The organic tea market is expected to grow from USD 1,404.9 million in 2025 to USD 3,089.6 million by 2035, reflecting a CAGR of 9.6%. This robust growth is fueled by increasing consumer awareness around health and wellness.
| Attribute | Detail |
|---|---|
| Market Size (2025) | USD 1,404.9 million |
| Market Size (2035) | USD 3,089.6 million |
| CAGR (2025 to 2035) | 9.6% |
Demand for clean-label, pesticide-free beverages is rising as consumers seek healthier alternatives to conventional tea and sugary drinks. The popularity of functional beverages, particularly those supporting immunity, digestion, and relaxation, is further accelerating the adoption of organic tea across both retail and food service channels.
Innovation in the organic tea segment is driving market differentiation and consumer engagement. Brands are expanding their product lines with herbal blends, adaptogenic infusions, and ready-to-drink (RTD) organic tea offerings.
Emerging trends such as cold brew organic teas, CBD-infused varieties, and compostable tea bags are resonating with eco-conscious consumers. E-commerce platforms and direct-to-consumer (DTC) models are playing a key role in broadening access to niche organic brands, while digital personalization tools help tailor offerings to individual wellness needs.
Government regulation plays a critical role in certifying and standardizing organic tea products. In the USA, the USDA’s National Organic Program (NOP) certifies products that meet strict agricultural and processing standards.
Globally, regulatory frameworks like the EU Organic Regulation and India's NPOP (National Programme for Organic Production) ensure compliance with organic farming practices. As demand grows, adherence to certification protocols and transparent sourcing practices will be essential in building consumer trust and supporting long-term market development.
The organic tea market is projected to reach USD 1,404.9 million in 2025. In the organic teas & beverages market, it holds around 20-25%, propelled by consumer preference for certified organic and sustainably sourced drinks. In the broader specialty beverage market, organic tea captures approximately 5-7%, as artisanal and high-end tea varieties gain popularity.
Within the organic food & beverage ingredients market, it accounts for 2-3%, used both as loose tea and in powdered or extract forms. In the functional beverages market, it makes up 4-5%, benefiting from growing demand for antioxidant- and wellness-focused drinks. As part of the global tea market, organic tea represents about 10-12%, reflecting its increasing share of overall tea consumption.
South Korea is expected to be one of the fastest-growing markets for organic tea, with a projected CAGR of 8.5% from 2025 to 2035. True tea will dominate the product segment, accounting for 74% of the market share. Dried leaf and powder will lead the form segment with a 54% share, while tea bags (boxed) will represent 30% of the packaging segment. Offline channels will remain the primary distribution method, capturing 70% of the market. Overall, the organic tea market is projected to grow at a CAGR of 9.6%.
The organic tea market is being shaped by increased consumer awareness of health benefits, premium wellness trends, and demand for clean-label products across offline channels, with true tea and dried leaves seeing notable traction.
The true tea segment is projected to account for 58% of the organic tea market by 2025. Growth is being supported by the continued preference for green, black, white, and oolong teas sourced from certified organic plantations. These varieties are being promoted for their antioxidant properties, catechin content, and health-enhancing effects.
Traditional and specialty retailers are expanding shelf space for true teas due to rising consumer interest in authentic, minimally processed beverages. Global health-conscious demographics are driving preference for naturally sourced, polyphenol-rich teas. Increased visibility in both bulk and packaged formats is allowing true tea products to penetrate new customer segments and retail formats.
The dried leaf form is estimated to dominate the organic tea market with a 46% share by 2025. Its traditional preparation method, perceived freshness, and strong flavor profile are being favored by tea enthusiasts. Loose-leaf teas are being preferred by premium buyers seeking aroma, authenticity, and full-spectrum nutrients.
