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).

According to Cognitive Market Research, the global High-End Tea market size was 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 primarily...

The tea market size 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.

Market Size & Forecast

• Market Size in 2024: USD 56.11 Billion
• Projected Market Size in 2034: USD 102.40 Billion
• CAGR from 2025 to 2034: 6.20%

According to Cognitive Market Research, the global herbal tea market size is USD 3691.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 4.30% 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 1476.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.5% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1107.36 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 848.98 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.
Latin America had a market share for more than 5% of the global revenue with a market size of USD 184.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.7% 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 73.82 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2031.
The single blend held the highest Herbal Tea market revenue share in 2024.

Market Dynamics of Herbal Tea Market

Key Drivers for Herbal Tea Market

Increasing Health Consciousness to Increase the Demand Globally

Increasing health consciousness is driving a significant surge in demand for herbal teas globally. As consumers become more mindful of their well-being, they seek natural, plant-based alternatives to traditional beverages laden with artificial additives and excessive sugars. Herbal teas, with their diverse array of botanical ingredients and perceived health benefits, perfectly align with this trend. Consumers are drawn to herbal teas for their potential to support various aspects of health, including digestion, stress reduction, immunity boosting, and overall wellness. This heightened awareness of the connection between diet and health is prompting individuals to incorporate herbal teas into their daily routines, whether as a soothing ritual or a functional beverage. As a result, the global market for herbal teas is experiencing robust growth, with manufacturers innovating to meet the evolving preferences of health-conscious consumers and capitalize on this expanding market opportunity.

Growing Preference for Natural Products to Propel Market Growth

The growing preference for natural products is a driving force behind the accelerated market growth of herbal teas. In an era marked by heightened awareness of health and environmental sustainability, consumers are increasingly drawn to products that offer clean-label formulations and minimal processing. Herbal teas, derived from a variety of botanical sources without artificial additives or preservatives, perfectly cater to this demand. As individuals seek out alternatives to conventional beverages laden with artificial flavors and sweeteners, herbal teas stand out as refreshing, wholesome options. The inherent association of herbal teas with nature and wellness resonates strongly with consumers who prioritize authenticity and purity in their consumption choices. Consequently, the market for herbal teas is witnessing significant expansion, propelled by the surging demand for natural, plant-based beverages that not only tantalize the taste buds but also align with values of health, sustainability, and authenticity.

Restraint Factor for the Herbal Tea Market

Seasonal variability to Limit the Sales

Seasonal variability poses a challenge to the sales of herbal teas, influencing both production and consumer demand. Certain herbs and botanical ingredients used in herbal teas may exhibit fluctuations in availability and quality due to seasonal changes in climate and growing conditions. This variability can impact the consistency of product formulations and supply chain management for manufacturers. Moreover, consumer preferences for hot or cold beverages may shift with the seasons, affecting the demand for herbal teas accordingly. For instance, sales of hot herbal teas may peak during colder months for their warming and comforting properties, while demand for iced herbal teas may rise in warmer weather for their refreshing qualities. However, fluctuations in weather patterns and seasonal transitions can disrupt these patterns, leading to challenges in predicting and meeting consumer demand throughout the...

The North America Tea Market Report is Segmented by Form (Leaf Tea, CTC Granular Tea, Ready-To-Drink Tea), Product Type (Black Tea, Green Tea, Herbal Tea, Others), Flavor Profile (Unflavored, Flavored), Packaging Type (Flexible, Rigid), Distribution Channel (On-Trade, Off-Trade), and Geography (United States, Canada, Mexico, Rest of North America). The Market Forecasts are Provided in Terms of Value (USD).

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.

