The India tea market attained a volume of 1.40 Million Tons in 2025. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2026-2035. By 2035, the market is expected to reach 2.17 Million Tons.
The rising preference for specialty and premium teas mostly amongst urban consumers is driving the India tea market expansion. Brands are coming up with high-end and responsibly sourced tea items for aligning with the evolving consumer preferences. This trend is supported by thriving disposable incomes as well as the growing middle-class population expenditure on quality. According to industry reports, the number of middle-class individuals in India is estimated to nearly double to 61% by 2046-2047, adding to the market growth.
Of late, consumers are increasingly opting for green, herbal, and organic teas due to perceived health benefits. In June 2024, Organic India’s Tulsi herb and its farming co-ops received the Regenerative Organic Certified label, highlighting its commitment to soil health, fair labour, and sustainable agriculture. This shift is attributable to the surging demand for functional teas containing ingredients.
The surging demand for ready-to-drink (RTD) teas is impacting the India tea market outlook, driven by urban millennials and Generation Z seeking convenience. To that end, several brands are introducing iced tea and other ready-to-consume formats to cater to this increasing segment. In June 2023, premium organic tea provider Vahdam India launched its new ICED TEAS range crafted with 100% real tea and available as instant premix and convenient pitcher tea bags. Such innovations are offering the younger consumers a delightful variety of flavours.
Base Year
Historical Period
Forecast Period
India is the world's second-largest tea producer. Assam and West Bengal produce the majority of the nation's annual tea production, accounting for 83% of the total in India's northern area in 2021-22. The tea estates in Assam are known for their robust and malty black teas, while West Bengal is famous for its aromatic Darjeeling tea, often referred to as the "Champagne of teas." In 2021-22, India produced approximately 1,374.97 million kilograms of tea, with Assam contributing around 654.63 million kilograms and West Bengal around 300 million kilograms. This dominance in production underscores the importance of these regions in both domestic consumption and international exports.
India is also one of the largest consumers of tea globally. Tea is deeply ingrained in Indian culture, and per capita consumption continues to rise, which is further supporting the India tea industry revenue. The average Indian consumes about 1.1 kg of tea annually, with consumption patterns showing a shift towards speciality teas, including green, herbal, and organic varieties. This increasing demand is fueled by a growing health consciousness among consumers, who are increasingly aware of the health benefits associated with various types of tea. Additionally, tea is often consumed socially and is an integral part of hospitality in Indian households.
The Indian government has implemented various initiatives to support the tea industry. These include the Tea Development and Promotion Scheme, which aims to improve tea cultivation techniques through research and development, enhance productivity, and promote exports. The government also provides financial assistance for processing facilities and encourages sustainable practices among tea growers. Furthermore, initiatives like the National Tea Policy focus on increasing global competitiveness by enhancing quality standards and promoting Indian teas in international markets. These efforts are crucial for maintaining India’s status as a leading player in the global tea market while ensuring that local farmers benefit from fair trade practices.
Compound Annual Growth Rate
4.5%
Value in Million Tons
2026-2035
*this image is indicative*
The rapid growth of digital platforms and e-commerce is revolutionizing the India tea market to offer improved access to consumers worldwide. According to industry reports, India witnessed 300 million shoppers buying their favourite clothing, food, electronics on online platforms in 2023. Online platforms, direct-to-consumer (DTC) models, and subscription tea services are facilitating easy access to a variety of Indian teas for global buyers.
Companies are investing in research and development activities to introduce new packaging solutions to cater to the evolving tastes and preferences of consumers, adding to the India tea market development. In September 2024, compostable packaging firm Pakka introduced a new range of flexible and eco-friendly solutions to meet the growing demand for sustainable packaging across food and beverages, including the tea industry. The introduction of flavoured teas, herbal teas, and organic teas is broadening the consumer base, with packaging innovations enhancing product appeal.
