Global Tea Market, By Type (Green Tea, Black Tea, Oolong Tea, Herbal Tea and others), Form (Loose Leaf, Tea Bags and others), Category (Organic and Conventional), Distribution Channel (Store-Based [Supermarkets & Hypermarkets, Convenience Stores and others] and Non-Store-Based), ByRegion (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) Trend Analysis, Competitive Market Share & Forecast, 2021-2027

  • Published Date: July 2021
  • Report ID: BWC2108
  • Available Format: PDF
  • Page: 200

Report Overview

The global tea market has been driven by the prevalence of tea culture. Tea market growth is attributed to growing health awareness and rising disposable income. Additionally, different market players are bringing in healthy ingredients to tea, which also drives the market's growth.

The global tea market was worth USD22.4 Billion in 2020 and is further projected to reach USD30.3 Billion by 2027, at a CAGR of 4.5% during 2021-2027 (forecast period). The popularity of tea culture has led to a rise in tea's popularity as a beverage in the emerging market. Moreover, rising health awareness and rising disposable income have also contributed to the growth of the tea market. Additionally, many key players are contributing to the growth of the market through the introduction of additional healthy components in tea. Nevertheless, the global tea market is largely constrained by the rise in consumption of coffee in some cities and the changing price of raw materials due to unpredictable climatic conditions. Despite this, the growing demand for herbal teas as well as the introduction of new tea varieties and flavors are expected to drive growth for the tea market.

Global Tea Market

Source: BlueWeave Consulting

Global Tea Market Overview

Tea, an aromatic beverage, is derived from the Camellia Sinensis plant.  Tea is one of the most consumed drink worldwide. Recent years have seen the tea industry undergo significant changes as people have become more conscious and eager to try new experiences. Herbal tea, for example, is becoming increasingly popular due to the growing health consciousness among consumers. Black tea and green tea are the most popular tea among these.  Tea contains antioxidants and minerals such as potassium, manganese, magnesium, and calcium, making it a healthy beverage. Herbal tea can reduce free radical damage, lower cholesterol and help to reduce weight by reducing oxidative stress.


Growth Drivers

Increasing Inclination toward Herbal and Green Tea

The major factor driving the growth of the global tea market is the rising consumer awareness regarding the health benefits of herbal and green tea. Moreover, increasing disposable income and alterations in the preferences and tastes of consumers in terms of beverages are contributing to the demand for tea worldwide. Market growth is also being driven by the introduction of many herbal teas with so many additional healthy ingredients by key players. Promoting tea schools and tea art training at tea expos and events across the country has made tea a flagship product among millennials, resulting in an increase in their tea consumption as well.


The increasing demand for tea extracts in the Asia Pacific is projected to drive the the market growth

There is a high demand for tea extracts in the Asian countries. As a result, countries like China and India are exporting tea worldwide to meet the rising demand. In terms of market revenue, China held the largest share in the global tea exports market. In 2020, China exported approximately 2.04 billion U.S. dollars' worth of tea, making it the largest tea exporter in the world. India is the world's second-largest producer and third-largest exporter of tea. Based on estimates from India's Directorate General of Foreign Trade (DGFT), India exported an estimated 872 million dollars’ worth of tea in 2019. Because of the APAC countries' robust economic growth, a large consumer base has been created among middle-class groups with a preference for premium tea blends. Rapid growth in per capita incomes mainly in the developing countries of Asia-Pacific is also driving the growth in tea consumption.



In the tea market, one of the major challenges is the lack of knowledge of proper farming practices necessary for tea production. In recent years, it has become increasingly difficult for tea producers to change their conventional farming systems into productive and sustainable practices. Also, the cost of the traditional tea production is significantly higher which restricts the growth of the organic market. Moreover, because of the expensive certification, the process involved in organic tea production and sales in the international market mainly discourages farmers from accepting organic farming.


Impact of COVID-19 in the industry

COVID-19 has greatly affected tea producers across the globe mainly due to the nationwide and social distancing policies imposed by various countries to curb the spread of the virus. Due to the restrictions on export and import during the pandemic, a lot of uncertainty has been noticed in the global tea market. To control the spread of COVID-19 in tea communities, producers are taking a multitude of emergency response measures. On the other hand, many tea producers had shut down production of all agricultural industries for several weeks in March and April due to the strict lockdown measures worldwide.  Because of this pandemic-induced lockdown, tea producers and smallholder livelihoods have been seriously affected.