Attribute	Detail
Market Size (2025)	USD 1,404.9 million
Market Size (2035)	USD 3,089.6 million
CAGR (2025 to 2035)	9.6%

Country wise Outlook

Country	CAGR (2025 to 2035)
USA	8.0%

Country	CAGR (2025 to 2035)
UK	8.1%

Region	CAGR (2025 to 2035)
European Union	8.4%

Country	CAGR (2025 to 2035)
Japan	8.3%

Country	CAGR (2025 to 2035)
South Korea	8.5%

The global Tea Market size was worth around USD 63.49 Billion in 2023 and is predicted to grow to around USD 110.40 Billion by 2032

Global Green Tea market size 2021 was recorded $9364.34 Million whereas by the end of 2025 it will reach $12803.9 Million. According to the author, by 2033 Green Tea market size will become $23937.2. Green Tea market will be growing at a CAGR of 8.135% during 2025 to 2033.

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 global industry was valued at US$ 20.2 Bn in 2023
• It is estimated to grow at a CAGR of 5.9% from 2024 to 2032 and reach US$ 33.9 Bn by the end of 2032

Market Introduction

Attribute	Detail
Drivers	Increase in Awareness Regarding Health Benefits Associated with Tea Rise in Popularity of Herbal Tea

Regional Outlook

Attribute	Detail
Leading Region	Asia Pacific

Tea Market Snapshot

Attribute	Detail
Market Size in 2023	US$ 20.2 Bn
Market Forecast (Value) in 2032	US$ 33.9 Bn
Growth Rate (CAGR)	5.9%
Forecast Period	2024-2032
Historical Data Available for	2019-2023
Quantitative Units	US$ Bn for Value and Kilo Tons for Volume
Market Analysis	It includes segment analysis as well as regional-level analysis. Furthermore, the qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces Analysis, value chain analysis, and key trend analysis.
Competition Landscape	Market share analysis by company (2023) Company profiles section includes an overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy and recent developments, and key financials
Format	Electronic (PDF) + Excel
Market Segmentation	By Type Black Tea Green Tea Oolong Tea Herbal Tea Others (Flavored Tea, Iced Tea, etc.) By Distribution Channel Hypermarkets/Supermarkets Retail Stores Convenience Stores Online Stores
Regions Covered	North America Latin America Europe South Asia East Asia Middle East & Africa
Countries Covered	U.S. Canada Mexico Brazil Argentina Chile Germany Italy France U.K. Spain BENELUX Nordic Russia Hungary Poland India Thailand Indonesia Malaysia China Japan South Korea Australia New Zealand South Africa GCC Countries
Companies Profiled	Unilever Starbucks Corporation Wissotzky Tea Associated British Foods Nestle S.A. Akbar Brothers Ltd. Tata Consumer Products Limited The Republic of Tea DAVIDs TEA Assam Company India Ltd. LIPTON Teas and Infusion Caraway Tea Harris Tea Company
Customization Scope	Available upon request
Pricing	Available upon request

Snapshot img

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 Ready To Drink (RTD) tea market will probably reach USD 40,007.5 Million by 2025. Then, it may grow even more to USD 88,802.7 Million by 2035, with a yearly growth rate of 8.3%.

Metric	Value
Market Size (2025E)	USD 40,007.5 Million
Market Value (2035F)	USD 88,802.7 Million
CAGR (2025 to 2035)	8.3%

Country-wise Insights

Country	CAGR (2025 to 2035)
USA	8.5%

Country	CAGR (2025 to 2035)
UK	8.1%

Region	CAGR (2025 to 2035)
European Union (EU)	8.2%

Country	CAGR (2025 to 2035)
Japan	8.4%

Country	CAGR (2025 to 2035)
South Korea	8.3%

Ready to Drink (RTD) Tea Market - Segmentation Outlook

Product Type	Market Share (2025)
Black Tea	42.6%

Sales Channel	Market Share (2025)
Indirect Sales	68.9%

Competitive Outlook: Ready-To-Drink (RTD) Tea Market

Company Name	Estimated Market Share (%)
The Coca-Cola Company (Honest Tea, Fuze Tea)	20-24%
Nestlé S.A. (Nestea)	16-20%
PepsiCo, Inc. (Lipton, Pure Leaf)	14-18%
AriZona Beverages USA	10-14%
Suntory Beverage & Food Limited	8-12%
Other Companies (combined)	30-40%