The thriving export demand is propelling the India tea market by boosting production, increasing prices, and expanding global reach. Countries, such as Russia, the United Arab Emirates, and Iraq are key importers. The strong overseas interest is supporting industry growth while encouraging premium offerings and prompting government support. As per industry reports, the Tea Board of India revealed plans of exporting 400 million kg by 2047, making exports a vital driver of India’s tea economy.
The growing trend of organic tea cultivation, with consumers increasingly seeking natural and chemical-free alternatives is complementing the India tea market revenue. In January 2025, Rapid Organic introduced Organic Cumin Tea for offering a natural, digestive-friendly beverage to meet the growing health and wellness trends. This demand is backed by increasing consciousness of the eco-friendly impact of organic agriculture for aligning with the sustainability trend around the world.
The rising emphasis of tea companies on adopting sustainable practices and ensuring ethical sourcing of tea leaves to meet the increasing consumer demand for environmentally friendly products is boosting the India tea industry. In September 2024, Easy Boba introduced PET cans, aluminium lids, and rice straws in Mumbai for promoting sustainability while reducing waste in the bubble tea industry. This focus on sustainability is expected to enhance brand loyalty and drive market growth.
The EMR’s report titled “India Tea Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: Black tea dominates the India tea market, accounting for the highest consumption nationwide. As per industry reports, India is the largest consumer of black tea, recording about 18% of the worldwide tea consumption as of March 2023. Major brands primarily rely on black tea offerings to cater to the rising consumer requirements. India is also one of the world's largest producers and exporters of black tea, with regions, such as Assam and Darjeeling globally recognized for their distinctive flavours. Benefits of affordability and strong flavor profile are also keeping black tea at the forefront of household and commercial consumption.
Market Breakup by Sector
Key Insight: The unorganised sector, inclusive of small retailers, local tea stalls, roadside vendors, and loose tea sold without branding or packaging, leads the India tea market. Tea consumed at railway stations, small eateries, and homes in rural or semi-urban areas largely comes from this segment. The affordability, accessibility, and cultural integration of local tea stalls is making them integral to daily life in India. For instance, in February 2025, Chennai Airport launched the Udaan Yatri Café for offering tea while making travel budget-friendly for passengers. This sector also thrives on widespread availability and low prices, emerging as the primary channel for tea consumption in the country.
Market Breakup by Packaging
Key Insight: Tea bags are largely contributing to the India tea market owing to their popularity in metros and among working professionals. This format is attracting to urban consumers seeking speed, convenience, and portability in daily routines. The surge of health-consciousness is driving the uptake of green tea, herbal infusions, and flavoured teas. Leading companies are capitalizing by offering a wide variety of blends tailored to diverse taste preferences as well as wellness needs. To cite an instance, in August 2024, Assam D2C brand Esah Tea launched microplastic-free cotton tea bags for offering a sustainable alternative to plastic packaging.
Market Breakup by Processing
Key Insight: The CTC tea segment is growing in the India tea market due to its affordability, and quick brewing properties. CTC (crush, tear, curl) tea is popular in Assam, West Bengal, and North India as it forms the backbone of daily tea-drinking culture. Several brands are offering blends that cater to the Indian palate’s preference for robust tastes. In July 2024, Chamraj Tea Estate introduced its 'Master Blend' CTC range, including variants, such as 'Master Blend Ginger' and 'Master Blend Lemon' for catering to diverse consumer palates, further driving the product uptake.
Market Breakup by Application
Key Insight: The residential segment leads the India tea market, as tea has evolved as an integral component in most Indian households. Popular tea brands are catering extensively to this segment with affordable offerings. For instance, in July 2024, fine tea brand Chai Chun introduced its Bagan Bahar CTC tea packets for offering classic and masala chai blends. Tea’s cultural significance in social gatherings, morning routines, and evening snacks is further entrenching its place in residential consumption. The segment’s volume is further boosted by varied preferences across different regions of India.
