India Tea Market Trends, Share, Growth, Outlook and Report 2025-2033

As indicated in the latest market research report published by IMARC Group, titled "India Tea Market Report by Product Type (Green Tea, Black Tea, Oolong Tea, and Others), Packaging (Plastic Containers, Loose Tea, Paper Boards, Aluminium Tin, Tea Bags, and Others), Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Convenience Stores, Online Stores, and Others), Application (Residential, Commercial), and Region 2025-2033," this report provides an in-depth analysis of the industry, featuring insights into the India tea market trends. It encompasses competitor and regional analyses, as well as recent advancements in the market.

Market Size & Future Growth Potential:

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 growth rate (CAGR) of 3.10% during 2025-2033.

Latest Market Trends:

The market is experiencing a remarkable transformation driven by evolving consumer preferences toward health and wellness beverages. Health-conscious consumers are increasingly gravitating toward specialty and functional teas infused with Ayurvedic ingredients like ashwagandha, moringa, turmeric, and tulsi, recognizing their medicinal properties and wellness benefits. The organic tea segment is witnessing robust momentum as consumers actively seek chemical-free, sustainably cultivated varieties that align with their environmental values.

Premium tea culture is flourishing across urban India, with experimental consumers driving demand for unique varieties including white tea, oolong tea, and purple tea. Craft processing methods such as hand-rolled and sun-dried techniques are gaining appreciation for their ability to maximize both flavor profiles and nutritional content. This premiumization trend reflects a broader shift where consumers view tea not merely as a daily beverage but as an experience worth investing in.

The ready-to-drink tea segment is emerging as a game-changer in India's beverage landscape. Coca-Cola's entry with Honest Tea, sourcing organic green tea from Luxmi Tea Co's prestigious Makaibari Estate, marks a significant milestone. Offered in Lemon-Tulsi and Mango flavors exclusively through e-commerce platforms in major cities like Bangalore, Mumbai, Hyderabad, Chennai, and Pune, this launch demonstrates how global brands are adapting to Indian tastes while promoting local sourcing partnerships.

Digital commerce is revolutionizing how Indians purchase tea. E-commerce platforms, brand-owned websites, and subscription-based tea services are enabling direct-to-consumer models that connect producers with buyers globally. Social media marketing, influencer partnerships, and content-driven campaigns are effectively educating consumers about tea heritage, brewing techniques, and health benefits, building stronger brand loyalty and expanding market reach beyond traditional retail channels.

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Market Scope and Growth Factors:

The scope of India's tea market is expanding significantly as the industry evolves from traditional consumption patterns to embrace innovation and diversification. As the world's second-largest tea producer after China, India accounts for substantial domestic consumption while maintaining a strong export presence in markets like Russia, Iran, and the UAE, where Indian Assam, Darjeeling, and Nilgiri teas enjoy premium positioning.

The market is benefiting tremendously from rising disposable incomes and urbanization, which are reshaping consumption habits particularly among millennials and Gen Z consumers. These younger demographics are more adventurous with flavor experimentation and willing to pay premium prices for quality, authenticity, and unique tea experiences. The growing café culture in metropolitan cities is creating new consumption occasions beyond traditional home brewing, expanding the overall market opportunity.

Sustainability and ethical sourcing have emerged as critical differentiators in today's marketplace. Consumers are increasingly prioritizing fair trade certifications, transparent supply chains, and environmentally friendly farming practices. Tea producers are responding by adopting biodiversity conservation measures, water conservation techniques, and carbon-neutral production methods. Innovations in packaging—including compostable tea bags, recyclable materials, and low-waste processing technologies—are appealing to sustainability-minded buyers and setting new industry standards.

Government support is playing a pivotal role in market expansion. Export promotion initiatives by the Tea Board include participation in international trade fairs, marketing campaigns highlighting Indian tea varieties, and export incentives that strengthen global competitiveness. Quality certifications like Geographical Indication tags for Darjeeling and Assam teas enhance brand recognition and command premium pricing internationally. Domestic policies encouraging organic farming and supporting small tea growers through welfare schemes are creating a more inclusive and sustainable industry ecosystem.

The infrastructure development in cold chain logistics and distribution networks is improving market access, particularly in Tier II and Tier III cities where premium and specialty teas were previously unavailable. Enhanced digital infrastructure enables seamless online transactions, making it easier for consumers across India to explore diverse tea varieties. Tea tourism is also emerging as a niche opportunity, with estates in Assam and Darjeeling attracting domestic and international visitors for experiential tea-tasting tours, adding another revenue stream while promoting Indian tea heritage globally.