Global Milk Tea market size was USD 2.36 Billion in 2022. Milk Tea Industry's Compound Annual Growth Rate will be 7.2% from 2023 to 2030. Market Dynamics of Milk Tea Market

Key Drivers for Milk Tea Market

The Growing Popularity of Bubble Tea and Its Innovative Flavors: The milk tea sector is propelled by the increasing demand for bubble tea, especially among younger demographics. Distinctive flavors such as taro, matcha, and cheese tea draw in a varied clientele. The availability of customizable features, including sugar levels and toppings, boosts consumer interaction. Trends on social media further enhance its appeal, turning it into a viral phenomenon. The Expansion of Café Culture and Quick-Service Restaurants (QSRs): The rise of cafés and QSR establishments that provide milk tea has greatly accelerated market expansion. Companies like Gong Cha, Chatime, and Starbucks have broadened their reach internationally, making milk tea more readily available. The ease of access to ready-to-drink (RTD) milk tea in grocery stores also plays a role in its widespread acceptance. The Increase in Disposable Income and Urbanization in Emerging Markets: Growing disposable incomes, particularly in Asia-Pacific nations such as China and India, have resulted in increased expenditure on premium beverages. Urbanization has heightened the demand for convenient drinks, with milk tea emerging as a favored option due to its practicality and flavor.

Key Restraints for Milk Tea Market

Health Issues Associated with Sugar and Additives: The high sugar content found in milk tea has sparked health-related concerns, such as obesity and diabetes. In response, some consumers are opting for healthier choices, including herbal teas or sugar-free alternatives. Additionally, regulatory pressures on high-calorie drinks may impede market expansion. Volatile Prices of Essential Ingredients: The prices of essential components like tea leaves, milk powder, and tapioca pearls are prone to fluctuations due to climate change and disruptions in the supply chain. This volatility impacts profit margins for producers and could result in increased retail prices, thereby affecting affordability. Rivalry from Other Beverage Segments: The milk tea sector encounters significant competition from coffee, energy drinks, and functional beverages. The rising popularity of cold brew coffee and kombucha captures consumer interest, presenting a challenge for maintaining consistent demand for milk tea.

Key Trends for Milk Tea Market

Emergence of Plant-Based and Healthier Milk Tea Options: Consumers are progressively choosing dairy-free substitutes such as almond, oat, or soy milk for their tea. As health awareness increases, low-calorie, organic, and reduced-sugar choices are becoming more popular. Companies are introducing innovative functional ingredients like collagen and probiotics. Expansion of Online Delivery and Digital Marketing: The rise of food delivery applications has enhanced the accessibility of milk tea, with brands utilizing services like Uber Eats and DoorDash. Marketing through social media and partnerships with influencers enables brands to connect with younger demographics, boosting sales via digital platforms. Sustainability and Eco-Friendly Packaging Efforts: Concerns regarding the environment are motivating brands to implement biodegradable cups, paper straws, and reusable containers. Consumers are inclined towards brands that demonstrate a strong commitment to sustainability, resulting in eco-friendly packaging advancements within the milk tea sector. Introduction of Milk Tea

Milk tea is a beverage that combines tea with milk and sweeteners. It is a popular drink that originated in Taiwan and has gained popularity worldwide. Milk tea is typically made using black tea as a base, although other types of tea such as green tea or oolong tea can be used as well. The tea is brewed and then mixed with milk and sweeteners to create a creamy and flavorful beverage. The choice of milk in milk tea can vary. Traditionally, evaporated milk or condensed milk was used, but nowadays, fresh milk, whole milk, soy milk, almond milk, or non-dairy creamers are commonly used as alternatives. The type of milk used can impact the taste and texture of the milk tea. Sweeteners are added to milk tea to enhance its flavor. Sugar is the most common sweetener, but other options like syrup, honey, or flavored powders such as matcha o...

