Indian tea, renowned for its superior quality and diverse flavors, secured the third position in global tea exports in 2024, surpassing Sri Lanka. The Indian tea industry is expanding due to rising health awareness, organic tea demand, e-commerce, and sustainable practices. Major tea-producing states including Assam, West Bengal, Tamil Nadu, and Kerala, are offering many varieties like black, green, oolong, and specialty teas, to tea lovers.
Tea cafés are reshaping urban tea culture, while tea tourism is also growing, especially in Assam. Government support, digital platforms, and evolving consumer preferences continue to drive India’s tea industry, making it a global leader in high-quality and innovative tea offerings.
Indian tea is renowned worldwide for its exceptional quality, supported by strong geographical indications, significant investments in processing, ongoing innovation, a diverse product range, and strategic market expansion. As one of the leading tea producers and exporters, India offers a wide array of teas, each distinguished by its unique flavor and regional specialities.
In 2024, India secured third position in global tea exports, surpassing Sri Lanka by exporting 254.7 million kg (mkg) of tea, an increase from 231.69 mkg in 2023. Surge in export was driven by strong demand from UAE, Iraq and Russia. Export earnings in 2024 rose to ₹71.11 billion, compared to ₹61.6 billion in the previous year. According to the International Tea Committee Bulletin for 2024, India ranked as the third-largest tea exporter, following Kenya and China.
Tea is a brewed beverage made from the cured leaves of the Camellia sinensis plant. Originally from China, it has become a globally cherished drink.
The Indian tea industry, has a legacy spanning over 170 years. In 1823, Robert Bruce discovered wild tea plants in the Upper Brahmaputra Valley, and the first batch of Indian tea from Assam was exported to the United Kingdom for public sale in 1838. By the 1850s and 1860s, tea cultivation expanded to other parts of India.
India is the second largest tea producer in the world after China. However, due to specific soil and climatic conditions, its growth has remained restricted to select regions. The major tea-producing states include Assam, West Bengal, Tamil Nadu, and Kerala. Additionally, tea is cultivated on a smaller scale in Karnataka, Tripura, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar, and Odisha.
Major tea-growing regions in India include:
Rich in antioxidants, Indian tea provides numerous health benefits as well, making it a preferred choice for both refreshment and well-being. The processing of tea leaves creates various types, each distinguished by its unique flavor and aroma. The various types of Indian Tea include-
The Indian tea market size was valued at US$ 11.5 billion in 2024. According to a report by IMARC Group, the India’s tea market is expected to reach US$ 15 billion by 2033, growing at a CAGR of 3.10% from 2025-2033. This growth is likely to be fuelled by-
The global demand for tea is steadily increasing as consumers become more aware of its health benefits, while the market for natural and organic beverages remains strong. Health-conscious individuals now prioritize beverages rich in antioxidants, polyphenols, and functional compounds that support overall well-being. Indian tea has gained international recognition for its diverse varieties, including Assam, Darjeeling, and Nilgiri, which offer both exceptional flavour and unique health advantages.
The IMARC report highlights that the Indian tea market has witnessed significant growth in organic, herbal, and wellness segments, as consumers seek functional ingredients like turmeric, ashwagandha, and tulsi. For instance, in February 2024, Organic India Private Limited introduced a Black Tea range featuring Assam Black Tea, Masala Black Tea, and Elaichi Black Tea, offering rich flavors, antioxidants, and organic purity for a premium tea experience.
Additionally, the rising concerns over artificial additives and high sugar content have driven consumers toward natural teas instead of carbonated and processed drinks. This shift has encouraged both established brands and new entrants to develop premium, artisanal, and sustainably sourced tea products that align with evolving global preferences.
Furthermore, the rapid growth of digital platforms and e-commerce, have revolutionized access to Indian tea worldwide. Online marketplaces, direct-to-consumer (DTC) models, and subscription services have made it easier for global consumers to explore and purchase a wide variety of Indian teas. Additionally, social media, influencer marketing, and content-driven campaigns have played a vital role in highlighting Indian tea’s cultural heritage, sustainability, and health benefits, expanding its consumer base.
Government initiatives supporting tea exports, improvements in logistics, advancements in packaging technology and impetus for cross border e-commerce have further enhanced India’s standing in the global tea market.
Evolving consumer preferences, especially in urban regions, have driven higher demand for convenient tea options like ready-to-drink (RTD) teas and instant blends. For example, in November 2023, Coca-Cola India entered the RTD tea market with ‘Honest Tea,’ made from organic green tea sourced from Luxmi Tea Co’s Makaibari Estate, offering flavors like Lemon-Tulsi and Mango to appeal to modern consumers.
With growing investments in sustainable farming, fair trade practices, and innovative product development, the Indian tea industry continues to expand, meeting the rising global demand for high-quality, ethically produced tea.
India has a deeply rooted tea culture that embodies its rich history, diverse geography, and vibrant traditions. More than just a beverage, tea in India is a symbol of hospitality, social connection, and daily life. It is a cultural staple in India, with roadside chaiwallahs serving as social hubs that unite people across class and profession.
