The India tea market size was valued at USD 11.50 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 15.0 Billion by 2033, exhibiting a CAGR of 3.10% from 2025-2033. The India tea market share is experiencing significant growth driven by increasing health awareness, rising demand for organic and specialty teas, expanding e-commerce and direct-to-consumer sales, strong global exports, innovative packaging solutions, sustainable sourcing practices, and shifting consumer preferences toward premium, functional, and ready-to-drink tea products across various distribution channels.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 11.50 Billion |
Market Forecast in 2033
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USD 15.0 Billion |
Market Growth Rate (2025-2033) | 3.10% |
The demand for India tea worldwide keeps surging because people increasingly recognize its wellness advantages while the market for natural organic drinks remains vibrant. Health-conscious individuals now prioritize beverages which contain antioxidants together with polyphenols and several functional compounds which enhance the public's well-being. Indian tea gained worldwide popularity based on its diverse varieties including Assam, Darjeeling and Nilgiri because these teas deliver both exceptional taste and special health benefits. The tea market has seen growth in specific categories which includes organic teas together with herbal and wellness varieties because consumers investigate functional ingredients that contain turmeric, ashwagandha, and tulsi. For example, in February 2024, Organic India Private Limited launched its Black Tea range, including Assam Black Tea, Masala Black Tea, and Elaichi Black Tea, offering rich flavors, antioxidants, and organic purity for a premium tea experience. Moreover, the rising fear about artificial additives along with high sugar content has caused consumers to choose natural teas instead of carbonated and processed drinks. The shift in tea consumption patterns has caused established tea companies together with new market participants to launch high-end and craftsman and responsibly sourced tea items which align with worldwide consumer preferences.
Another key driver of market expansion is the rapid growth of digital platforms and e-commerce, which has revolutionized the Indian tea industry's access to consumers worldwide. Online platforms, direct-to-consumer (DTC) models, and subscription tea services have facilitated easy access to a variety of Indian teas for global buyers by the producers. Social media, influencer marketing, and content-driven campaigns have also facilitated the promotion of Indian tea's cultural heritage, sustainability, and health values, unlocking new consumer segments. Government policies supporting tea exports, improved logistics, and developments in packaging technology have also boosted India's competitive advantage in the global market. Changing consumer tastes, especially in urban India, have driven demand for convenient tea formats, including ready-to-drink (RTD) teas and instant blends. For instance, in November 2023, Coca-Cola India entered the ready-to-drink tea segment with 'Honest Tea,' sourcing organic green tea from Luxmi Tea Co’s Makaibari Estate, offering Lemon-Tulsi and Mango flavors to expand consumer choices. Furthermore, with intensified investments in sustainable cultivation, fair trade practices, and innovative product offerings, the Indian tea industry continues to expand, meeting the boosting global demand for high-quality, ethically produced tea offerings.
Rising Demand for Specialty and Functional Teas
India tea market report is observing the demand for functional and specialty teas growing due to the heightened interest among consumers towards wellness and integrated well-being. Consumers are highly attracted to herbal and functional teas with ingredients such as ashwagandha, moringa, turmeric, and tulsi, which are characterized by medicinal benefits. Organic and biodynamic teas also saw a spike in demand as consumers look for chemical-free and sustainably cultivated varieties. Moreover, one-of-a-kind processing techniques like hand-rolled and sun-dried teas are gaining acceptance for maximizing flavor as well as nutrients. Experimental consumers driving demand for less common ones like white, oolong, and purple tea are strengthening the premium space even further. Boosted popularity of Ayurveda and natural medicines has supported the popularity of these teas, and they are now a favorite among consumers seeking to include healthy drinks in their daily lives. For instance, in June 2024, TeaFit launched Saffron, Lemongrass, and Matcha Latte instant teas, emphasizing Ayurvedic formulations and zero-sugar premixes, strengthening its presence in India’s health-focused beverage market with natural, functional alternatives.
Growth of E-Commerce and Direct-to-Consumer Sales
The rapid growth of digital commerce has prompted a change in tea market in India, from larger brands directly reaching out to consumers all over the world. There is ease of access to varieties through online marketplaces, subscription-based tea services, and e-commerce sites owned by the brands. Concurrently, consumers are looking for teas across all digital channels, comparing and purchasing by targeted marketing tactics and influencers' partnerships. AI-powered recommendations, online shopping personalization, and interactive content have further fueled online engagement. The convenience of home delivery and online-exclusive offers is another reason this shift occurs. Social media is also leveraged by brands to educate consumers about their different types of teas, preparations, and cultural significance-this amplifies brand loyalty. Further, with the advancement of digital infrastructure, e-commerce is set to further amplify the global growth of India's tea market.
