Tea Bags Market Top Companies, Segments and Opportunities by 2031

Growing popularity of tea, demand for instant health-benefiting drinks, dynamic changes in consumption patterns, a rise in the inclination of consumers.

WILMINGTON, DE, UNITED STATES, November 14, 2025 /EINPresswire.com/ -- The global tea bags industry was generated $6.1 billion in 2021, and is estimated to reach $12.9 billion by 2031, witnessing with a CAGR of 7.6% from 2022 to 2031.

Growing popularity of tea, demand for instant health-benefiting drinks, dynamic changes in consumption patterns, rise in the inclination of consumers towards immunity-boosting drinks, and the various health benefits associated with tea are majorly driving the growth of the tea bags market. However, the availability of tea substitute products including coffee and drinks at cost-effective prices and the trend of coffee consumption hinder the global market growth. On the other hand, growing urbanization, a surge in the number of cafes and restaurants with the expansion of the metro cities, an increase in advertising campaigns and promotional activities regarding tea bags, and offering these products through online platforms present new opportunities for the market in the future.

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The market for tea bags is anticipated to rise in acceptance of do-it-yourself food and beverage items, as well as in popularity in developing nations like India and Brazil and easy access to tea bags in retail outlets. The market for tea bags is driven by rising customer desire for quick, healthy beverages. The use of herbal and green tea bags has increased as a result of rising consumer demand for immunity-boosting beverages and refreshments. Rising consumer demand for instant health benefiting drinks is likely to boost the demand for herbal and green tea bags.

Tea bags is a small porous sachet that contains tea leaves or powdered tea, on to which boiling water is poured to make readily drinkable tea. Tea bags are available with string and label or not. According to UK Tea & Infusions Association, 96% of British people consume their tea with tea bags. Innovative ways of attracting customers towards tea by eye-catching presentation of the teas and infusion of flavors in tea through tea bags are likely to supplement the growth of the market during the forecast period. Growth in urbanization leads to increase in cafés, restaurants, and hotels where tea bags are considerably used furthermore expansions of the metro cities with a rising tea liking population are likely to supplement the growth of the market.

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The demand for tea is driven by several health benefits associated with it, such as it is rich in antioxidants such as polyphenols, which majorly include flavonoids and catechins. These prevent large-scale cellular destruction via stabilization of harmful free radicals present in the human body. The nutritional composition of tea includes vitamins (C, K, B12, B6, and E), minerals (trace amount of potassium, manganese, magnesium, and calcium), and amino acids (L-theanine). Moreover, as per research conducted by different reputed organizations, Ready to drink tea is proven to prevent different types of cancers, lowers cholesterol, boosts immunity, facilitates weight loss, and prevent neurological diseases. Altogether, the abovementioned factors indicate that health benefits associated with tea drive the tea bags market growth.

Online retail is gaining significant popularity and is being used frequently to sell and buy products. The proliferation of smartphones and growing usage of social media nowadays are attracting alcoholic and non-alcoholic beverage manufacturers and advertising media companies to promote their products on social media. Thus, supplementing the growth of the tea bags market share during forecast period.

However, availability of tea substitute products including coffee and drinks at cost-effective prices and trend of coffee consumption are expected to restrict the market growth. The outbreak of the pandemic has negatively affected the global tea bags market, owing to the fact that cafes and restaurants were temporarily shuttered during the lockdown and export and import activities were also shut down temporarily leading to scarcity of tea was created and increase in price. Thus, COVID-19 negatively affected growth of the tea bags market during the forecast period.

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The tea bags market is segmented on the basis of type, distribution channel, application, shape, and region. On the basis of type, the market is categorized into green tea, black tea, oolong tea, fruit & herbal tea, and others. On the basis of distribution channel, it is segmented into supermarkets & hypermarkets, specialty stores, convenience stores, online stores, and others. By application, it is segregated into residential and commercial. On the basis of shape, it is segmented into pillow shaped, round shaped, square shaped, pyramid shaped, and others. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Pakistan, and Rest of the Asia-Pacific), and LAMEA (Brazil, South Africa, Turkey, Saudi Arabia, Egypt, and Rest of LAMEA).

Based on region, the market in Asia-Pacific held the largest market share in 2021, accounting for more than two-thirds of the global tea bags market size, and is likely to lead the trail throughout the forecast period. The same segment is anticipated to manifest the fastest CAGR of 8.0% during the forecast period, 2022-2031. This is due to the highly prevalent tea culture in countries such as China, India, and Japan. Black tea is anticipated to gain maximum demand compared to other segments in Asia-Pacific, owing to its high popularity and low price. The other regions discussed in the report are North America, Europe, and LAMEA.

Leading Market Players

Associated British Foods Plc.
Barry's Tea
Nestle S.A.
Northern Tea Merchants Ltd.
Numi, Inc.
Organic India
Tata Consumer Products
The Hain Celestial Group, Inc.
The Kroger Company
Unilever Plc.

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