Organic Tea Market

• Various health benefits associated with organic tea to drive market growth

Organic tea is widely consumed due to its numerous health benefits. This type of tea is toxin-free, which means that the harmful substances used in the tea's processing will not enter the user's body. It is also appropriate for people with heart disease and high cholesterol. Organic tea contains antioxidants that boost immunity, detoxify the body, and aid in weight loss. It is also known to benefit digestive health by improving healthy gut bacteria. It also contains theanine, which promotes relaxation without causing drowsiness.

As a result of organic tea's advantageous properties, the Organic Tea Market CAGR is expected to expand in the coming years.

Exports of green tea in instant packings of less than or equal to three kilos increased from USD 1.12 billion in 2016 to USD 1.23 billion in 2020, according to ITC (International Trade Centre) statistics. The chemical epigallocatechin gallate (EGCG), also widely used in many dietary supplements, is also known to be present in large quantities in organic green tea. Such factors are expected to boost the green organic tea segment's growth. Besides, organic tea contains theanine, which helps to reduce anxiety. It also increases relaxation by reducing drowsiness and decreasing heart rate.

Caffeine is a component of these products that improve human focus and attention. As a result of their ability to improve physical and mental stress responses, such products have elevated functional teas to a new level that is more suitable for modern lifestyles. Thus, global demand for organic tea is anticipated to increase significantly among urban professionals, people in their later years, and competitive athletes. The growing consumer preference for safe, natural, chemical-free & healthy consumables drives organic tea industry revenue.

The rise of e-commerce platforms significantly influences the Global Organic Tea Market Industry by providing consumers with convenient access to a wide array of organic tea products. Online shopping has transformed the way consumers purchase beverages, allowing for easy comparison of brands and flavors. This trend is particularly beneficial for niche organic tea brands that may not have a physical retail presence. As e-commerce continues to expand, it is expected to play a crucial role in driving sales and increasing market penetration. The accessibility of organic tea through online channels is likely to enhance consumer awareness and foster brand loyalty.

The Global Organic Tea Market Industry benefits from the introduction of diverse flavor profiles that cater to a wide range of consumer preferences. Manufacturers are increasingly experimenting with unique blends, incorporating herbs, spices, and fruits to create innovative organic tea offerings. This variety not only appeals to adventurous consumers but also enhances the overall drinking experience. As the market evolves, the demand for specialty organic teas is likely to grow, contributing to the projected market size of 2.05 USD Billion by 2035. The ability to offer distinctive flavors may serve as a competitive advantage for brands in this expanding market.

The Global Organic Tea Market Industry is poised for substantial growth, with projections indicating a market size of 1.21 USD Billion in 2024 and an anticipated increase to 2.05 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 4.89% from 2025 to 2035, underscoring the increasing consumer preference for organic products. The market dynamics are influenced by various factors, including health trends, sustainability, and e-commerce expansion, which collectively contribute to the rising demand for organic tea. As these trends continue to evolve, the industry is likely to adapt and innovate to meet consumer expectations.

The Global Organic Tea Market Industry experiences a notable surge in demand driven by increasing health consciousness among consumers. As individuals become more aware of the health benefits associated with organic tea, such as antioxidants and reduced caffeine levels, the market is projected to reach 1.21 USD Billion in 2024. This trend is particularly pronounced in regions where consumers prioritize natural and organic products, leading to a shift in purchasing behavior. The emphasis on wellness and preventive healthcare is likely to sustain this growth trajectory, as organic tea is perceived as a healthier alternative to conventional beverages.

Sustainable agricultural practices play a pivotal role in the Global Organic Tea Market Industry, as consumers increasingly favor products that are environmentally friendly. The adoption of organic farming methods not only enhances soil health but also reduces the carbon footprint associated with tea production. This shift aligns with global sustainability goals, attracting environmentally conscious consumers. As a result, the market is expected to witness a compound annual growth rate (CAGR) of 4.89% from 2025 to 2035. The emphasis on sustainability is likely to drive innovation in organic tea cultivation, further solidifying its position in the beverage sector.