Market Breakup by Distribution Channel
Key Insight: Supermarkets and hypermarkets are driving the India tea market due to their wide product assortment and large customer base. Major chains are stocking extensive tea varieties, from budget-friendly CTC teas to premium green, herbal, and orthodox blends. The organized layout and attractive shelf displays is encouraging brand comparisons and impulse buying. As per industry reports, there were 66225 supermarkets across India as of May 2025. These outlets also run promotional campaigns, discounts, and in-store tastings, influencing consumer preference and volume sales, especially in urban and semi-urban centres, where bulk and family-sized tea packs are popular.
Market Breakup by Region
Key Insight: The North region, including Delhi, Punjab, Uttar Pradesh, and Haryana, dominates the India tea market with higher intake in daily routines, social interactions, and hospitality across both urban and rural areas. As per industry reports, the Northern states of India consumed around 391.5 million kgs of tea in 2023. CTC tea blends are especially popular as they are often consumed with milk, sugar, and spices. The region’s chilly winters and strong tea-drinking culture are further driving high consumption. With rising urbanization and premiumization, there is further a growing demand for masala chai, green tea, and flavoured teas in metros.
Rising Demand for Green Tea & Oolong Tea in India
The demand for green tea is experiencing rapid growth in the India tea market due to increasing health consciousness. Known for its antioxidant properties and weight management benefits, green tea appeals to urban and younger demographics. Major brands are introducing a variety of green tea flavours to cater to diverse preferences. In November 2022, Tata Consumer boosted its green tea presence in India with the launch of Tetley's new Tulsi-flavoured variant. The segment thrives particularly in metro cities and among fitness-focused consumers. The rising trend of wellness and preventive health is also helping green tea in steadily attaining traction across the country.
Oolong tea holds a significant share in the India tea market given its unique flavour, which lies between black and green tea. Though not widely consumed, oolong tea is gaining recognition among tea enthusiasts and in upscale urban cafés. Premium and specialty tea brands are launching oolong variants to cater to a health-conscious and experimental audience. As awareness around artisanal and specialty teas grows, oolong is slowly carving out a market, particularly in metropolitan cities where consumers are more open to trying global tea varieties and gourmet blends.
Booming Organised Tea Sector in India
The organised tea sector in the India tea market comprises branded and packaged tea sold by companies, such as Tata Consumer Products, Hindustan Unilever and Wagh Bakri. Products are sold in supermarkets, e-commerce platforms, and retail chains with strict quality, hygiene, and packaging standards. The rise in health consciousness has led to the growing demand for green, herbal, and specialty teas. The organised segment is expanding rapidly due to urbanisation, rising incomes, and changing preferences. As per industry reports, the average salary in India is projected to witness a 9.5% increase in 2025, favouring the segment growth.
Aluminum Tins & Plastic Containers to Drive Tea Consumption in India
Aluminum tins are favoured in the India tea industry as they offer excellent aroma preservation and visual appeal, making them ideal for luxury packaging. Leading brands are using aluminum tins for gourmet blends or single-origin teas. This packaging is typically found in specialty stores or through online platforms for targeting affluent and niche audiences. Tins are also widely used in gifting and international sales for enhancing perceived value. Demonstrating this trend, in August 2022, Tata Tea Premium launched its festive #DeshKaGarv collection, featuring limited-edition tea sets packaged in decorative tin boxes. Only 50 pieces of each set were produced, making the collection truly one-of-a-kind.
Plastic containers are significantly contributing to the India tea market due to their affordability, durability, and ability to preserve freshness. Leading brands are using PET jars and plastic pouches for retail distribution as they cater to both urban and rural markets for offering convenience and reusability. Plastic packaging is especially popular in tier 2 and 3 cities where cost-efficiency drives consumer choices. The widespread use in local stores and supermarkets is also making plastic a practical choice for middle-class consumers purchasing in bulk quantities.
