Table of Contents
Overview
New York, NY – July 29, 2025 – The Global Green Tea Market is growing fast, driven by increasing demand for healthy drinks. In 2024, the market was valued at USD 16.3 billion, and it is expected to reach USD 34.9 billion by 2034, growing at a 7.9% CAGR.
The global green tea market is witnessing steady growth, primarily driven by rising consumer inclination toward health-oriented beverages. A 2% increase in global tea consumption, along with a 2.5% rise in per-capita tea intake over the past decade, reflects a clear shift toward healthier alternatives. Green tea concentrates, known for their convenience and adaptability, are increasingly used in both ready-to-drink products and culinary applications, appealing to domestic and industrial consumers alike.
Governments are actively introducing regulatory frameworks to safeguard consumer health. In India, the Food Safety and Standards Authority of India (FSSAI) regulates food products, including tea concentrates, under the Food Safety and Standards Act of 2006, although specific catechin limits have not been mandated. In contrast, Health Canada enforces strict compositional standards, requiring EGCG levels between 40–50%, total catechins between 70–80%, and caffeine below 5%, alongside compulsory labeling to ensure safety.
Scientific research supports the health benefits of green tea. According to the Harvard T.H. Chan School of Public Health, green tea polyphenols, especially catechins, may reduce risks of cardiovascular disease and certain cancers. A study in The Journal of Nutrition, Health and Aging further found that individuals consuming over 600 mL of green tea daily experienced a 25% lower risk of dementia compared to those consuming less than 94 mL.
Key Takeaways
- The Global Green Tea Market size is expected to be worth around USD 34.9 billion by 2034, from USD 16.3 billion in 2024, growing at a CAGR of 7.9%.
- Green Tea Bags held a dominant market position, capturing more than a 43.9% share of the overall green tea market.
- Flavoured held a dominant market position, capturing more than a 57.2% share in the green tea market.
- Supermarkets/Hypermarkets held a dominant market position, capturing more than a 39.3% share in the global green tea market.
- Asia-Pacific (APAC) region held a dominant position in the global green tea market, accounting for 42.1% of the overall market share, with a valuation of approximately USD 6.8 billion.
How Growth is Impacting the Economy
The Green Tea Market’s robust growth significantly influences global economies. In tea-producing countries like China and India, increased production boosts agricultural employment and export revenues. Small and niche players, such as Vahdam Teas, enhance market competition, fostering innovation and job creation in the processing and packaging sectors. Rising disposable incomes drive consumer spending on premium teas, stimulating retail and e-commerce growth.
However, challenges like price volatility due to weather and trade tariffs can strain supply chains, impacting economic stability. Sustainable practices and organic certifications, as seen with brands like Organic India, support environmental economies, while tourism in tea regions like Dubai promotes tea culture, further boosting local economies.
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Strategies for Businesses
Businesses can capitalize on the green tea market by focusing on innovation, sustainability, and targeted marketing. Introducing diverse flavors, like Tetley’s Green Tea Slim Care, caters to health-conscious millennials. Leveraging e-commerce platforms, such as Amazon, enhances market reach, as seen with rising online sales. Collaborations with wellness influencers can boost brand visibility.
Emphasizing organic and eco-friendly packaging, like Typhoo’s sustainable practices, appeals to environmentally conscious consumers. Competitive pricing and promotions in supermarkets can attract price-sensitive customers. Finally, investing in R&D for functional beverages and ready-to-drink variants ensures businesses meet evolving consumer demands for convenience and health benefits.
