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    India Tea Market

    ID: MRFR/F-B & N/56205-HCR
    128 Pages
    Snehal Singh
    September 2025

    India Tea Market Research Report: By Tea Type Outlook (Green Tea, Black Tea, Oolong Tea, Herbal Tea, Others), By Tea Form Outlook (Loose Leaf, Tea Bags, Others), By Tea Category Outlook (Organic, Conventional) and By Tea Distribution Channel Outlook (Store-Based, Non-Store-Based) - Forecast to 2035

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    India Tea Market Research Report Forecast till 2035 Infographic
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    India Tea Market Summary

    The India Tea market is projected to grow from 1.65 USD Billion in 2024 to 3.2 USD Billion by 2035.

    Key Market Trends & Highlights

    India Tea Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate (CAGR) of 6.21 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 3.2 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 1.65 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of sustainable farming practices due to increasing consumer awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 1.65 (USD Billion)
    2035 Market Size 3.2 (USD Billion)
    CAGR (2025-2035) 6.21%

    Major Players

    Bhagyalakshmi Tea, Wallace Flavors, Tetley, Society Tea, Hindustan Unilever, Jai Tea, Nilufer Tea, Tata Consumer Products, Assam Tea Corporation, Goodricke Group, Wagh Bakri Tea, Tea Trunk, Ramayana Tea, Dabur India, Twinings

    India Tea Market Trends

    The India Tea Market is currently experiencing a number of significant trends that are transforming its landscape. The increasing cognizance of consumers regarding the health benefits of tea consumption is a significant factor. As individuals prioritize their health, they are increasingly embracing traditional tea varieties such as robust black tea, herbal tea, and green tea, which are reputed to offer a variety of advantages. Furthermore, the demand for premium and specialty teas has increased as a result of urbanization and the rise in disposable incomes.

    This trend is further exacerbated by the increasing influence of social media, which tea brands employ to market their products and establish connections with a younger demographic that is intrigued by distinctive flavors and experiences. Opportunities for exploration in the India Tea Market include the development of innovative packaging solutions that meet the expectations of the contemporary consumer and the expansion of the online sales footprint. E-commerce platforms are increasingly becoming a significant channel for tea sales, enabling brands to engage with consumers directly and reach a broader audience.

    Market Segment Insights

    Tea Market Tea Type Outlook Insights

    Tea Market Tea Type Outlook Insights

    The India Tea Market, particularly the Tea Type Outlook sector, features a diverse range of products that cater to the varying preferences of consumers in the country. With a rich cultural heritage and a deep-rooted tea-drinking tradition, India ranks among the world's largest tea producers and consumers. Within this segment, Green Tea has gained immense popularity, primarily due to its perceived health benefits and rising health consciousness among consumers. This variety is often associated with antioxidants and other nutrients, making it a preferred choice for many health enthusiasts.

    Black Tea, the most commonly consumed form of tea in India, holds a significant share of the market due to its robust flavor and versatility. It is traditionally consumed with milk and spices, making it an integral part of daily life for millions of Indians. Oolong Tea, though less mainstream in comparison, appeals to a niche market of tea connoisseurs who appreciate its unique taste profile that lies between Green and Black Tea. Herbal Tea has also carved out a space within the market, offering unique flavors and various wellness benefits.

    The growing trend of natural and organic products has pushed Herbal Tea into the spotlight, particularly among younger consumers seeking alternative options free from caffeine. Additionally, other types of teas and infusions contribute to the vibrant landscape of the tea market and help meet specific consumer needs. The segment's growth can be attributed to several factors, including increasing disposable income, expanding distribution channels, and the rise of wellness trends emphasizing natural products.

    While each type of tea has its own unique characteristics and consumer base, they collectively contribute to the dynamic landscape of the India Tea Market, highlighting the importance of adaptation and innovation in meeting consumer demand. Overall, the Tea Type Outlook presents a multifaceted view of consumer preferences and market trends, providing ample opportunities for growth and further exploration in this industry.

    Tea Market Tea Form Outlook Insights

    Tea Market Tea Form Outlook Insights

    The India Tea Market is experiencing notable growth, particularly in its Tea Form Outlook segment, which encompasses various forms, including Loose Leaf, Tea Bags, and Others. This segment is pivotal to the market's dynamics, reflecting changing consumer preferences and lifestyle trends. Traditionally, Loose Leaf tea has been revered for its superior quality and flavor, appealing to tea connoisseurs who prioritize the authenticity of the brewing experience.

