Tea Market Size to Reach USD 214.85 Billion by 2031, with Organic Tea Forecasted at the Highest CAGR at 9.49%, Says a Mordor Intelligence Report
HYDERABAD, India, May 27, 2026 /PRNewswire/ -- According to a research report by Mordor Intelligence, the tea market size is projected to grow from USD 159.53 billion in 2026 to USD 214.85 billion by 2031, registering a CAGR of 6.13% during the forecast period. Growth is being driven by rising demand for healthier tea alternatives, premium tea experiences, organic products, and sustainable packaging innovations.
Consumers, particularly Gen Z, increasingly prefer low-caffeine, organic, ethically sourced, and wellness-oriented tea products, prompting manufacturers to innovate across formulations, packaging, and distribution strategies.
Tea Market Emerging Developments and Key Trends
Growing Demand for Green and Herbal Teas
Rising health consciousness is significantly increasing demand for green tea and herbal infusions.
Consumers are shifting toward beverages that provide functional health benefits such as stress reduction, heart health support, cognitive improvement, and weight management.
Manufacturers are responding by launching wellness-focused teas with added functional ingredients. For example, Tetley introduced green tea infused with L-Carnitine to address growing consumer interest in metabolism-supporting beverages.
Bhavesh-Narasinha Varute, Senior Research Manager, Mordor Intelligence, says, "The tea market continues to reflect evolving consumer preferences, distribution shifts, and regional demand patterns, making dependable market interpretation increasingly important. Mordor Intelligence applies a consistent research framework grounded in multiple data sources and structured validation, helping decision-makers assess market developments with greater confidence than reports based on narrower inputs."
Gen Z Preference for Wellness and Low-Caffeine Tea
Mordor Intelligence highlights that Gen Z consumers are driving demand for low-caffeine and decaffeinated tea products as they increasingly prioritize mental wellness, sleep quality, and stress management.
Brands are expanding offerings that feature herbal blends, calming ingredients, and clearly labeled caffeine levels to attract younger consumers seeking healthier beverage alternatives.
This trend is accelerating innovation in herbal infusions, CO₂-decaffeinated tea variants, and evening wellness teas.
Cultural Importance of Tea Consumption
Tea continues to maintain deep cultural significance across several global markets, supporting stable long-term consumption patterns.
Countries such as China, Morocco, Ireland, and the United Kingdom maintain high per-capita tea consumption levels due to strong cultural integration into daily routines and hospitality practices.
This cultural connection helps the tea market remain resilient even during economic slowdowns while supporting continuous product innovation.
Innovation in Tea Flavors, Blends, and Packaging
Mordor Intelligence analysis shows that tea manufacturers are increasingly innovating through specialty teas, functional blends, ready-to-drink products, and sustainable packaging solutions.
Brands are introducing specialty teas such as hojicha and oolong into mainstream retail channels while adopting eco-friendly packaging innovations to meet sustainability goals.
Functional ready-to-drink tea beverages enriched with vitamins and wellness ingredients are also expanding tea's appeal among younger and health-conscious consumers.
For a full breakdown of market size, segmentation data, and competitive intelligence on the global tea industry, read details of the Mordor Intelligence report at https://www.mordorintelligence.com/industry-reports/global-tea-market?utm_source=prnewswire
Breakdown of Key Tea Market Segments
By Product Type
- American Whiskey
- Irish Whiskey
- Scotch Whiskey
- Canadian Whiskey
- Other Product Types
By End User
- Men
- Women
By Category
- Mass
- Premium
By Ingredient
- Corn
- Malt
- Blended
- Others
By Distribution Channel
- On-Trade
- Off-Trade
- Specialty/Liquor Stores
- Others Off-Trade Channels
Regional Market Insights
Asia-Pacific accounted for the largest share of the global tea market in 2025 due to strong tea production and consumption traditions across China, India, Japan, and Southeast Asia.
The Middle East and Africa region is expected to experience the fastest growth through 2031, driven by urbanization, a growing youth population, and rising demand for packaged tea beverages.
Europe and North America continue evolving through sustainability-focused packaging innovation, wellness tea adoption, and ready-to-drink tea demand.
South America is also witnessing rising demand for herbal and wellness tea products, especially in countries such as Brazil and Chile.
State of Competition Across the Tea Industry
The global tea market remains moderately fragmented, with large multinational corporations competing alongside premium specialty tea brands and regional producers.
Leading tea companies are focusing on sustainability initiatives, café expansion, eco-friendly packaging, premiumization, direct sourcing, and digital engagement strategies to strengthen market positioning.
Premium brands are differentiating themselves through organic ingredients, direct trade practices, transparent sourcing, and wellness-focused product positioning.
Ready-to-drink tea innovation and strategic partnerships are also intensifying competition across the industry.
Top Companies Shaping the Tea Market
- PepsiCo Inc.
- Tata Consumer Products Ltd.
- Associated British Foods PLC
- ITO EN, Ltd.
- Unilever plc
Other Reports by Mordor Intelligence
Organic Tea Market Size: Certification Regimes and Clean-Label Growth
The organic tea market is projected to reach USD 2.81 billion by 2031, growing at a CAGR of 12.18% from its 2026 valuation of USD 1.58 billion. Heightened health awareness and strict organic-farming standards are pushing supermarkets and online platforms to allocate more shelf space to green, herbal, and functional tea blends. To stand out, brands are leveraging sustainable credentials such as carbon-neutral logistics, regenerative agriculture, and recyclable packaging. While the Asia-Pacific region dominates the market in terms of production volume, Europe leads in overall value growth, supported by premium purchasing power and an established, rigid certification architecture.
Single Origin Tea Market Share: Terroir-Specific Traceability and Smallholder Premiums
Valued at USD 3.3 billion in 2026, the single-origin tea market is forecast to reach USD 4.81 billion by 2031, representing a 7.83% CAGR. The sector is expanding as consumers actively seek traceable, estate-specific teas with unique flavor profiles. In response, producers are integrating blockchain networks to deliver verifiable origin data and transitioning to carbon-smart farming. This shift heavily benefits smallholder farmers—who manage roughly 60% of the global tea supply—by opening up fresh income streams through direct-trade price premiums and localized carbon credits, helping them cushion the financial impact of climate volatility.
Specialty Tea Market: Functional Wellness and Regulatory Price Floors
The broader specialty tea market is set to expand from USD 38.42 billion in 2026 to USD 52.66 billion by 2031, at a CAGR of 6.51%. Polyphenol-rich green tea is capturing a massive share of consumer wallets, projected to grow at an isolated 8.91% CAGR due to a widespread pivot toward functional wellness. On the regulatory front, compliance with the USDA's National Organic Program (NOP) Strengthening Organic Enforcement rule has restricted the flow of unverified imports, effectively elevating market price floors. On-trade venues like specialty tea houses and boutique hotels are outstripping traditional retail channels by heavily spotlighting high-margin offerings like single-origin matcha and cold-brewed oolong in compostable pouches.
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SOURCE Mordor Intelligence Private Limited
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