The Global Organic Tea Market Industry is increasingly characterized by the popularity of health benefits associated with functional teas. Consumers are gravitating towards organic teas that offer specific health advantages, such as improved digestion, enhanced immunity, and stress relief. This trend is supported by scientific research highlighting the positive effects of certain tea compounds. As a result, the market is witnessing a growing segment of functional organic teas, which are expected to contribute significantly to the overall market growth. The increasing consumer demand for health-oriented beverages is likely to drive innovation and product development in this sector.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Organic Tea market accounted for USD 0.52 billion in 2022 and will likely exhibit a significant CAGR growth over the study period, owing to emerging trends such as consuming natural, safe, and clean-label products. Consumers in the region are becoming more conscious of the safety and ethnic diversity of the healthy foods they consume. The popularity of functional organic beverages in the United States and Canada drives north American market expansion.

The growing emphasis on creating and commercializing innovative organic tea variants in novel packaging is projected to propel the regional market growth during the forecast period.

Further, the major countries studied in the global market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

Figure 2: ORGANIC TEA MARKET SHARE BY REGION 2022 (%)Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

The European organic tea market accounts for the second-largest market share. The European market is primarily driven by consumer demand for specialty teas. Green and herbal teas grown organically are becoming more popular in European supermarkets. The region's emerging trend of ethically traded and sustainably grown teas is anticipated to accelerate the growth of the market of organic tea. The hectic modern-day lifestyle of consumers is driving the growth of the organically grown tea bag segment in European countries such as the United Kingdom, Germany, and France.

Further, the German organic tea held the largest market share, and the UK organic tea industry was the fastest-growing market in the European region.

The Asia-Pacific Organic Tea Market is expected to grow at the fastest CAGR from 2022 to 2030. Most Asian countries regard tea as a delicate topic. Tea has been consumed in the region since the beginning of recorded history. Tea is commonly consumed with breakfast in the morning, during midday breaks, and with friends and family. India, Japan, Myanmar, China, South Korea, and Taiwan all have different forms of consumption. In addition to being the largest consumer, the region is also the largest producer of organic tea product variants.

Consumer spending on healthy goods has increased in countries such as India, Japan, China, and Indonesia, which has benefited the organic tea industry. The market expansion in the region is primarily driven by the growing demand for green and herbal tea to enhance beauty and health. Organic tea is perceived to be healthier than other types of tea. The rapid expansion of the region's food and beverage industry has also significantly contributed to market growth in Asia Pacific.

Moreover, China’s market for organic tea held the largest market share, and the Indian organic tea industry was the fastest-growing market in the Asia-Pacific region.

Major market players are heavily investing in the R&D of new and innovative organic tea variants that meet the needs of modern consumers who prefer herbal, natural, and clean-label products. These businesses have been concentrating on the introduction of valuable products that place a high priority on wellness, sustainability, and health. This has significantly impacted the overall growth of the key players in the organic tea industry. Market participants are expanding their global footprint through significant market developments such as introducing new products, contractual agreements, collaborations, acquisitions, growing R&D investments, and mergers with other organizations.

The Organic Tea Market major players, including Unilever, Numi Inc, Tata Global Beverages Ltd, Vahdam Teas, and others, are creating tea bags with compostable and biodegradable outer packaging to reduce their carbon footprint. They also launch ready-to-drink variants to diversify their product offering and boost sales volume in the organic tea industry. Competitors in the organic tea industry are also actively investing in innovative marketing techniques and celebrity endorsement strategies, which are expected to accelerate global market expansion in the upcoming years.

Wagh Bakri Tea Company is a leading tea supplier and exporter in India. Since 1892, the Wagh Bakri Tea Group has been a Premium Tea Company in the global tea industry. Wagh Bakri Tea Group, with its headquarters in Gujarat, India, declared in May 2019 that it had launched tea packaging for its selection of organic tea as part of its centennial celebrations.

Also, Unilever currently owns the Indonesian tea brand Sariwangi. In Indonesian, the brand name translates to fragrant essence. The first brand of Indonesian tea to come in bags instead of the typical loose serving was Sariwangi. In June 2019, Sariwangi announced the release of its new 3-in-1 organic tea products. The new product line from the company includes two flavors of powdered milk organic tea: caramel & Teh Tarik.