    Meanwhile, Tea Bags have gained popularity in urban areas owing to their convenience and ease of preparation, making them a staple for busy consumers seeking a quick tea solution.Additionally, the "Others" category captures a range of innovative tea products, including ready-to-drink options and specialty blends, catering to the evolving tastes of a diverse consumer base. The increasing awareness about health benefits associated with tea consumption further fuels growth in this segment.

    With a rich culture of tea drinking in India, the market is witnessing an exciting shift towards premiumization and innovation, creating ample opportunities for various forms of tea to thrive. Overall, the India Tea Market segmentation reflects the country's deep-rooted connection with tea and its ongoing evolution to meet contemporary demands.

    Tea Market Tea Category Outlook Insights

    Tea Market Tea Category Outlook Insights

    The India Tea Market is experiencing significant growth, particularly in the Tea Category Outlook, which includes diverse segments such as Organic and Conventional tea. The trend towards health-conscious living has contributed to a marked increase in demand for Organic tea as consumers seek natural and chemical-free options. This preference is influencing India's tea consumption patterns and is bolstered by a growing awareness of the health benefits associated with herbal and organic teas.

    Conversely, the Conventional tea segment remains robust, catering to traditional consumers who prioritize flavors and affordability.The robust agricultural ecosystem in India, supported by favorable climatic conditions, enhances tea production, making the country one of the largest producers globally. With innovative production methods and extensive marketing initiatives, both segments are seeing opportunities for growth. The India Tea Market segmentation illustrates how diverse consumer preferences can shape industry trends, and understanding these dynamics is crucial for stakeholders looking to capitalize on market potential.

    The balance of heritage and health in the tea consumption landscape highlights the importance of both Organic and Conventional tea for fostering innovation and expanding the overall market reach in India.

    Tea Market Tea Distribution Channel Outlook Insights

    Tea Market Tea Distribution Channel Outlook Insights

    The India Tea Market revenue is experiencing significant growth, particularly in the Tea Distribution Channel Outlook, which comprises diverse channels, including Store-Based and Non-Store-Based categories. Store-based channels, which encompass retail outlets and supermarkets, are particularly vital for reaching the traditional consumer base that prefers purchasing tea in physical locations. These channels not only provide immediate accessibility to a wide range of tea products but also help enhance brand visibility through strategic placements.

    Conversely, Non-Store-Based channels, including e-commerce platforms, are rapidly gaining importance as consumer preferences shift towards online shopping due to convenience and wider selections.The growing internet penetration in India, along with increased smartphone usage, is driving this segment forward. The market growth is further supported by a rising awareness of the health benefits attributed to tea, fueling demand across all distribution channels. However, challenges such as logistics and competition from other beverages remain prevalent.

    Understanding the dynamics of these distribution channels is essential for stakeholders, as they play crucial roles in the India Tea Market segmentation and influence overall consumer buying behavior.

    Get more detailed insights about India Tea Market Research Report Forecast till 2035

    Key Players and Competitive Insights

    The India Tea Market is characterized by its rich diversity and cultural significance, making it a fiercely competitive landscape. It is essential to understand the various dynamics at play, including consumer preferences, the growing trend towards specialty teas, and sustainability concerns that shape market strategies. Major players in this sector are continuously innovating and adapting their offerings to meet the evolving tastes of consumers, shifting towards healthier options and organic products.

    The presence of regional brands alongside global ones contributes to the competition, fostering a market that is not only expansive but also fragmented, requiring companies to differentiate themselves through quality, branding, and effective distribution channels. The competitive landscape is further complicated by challenges such as fluctuating tea prices, climatic dependencies, and regulatory hurdles, all of which require firms to maintain agility in their operations and strategic positioning.Bhagyalakshmi Tea has firmly established itself as a notable brand in the India Tea Market, primarily recognized for its commitment to quality and traditional tea blends that resonate with local consumer preferences.

    The brand has a strong distribution network that ensures its products are available in both urban and rural areas, allowing it to maintain a significant market presence. With a focus on customer satisfaction, Bhagyalakshmi Tea emphasizes consistent product quality and strong customer engagement, fostering loyalty among its consumer bases.

    Additionally, the brand has been proactive in promoting its offerings as being sourced from the best tea gardens, further enhancing its reputation in a market where quality is a key differentiator.Wallace Flavors has carved a niche for itself in the India Tea Market by specializing in innovative and flavorful blends that cater to diverse consumer tastes. Known for its strong market presence, the company has effectively harnessed the growing trend of flavored and specialty teas, ensuring that it remains a key player in a competitive environment.

    Wallace Flavors offers a range of products that include various tea blends infused with unique flavors, positioning itself as a go-to brand for consumers seeking variety and creativity in their tea experience. The company's strengths lie in its robust distribution framework and marketing strategies, which target a wide demographic, from young tea drinkers to traditional connoisseurs. Wallaces Flavors has also engaged in strategic mergers and acquisitions, allowing it to broaden its product portfolio and enhance its capabilities within the Indian market, enabling it to respond effectively to changing consumer demands and preferences.

