9 Harney & Sons Tea Corp. 10 Bettys & Taylors of Harrogate Ltd

Snapshot img

US Foodservice Tea Market Size 2025-2029

The US foodservice tea market size is forecast to increase by USD 3.86 billion at a CAGR of 4.8% between 2024 and 2029. The increasing demand for mobile foodservice is fueling market growth.

Major Market Trends & Insights

Based on the Distribution Channel, the full-service restaurants segment led the market and was valued at USD 6.57 billion of the global revenue in 2023.
Based on the Product, the black tea segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

2024 Market Size: USD 14.74 Billion
Future Opportunities: USD 3.86 Billion
CAGR (2024-2029): 4.8%

Consumers' busy lifestyles have led to an increase in demand for convenient food and beverage options, including tea, in the foodservice sector. The premiumization trend is gaining traction in the tea market. Consumers are willing to pay a premium for functional tea products that offer unique flavors, health benefits, and sustainable sourcing. Lastly, the tea market faces a challenge due to the negative impact of overconsumption of tea. Excessive caffeine intake can lead to health concerns, potentially limiting the market's growth. Despite this challenge, companies can capitalize on the market's opportunities by focusing on innovation, sustainability, and catering to consumers' evolving preferences. By offering high-quality, functional tea products that cater to the growing demand for convenience and premiumization, companies can differentiate themselves and thrive in the competitive Foodservice Tea Market in the US.

What will be the size of the US Foodservice Tea Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The foodservice tea market in the US continues to evolve, with a focus on enhancing customer experience through improved tea quality and aroma compounds. Tea bag biodegradability and energy-efficient brewing are gaining traction, as sustainability and efficiency become key priorities. According to market research, the tea industry is projected to grow by 3% annually, driven by increasing consumer demand for antioxidant-rich beverages and innovative foodservice tea solutions. For instance, a major foodservice provider reported a 15% increase in tea sales after implementing optimal temperature brewing methods and tea portion control. Additionally, water filtration systems, tea composting methods, and tea waste recycling are emerging trends aimed at reducing waste and improving sustainability. The limited-service restaurants segment is the second largest segment of the distribution channel and was valued at USD 2.82 billion in 2022.
Employee beverage training and tea inventory control are essential components of effective tea order fulfillment, ensuring consistency in taste and quality. Tea menu design, pricing models, flavor stability, and tea marketing strategies are also critical areas of focus for foodservice operators.

How is this US Foodservice Tea Market segmented?

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

  Full-service restaurants
  Limited-service restaurants
  Others


Product

  Black tea
  Green tea
  Others


Application

  Iced tea
  Hot tea
  Blended Drinks


Format

  Loose Leaf Tea
  Tea Bags
  Ready-to-Drink (RTD) Tea
  Instant Tea Mixes


Geography

  North America

    US

By Distribution Channel Insights

The full-service restaurants segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 6.57 billion in 2022. It continued to the largest segment at a CAGR of 3.96%.

The foodservice tea market in the US has witnessed significant growth, driven by increasing consumer preferences for dining out and the expanding range of tea offerings in full-service restaurants. In 2023, the average US consumer spent over USD4,000 per capita on food consumed away from home, marking a 12% increase from the previous year. This trend signifies a shift in consumer behavior, with more people opting for dining experiences instead of preparing meals at home. Tea production, both iced and hot, has become a priority for foodservice establishments. Single-serve tea options cater to the convenience-driven consumer, while bulk tea purchasing ensures inventory management efficiency.

Tea quality assessment is crucial, with customers increasingly valuing premium and authentic tea flavors. Foodservice tea trends include herbal tea infusions, specialty tea offerings, and tea beverage dispensing systems. Tea service workflow optimization and employee training are essential to maintain custome

Global green tea market was valued at USD 15.85 Billion in 2024 and is expected to reach USD 22.23 Billion by 2030 with a CAGR of 5.8%

Pages	110
Market Size	2024: USD 15.85 Billion
Forecast Market Size	2030: USD 22.23 Billion
CAGR	2025-2030: 5.8%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Key Players	1. Associated British Foods plc 2. The Republic of Tea Inc. 3. Unilever plc 4. Tata Consumer Products Limited 5. The Bigelow Tea Company 6. East West Tea Company LLC 7. SHANGRI-LA TEA COMPANY INC. 8. Numi Inc. 9. Keurig Dr Pepper Inc 10. Teavana Corporation.