Orthodox (Traditional) Tea to Gain Popularity in India
The orthodox (traditional) tea segment of the India tea industry is valued for its premium quality, nuanced flavour, and artisanal production methods. Orthodox teas are hand-processed and help in preserving the whole leaves and resulting in delicate, complex flavours prized by connoisseurs and urban consumers. This segment thrives mainly on niche markets, such as specialty tea stores, gourmet cafes, and among health-conscious drinkers seeking single-origin or estate-specific teas. Brands, such as Vahdam and Tea Trunk are tapping into the growing demand for orthodox teas, subsequently highlighting its distinct aroma and health benefits.
Surging Presence of Tea in the Commercial Sector of India
The commercial segment is playing a significant role in the India tea market as it drives bulk purchases, particularly of CTC tea on account of its quick brewing and strong flavour, backed by local vendors and hospitality businesses. Major brands are targeting this segment with larger packaging formats and competitive pricing. Additionally, the growth of specialty cafes and tea lounges in metros has increased demand for premium and specialty teas. In March 2023, Tata Consumer Products unveiled its premium tea brand ‘Street Chais of India’ at the Versova Metro in Mumbai for blending tradition with modern branding flair, further creating niche opportunities in the commercial segment.
Specialty Stores & Online Platforms to Bolster Significant Tea Sales in India
Specialty stores represent a growing segment of the India tea industry as they include gourmet outlets and brand-exclusive stores, such as Chai Chun, Tea Junction, and the Wagh Bakri Tea Lounge to offer curated experiences around tea. These stores showcase orthodox, green, herbal, and flavoured teas for appealing to connoisseurs and health-conscious consumers. These stores also feature loose-leaf teas, exotic blends, and tea accessories, making them popular in metro cities and tourist hubs.
Online platforms are the fastest-growing segment of the India tea market, driven by convenience, variety, and direct-to-consumer branding. E-commerce giants are offering a wide array of teas, from mass-market to artisanal and wellness-oriented blends. Several startups are also capitalizing on this channel by selling premium teas directly to customers while promoting traceability and health benefits. Supporting with an instance, in March 2023, homegrown tea brand Gardens of India launched its official e-commerce website to offer products with authenticity, purity, and flavour, carefully sourced from the finest farms and estates in India.
Thriving Tea Market in East and Central & West Regions of India
The East and Central region is significantly contributing to the India tea market. Assam and West Bengal are key tea-producing states, with strong demand for both CTC and orthodox teas. As per industry reports, Assam produced 27.52 million kgs of tea during March 2025. Kolkata is a major tea trading hub with higher preference for strong and brisk teas. While rural areas consume traditional blends, Kolkata and Patna are witnessing growing demand for packaged and specialty teas. Brands, such as Goodricke, Chai Chun, and local estate teas have a strong presence, adding to the regional product uptake.
The West region, comprising Maharashtra, Gujarat, and Rajasthan, is representing a robust India tea industry due to distinctive preferences. Packaged tea sales are high in both urban and semi-urban areas, with increasing visibility in supermarkets and local stores. The West region’s tea market benefits from a mix of urban sophistication and local preferences, leading to strong retail sales in supermarkets, convenience stores, and growing online platforms. Additionally, rising health awareness has sparked interest in specialty teas. Together, these factors are contributing to the West region’s growing influence and vibrancy in India’s tea industry.
Key players in the India tea market are employing a range of strategic approaches to maintain competitiveness and meet changing consumer demands. Product diversification is allowing companies to introduce flavoured, herbal, organic, and wellness teas to cater to health-conscious and younger consumers. Brands, such as Tata Tea and Wagh Bakri have expanded their offerings with green tea, detox blends, and immunity-boosting variants.
Brand positioning and regional targeting also enabling firms to customize products and marketing campaigns to resonate with regional tastes and preferences.
Strong distribution networks, including rural penetration and robust retail presence in supermarkets, and e-commerce platforms are ensuring wide accessibility. Sustainability and ethical sourcing are increasingly emphasized as companies are adopting responsible sourcing practices and supporting small tea growers. In addition, investment in digital marketing and influencer collaborations is helping brands in connecting with urban millennials and Gen Z consumers. Lastly, exports and global expansion remain important strategies, with Indian tea brands focusing on Middle East, the United States, and European markets to boost international presence.