    Key Companies in the India Tea Market market include

    Industry Developments

    Recent developments in the India Tea Market have shown notable growth and interest from various companies. Bhagyalakshmi Tea and Wagh Bakri Tea have been increasing their presence by enhancing product lines and expanding distribution channels. Hindustan Unilever has focused on sustainable sourcing initiatives for its Tetley brand, aligning with growing consumer demand for ethical products. Assam Tea Corporation has recently undertaken efforts to modernize its plantations to increase yield and process efficiency. Additionally, Tata Consumer Products has been investing in digital marketing to enhance brand awareness and consumer engagement in niche segments.

    In terms of mergers and acquisitions, no significant activities have been reported in the past few months among the key companies. However, the overall market valuation for major players like Goodricke Group and Society Tea has shown positive trends due to rising tea consumption in India, especially post-pandemic. Notable events in recent years include the launch of organic tea lines by Tea Trunk in March 2022 and the significant market push from Ramayana Tea, aiming to capture younger demographics in November 2021. The combination of these factors has positioned the India Tea Market for sustained growth and development.

    Market Segmentation

    Outlook

    • Store-Based
    • Non-Store-Based

    Tea Market Tea Form Outlook

    Tea Market Tea Type Outlook

    Tea Market Tea Category Outlook

    Tea Market Tea Form Outlook Insights

    Tea Market Tea Type Outlook Insights

    Tea Market Tea Category Outlook Insights

    Tea Market Tea Distribution Channel Outlook

    Tea Market Tea Distribution Channel Outlook Insights

    • Bhagyalakshmi Tea
    • Wallace Flavors
    • Tetley
    • Society Tea
    • Hindustan Unilever
    • Jai Tea
    • Nilufer Tea
    • Tata Consumer Products
    • Assam Tea Corporation
    • Goodricke Group
    • Wagh Bakri Tea
    • Tea Trunk
    • Ramayana Tea
    • Dabur India
    • Twinings

    Report Scope

    Report Scope:
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 1.38(USD Billion)
    MARKET SIZE 2024 1.65(USD Billion)
    MARKET SIZE 2035 3.2(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 6.207% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Bhagyalakshmi Tea, Wallace Flavors, Tetley, Society Tea, Hindustan Unilever, Jai Tea, Nilufer Tea, Tata Consumer Products, Assam Tea Corporation, Goodricke Group, Wagh Bakri Tea, Tea Trunk, Ramayana Tea, Dabur India, Twinings
    SEGMENTS COVERED Tea Type Outlook, Tea Form Outlook, Tea Category Outlook, Tea Distribution Channel Outlook
    KEY MARKET OPPORTUNITIES Premium organic tea demand, Ready-to-drink tea segment growth, Innovative tea blends introduction, Health-focused tea products rise, Online tea sales expansion
    KEY MARKET DYNAMICS Growing health consciousness, Increasing premium segment, Shift towards sustainability, Rise in online sales, Diverse consumer preferences
    COUNTRIES COVERED India

    FAQs

    What is the expected market size of the India Tea Market in 2024?

    The India Tea Market is projected to be valued at 1.65 USD billion in 2024.

    What will be the market size of the India Tea Market in 2035?

    By 2035, the India Tea Market is expected to reach 3.2 USD billion.

    What is the expected compound annual growth rate (CAGR) for the India Tea Market from 2025 to 2035?

    The India Tea Market is forecasted to have a CAGR of 6.207% for the period from 2025 to 2035.

    Which tea type segment is projected to have the highest market value in 2035?

    Black Tea is expected to hold the highest market value, reaching 1.6 USD billion in 2035.

    What is the anticipated market value for Green Tea in 2035?

    The market value for Green Tea is projected to be 0.92 USD billion in 2035.

    Who are some of the key players in the India Tea Market?

    Major players include Tata Consumer Products, Hindustan Unilever, and Goodricke Group among others.

    What is the market size expectation for Herbal Tea in 2035?

    Herbal Tea is expected to reach a market size of 0.3 USD billion in 2035.

    How much will the Oolong Tea segment be valued at in 2035?

    Oolong Tea is anticipated to have a market value of 0.25 USD billion in 2035.

    What challenges are currently facing the India Tea Market?

    Challenges include fluctuating raw material prices and changing consumer preferences.

    What opportunities exist within the India Tea Market for growth?

    The rising health consciousness among consumers has created opportunities for herbal and specialty teas.

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