Pyramid Tea Bags Market

2020 Analysis and Review: Pyramid Tea Bags Market by End Use – Institutional and Commercial Users for 2020 - 2030


The consumption of tea is growing with flavor innovation, rising focus on ethically sourced ingredients by leading brands, and investment in flexible packaging. While coffee is by far the popular beverage, tea has gained traction.

Demand for tea is fueled by rising awareness about various health benefits of tea, particularly among millennial and younger consumers.

Globally, the tea bags market is swiftly expanding because of its convenience and easy disposability. Innovations in the packaging and shape of tea bags such as pyramid bags allow consumers to extract the full flavors of tea leaves.

Consumers are inclining towards such convenient packaging steered by their hectic lifestyle, which is expected to aid the expansion of the global pyramid tea bags market.

While restrictions imposed to contain the sudden outbreak of COVID-19 have resulted in decelerating demand, Future Market Insights (FMI) in its recent study has projected that the market will recover from 2021-2022.

According to the report, the market is slated to rise at a CAGR of 4.5% between 2020 and 2030.

Striking Packaging of Pyramid Tea Bags

Consumers nowadays are interested in knowing the source of ingredients used in their product. Tea makers and manufacturers are building their packaging designs on this behavior. The market therefore has been witnessing launches of bright and bold pyramid sachet tea bags with ingredients brought in focus.

This is also helping brands to carve a niche amid competition and stand out on the shelf, differentiating themselves from their competitors. Further, manufacturers are launching packaging options based on product flavor such as blueberry, apple, mint, lemon, turmeric, and several others.  

With consumers tilting towards more eco-friendly products, some of the leading brands have taken a step ahead to introduce biodegradable pyramid tea bags. Some of the behemoths have already ventured into this category.

For instance, continuing with its trend of switching to sustainable materials, Unilever’s PG Tips tea brand had launched biodegradable and plant-based tea bags in 2018.

Ready to Drink-Trend Driving Consumption of Tea

Ready-to-drink (RTD) and refrigerated teas offer convenience to consumers. RTD is by far one of the highly lucrative segments in tea market, accounting for the majority of market share. The attractiveness of RTD tea has been sustained by the requirement to find substitutes for carbonated beverages.

RTD tea bags are already leading growth in mature markets such as the U.S. and the U.K. Units sold of tea bags across countries in Asia Pacific too is surging, which is clearly indicative of the changing consumer preferences.

Besides hectic lifestyle, attractive promotion campaigns launched by some of the leading brands, and visible western influence are drawing consumers across high potential markets.

Delivering Premium Quality Teas at Restaurants, Cafés & Hotels

Premiumization has become a powerful marketing tool. The infinite variety of premium tea available today, together with growing discreet consumer demand and robust business models for pyramid tea bags are driving the transformation of tea offerings in foodservice establishments and restaurants across the globe.

Enhancing the flavor and experience of locally sourced ingredients elevates the tea service and presentation. Even in several less likely foodservice establishments, customers are demanding premium tea, which the industry normally refers to as “specialty tea.”

Key Challenges

Several research studies have indicated, tea bags contain insignificant amount of non-biodegradable polypropylene that seals the bag. Without this seal, the teabags split open and release the tea leaves inside.

Containing around 25% of the plastic in each tea bag, it harms the environment on a greater level by its micro-plastic content. Market players and governments of various nations are working towards minimizing the usage of polypropylene, to save the environmental damage.

This could be a prime factor causing a reduction in the growth of the pyramid tea bags market in the approaching years.

Region-wise Analysis

North America Pyramid Tea Bags Market

North America market is anticipated to remain dominant in the global market over the forecast period. Shift in customer preferences from traditional tea to specialty tea as well as growing demand for organic tea in North America are factors that are projected to drive the pyramid tea bag market over the assessment period.

Consumer are driven by the health benefits of tea for instance flavored and ready-to-drink (RTD) tea. Growing demand of green tea amid old age persons and millennials is further contributing to the growth of North America pyramid tea bags market.

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Europe Pyramid Tea Bags Market

Europe is likely to remain the second leading market throughout the forecast period. Mature markets such as Europe has always been a market of tea-drinkers, despite growing popularity of coffee shops. Consumer’s preference towards herbal infusions and tea is contributing to the region’s growth.

Usage of specialty papers that helps to retain flavor and the sustainable and biodegradable attributes are contributing to the region’s growth over the assessment period.

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East Asia Pyramid Tea Bags Market

Compared to markets in Europe and North America, East Asia pyramid tea bags market is growing at a swifter CAGR. The regional market is anticipated to reach a valuation of US$ 61Mn by the end of the forecast period as a result of new tea culture brewing in both ready-to-drink (RTD) and hot tea segments. As consumers prefer fresh tea in loose formats, the pyramid tea bag market in regions such as China have positive growth prospects.

Category-wise Insights

Medium (3-5 gm) to Gain Traction

Among the capacity segment, the medium (3-5 gm) will attain notable market share followed by small (below 3 gm) category as it saves energy and time and yet offers a better quality of tea. The Advertising Standard's Authority (ASA) opined in its study that pyramid tea bags give more quality to the brew in contrast to the large pouch tea bags in terms of infusion.  Such findings are likely to bode well for the sales recorded in the overall market, especially within the medium category.

Nylon to Hold Dominant Share

Pyramid tea bags are made of materials such as nylon, paper, cotton, silk, and others (corn starch, and others). Nylon as pyramid tea bags material is extensively utilized for several high-end teas releases and accounted for almost half of the market share. However, the category is anticipated to witness a drop in demand as several manufacturers have begun phasing them out from their packs. Manufacturers nowadays utilize biodegradable materials such as materials derived from corn starch to seal the bags.

