India tea market attained a volume of 1.34 Million Tons in 2024 due to increasing health consciousness among consumers who seek the benefits of green and herbal teas, rising disposable incomes that encourage the purchase of premium teas, and the rapid expansion of e-commerce platforms that enhance accessibility to diverse tea products. Additionally, tea's cultural significance in India ensures consistent demand across various socio-economic classes. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2025-2034 to attain a volume of 2.08 Million Tons by 2034. Innovations in product offerings, such as new flavours is expected to further stimulate market growth.
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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
2025-2034
India Tea Market Outlook
*this image is indicative*
The India tea market dynamics and trends are shaped by the increased domestic consumption of different varieties of tea, including green tea, rising disposable incomes, and the expansion of online distribution channels.
Tea Production in India (Million Kg)
India is the second largest producer of tea, globally, after China. The country is a leading consumer of tea (the beverage) and accounted for nearly a fifth of the global consumption in 2016. India attained the highest exports of tea in 2017 in almost four and a half decades. However, the annual growth of the exports from the country was only moderate due to the high domestic consumption. 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. As reported in H2 2023, India is gradually replacing Sri Lankan tea in new export destinations namely, Iraq, Turkey, and Jordan.
Growing adoption of premium and speciality tea, rising demand for eco-friendly packaging of tea bags, and growing demand for organic tea are the key trends propelling the market growth.
Indian customers have started looking for high-end tea options in recent years, like Darjeeling tea, Assam orthodox tea, and specialized green teas. Rising disposable money and the desire for a healthy lifestyle have been responsible for the increasing demand of India tea market. For instance, the demand for Darjeeling white tea, which is prized for its subtle flavour, and Nilgiri oolong, which is praised for its smooth texture and fragrance, is rising. Specialty teas are becoming more and more popular among Indian customers instead of only being found in export markets. In 2022, Chado Tea, a newly established specialty tea brand in India, recorded a 30% surge in sales of its white and oolong teas. The company attributes this growth to consumers' growing curiosity about the diverse origins and flavours of tea. Furthermore, contemporary stores such as Foodhall and Nature's Basket are creating sections dedicated to specialty teas, giving customers the opportunity to taste premium tea blends. These establishments enhance customer connection with premium teas by providing tailored suggestions and tasting sessions.
There is a growing adoption of recyclable, landfill-friendly tea bags, supporting sustainable development and environmental safety. According to a PwC India poll on consumer sentiment, 60 percent of Indian customers are actively selecting sustainable products, marking a substantial movement towards sustainability. The move in the tea business toward eco-friendly packaging has been hastened by the Indian government's increased emphasis on cutting down on plastic waste. The goal of the 2016-introduced and 2021-amended Plastic Waste Management Rules is to gradually phase out single-use plastics nationwide. The rules have exerted pressure on tea brands to implement environmentally friendly packaging options that align with national policies that aim to mitigate plastic pollution. Several tea brands have voluntarily switched to packaging that is plastic-free and biodegradable in response to these rules. For instance, one of the biggest tea brands in India, Tata Tea, declared in 2022 that by 2024, all its product lines would use only 100% biodegradable tea bags for packaging.
The increasing awareness regarding the health benefits of herbal and organic tea and their improved availability through online channels contribute to tea demand in India. Nearly 50% of Indian consumers said in a 2022 India Today survey that they choose organic products because of their health benefits. The Food Safety and Standards Authority of India (FSSAI) has released a report estimating that over the next five years, there will be a 12% annual growth in demand for organic tea. Out of the 87 gardens in Darjeeling that are certified with the Tea Board, about 62 of them cultivate organic tea. People may now get a variety of artisanal and organic teas from all over the world through websites that specialize in tea, such as Amazon, Flipkart, and other platforms. To meet the needs of customers seeking better tea options, online grocery stores such as Grofers and BigBasket have also increased the size of their sections dedicated to organic products. A further factor propelling India tea market expansion is the availability of subscription services for organic tea, which allow customers to get customized mixes on a regular basis.
