India Tea Market Outlook 2025-2034 | Trends & Forecast

According to the latest report by Expert Market Research (EMR), the India tea market attained a volume of 1.34 million tons in 2024, driven by growing health awareness, rising disposable incomes, and increased accessibility through online retail platforms. With tea continuing to hold deep cultural significance across India, demand remains steady among consumers of all income brackets. The market is now poised for sustained expansion, projected to grow at a CAGR of 4.50% between 2025 and 2034, reaching a volume of 2.08 million tons by 2034. Ongoing innovation in tea flavours and product varieties is expected to further catalyse market growth during this period.

Tea, made from the leaves of the Camellia sinensis plant, has long held a special place in Indian households, transcending regions and socio-economic divides. As the second most consumed beverage globally, after water, tea's appeal lies in its versatility, affordability, and wellness properties. India, one of the largest producers and consumers of tea in the world, has cultivated a robust and diverse tea ecosystem that reflects both tradition and innovation.

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The India tea market today stands as a dynamic segment of the nation's agricultural economy and global trade. With a wide range of varieties including Darjeeling, Assam, and Nilgiri, India's tea industry is not just a cultural emblem but a fast-evolving market shaped by changing lifestyles, technology adoption, and sustainability priorities.

Market Growth

The growth of the India tea market during the 2025-2034 period is anchored in multiple converging factors. The increasing consumer inclination toward health-centric beverages has significantly amplified the demand for green tea, herbal teas, and functional blends. Rising disposable incomes have enabled a wider audience to explore premium tea segments, while digital transformation in retail has empowered small and large brands alike to tap into previously inaccessible markets via e-commerce.

Furthermore, the Indian government's initiatives to promote tea exports and quality enhancements, coupled with consumer preference for sustainable and ethically sourced products, are setting the stage for long-term market prosperity. The surge in popularity of value-added products, including ready-to-drink teas and flavoured blends, also reflects the broader movement toward convenience without compromising on taste or wellness.

Emerging Market Trends

The India tea market is witnessing a palpable shift toward premium and speciality teas. Driven by wellness trends, consumers are now choosing green, white, oolong, and herbal teas for their antioxidant and health-boosting properties. Green tea, in particular, continues to lead this shift with its association with weight management, detoxification, and heart health.

Simultaneously, there is a rising demand for organic and sustainably cultivated teas, reflecting global movements towards environmental responsibility and ethical sourcing. Indian tea estates are increasingly adopting organic farming practices and certifications to appeal to environmentally conscious consumers both domestically and internationally.

Digital marketing and e-commerce platforms are playing a pivotal role in this transformation. With increasing online penetration and smartphone usage, brands are using digital storytelling, influencer partnerships, and targeted social media campaigns to create deeper connections with consumers. This has democratized access to regional teas and enabled niche and artisanal tea brands to reach a national and even global audience.

Additionally, packaging innovation and product presentation are becoming key differentiators. From eco-friendly containers to pyramid tea bags and luxury gift packs, consumers now value the experience as much as the flavour. The integration of branding elements such as heritage, sustainability, and wellness narratives further enhances customer engagement and loyalty.

India's reputation as a premier tea-producing nation is gaining further traction on the global stage. Iconic varieties such as Darjeeling, Assam, and Nilgiri teas continue to attract international buyers. Tea brands are aligning their strategies to meet export standards and preferences, supported by government-led export promotion initiatives.

Meeting global certifications and compliance standards is becoming an integral part of these export strategies. Companies are investing in state-of-the-art processing and packaging facilities to increase the value of exports, not just in volume but in quality, branding, and end-user appeal.

Beyond traditional exports of raw tea leaves, the India tea industry is increasingly moving toward value-added product development. Tea blending, flavour infusion, and specialty product creation are gaining traction. This not only elevates profit margins but also boosts employment and economic growth in key tea-growing states.

Consumers are showing growing interest in flavoured teas, wellness blends, immunity boosters, and gourmet products. This trend is set to deepen, driven by an evolving taste palate and rising consumer awareness of health and lifestyle benefits.

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Market Segmentation

By Type:

Black
Green
Oolong
White
Others

By Sector:

Organised
Unorganised

By Packaging:

Plastic Containers
Loose Tea
Paper Boards
Aluminium Tins
Tea Bags
Others

By Processing:

CTC (Crush, Tear, Curl)
Orthodox (Traditional)

By Application:

Residential
Commercial

By Distribution Channel:

Supermarkets and Hypermarkets
Convenience Stores
Speciality Stores
Online
Others

By Region:

North India
East and Central India
West India
South India

Competitive Landscape

The EMR report highlights major players in the India tea market and their key developments, including market shares, mergers, investments, plant turnarounds, and capacity expansions. Prominent companies include:

Tata Consumer Products Limited
Hindustan Unilever Limited
Wagh Bakri Tea Group
Twining and Company Limited
Pataka Group of Companies
Marvel Group
The Bombay Burmah Trading Corporation Ltd.
Rossell India Ltd.
Goodricke Group Limited
Others

The India tea market is not only defined by its deep cultural roots and diverse product offerings but also by the strategic initiatives of leading industry players. Companies like Tata Consumer Products Limited, Hindustan Unilever Limited, and Wagh Bakri Tea Group, among others, are playing a pivotal role in shaping the market through innovation, sustainable practices, and expanding global outreach.

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This release was published on openPR.