Sustainability and Ethical Sourcing as Key Differentiators
Sustainability has become a key trend among Indian tea consumers, with eco-conscious and ethically sourced products becoming the new normal. Consumers are placing emphasis on fair trade, open supply chains, and green farming practices to establish a connection with consumers. Conservation of biodiversity, water conservation, and carbon-neutral production methods are being adopted as best practices to boost sustainability ratings. Compostable tea bags, packaging that is recyclable, and low-waste processing technologies are being launched to appeal to sustainability-minded buyers. Ethical practices and labor issues, including those related to the welfare of farmers, are becoming more mainstream too, with labels emphasizing direct trading models that are fair-wage oriented and promote superior working conditions. As sustainability-conscious consumers continue to grow, corporations that build social responsibility into business models involving ethical sourcing and environment stewardship are emerging as front-runners in the competition. It is likely to keep influencing the future of India's tea industry and global buying patterns.
IMARC Group provides an analysis of the key trends in each segment of the India tea market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, packaging, distribution channel and application.
Analysis by Product Type:
Black tea dominates the Indian tea market, accounting for a significant portion of both domestic consumption and exports. As a staple beverage in Indian households, black tea is consumed in various forms, including loose leaves, dust tea, and tea bags. The main reasons for the popularity of black tea are its rich flavor, high caffeine content, and versatility. Most people commonly brew it with milk, spices, and sweeteners to get traditional Indian chai. The demand for black tea is relatively stable, as people have been considered to have a need for it for better digestive system and antioxidant reasons. Also, growing consumer awareness about premium and specialty black teas has expanded the market, especially in terms of single-origin and organic products. Demand for exports, especially from nations such as Russia, Iran, and the UAE, also drives the growth of the segment. Moreover, climate change, tea leaf price volatility, and labor charges affect production and are therefore areas of concern to the industry that emphasize sustainable farming and quality management.
Analysis by Packaging:
Plastic packaging provides strength and ease, hence a common choice for storing tea in the home. It keeps tea safe from water and outside contamination, preserving freshness. Common for mass-market brands, plastic packaging accommodates cheap distribution. Growing concerns about the environment are now forcing brands to consider biodegradable or recyclable options for environmentally friendly packaging solutions.
Loose leaf remains a traditional favourite in households especially where fresh, easily customizable teas are favored. Sold in bulk or small packages, it allows consumers to control strength and flavor. While affordability and authenticity drive demand, proper storage is essential to maintain freshness. Specialty and premium tea brands often prioritize loose-leaf packaging.
Paper board packaging is a cost-effective and eco-friendly option, commonly used for mid-range and premium tea brands. It offers lightweight, recyclable, and biodegradable benefits. Attractive printing and branding on paper boxes enhance shelf appeal. However, paper-based packaging requires inner linings to preserve tea quality and prevent moisture absorption.
Aluminum tins offer great barriers against air, light, and moisture, assuring longer tea shelf life. Frequently employed with premium and specialty teas, they contribute a lavish appeal. The reusability and recyclability of aluminum tins make them an environmentally friendly option. Greater production cost could restrict the application to gift and high-end tea products.
Tea bags offer convenience and quick preparation, making them a preferred choice for busy consumers. They are widely used in offices, travel, and hotels. Available in various materials, including biodegradable options, tea bags cater to diverse flavors and preferences. Growing demand for herbal and functional teas further drives this segment’s growth.
Other packaging formats include glass jars, pouches, and biodegradable materials that align with sustainability trends. Resealable pouches are gaining popularity for their convenience and freshness retention. Innovative packaging, such as compostable wraps and reusable containers, is being explored by brands aiming to enhance consumer experience while reducing environmental impact.
Analysis by Distribution Channel:
Supermarkets and hypermarkets are also very important in the tea distribution scenario of India, as they provide customers with a plethora of tea offerings in the form of loose-leaf, packaged, and ready-to-drink beverages. The large retail chains make shopping convenient for customers, with the ability to compare various brands, flavors, and prices. With the growth of organized retail, supermarkets and hypermarkets are becoming major forces driving tea sales, particularly in urban and semi-urban India. The availability of premium, organic, and specialty teas in these stores has contributed to market diversification, catering to health-conscious and experimental consumers. Promotional discounts, bulk purchase benefits, and in-store sampling further enhance consumer engagement. Additionally, modern trade channels leverage data-driven inventory management, ensuring efficient stock replenishment. However, competition from e-commerce platforms and local tea vendors presents challenges. To keep up with competition, supermarkets and hypermarkets are continually streamlining product ranges, enhancing shelf location, and investing in loyalty schemes to hold on to consumers.