Report Scope
| Market Value (2024) | USD 16.3 Billion |
| Forecast Revenue (2034) | USD 34.9 Billion |
| CAGR (2025-2034) | 7.9% |
| Segments Covered | By Type (Green Tea Bags, Instant Tea Mixes, Iced Green Tea, Loose-Leaf, Others), By Flavour ( Flavoured, Unflavoured), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Retail, Others) |
| Competitive Landscape | AMORE Pacific Corp, Arizona Beverage Company, Cape Natural Tea Products, Celestial Seasonings, East West Tea Company, LLC, Finlays Beverages Ltd., Frontier Natural Products Co-Op., Hambleden Herbs, Hankook Tea, The Coca-Cola Company, Keurig Dr. Pepper, Inc., Tata Consumer Products Limited, Tazo Tea Company, The Bigelow Tea Company, The Republic of Tea, Inc., Unilever plc |
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Key Market Segments
By Product Type: Green Tea Bags
In 2024, Green Tea Bags commanded a 43.9% share of the global green tea market, driven by their convenience and accessibility. Popular in households and offices, tea bags offer a mess-free brewing experience and portion control, appealing to time-constrained urban consumers. Growing awareness of green tea’s health benefits, including antioxidants, digestive support, and weight management, further fuels demand. Retailers have expanded shelf space for diverse variants like organic, flavored, and herbal blends, catering to health-conscious buyers.
By Flavor: Flavoured Green Tea
Flavoured Green Tea captured a 57.2% market share in 2024, propelled by innovative tastes and lifestyle appeal. Variants such as lemon, mint, ginger, jasmine, and berry attract younger and urban consumers seeking both health benefits and enjoyable flavors.
Natural fruit and herbal infusions reduce bitterness, broadening appeal to new drinkers. Seasonal and exotic flavors boost interest across retail channels, with low-calorie, antioxidant-rich options driving growth among wellness-focused consumers. Flavoured green tea is expected to sustain its dominance.
By Distribution Channel: Supermarkets and Hypermarkets
Supermarkets and hypermarkets led distribution in 2024 with a 39.3% market share, driven by strong in-store visibility and bulk availability. Consumers favor these outlets for their wide brand selection, in-store promotions, and combo deals, particularly for larger or flavored green tea packs. Dedicated health food sections highlight green tea’s wellness appeal, enhancing sales. This channel remains a top choice for shoppers seeking physical product comparison before purchase.
Regional Analysis
The Asia-Pacific region dominated the global green tea market in 2024, holding a 42.1% share valued at USD 6.8 billion. Cultural ties to tea in countries like China, Japan, India, and South Korea drive consumption, bolstered by rising disposable incomes and a growing middle class in emerging markets like India and Indonesia.
Expanded offerings in supermarkets, specialty tea shops, and online platforms, alongside government initiatives like India’s Tea Board campaigns and China’s tea tourism and organic farming support, fuel growth. APAC’s preference for functional and natural beverages ensures its market leadership.
Recent Developments
1. AMORE Pacific Corp
- AMORE Pacific, a leading South Korean beauty and wellness company, has expanded its green tea-based product line under brands like “Innisfree” and “Osulloc.” They recently launched new green tea-infused skincare products, emphasizing antioxidant benefits. Their Osulloc Tea Gardens in Jeju Island also promote eco-friendly tea tourism. The company focuses on sustainability by using organic farming methods.
2. Arizona Beverage Company
- Arizona Beverages, famous for its Arizona Green Tea, introduced a zero-sugar version to cater to health-conscious consumers. They also expanded their ready-to-drink green tea range with new flavors like Honey & Ginseng. The company emphasizes natural ingredients and affordable pricing.
3. Cape Natural Tea Products
- Cape Natural Tea Products, known for Rooibos and herbal teas, has added organic green tea blends to its portfolio. Their recent launch includes green tea with African botanicals, targeting wellness-focused consumers. They highlight sustainable sourcing and fair-trade practices.
4. Celestial Seasonings
- Celestial Seasonings, a Hain Celestial Group brand, introduced new green tea varieties, including matcha-infused blends and decaffeinated options. They focus on clean-label, non-GMO ingredients and eco-friendly packaging. Their “Antioxidant Max” line remains popular.
5. East West Tea Company, LLC (Yogi Tea)
- Yogi Tea expanded its organic green tea offerings with turmeric green tea and detox blends. They emphasize Ayurvedic ingredients and sustainable sourcing. Recently, they partnered with Fair Trade USA to support ethical farming.
Conclusion
The Green Tea Market’s growth, driven by health trends and innovative products, underscores its economic significance. By fostering employment, export growth, and sustainable practices, it strengthens global economies. Businesses can thrive by embracing innovation, sustainability, and strategic marketing to meet consumer demands. Despite challenges like price volatility.
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