Market Summary of Ready to drink Tea Market:

• Global Ready to Drink Tea market size in 2023 was XX Million. Ready to Drink Tea Industry's compound annual growth rate (CAGR) was XX% from 2024 to 2031. • Increase in the popularity of RTD Tea by the health-conscious population, increases the market growth. • Because more people are drinking tea worldwide, the black tea category held the largest ready-to-drink tea market and is expected to continue to hold this position during the market's projection period • The COVID-19 pandemic has increased awareness of the connection between nutrition and health and is probably going to hasten the shift to better-tasting, higher-quality RTD teas. • The APAC holds the largest share in the ready to drink tea market due to the demand for tea in the region is driven by nations with large numbers of tea plantations, like China, Japan, and India.

Market Dynamics of Ready to drink Tea Market:

Key Drivers of Ready to drink Tea Market:

Increase in the popularity of RTD Tea by the health-conscious population, there is increases the market growth.

The market for tea-based RTD beverages has been growing consistently as consumers search for more healthful substitutes for conventionally sweetened drinks like energy drinks and colas. RTD iced teas with herbal infusions are going to becoming even more popular as health-conscious consumers grow more prevalent. . For Instance, 25% of consumers claim to drink RTD tea due of its health benefits, per Synergy's primary research. Functional claims for RTD tea that are currently in demand including antioxidant, energy, stress and sleep, brain and nervous system, immune system, probiotics, and collagen.(Source:https://www.synergytaste.com/insights/from-the-benefits-to-the-boozy-varieties-its-tea-time/#:~:text=According%20to%20Synergy's%20primary%20research,immune%20system%2C%20probiotic%20and%20collagen.) For Instance, according to Moreno, "Many studies have examined the health benefits of teas, which range from supporting cardiovascular health to acting as a diuretic." "People who want to focus on particular health concerns are more likely to research the effects that various leaves and herbs have on their bodies. In order to capitalize on this trend, beverage producers can create new tea beverages that appeal to consumers who are health-conscious and who are searching for tasty substitutes for other soft drinks. Water or ethanol can be used to naturally extract tea extracts, but since most volatile chemicals in tea leaves are soluble in water, water is typically used to extract tea tastes. Additionally, since consumers are aware that water is natural, pure, and generally healthy for them, it is consistently chosen as the solvent in the beverage sector. For Example, Green Tea. Green tea has a tone of chemicals that are good for health. Consuming green tea on a regular basis can aid in weight loss and lower your risk of developing diabetes, heart disease, and cancer, among other illnesses. It appears that consuming three to five cups of green tea daily can maximize its health benefits.(Source:http://https://www.bevindustry.com/articles/95876-health-benefits-keep-tea-market-afloat) For Instance, according to Healthline, Catechins are a particular class of polyphenol found in green tea. Antioxidants called catechins aid in preventing cell damage and offer additional health advantages. The most well-known and prevalent catechin in green tea is called epigallocatechin-3-gallate (EGCG), and studies have shown that it may help with a number of medical illnesses or disease signs. (Source:https://www.healthline.com/nutrition/top-10-evidence-based-health-benefits-of-green-tea#1.-Contains-plant-based-antioxidant-compounds)Hence, dur to the awareness of RTD Tea among consumers that it is good for health, people are consuming it more and it leads to the market growth of RTD Tea.

Key Restraints of Ready to drink Tea Market:

Increase in the number of substitutes in the industry hampers the market growth

In the ready-to-drink (RTD) tea business, one of the biggest challenges is the abundance of replacements. Coffee is a common alternative to RTD tea in the market. In particular, iced coffee and cold brew varieties are great substitutes for RTD tea. Coffee appeals to customers...

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 size of the Tea Market was valued at USD 64.6 Billion in 2023 and is projected to reach USD 92.73 Billion by 2032, with an expected CAGR of 5.3% during the forecast period. Recent developments include: For Instance, July 2021 Tata Consumer Products launched its tea packaging plant in Gopalpur Industrial Park by Tata Steel Special Economic Zone, which will help raise the volume of teas and tea bags produced., For Instance, September 2021 Twining’s, a tea brand, announced the creation of a new food service exclusive range, including 11 tea blends specially made for the food service industry.. Notable trends are: Growing of specialty teas is driving the market growth.