Tea tourism in India is gaining significant traction as more tourists visit tea estates to experience tea production firsthand. This trend not only highlights the cultural significance of tea but also supports local economies by attracting visitors interested in learning about tea cultivation. Assam, home to over 800 major tea estates, is emerging as a prime destination for tea tourism, offering unique experiences such as tea-picking activities and guided tours of historic bungalows. The Assam government is actively promoting agritourism to boost local employment and economic development. Recent statistics indicate that foreign tourist arrivals (FTAs) in India reached 8.59 lakh in March 2024, reflecting a growing interest in diverse tourism experiences, including tea-related activities. Moreover, the increasing demand for immersive experiences has led hotels and resorts in tea-producing regions to offer specialised packages that include tea tastings and cultural events. This growth has positioned India as a key player in the expanding tea tourism market.
The growth of India tea market is further driven by high penetration of the beverage in the country across socio-economic classes. India’s healthy economic growth and a subsequent rise in the middle-class population is proving to be a catalyst in the market growth, with consumers increasingly gravitating towards premium brands. The rising demand for packaged tea leaves in both urban and rural areas due to lesser chances of adulteration, convenient storage, and their superior quality further favours the India tea market value. The demand for packaged varieties with natural ingredients is witnessing a surge, especially variants like Darjeeling, Kangra, and Sikkim tea.
The middle class is also willing to experiment more with tea blends, thus, providing impetus to segments like herbal, flavoured blends, and other speciality variants. With busier lifestyles and a growing workforce, the sales of herbal tea are expected to rise, as consumers seek healthier alternatives to beverages like carbonated drinks. The urban sector is currently a major consumer of herbal tea. The market will also be driven by increasing innovations in packaging and flavours in the coming years. The consumer demand for wider beverage options and innovations like eco-friendly packaging is compelling manufactures to launch improved product range.
India’s tea plantations, especially in regions like Assam and Darjeeling, are vulnerable to climate change. Erratic weather patterns, including unpredictable monsoons, rising temperatures, and frequent droughts, have reduced tea yields and affected the quality of the tea, reducing the India tea market revenue. Data from the Tea Board of India shows a projected 40% decrease in Assam and 23% decrease in West Bengal production until March 2024 due to inadequate and uneven rainfall. Further, rising operational costs, combined with relatively stagnant tea prices, were squeezing profit margins for small tea growers and estates.
In 2022–2023, India exported 228.40 million kg of tea for a total value of US$ 793.78 million. India exported 200.79 million kg of tea for US$ 726.82 million during the fiscal year 2021–2022. India's overall tea export revenue from April to February of 2024 was US$ 752.85 million. Indian tea from the Nilgiri, Darjeeling, and Assam regions is regarded as some of the best in the world. About 96% of all tea exported from India is black tea, which accounts for the majority of the country's exports. India is a major exporter of green tea, herbal tea, masala tea, black tea, ordinary tea, and lemon tea. Of these, about 80%, 16%, and 3.5% of all tea exported from India is made up of black tea, regular tea, and green tea.
Market Share of Export Revenue by Country (2022-2023)
“India Tea Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type:
Market Breakup by Sector:
Market Breakup by Packaging:
Market Breakup by Processing:
Market Breakup by Application:
Market Breakup by Distribution Channel:
Market Breakup by Region:
Market Analysis by Type
Green tea is expected to grow at a CAGR of 4.9% between 2025-2034 as it is becoming a popular choice among Indians due to its several health benefits. The demand for green tea is expected to witness robust growth in the coming years as people become more aware of its health benefits. The market for green tea in India is being driven by rising urban population and their increased focus on health and wellness. The rise in disposable incomes and the increasing demand for premium varieties in the country are further aiding the tea demand growth. The growing popularity of cafes/lounges primarily serving herbal and organic variations is expected to aid the market in the coming years. Meanwhile, black tea is expected to grow at a CAGR of 4.4% during the forecast period.
