The global tea market is valued at USD 276 billion for the total market and about USD 67 billion for At Home consumption and is projected to grow to USD 99 billion by 2031, with a 6.4% CAGR.
Our figures are based on our analysis of five different market research reports. Our confidence in these figures is marginal due to the diverging nature of the estimates. A detailed description of our analysis methods is below.
Market Size and Growth Metrics
Current Size and Growth Projections
As of 2024, the global tea market is valued at about USD 276 billion for the total market and about USD 67 billion for At Home consumption. Looking ahead, the At Home market is expected to grow at a CAGR of 6.4%, reaching USD 99 billion by 2031.
This growth is driven by increasing consumer preference for health-oriented beverages and advancements in tea products and distribution channels.
Major Market Segmentation
By Product Type
- Black Tea continues to dominate the market, accounting for approximately 40% of total tea consumption in 2024. The black tea segment is projected to grow from USD 21.1 billion in 2023 to USD 22.4 billion in 2024.
- Green Tea represents about 30% of the market share, with a growth forecast from USD 15.3 billion in 2023 to USD 16.5 billion in 2024. The segment is expected to grow at a CAGR of 7.2% through 2029 due to increasing health awareness.
- Herbal Tea is anticipated to be the fastest-growing segment, with a projected increase from USD 4.2 billion in 2023 to USD 4.7 billion in 2024, reflecting a CAGR of 8.5%. The demand for herbal tea is driven by its health benefits, with a forecast retail value increase from USD 144.1 million in 2022 to USD 286.1 million by 2026.
- Oolong and White Tea together account for approximately 10% of the market, with oolong tea projected to grow from USD 2.5 billion in 2023 to USD 2.7 billion in 2024.
By Region
- Asia-Pacific – Dominates the global tea market, accounting for over 60% of production and consumption. The region’s market size is expected to grow from USD 32 billion in 2023 to USD 34.5 billion in 2024.
- North America – Expected to grow significantly, with a market size projected to increase from
- Europe – Holds about 20% of the global market share, with a projected growth from USD 25 billion in 2023 to USD 26.5 billion in 2024. The UK and Germany are the largest consumers in this region.
- Latin America and Africa – Emerging markets with growth rates of 6.5% and 7.0%, respectively, as they increasingly adopt tea consumption. The Latin American tea market is projected to reach USD 3 billion in 2024.
Industry trends and dynamics
Health and Wellness Focus
The demand for health-focused teas, particularly green and herbal varieties, is expected to drive market growth, with the health and wellness tea segment projected to reach USD 20 billion by 2024.
Approximately 75% of consumers are now choosing teas for their health benefits, including weight management and improved digestion, reflecting a significant shift in beverage preferences.
Rise of Online Retail
E-commerce sales of tea are anticipated to grow at a CAGR of 5.9% from 2024 to 2032, with online sales expected to account for 25% of total tea sales by 2025.
The convenience of online shopping and the availability of specialty and organic teas are major factors contributing to this trend.
Sustainability and Ethical Sourcing
Consumer demand for sustainably sourced teas is increasing, with 60% of tea drinkers indicating they prefer brands that practice ethical sourcing and environmentally friendly production methods.
The market for organic tea is projected to grow at a CAGR of 10% from 2024 to 2030, driven by rising awareness of environmental issues and health benefits associated with organic products.
Industry Drivers and Challenges
Increasing Demand for Herbal Teas
The herbal tea segment is projected to grow significantly, with a CAGR of 8.5% from 2024 to 2031, driven by rising consumer interest in natural remedies and functional beverages.
In 2024, herbal tea sales are expected to reach approximately USD 6.5 billion, reflecting a growing preference for teas that offer health benefits like stress relief and improved digestion.
Health and Wellness Trends
The global tea market is increasingly influenced by health trends, with 70% of consumers indicating a preference for beverages that provide health benefits. This trend is particularly strong among millennials and Gen Z, who prioritize wellness in their dietary choices.
The market for functional teas, which address specific health issues through added ingredients, is anticipated to grow at a CAGR of 9.2% from 2024 to 2031.
High Production Costs
The tea industry faces significant challenges related to high production costs, particularly for premium teas like green tea, which can account for up to 30% of overall production expenses. This can impact profitability and pricing strategies for producers.
In 2024, production costs for premium tea are expected to rise by 5%, driven by increased labor and raw material costs, which may hinder market growth.
Climate Change and Supply Chain Disruptions
Climate change poses a significant threat to tea production, with projections indicating that up to 50% of tea-growing regions may be adversely affected by changing weather patterns by 2030.
Supply chain disruptions, exacerbated by geopolitical tensions and the aftermath of the COVID-19 pandemic, continue to challenge the industry, leading to potential shortages and increased prices for consumers.