Recent News and Developments:

• India Tea Exports Rise (January 2024): Tea exports from India increased by approximately 10% to reach 254.67 million kg during calendar year 2024, compared to 231.69 million kg in the previous year, according to Tea Board data. North Indian estates recorded production of 154.81 million kg, up nearly 10% year-on-year, while South India produced 99.86 million kg, marking a 10.11% increase, demonstrating strong production recovery and export competitiveness.
• Coca-Cola Launches Honest Tea (November 2023): Coca-Cola India entered the ready-to-drink tea segment with Honest Tea, featuring organic green tea sourced exclusively from Luxmi Tea Co's Makaibari Estate in Darjeeling. Available in Lemon-Tulsi and Mango flavors at Rs 50 per bottle, the product launched exclusively on e-commerce platforms in Bangalore, Mumbai, Hyderabad, Chennai, and Pune, targeting health-conscious urban consumers seeking convenient, natural beverage alternatives.
• Organic India Black Tea Range Launch (February 2024): Organic India Private Limited introduced its Black Tea range featuring Assam Black Tea, Masala Black Tea, and Elaichi Black Tea varieties. The premium range emphasizes organic purity, rich flavors, and antioxidant benefits, catering to growing consumer demand for certified organic tea products with traditional Indian flavors and wellness positioning.
• TeaFit Ayurvedic Tea Launch (June 2024): TeaFit expanded its functional tea portfolio by launching Saffron, Lemongrass, and Matcha Latte instant teas with Ayurvedic formulations and zero-sugar premixes. The launch strengthens the brand's presence in India's health-focused beverage market, offering natural functional alternatives that combine traditional Ayurvedic wisdom with modern convenience formats.
• Darjeeling Tea Premium Pricing (2024): Top-quality Darjeeling tea prices increased by 10-15% in international markets, supported by Geographical Indication certification and heritage branding initiatives. The Tea Board's promotional efforts through global trade fairs and marketing campaigns enhanced brand recognition, particularly in Europe, the United States, and Middle East markets that prioritize specialty Indian teas with established quality credentials.
• Tata Starbucks Coffee-Tea Crossover (January 2024): Tata Starbucks announced plans to operate 1,000 stores across India by 2028, opening one new store every three days. While primarily focused on coffee culture, the joint venture continues offering Tata's branded Teavana tea products, including the India Spice Majesty Blend featuring full-leaf Assam black tea infused with cinnamon, cardamom, cloves, pepper, star anise, and ginger, demonstrating cross-beverage market integration.
• Premium Tea Market Growth: India's premium tea market reached 1.15 million tons, with specialty and flavored teas reshaping market dynamics. Single-origin Assam teas, cold-brew variants, and blends infused with cardamom, lemongrass, and functional herbs are attracting urban consumers. Online sales grew 9%, offering convenience and enabling estate-to-consumer direct models that ensure traceability and freshness.
• Small Tea Growers Welfare Initiatives: The Confederation of India Small Tea Growers Association expressed optimism about being treated on par with farmers for benefits under various government welfare schemes. Small tea growers constitute a significant portion of India's tea production ecosystem, particularly in Assam, West Bengal, and South India, making their inclusion in agricultural support programs crucial for industry sustainability.
• Sustainable Farming Adoption: Tea estates across India are increasingly adopting sustainable cultivation practices including organic farming, fair trade certifications, and biodiversity conservation measures. These initiatives respond to global consumer demand for ethically sourced products while improving long-term soil health and ecosystem resilience, positioning Indian tea as a responsible choice in international markets.

Comprehensive Market Report Highlights & Segmentation Analysis:

Segmentation by Product Type:

• Green Tea
• Black Tea
• Oolong Tea
• Others

Segmentation by Packaging:

• Plastic Containers
• Loose Tea
• Paper Boards
• Aluminium Tin
• Tea Bags
• Others

Segmentation by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Convenience Stores
• Online Stores
• Others

Segmentation by Application:

• Residential
• Commercial

Segmentation by Region:

• North India
• West and Central India
• South India
• East India

Competitor Landscape:

• Duncans Tea
• Hindustan Unilever Limited
• Organic India Pvt. Ltd.
• Pataka Group of Companies
• Society Tea
• Taj Mahal Tea House
• Tata Consumer Products Limited
• Wagh Bakri Tea Group

Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/india-tea-market

Key highlights of the Report:

• Historical Market Performance
• Future Market Projections
• Impact of COVID-19 on Market Dynamics
• Industry Competitive Analysis (Porter's Five Forces)
• Market Dynamics and Growth Drivers
• SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
• Market Ecosystem and Value Creation Framework
• Competitive Positioning and Benchmarking Strategies

Major Advantages of the Report:

• This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
• Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
• The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.

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• Extensive Industry Expertise
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