The paper segment will be record a CAGR of 5.8% throughout the projected period. Paper is majorly preferred among both consumers and manufacturers as it is comparatively safe and non-toxic and is one of the easiest and cheapest way to consume tea.

Direct Sales Holds Dominance

Accounting for over half of the overall market revenue, market players are likely to stay glued to direct sales for distribution of pyramid tea bags over the following decade. However, amid the COVID-19 outbreak, a significant uptick in e-retail segment is experienced. Prior COVID-19 pandemic, the segment was forecasted to be a rapidly growing channel, however, this trend has accelerated in recent months.

Commercial Users Boast Hegemony

As per FMI, commercial end users are likely to continue with their dominance on on the market through the forecast period. The segment is anticipated to account for more than 54.5% of the overall market share by 2030.  Consumers have been able to appreciate the whole tea experience from the optical signals, packaging and the organic tea bag material to the way it is positioned in a café, hotels, or quick-service restaurants.

Competitive Landscape

Leading players in the pyramid tea bags market are focusing on offering sustainable pyramid tea bags solutions, maximizing the production volume, and extending their market impression.

As the market is characterized by the presence of several big and small market players, competition witnessed is considerably high. Market players are therefore focusing on new product roll-outs, sustainable solutions, and ensuring better convenience to end users as their key differentiating strategies. For instance:

Semper Tea has launched compostable and biodegradable pyramid tea bags. The material utilized is corn fibers and has no synthetic addictive. It has a silky touch that does not impact the taste of tea.

PG Tips a popular brand of tea produced by Unilever-UK, is on track to completely switch its entire set to be plant-based by summer 2021. The brand will become the first major tea brand to market the successful switch in addition to the removal of plastic coverings. Its Manchester factory, where the tea is blended and packaged, is also carbon-neutral with 100% of the energy utilized from renewable sources.

The East India Company has launched a signature range of caffeine-free infusions, green, and leaf black, now presented in silken pyramids bags. The collection provides tea lovers a choice of consumer’s favorite premium loose teas and infusions packed in tea bags designed to provide the optimum convenience and flavor.

In addition to these, some other key players in the pyramid tea bags market include

  • Hain Celestial Group
  • Tata Consumer Products Limited
  • Unilever PLC
  • R. Twining and Company Limited
  • JIN DA Tea Co., Ltd
  • Dilmah Ceylon Tea Company PLC
  • The East India Company Ltd.
  • Bigelow
  • Tea Leaves AUST Pty Ltd.
  • F.T. Short
  • Zesta Tea
  • Den's Tea
  • PureCup
  • Jenier Ltd.
  • Den's Tea and Two leaves Natural

The list is only indicative – full list Pyramid Tea Bags market key players is available upon request.

Pyramid Tea Bags Market Report: Scope



Forecast Period


Historical Data Available for


Market Analysis

USD Million for value, Units for Volume

Key Regions Covered

North America, Latin America, Europe. South Asia, East Asia, Oceania and Middle East & Africa (MEA)

Key Countries Covered

US, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, Israel, South Africa

Key Segments Covered

Capacity, Material, Distribution Channel, End Use and Region

Key Companies Profiled

Hain Celestial Group, Tata Consumer Products Limited, Unilever PLC, R. Twining and Company Limited, JIN DA Tea Co., Ltd, Dilmah Ceylon Tea Company PLC, THE EAST INDIA COMPANY LTD., BIGELOW, Tea Leaves AUST Pty Ltd., F.T. Short, ZESTA TEA, Den's Tea, PureCup, Jenier Ltd., Den's Tea and Two leaves Natural. (only indicative list)

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • What are the growth projections for the pyramid tea bags market?

    The global pyramid tea bags market will value around US$ 380.5 Mn by 2030 end. The growth rate for the market will be 4.5 % CAGR during 2020-2030.

  • Which is the largest market for pyramid tea bags?

    North America represents the dominant market for pyramid tea bags, globally, followed by Europe. However, East Asia and South Asia are foreseeing rapid growth due to growing trend of RTD and hot tea.

  • How the competition is structured in global pyramid tea bags market?

    The Tier 3 players in the market account for 70-80% in the global pyramid tea bags market with leading players including, Hain Celestial Group, Unilever PLC and Tata Consumer Products Limited.

  • Who are the leading end users of pyramid tea bags?

    Commercial end users are projected to dominate the global pyramid tea bags market by accounting for more than 55% of the market share by 2025.

  • Which material is highly preferable in global pyramid tea bags market?

    Nylon is the most favourable material type in the production of pyramid tea bags on the back of its good porous and better brewing experience.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the Pyramid Tea Bags market research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

  • How can I buy this report?

    FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.

Key Segments


  • Small (Below 3 gm)
  • Medium (3-5 gm)
  • Large (Above 5 gm)


  • Nylon
  • Paper
  • Cotton
  • Silk
  • Others (Corn starch, etc.)

Distribution Channel

  • Direct Sales
  • Retailers
    • Hypermarket
    • Supermarket
    • Convenience Stores
    • Other Retail Formats
  • E-Retail

End Use

  • Institutional
    • Educational Institutions (Schools and colleges)
    • Public Institutions (Govt. offices and public places)
    • Private Institutions
    • Movie Theater
  • Commercial users
    • Quick Service Restaurants (QSRs)
    • Hotels
    • Cafes

Regional Outlook

  • North America (US, and Canada)
  • Latin America (Brazil, and Mexico)
  • Europe (Germany, UK, Russia, France, and Italy)
  • South Asia (India, Indonesia, Thailand, Australia and New Zealand)
  • East Asia (China, Japan, and South Korea)
  • Oceania (Australia and New Zealand)
  • Middle East & Africa (MEA) (Turkey, GCC Countries, and South Africa)

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Pyramid Tea Bags Market