Consumer Insights
Per Capita Consumption Trends
Turkey: Leads global tea consumption with approximately 3.16 kg (6.96 lbs) per person annually, averaging 3-4 cups daily, especially during colder months.
Ireland: The second-largest consumer, with a per capita consumption of 2.19 kg (4.83 lbs) per year, reflecting a strong cultural affinity for tea.
United Kingdom: Ranks third, with an average consumption of 1.94 kg (4.28 lbs) annually, translating to about 2.5 cups per day, indicative of tea’s deep-rooted cultural significance.
China: Each person consumes about 0.57 kg (1.25 lbs) of tea annually, highlighting a growing trend towards tea consumption, particularly among younger demographics.
Shifts in Consumer Preferences
There is a marked shift towards specialty and premium teas, with consumers increasingly prioritizing quality and unique flavors.
The demand for functional teas is rising, as consumers seek beverages that offer health benefits, such as improved digestion and stress relief.
Innovative blends and unique flavor profiles are becoming popular, catering to adventurous palates and reflecting a broader trend towards personalization in beverage choices.
Conclusion
In 2024, the global tea market is valued at USD 276 billion for the total market and about USD 67 billion for At Home consumption. The At Home market is projected to reach USD 99 billion by 2031, with a 6.4% CAGR.
Key takeaways include:
- Growing Demand: Herbal teas, growing at a CAGR of 8.5%, highlight a shift towards health-oriented and caffeine-free options.
- Regional Shifts: Asia-Pacific dominates the market, but North America and Europe are seeing increased demand for premium and specialty teas.
- Challenges Ahead: Climate change and labor shortages are impacting production, leading to a 22% rise in tea prices in 2024.
- Consumer Behavior: Per capita consumption is rising, especially in East Asia, while North America and Europe shift towards specialty teas.
Despite challenges, the tea market’s future looks promising, with innovation and expanding consumer bases driving growth.
References and Data Sources
How did we analyze our Sources?
To gain a complete understanding of the global tea market, we’ve analyzed data from five different market research reports. Using our own weighted criteria, we selected the top three reports with the highest scores and based our estimate on their findings.
| TEA Analysis | Statista | Allied Market Research | Maximize Market Research | The Business ResearchCo | Renub | SUMMARY |
| Published Date | Mar-Jul 2024 | May 2023 | 2023 | January 2024 | 2023 | |
| Market Captured | Combined | – | – | At-home | – | Combined $276B |
| Current 2024 market size | $276B | $60B* | $81B* | $56B | $69B* | At Home – $67B |
| Future market size | – | $93B by 2031 | $119B by 2030 | $70B by 2030 | $115B by 2032 | At Home – $99B by 2031 |
| CAGR | – | 6.7% (2022-2031) | 6.6% (2024-2030) | 5.8% (2024-2033) | 6.5% (2024-2032) | 6.4% (2024-2031) |
How did we grade our Sources?
| Score | TEA Analysis | Statista | Allied Market Research | Maximize Market Research | The Business ResearchCo | Renub |
SUMMARY
|
| 3 | – Criteria 1: Clear Source Citation | 0 | 0 | 0 | 0 | 0 | |
| 2 | – Criteria 2: Recency | 1 | 0 | 0 | 0 | 0 | |
| 4 | – Criteria 3: Authority | 0 | 0 | 0 | 0 | 0 | |
| 1 | – Criteria 4: Objective & Clear | 1 | 1 | 1 | 1 | 0 | |
| SOURCE GRADE | 3 | 1 | 1 | 1 | 0 | 3.00 |
- 4 = Highly useful, clear, and resistant to manipulation
- 0 = Provides no indication of reliability
| 3 | – Criteria 1: Clear Source Citation | +1 IF: Clearly states where they got the data from. |
| 2 | – Criteria 2: Recency | +1 IF: published or updated the last 3mo. |
| 4 | – Criteria 3: Authority | +1 IF: Govt Agency, Academic Institution, Academic Paper
+1 IF anything else.
|
| 1 | – Criteria 4: Objective & Clear |
+1 IF: The information presented without emotional wording or bias, states the facts cleanly and clearly.
+0.5 IF one of the above.
|
How did we determine our Market Size?
We used two different figures for our market size estimates. The first, for the combined At Home and Out-of-Home market, is primarily based on Statista, estimated at USD 276 billion.
For the At Home market, we averaged data from four sources, resulting in an estimate of USD 67 billion.
We encourage you to critically assess the data and consider different perspectives to develop your own insights into the tea market’s future.
Nathan has always been captivated by numbers and patterns. With a Master’s degree in Statistics, he’s honed his skills to decipher complex data sets and discern market trends.
Over the past decade, Nathan has worked with various firms compiling and analyzing industry spending figures to forecast market movements.