Global Tea Market: By Type

Based on types, the global tea market has been segmented into Oolong Tea, Green Tea, Black Tea, Herbal Tea, and others. Among these, the black tea segment holds for the largest market share of the global tea market due to the major health benefits it offers. The antioxidants in black tea help block DNA damage caused by tobacco or other toxic chemicals. Antioxidants present in black tea are very different from those found in fruits and vegetables. Therefore, by including black tea regularly in your diet, consumers can gain additional health benefits.


Global Tea Market: By Distribution Channels

Based on distribution channels, the global tea market is grouped into Store-Based and Non-store Based segments. The store-based segment is further classified into supermarkets &hypermarkets, convenience stores, and others. Compared to other distribution channels in this category, the demand for purchasing tea from supermarkets is comparatively higher. However, due to the increasing use of mobile phones and the internet, many consumers prefer buying tea online.Thus, the tea market is expected to grow in the foreseeable future due to the increasing penetration of mobile phones and use of the internet.These e-commerce sites also offer many discounts and coupons, and home delivery features that attract a large consumer base.


Global Tea Market – Regional Insights

Based on the regions, the global tea market is categorized into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Among all these regions, the Asia Pacific dominates the global tea market with the largest market share. This region is expected to increase immensely during the forecast period due to rising tea culture and increasing demand for tea from millennials. Additionally, the market is impacted by the presence of several key players in this region, which impacts its growth. The growing middle-income groups and the increasing demand from the young population as well as the increasing rate of tea production in emerging countries such as China and India over the forecast period are also likely to power the growth of the tea market during the forecast period.

Regional Insights

Source: BlueWeave Consulting

Recent Developments

  • In January 2021, Tata Consumer Products expanded its wellness portfolio in the packaged beverages segment with the introduction of TATA Tea Tulsi Green and TATA Tea Gold Care, and the addition of Vitamin C to Tetley Green Tea.
  • In July 2021,Government of Assam (India) announced its intention to incentivize the production of exotic teas under the Assam Tea Industries Special Incentive Scheme (ATISIS).


Competitive Landscape

The key players in the global tea market are Associated British Foods Plc., Barry's Tea Limited, Hain Celestial Group Inc, ITO EN Ltd., Mcleod Russel India Limited, Nestle S.A., TaeTea, Tata Global Beverages, The Republic of Tea Inc., Unilever Group and other manufacturers. Most companies operating in the market are involved in product innovation and R&D. They also focus on advanced advertising and social media campaigns to appeal to more target consumers. The market players operating in the tea market are expected to have profitable growth opportunities in the future with the increasing demand for tea in the global market.


Scope of the Report:



Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE, South Africa, Saudi Arabia

Product/Service Segmentation

By Type, By Form,By Category, By Distribution Channel, By Region

Key Players

Key players in the global tea Mmrket are Associated British Foods Plc., Barry's Tea Limited, Hain Celestial Group Inc, ITO EN Ltd., Mcleod Russel India Limited, Nestle S.A., TaeTea, Tata Global Beverages, The Republic of Tea Inc., Unilever Group, and other key manufacturers.



  • By Type
  • Green Tea
  • Black Tea
  • Oolong Tea
  • Herbal Tea
  • Others
  • By Form
  • Loose Leaf
  • Tea Bags
  • Others
  • By Category
  • Organic
  • Conventional
  • By Distribution Channel
  • Store-Based
  • Supermarkets & Hypermarkets
  • Convenience Stores
  • Others
  • Non-Store-Based
  • By Region
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

Frequently Asked Questions:

Ans: Global Tea Market has reached USD22.4 Billion in 2020.
Ans: Rising health awareness and rise in disposable income have contributed to the growth of the tea market. Moreover, the key players in the tea market have introduced many additional healthy constituents in tea, thereby driving the growth of the tea market.
Ans: The key players in the Global Tea Market are Associated British Foods Plc., Barry's Tea Limited, Hain Celestial Group Inc, ITO EN Ltd., Mcleod Russel India Limited, Nestle S.A., TaeTea, Tata Global Beverages, The Republic of Tea Inc., Unilever Group, and other key manufacturers.
Ans: Based on product types. the black tea segment accounted for the largest share in the Global Tea Market.
Ans: Super markets are growing at a higher rate in the global tea market.