In terms of tea consumption, in FY 2022, tea consumption in India reached approximately 1.2 billion kilograms, continuing its consistent growth over the years.
India’s cherished spiced milk tea symbolizes warmth and hospitality. Brewed with black tea, milk, sugar, and spices like cardamom and ginger, it is a traditional offering in homes, workplaces, and social gatherings. However, with evolving lifestyles, tea preferences have diversified beyond traditional milk-based chai to include green, white, oolong, black, spiced, and herbal teas.
Tea is now being associated with health, wellness, and gifting, with rising demand for gourmet varieties like Moroccan mint tea, Kashmiri Kahwa, and Darjeeling tea. Some major tea brands in the country include- Tata Tea, HUL (Brooke Bond & Lipton), Wagh Bakri Tea, Vahdam Teas, Girnar Tea, Teabox, and Society Tea.
During the 2010s, tea cafes began transforming urban landscapes, emerging in neighborhoods, malls, and shopping centers. Chai Point led this movement, followed by Chaayos, founded by IIT graduates. These brands revolutionized tea culture by introducing stylish, modern spaces and offering extensive customization, enabling customers to create nearly 1,000 unique tea variations from 25-30 base options.
In addition to tea, these cafés expanded their menus to include finger foods, burgers, desi snacks, buns, and bakery items, elevating the tea-drinking experience. This marked a stark contrast to the past, when tea was primarily sold at small roadside stalls, markets, cinema halls, and railway stations.
It would be interesting to note that India’s tea café industry, was valued at ₹873 crores in FY 24, and has grown at a 25.1% CAGR since FY 21, expanding by 15.47% in the last year.
Tea cafés are increasingly popular among all age groups, serving as social and business gathering spots. Two leading brands, Chaayos and Chai Point, account for 51% of the market’s revenue. Across the country, there are a total of 1,238 branded tea café outlets. In terms of outlet count, Chaayos and Chai Point together hold a 31% share, while Chai Sutta Bar leads with the largest footprint, commanding approximately 36% of the market.
The household popularity of tea is driving innovation and commercialization, with entrepreneurs turning it into a thriving industry, generating significant revenue and widespread fame. With rising disposable incomes and changing household aspirations, the tea cafe culture in India is poised for significant growth. Venture-backed brands like Chaayos will continue expanding, while independent entrepreneurs introduce unique tea concepts. Many localized tea cafes will emerge, focusing on specific cities or regions. Additionally, established tea brands like Wagh Bakri, Vardhaman Tea, and Taj Mahal Tea are entering the F&B space with their own flagship outlets.
Chaayos, Chai Sutta Bar, Chai Point, MBA Chaiwala, Tpot Café, Teabox, Karma Kettle, The Chai Story, Chai Kings, Kolkata Chai Company, Udyan Tea, Chai Thela, The Hillcart Tales, and Tea Trunk, are among the major tea start-ups in India.
Furthermore, tea tourism in India is rapidly gaining popularity, with more travellers visiting tea estates to witness the tea production process firsthand. This growing trend not only emphasizes tea’s cultural importance but also contributes to local economies by attracting visitors keen to learn about tea cultivation. Assam, home to over 800 major tea estates, is emerging as a leading tea tourism destination, offering unique experiences like tea-picking activities and guided tours of historic bungalows. To further support this sector, the Assam government is actively promoting agritourism to boost local employment and economic growth.
A recent data shows that foreign tourist arrivals (FTAs) in India reached 8.59 lakh in March 2024, reflecting an increasing interest in diverse tourism experiences, including tea-related activities.
India’s tea industry is a vibrant and evolving sector, blending centuries-old traditions with modern innovation. As the world’s third-largest tea exporter in 2024, India has demonstrated remarkable growth driven by rising global demand, health-conscious consumer trends, and strategic market expansion. From the robust flavors of Assam to the aromatic finesse of Darjeeling and Nilgiri, Indian teas continue to captivate global palates.
Evolving consumer preferences are fuelling demand for organic, wellness, and ready-to-drink teas, while digital platforms and e-commerce are unlocking new markets. The booming tea café culture, supported by rising urban incomes and lifestyle shifts, is transforming how Indians consume and experience tea. Furthermore, tea tourism is adding a new dimension, strengthening the industry’s economic and cultural footprint.
Backed by strong government support, innovation, and a legacy of excellence, Indian tea is not just a beverage—it’s a symbol of heritage, wellness, and opportunity in the global marketplace.
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India’s tea market is worth USD 11.5 billion in 2024, expected to grow to USD 15.0–15.1 billion by 2030–33, at a CAGR of 3.1–4.3%.
India produced 1.28–1.375 billion kg of tea in FY2023–24, accounting for about 25% of global tea output.
Around 80% of the tea produced in India is consumed within the country.
India exported 199–228 million kg of tea in FY2022–23, earning USD 750–818 million. Major buyers include Russia, Iran, UAE, USA, UK, Germany, and China.
Top regions include:
– Assam and West Bengal (Dooars, Terai, Darjeeling)—producing ~83%
– Tamil Nadu, Kerala, and Karnataka—account for the remaining ~17%
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