The dried form is being packaged in resealable, eco-conscious materials to attract sustainability-driven consumers. Producers are promoting origin traceability and artisan processing to differentiate offerings. Direct-from-farm and estate-branded teas are being elevated through storytelling and regional identity, helping boost consumer trust and shelf impact in both specialty and mainstream outlets.
Tea bags are anticipated to capture 34% of the organic tea market by 2025, owing to their convenience, portion control, and mainstream accessibility. Tea bags are being adopted in institutional catering, workplace wellness programs, and quick-service settings for standardized brewing. Brands are innovating with biodegradable and plastic-free sachets to appeal to eco-aware consumers.
Individually wrapped bags are being marketed for hygiene, freshness, and portability. Growing demand for single-serve and ready-to-infuse formats is being addressed through new infusion technologies and extended steeping features. Tea bag packaging is being repositioned as premium through pyramid shapes, herbal layering, and dual-chamber formats for flavor optimization.
Offline sales channels are projected to dominate the organic tea market with a 62% share by 2025. Physical retail stores are being prioritized by consumers for brand assurance, product sampling, and sensory engagement. Supermarkets, wellness stores, and specialty grocers are expanding their organic tea assortments in response to rising footfall.
In-store tastings and health seminars are being conducted to boost product discovery and repeat purchase rates. Traditional tea markets, boutique stores, and Ayurvedic outlets are playing a key role in promoting certified organic blends. Premium tea packaging, point-of-sale education, and retail promotions are being used to maximize conversion and brand recall.
Challenge
High Production Costs and Certification Barriers
The market for organic tea has numerous major problems, the high cost associated with organic agriculture, the costs of certifications and conformity to strict worldwide requirements. It requires huge investment in organic farming practices such as natural pest management, soil fertility, and eco-friendly processing.
It means that getting certifications like USDA organic, EU organic, and Fair Trade is also a cost burden on tea producers as producers need to take intensive tests which must be repeated regularly. Well, small tea growers (especially in developing countries) struggle to become organic because they face funding obstacles and lack technical know-how. Well, there are the factors that can cause organic tea to become less accessible and quite expensive in the market.
Opportunity
Rising Demand for Functional and Specialty Organic Teas
Functional drinks are capturing the imaginations of consumers and this presents a real opportunity for the market for organic tea. Health-conscious consumers have now become interested in teas that come with ancillary benefits, such as anti-inflammatory, anti-stress and digestive-support functions. Organic teas infusing superfoods like turmeric, moringa and ashwagandha are quickly catching on with health-seeking consumers.
At the same time, cold brew organic tea, ready-to-drink organic herbal infusions, and probiotic tea drinks are witnessing very fast consumption growth, especially in younger consumer age classes. There are opportunities in the market open to companies who provide new product offerings, sustainable sources and sustainable production methods and improve their competitive advantage in within organic tea industry.
By the same token, the USA organic tea market is expanding, driven by rising consumer interest in the health properties of tea, increasing demand for natural and clean-label beverages, and emergence of specialty tea cafes at an increasing rate.
The tides are turning toward organic and functional teas, infused with herbs, adaptogens and superfoods, as wellness trends and trends in sustainable farming catalyze market growth. Additionally, with the increasing significance of e-commerce platforms and tea direct-to-consumer brands, the market accessibility is improving.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 8.0% |
High demand for high-quality, ethically produced, and environmentally friendly tea products in the United Kingdom is driving the UK organic tea industry growth. Increasing interest in organic black tea, herbal teas, and green tea blends as an important step in the wellness routine of consumers is driving demand. The drive toward plastic-free tea bags, planet-friendly packaging and Fairtrade-certified products is also contributing to growth. Evolving trends like the afternoon tea culture and functional wellness drinks are also continuing to drive growth.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 8.1% |
The rising focus on EU regulation and ancient tea consumption are some of the key insight factors deriving the growth of European Union organic tea market. Germany, France and Italy are its biggest markets for organic herbal infusions, green tea and Ayurvedic blends.