Market Analysis by Sector
India tea market is divided into organized and unorganized sectors. The organised sector includes established brands like Tata Consumer Products and Hindustan Unilever, which focus on quality and premium offerings. In 2023, the organized sector accounted for a significant share of the total tea production, with India exporting 228.40 million kg of tea valued at approximately USD 793.78 million in 2022-2023. Companies like Teabox have also emerged, leveraging e-commerce to reach global consumers with speciality teas.
The unorganised sector consists of local vendors and small-scale producers, providing affordable loose leaf tea and traditional blends. This segment remains popular in rural areas, where consumers prefer locally sourced varieties. For example, roadside tea stalls (chaiwallahs) are ubiquitous across India, serving millions daily. Due to these factors, this sector remains integral to India's tea culture.
Market Analysis by Processing
CTC tea is predominantly produced in regions like Assam and West Bengal, known for its strong flavour and affordability. In 2023, CTC production experienced a decline of approximately 16%, reflecting broader challenges in the market. The total tea production in India fell by 13.4% in the first seven months of 2024, with CTC being significantly impacted due to sluggish rural demand and increased competition from Kenyan teas. Despite these challenges, CTC remains a staple in Indian households, contributing to most of the domestic consumption.
In contrast, orthodox tea is cultivated mainly in regions like Darjeeling and Nilgiri, where traditional processing methods are employed to produce high-quality teas. As per India tea market report, the orthodox segment has shown resilience despite facing competition from CTC. In 2022, exports of orthodox tea rose by 21%, driven by increased demand from international markets amid production losses in Sri Lanka.
Market Analysis by Packaging
Tea bags are expected to grow at a CAGR of 4.8% during the forecast period. Due to their convenience and simplicity of use, tea bags have become incredibly popular, particularly in metropolitan areas where customers seek quick and mess-free solutions. The increase in demand for convenience among busy, health-conscious urban customers is the reason for the expansion.
In traditional and rural markets, where buyers appreciate the affordability and authenticity of buying tea in bulk, loose tea is still the most popular variety. Since loose tea has a strong cultural connotation, it is still commonly used in India even despite the growing popularity of tea bags.
Market Analysis by Application
As per the India tea industry analysis, the residential segment is the most popular application segment. This is mostly because tea is so widely used in Indian homes, where it is a daily necessity for most families. In India, tea is a deeply embedded part of the culture, with many people drinking it many times a day. Consequently, the bulk of tea sales in the nation come from the residential market.
Market Analysis by Distribution Channel
The convenience stores account for the major share of the total market value as local ‘kirana’ stores are a popular choice to buy daily essentials, including tea, for the Indian population. Meanwhile, supermarkets/hypermarkets have also gained considerable popularity in the last few years owing to shifting consumer behaviour and changing shopping habits. The robust expansion of online channels is expected to significantly influence the India tea market dynamics, with the online segment projected to register the fastest growth rate over the forecast period.
North India Tea Market Trends
North and East India represents the leading Indian tea markets, accounting for over three-fourths of the total market share. Assam is the major tea producing state in the country followed by West Bengal. According to the place of origin, Assam and Darjeeling tea varieties are globally the most recognised types. The climate and topography of the North-East region are ideal for tea cultivation, with the high humidity, rainfall, and temperature fluctuations providing perfect conditions for growing high-quality tea. This region’s tea gardens have become globally recognized for producing a wide variety of teas, including Assam orthodox and Darjeeling tea, both of which are in high demand.
East and Central India Tea Market Dynamics
East and Central region is expected to grow at a CAGR of 4.7% during the forecast period. A number of interrelated reasons, such as the region's cultural attachment to tea, rising disposable incomes, expanding urbanization, and the accessibility of high-quality tea locally, are contributing to the growing demand for tea in East and Central India, thus impacting the tea demand forecast in the country. In East India, tea is deeply rooted in culture, particularly in places like West Bengal, Assam, and Bihar where it is a daily necessity. Tea is not merely a beverage but also a social custom in places like Kolkata. Due to improved distribution networks that deliver premium tea from neighboring tea-producing states, Central Indian states like Madhya Pradesh and Chhattisgarh are witnessing an increase in tea consumption.