Founded in 1964 and headquartered in Mumbai, India, Tata Consumer Products Limited offers a diverse range of products, including packaged beverages and food items. The company’s beverage portfolio includes popular brands such as Tata Tea, Tetley, and Tata Gluco+ along with a vast range of ready-to-drink and fruit-based beverages.
Hindustan Unilever Limited, founded in 1933 and headquartered in Mumbai is India's largest fast-moving consumer goods companies with its offerings spanning across home care, beauty, personal care, and beverages. The firm’s beverage brands include Lipton and Bru following its venture into health-based drink segments.
Founded in 1892, Wagh Bakri Tea Group is headquartered in Ahmedabad, India and is well-known for its premium tea products for catering to both domestic and international markets. Apart from loose and packaged teas, the company has diversified into ready-to-drink teas and herbal infusions to meet evolving consumer preferences.
R. Twining and Company Limited was founded in 1706 and is headquartered in Hampshire, United Kingdom. Renowned for its wide array of premium teas, the company offers infusions and wellness blends with a strong emphasis on ethical sourcing and sustainable packaging in its global operations.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the India tea market are Pataka Group of Companies, Marvel Group, The Bombay Burmah Trading Corporation. Ltd, Assam Company India Limited, Ramesh Tea Traders, Amar Tea Pvt. Ltd, Rossell India Ltd., and Goodricke Group Limited, among others.
Unlock valuable insights into India’s booming tea sector—download your free sample report now! Stay ahead of competition with the latest India tea market trends 2026, regional performance insights, and strategic forecasts. Whether you're an investor, brand, or distributor, our detailed report offers critical data to inform your decisions. Visit Expert Market Research and explore emerging opportunities in India's tea landscape today.
Flavoured Tea Ingredients Market
Indian Premium Tea Market
Elderflower Tea Market
Kombucha Tea Market
Earl Grey Tea Market
Alcoholic Tea Market
Matcha Tea Market
Bubble Tea Market
Green Tea Market
Tea Market
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
The market is projected to grow at a CAGR of 4.50% between 2026 and 2035.
Key strategies driving the market include product innovation with specialty blends, expansion of premium and organic segments, aggressive marketing campaigns, enhanced packaging, growth in e-commerce channels, regional flavour customization, and collaborations with retailers for wider distribution. These approaches are boosting consumer engagement and market penetration across diverse demographics.
Almost 80% of the total output in India is consumed domestically. The per capita consumption of the beverage in the country has witnessed a significant increase in the last decade. This is expected to be a key trend guiding the growth of the market.
North, East and Central, West, and South are the leading regions in the market.
Black tea is the dominant type of the product in the market.
The leading tea packaging in the market are loose tea, plastic containers, paper boards, aluminium tins, and tea bags, among others.
The major distribution channels in the market are supermarkets and hypermarkets, speciality stores, convenience stores, and online, among others.
The significant processing types in the market are CTC and orthodox (traditional).
Residential and commercial sectors are the leading applications of the market.
Based on sector, the market is divided into organised and unorganised.
The key players in the market report include Tata Consumer Products Limited, Hindustan Unilever Limited, Wagh Bakri Tea Group, R. Twining and Company Limited., Pataka Group of Companies, Marvel Group, The Bombay Burmah Trading Corporation. Ltd, Assam Company India Limited, Ramesh Tea Traders, Amar Tea Pvt. Ltd, Rossell India Ltd., and Goodricke Group Limited, among others.
In 2025, the market reached an approximate volume of 1.40 Million Tons.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a volume of around 2.17 Million Tons by 2035.
The residential segment leads the market, as tea is an integral part of daily life in most Indian households.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Sector |
|
| Breakup by Packaging |
|
| Breakup by Processing |
|
| Breakup by Application |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share