The Asia-Pacific Tea Market report segments the industry into By Form (Leaf Tea, CTC Tea), By Product Type (Black Tea, Green Tea, Herbal Tea, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience/Grocery Stores, Specialty Stores, Online Retail Stores, Other Distribution Channels), and Country (China, Japan, India, Australia, Rest of Asia-Pacific). Get five years of historical trends as well as market forecasts.

Herbal Tea Market Outlook

According to our latest research, the global herbal tea market size reached USD 4.82 billion in 2024, reflecting a strong consumer shift toward natural and wellness-oriented beverages. The market is expected to expand at a CAGR of 6.7% from 2025 to 2033, culminating in a forecasted market size of USD 8.74 billion by 2033. This robust growth is primarily attributed to rising health consciousness, increasing demand for functional beverages, and the growing adoption of herbal tea as a caffeine-free alternative to traditional teas and coffees. As per our latest research, the herbal tea market is witnessing significant traction across both developed and emerging economies, driven by evolving consumer preferences and innovative product offerings.

One of the most significant growth factors propelling the herbal tea market is the increasing awareness of the health benefits associated with herbal ingredients. Consumers are becoming more mindful of their dietary choices, seeking products that not only refresh but also contribute to overall well-being. Herbal teas, rich in antioxidants, vitamins, and minerals, are perceived as natural remedies for various ailments such as digestive issues, stress, and inflammation. The trend toward preventive healthcare and holistic wellness has encouraged consumers to incorporate herbal teas into their daily routines. Additionally, the growing incidence of lifestyle diseases and the rising prevalence of obesity and diabetes are prompting individuals to opt for healthier beverage options, further supporting market expansion.

Another key driver for the herbal tea market is the surge in product innovation and the introduction of novel flavors and blends. Manufacturers are constantly experimenting with unique herbal combinations, infusing traditional teas with botanicals such as chamomile, ginger, hibiscus, and lemongrass to cater to diverse palates. This has not only expanded the consumer base but also attracted younger demographics looking for new taste experiences. The premiumization of herbal teas, with organic and sustainably sourced ingredients, has further elevated the market's appeal. Moreover, the integration of functional ingredients targeting specific health concerns, such as immunity-boosting or detoxifying properties, has positioned herbal tea as a versatile beverage with broad consumer relevance.

The expansion of distribution channels has also played a crucial role in the growth of the herbal tea market. The proliferation of supermarkets, hypermarkets, specialty stores, and online retail platforms has made herbal teas more accessible to a wider audience. E-commerce, in particular, has emerged as a vital channel, offering consumers the convenience of browsing and purchasing a diverse range of herbal tea products from the comfort of their homes. This shift in retail dynamics has enabled brands to reach new markets and foster greater brand loyalty through targeted marketing and subscription-based models. The increasing penetration of herbal tea in cafes, restaurants, and hospitality establishments has further contributed to market growth by introducing the beverage to new consumer segments.

Loose-Leaf Herbal Tea has gained considerable popularity among tea aficionados who appreciate the authenticity and richness of flavor that this form offers. Unlike tea bags, loose-leaf teas allow the leaves to fully expand and release their complex flavors and aromas, providing a more immersive and satisfying tea experience. This form is particularly favored by consumers who enjoy the ritual of brewing tea and value the ability to customize the strength and blend of their brew. The trend towards premium and artisanal products has further fueled the demand for loose-leaf herbal teas, as consumers increasingly seek out high-quality, organic, and ethically sourced options. As the market continues to evolve, loose-leaf herbal tea is expected to maintain its appeal among discerning consumers who prioritize quality and sustainability in their beverage choices.

Regionally, the herbal tea market exhibits significant variation in growth patterns and consumer preferences. Asia Pacific remains the largest and fastest-growing market, driven by a rich tea culture and a strong tradition of herbal medicine. North America and Europe are witnessing rapid adoption due to rising health awarene

The report on Craft Tea covers a summarized study of several factors supporting market growth, such as market size, market type, major regions, and end-user applications. The report enables customers to recognize key drivers that influence and govern the market.

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%