Rising awareness regarding antioxidant and anti-inflammatory contents of organic teas propel their demand. Sustainability and environmental factors, as well as eco-friendly packaging, are also making an impact on purchasing decisions.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 8.4% |
As demand for pest-free and quality loose-leaf teas rising, Japan has work to do when it comes to the market at home for organic tea. Mainstream production of traditional matcha, sencha, and hojicha is common, but in premium organic versions. The market is being fueled by the rising expenditure on RTD (Ready-to-Drink) organic tea drinks and functional tea products. In addition, because Japanese tea culture and ceremonies remain popular, the Japanese tea culture drives export demand for high-quality organic teas in global markets.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 8.3% |
The organic tea market in South Korea is expanding, driven by rising demand for wellness beverages, K-beauty health trends, and clean-label product preferences. Traditional teas like green tea, barley tea, and ginseng tea are being offered in organic versions. Urban consumers, who tend to be more health conscious and food savvy, are driving up demand for cold-brew and functional herbal teas. Additionally, government actions to bolster organic farming and sustainability are driving local organic tea offerings.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 8.5% |
The organic tea market is modestly consolidated. Brands like Organic India, Tata Tea, Davidson's Organics, Unilever, Numi, Twinings, Hain Celestial, Bigelow, Yogi Tea, and Tielka lead through premium quality and trusted sourcing. Products include Camellia sinensis-based teas (black, green, oolong) and herbal blends.
Many suppliers emphasize sustainable farming, fair-trade certification, and eco-friendly packaging. Organic teas are positioned as healthy, clean-label alternatives. Rising consumer interest in wellness and natural beverages is fueling growth. Retail channels include supermarkets, hypermarkets, and e-commerce. Emerging trends include loose-leaf formats, compostable packaging, and functional blends targeting immunity and relaxation.
Recent Organic Tea Industry News
In 2024, Davidson’s Organics launched a new line of tea products featuring compostable and biodegradable tea bags and wrappers. The tea bags are made from oxygen-bleached paper, free from nylon or other synthetic materials, and contain no strings or tags. Additionally, the wrappers are crafted from plant-based cellophane, aligning with the company’s commitment to sustainability and near-zero carbon footprint packaging.
Organic India (18-22%)
A market leader in organic tea, Organic India emphasizes sustainability and regenerative agriculture. The company sources high-quality herbs and teas from organic farmers, ensuring fair trade practices and holistic wellness offerings.
Tata Tea Limited (14-18%)
As a leading player in the tea market, Tata Tea Limited has expanded its organic product portfolio to meet the increasing global demand. The comany focuses on ethical sourcing and product diversification to strengthen its market position.
Davidson's Organics (10-14%)
Specializing in organic and fair-trade teas, Davidson’s Organics is recognized for its extensive selection of loose-leaf and bagged teas. The company continues to innovate in eco-friendly packaging and sustainability initiatives.
Unilever (8-12%)
With brands like Lipton and Pukka under its portfolio, Unilever is a key player in the organic tea segment. The company focuses on sustainability, with strong commitments to responsible sourcing and carbon-neutral production.
Numi, Inc. (6-10%)
A niche premium organic tea brand, Numi is known for its unique blends, including turmeric and herbal infusions. The company prioritizes fair trade, environmental sustainability, and biodegradable packaging.
Other Key Players (30-40% Combined)
The organic tea market also features numerous regional and specialty brands focusing on high-quality, sustainably sourced tea products. Notable players include:
The overall market size for organic tea market was USD 1,404.9 Million in 2025.
The organic tea market is expected to reach USD 3,089.6 Million in 2035.
The rising consumer preference for clean-label and chemical-free beverages fuels Organic Tea Market during the forecast period.
The top 5 countries which drives the development of Organic Tea Market are USA, UK, Europe Union, Japan and South Korea.
On the basis of form, dried leaf to command significant share over the forecast period.
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Organic Tea Market
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