South India Tea Market Opportunities
South India accounts for nearly a fifth of the market with the production concentrated in the Nilgiris. While the region has a significantly lower output than North India, the market is driven by the production of premium variety and superior quality. South Indian customers are becoming more health conscious and turning toward organic, herbal, and green teas due to their alleged health advantages. Rapid urbanization is occurring in South India, especially in places like Bangalore, Chennai, and Hyderabad. This is causing changes in lifestyle that encourage the drinking of tea. People who relocate to metropolitan areas frequently pick up new habits there, such sipping tea in restaurants, offices, and cafes.
Market players in the Indian tea industry are increasingly prioritising sustainable packaging and targeted marketing to address environmental concerns and attract younger consumers. Companies like Tata Tea and Hindustan Unilever's Brooke Bond have expanded their product lines to include specialised teas such as flavoured, herbal, and green varieties. Brands like Tetley and Organic India are focusing on health benefits by introducing antioxidant-rich teas. Additionally, Tata Tea's "Jaago Re" campaign exemplifies how brands are integrating social awareness into their marketing strategies to resonate with socially conscious consumers.
Tata Consumer Products Ltd specialises in the FMCG sector and has a diverse product portfolio that includes tea, coffee, liquid beverages, and food items. The company was founded in 1964 and is headquartered in Kolkata, India.
Hindustan Unilever Limited is also an FMCG company, offering a range of products that includes tea, soap, shampoo, conditioner, and various foods. It was founded in 1933, with its headquarters located in Mumbai, India.
R. Twining and Company Limited specialises in tea and wellbeing drinks, with a product portfolio that features fruit and herbal teas, green tea, super blends, English breakfast, Earl Grey, Lady Grey, Darjeeling, Assam, decaffeinated tea, and more. The company was founded in 1706 and is headquartered in Hampshire, United Kingdom.
Marvel Group focuses on the production and distribution of tea, offering classic tea, flavoured tea, green tea, and gift packs. The company was founded in 1994 and is headquartered in Gurgaon, India.
*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 notable players operating in the India tea market report include Wagh Bakri Tea Group, Pataka Group of Companies, 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. Manufacturers are upgrading their portfolios and are launching new products, focusing on product packaging and format, to meet evolving demands of consumers.
Start-ups are focusing on the production of organic and wellness-oriented tea products. The rise of e-commerce platforms has also enabled these companies to reach a broader audience, offering convenience and a diverse range of products online. Additionally, many start-ups are leveraging digital marketing strategies to enhance brand visibility and consumer engagement. Two of the most successful start-ups in India tea market landscape are Teabox and Chaayos.
Teabox, founded in 2013, is headquartered in Bengaluru, India. The startup focuses on premium tea and has established a robust online presence, sourcing its products from around 200 plantations across Darjeeling, Assam, Sikkim, and Meghalaya. Teabox offers a diverse portfolio that includes black, white, green, and oolong teas in various flavours. The company has raised over USD 13 million in funding and ships to more than 125 countries. Teabox have sold millions of cups of tea since its establishment, showcasing significant growth in both domestic and international markets.
Chaayos, launched in 2012, is based in Gurgaon and has become a popular destination for tea enthusiasts. The startup allows customers to personalise their chai with a variety of add-ons such as spices and flavours. Chaayos has successfully expanded its footprint with over 200 outlets across India and aims to create a unique tea cafe experience that resonates with young consumers. The brand has achieved notable success, reporting revenues exceeding INR 100 crore in recent years and continues to grow by introducing innovative products and expanding its reach.
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*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.*
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The India tea market is assessed to grow at a CAGR of 4.50% between 2025 and 2034.
The major drivers of the market include rising disposable incomes, increasing population, and the healthy production and consumption of the beverage.
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 are 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 2024, the market reached an approximate volume of 1.34 Million Tons.
The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a volume of around 2.08 Million Tons by 2034.
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 | 2024 |
| Historical Period | 2018-2024 |
| Forecast Period | 2025-2034 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Sector |
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| Breakup by Packaging |
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| Breakup by Processing |
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| Breakup by Application |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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