Tea Market Report 2026

The tea market size has grown strongly in recent years. It will grow from $56.26 billion in 2025 to $59.08 billion in 2026 at a compound annual growth rate (CAGR) of 5%. The growth in the historic period can be attributed to expansion of global tea consumption, strong cultural acceptance across regions, growth of organized retail distribution, increasing awareness of health benefits, diversification of tea varieties.

The tea market size is expected to see strong growth in the next few years. It will grow to $73.78 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing demand for wellness beverages, rising preference for premium and organic teas, expansion of online tea retail platforms, growing interest in specialty and regional teas, innovation in tea blending and packaging. Major trends in the forecast period include premiumization of specialty and artisanal teas, growing demand for functional and herbal tea variants, expansion of loose leaf and specialty packaging formats, rising focus on traceability and origin transparency, increasing popularity of ready-to-brew formats.

The rising awareness of the health benefits linked to tea consumption is expected to drive the growth of the tea market in the coming years. Health benefits refer to the positive impacts that a food, activity, or lifestyle choice can have on an individual's physical or mental well-being. Tea consumption is associated with improved cardiovascular and metabolic health, enhanced immune function, reduced inflammation, and a lower risk of diseases such as cancer and heart disease. The antioxidants and flavonoids in tea contribute to many of these health benefits, making it a popular choice for individuals seeking to improve overall wellness. For example, in February 2025, the National Center for Complementary and Integrative Health (NCCIH), a US-based federal agency, reported that studies indicate green tea and its extracts can modestly reduce LDL cholesterol and body weight, and in certain Asian populations, consumption has been linked to a lower risk of coronary heart disease. Therefore, growing awareness of the health benefits of tea consumption is fueling the tea market's growth.

Leading companies in the tea market are focusing on health-oriented product innovations, such as low-sugar tea beverages, to enhance wellness benefits for consumers. Low-sugar iced tea beverages are ready-to-drink products formulated with reduced sugar while using real brewed tea, offering advantages such as lower calorie intake, cleaner ingredient profiles, and healthier alternatives compared to traditional sugary drinks. For instance, in October 2023, Beyond Water, an India-based beverage company, launched its first iced tea product line, a low-sugar ready-to-drink tea designed to provide a healthier option. The line features single-estate tea leaves harvested and processed within two weeks, peach and lemon flavor variants, and only 6 grams of sugar per 250-millilitre bottle. This product line enhances access to healthier tea beverages, supports clean-label preferences, and encourages a shift away from high-sugar soft drinks toward better-for-you tea alternatives.

In January 2025, TreeHouse Foods Inc., a US-based private brands snacking and beverage manufacturer, acquired Harris Tea for approximately $205 million. Through this acquisition, TreeHouse Foods aims to strengthen its leadership in private-label tea and expand its capabilities in tea sourcing, blending, and packaging. Harris Tea Company LLC, based in the US, provides private-label tea products and related services.

Major companies operating in the tea market are Nestlé S.A., Unilever PLC, Associated British Foods plc, ITO EN Ltd., 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, Rishi Tea & Botanicals, 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, Taetea Group Co Ltd., Numi Organic Tea.

Asia-Pacific was the largest region in the tea market in 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the tea market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The tea market consists of sales of white tea, pu-erh tea, and yellow tea. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.