Analysis by Application:
Residential consumption represents the largest segment of the Indian tea market, with tea being an integral part of daily life for millions of households across the country. From morning rituals to social gatherings, tea serves as a cultural and emotional touchpoint for consumers. The preference for homemade tea, often prepared with milk, sugar, and spices, drives demand for loose-leaf tea and packaged blends. These factors contribute to sustained demand for residential beverages. Rising disposable incomes and awareness of global tea trends have nudged households towards experimentation with green, herbal, and premium black teas. So too has the increasing well-being and functional beverages trend spurred interest in specialty teas like ginger, tulsi, and ashwagandha. However, inflation and fluctuations in raw material costs may affect pricing and accessibility. Looking forward, innovations in tea packaging, instant tea mixes, and personalized tea experiences are expected to shape the residential consumption segment further.
Regional Analysis:
North India is the largest consumer of tea and has robust demand for classic milk tea. Preferences are led by Assam and Darjeeling teas, whereas roadside tea shops and neighbourhood tea stalls drive retail. Urban pockets witness increasing popularity for premium and organic ones, whereas colder climes further push tea consumption during the entire year.
West and Central India continues witnessing a burgeoning tea market as diversified urban centers embrace diverse tea varieties, such as green and herbal tea. Masala chai is still well-enumerated, especially in Gujarat and Maharashtra, and expansion of organized retail and café culture is helping to improve the demand. Premium and instant tea is slowly and gradually being accepted by young consumers.
South India is both a major tea producer and consumer, with strong demand for Nilgiri tea and filter tea varieties. The region favors lighter, aromatic teas, and ready-to-drink options are gaining popularity. Urbanization and lifestyle changes have increased interest in herbal and functional teas, supporting market diversification and innovation.
East India, and Assam and West Bengal in specific, is significant in India's tea market. There is an indigenous tea culture here, and the people consume strong, full-bodied teas. Street stalls and tea stalls are still the prominent selling points, but increasing disposable incomes are creating demand for specialty, premium, and organic teas.
The global competitive scenario for India tea market analysis is marked by a combination of mature players, new entrant brands, and domestic producers vying to gain the burgeoning consumer base. Brands are investing in product differentiation through premiumization, organic labeling, and functional ingredient added infusions in order to target health-oriented customers. Flavor innovations, eco-friendly packaging, and ready-to-drink formats have increased competition, with companies spending a lot on research and development to launch distinctive blends. The growth of e-commerce and digital marketing has also redefined competition, allowing direct consumer interaction through online channels, subscription services, and social media promotions. Effective distribution networks, such as retailing expansion and strategic alliances with supermarkets and cafés, are important for market penetration. Sustainability and responsible sourcing are becoming major differentiators, with producers highlighting fair trade and environmentally friendly farming methods in order to establish consumer confidence. With surging demand, competition continues to be tough, fueling ongoing innovation and market growth.
The report provides a comprehensive analysis of the competitive landscape in the India tea market with detailed profiles of all major companies, including:
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Product Types Covered | Green Tea, Black Tea, Oolong Tea, Others |
Packagings Covered | Plastic Containers, Loose Tea, Paper Boards, Aluminium Tin, Tea Bags, Others |
Distribution Channels Covered | Supermarkets and Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, Others |
Applications Covered | Residential, Commercial |
Region Covered | North India, West and Central India, South India, East India |
Companies Covered | Duncans Industries Ltd., Hindustan Unilever Limited, Organic India Private Limited, Pataka Group, Society Tea, Tata Consumer Products Limited and Wagh Bakri Tea Group |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
The tea market in the India was valued at USD 11.50 Billion in 2024.
The India tea market value is growing due to increasing health awareness, rising demand for organic and specialty teas, expanding e-commerce and direct-to-consumer sales, and strong global exports. Innovations in flavors, sustainable sourcing, and premiumization further drive market expansion, while changing consumer preferences boost ready-to-drink and functional tea products.
The India tea market is projected to exhibit a CAGR of 3.10% during 2025-2033, reaching a value of USD 15.0 Billion by 2033.
Black tea accounted for the largest share of the Indian tea market, driven by its widespread consumption in households, tea stalls, and cafés. Its affordability, strong flavor, and cultural significance contribute to sustained demand.
Some of the major players in the India tea market include Duncans Industries Ltd., Hindustan Unilever Limited, Organic India Private Limited, Pataka Group, Society Tea, Tata Consumer Products Limited and Wagh Bakri Tea Group, etc.