India Green Tea Market By Type (Flavoured, Unflavoured), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Stores, Others), By Region, Competition Forecast & Opportunities, 2020-2030F

Market Overview

The India Green Tea Market was valued at USD 566.34 Million in 2024 and is expected to reach USD 1204.25 Million by 2030 with a CAGR of 13.40% during the forecast period. The India green tea market is experiencing steady growth, driven by increasing health consciousness, rising disposable incomes, and evolving consumer preferences toward wellness products. Growing awareness of the antioxidant and weight management benefits of green tea has fueled demand across urban and semi-urban areas. Additionally, the expansion of e-commerce platforms and premium tea brands offering organic and flavored variants has boosted market penetration.

Key Market Drivers

Rising Health Consciousness and Consumer Awareness

The increasing awareness regarding health benefits associated with green tea consumption is a major driver of market growth in India. In 2024, fueled by growing health consciousness and shifting consumer preferences, India's wellness market is anticipated to expand steadily at a rate of 5%. Green tea is widely recognized for its antioxidant properties, aiding in weight management, metabolism improvement, and reducing the risk of chronic diseases like diabetes and cardiovascular ailments. As consumers shift towards healthier lifestyles, demand for green tea has surged, particularly in urban and semi-urban regions. Additionally, widespread information on social media and endorsements by fitness influencers and health professionals have contributed to the growing preference for green tea over traditional tea and other beverages. This trend is further amplified by the rise of preventive healthcare practices, as consumers seek natural and organic alternatives to boost immunity and overall well-being.

Expansion of E-Commerce and Premium Product Offerings

The rapid expansion of e-commerce platforms has significantly fueled the green tea market in India, making a diverse range of products accessible to a broader consumer base. India's ecommerce market, currently valued at USD 70 billion, accounts for about 7% of the country's total retail market. This presents a significant growth opportunity, as the online retail sector is expected to expand rapidly in the coming years. Online marketplaces such as Amazon, Flipkart, and specialty health stores offer multiple green tea variants, including flavored, organic, and herbal-infused options, catering to different consumer preferences. Additionally, premium brands like Twinings, Lipton, and Organic India have introduced high-quality green tea products, targeting the growing demand for specialty and wellness beverages. The convenience of online shopping, attractive discounts, subscription models, and the ability to explore various brands have further driven market penetration. Moreover, direct-to-consumer (D2C) brands are leveraging digital marketing and influencer collaborations to promote their premium green tea offerings, enhancing customer engagement and brand loyalty.

Government Support and Growth in Tea Cultivation

Government initiatives and policies promoting tea cultivation and exports have played a crucial role in boosting the Indian green tea market. The Tea Board of India, under the Ministry of Commerce and Industry, has implemented various schemes to support tea growers, improve tea quality, and encourage organic farming practices. Subsidies, financial incentives, and research programs aimed at increasing green tea production have helped small and medium-scale tea farmers expand their operations. Additionally, India’s growing tea exports, particularly to regions like the Middle East, Europe, and North America, have created new opportunities for green tea producers. As sustainability and organic farming gain momentum, government-backed certifications such as the Rainforest Alliance and Organic India standards ensure better market credibility, driving both domestic and international demand.

Innovation in Product Variants and Marketing Strategies

The introduction of innovative green tea variants and effective marketing strategies has significantly contributed to market expansion in India. Brands are continuously developing new flavors, blends, and functional green tea products infused with ingredients like turmeric, ashwagandha, tulsi, and ginseng to attract health-conscious consumers. Ready-to-drink green tea, instant mixes, and cold-brew options have also gained traction, catering to busy professionals and younger demographics seeking convenience. Moreover, aggressive marketing campaigns, celebrity endorsements, and social media promotions have enhanced brand visibility and consumer engagement. Companies are also utilizing sustainability-driven packaging solutions and organic certifications to align with evolving consumer preferences for eco-friendly products. These innovations and marketing efforts are key factors sustaining the growing demand for green tea in India.                                                                      

Download Free Sample Report

Key Market Challenges

High Price Sensitivity and Affordability Concerns

One of the significant challenges facing the India green tea market is the high price sensitivity among consumers. Compared to traditional black tea, green tea is often priced at a premium due to its perceived health benefits, specialized processing, and organic or premium branding. However, a large segment of Indian consumers, particularly in rural areas, remains hesitant to spend extra on green tea when black tea is more affordable and culturally ingrained in daily routines. Even in urban markets, where health-conscious consumers are more inclined toward green tea, price variations between different brands and product types can influence purchasing decisions. This challenge is further compounded by the presence of cheaper herbal and ayurvedic alternatives, which some consumers view as equally beneficial for health at a lower cost. To address this issue, companies must find ways to balance affordability with product quality while leveraging smaller packaging sizes, bulk discounts, and strategic pricing to penetrate the broader market.

Competition from Herbal and Traditional Beverages

Green tea faces stiff competition from herbal teas, ayurvedic infusions, and traditional Indian beverages such as masala chai, kadha, and lemon-ginger teas, which are deeply rooted in Indian culture. While green tea is widely marketed for its health benefits, many Indian consumers still prefer home-brewed herbal concoctions that are often made with ingredients like tulsi, ginger, cinnamon, and turmeric. These alternatives are not only perceived as natural remedies but also align with age-old wellness traditions, making it challenging for green tea brands to shift consumer preferences. Additionally, the growing popularity of other health-based drinks, such as kombucha and functional herbal teas, has intensified competition in the wellness beverage segment. To counter this, green tea brands are increasingly launching flavored and herbal-infused variants to align with Indian taste preferences. However, convincing traditional tea drinkers to transition to green tea on a larger scale remains an ongoing challenge.

Quality Concerns and Consumer Perception Issues

Despite growing popularity, green tea in India faces challenges related to quality consistency, adulteration concerns, and consumer skepticism about its actual health benefits. Unlike black tea, which is widely available in loose-leaf and mass-market formats, green tea is often marketed as a premium product, leading to inconsistencies in quality across brands and suppliers. Some consumers have reported issues such as bitterness, lack of freshness, and doubts about the authenticity of organic or flavored variants. Additionally, the increasing presence of low-quality or counterfeit green tea products in the market has led to consumer distrust, impacting brand reputation. Furthermore, while green tea is promoted for its health benefits, some consumers remain skeptical about exaggerated claims regarding weight loss and disease prevention, leading to unrealistic expectations. Overcoming these challenges requires greater transparency, stricter quality control, and consumer education initiatives to build long-term trust in the market.  

Key Market Trends

Increasing Popularity of Functional and Flavored Green Teas

A significant trend shaping the India green tea market is the rising demand for functional and flavored green teas. While plain green tea remains popular, many consumers seek added benefits through herbal infusions and innovative blends. Brands are introducing green tea infused with ingredients like tulsi, ginger, ashwagandha, turmeric, and moringa, which appeal to Indian consumers who associate these elements with traditional wellness. Flavored green tea, including options like honey-lemon, mint, jasmine, and berries, is gaining traction as it offers a more enjoyable taste while retaining health benefits. This shift caters to younger demographics and first-time green tea consumers who may find the natural taste of green tea too bitter. As demand for personalized health and wellness products grows, brands are focusing on functional teas targeting specific needs such as detoxification, stress relief, digestion, and immunity-boosting.

Expansion of Ready-to-Drink (RTD) and Instant Green Tea Products

The Indian green tea market is witnessing a growing interest in convenient beverage formats, leading to the rise of ready-to-drink (RTD) green tea and instant green tea mixes. With busy urban lifestyles and an increasing preference for on-the-go consumption, RTD green tea options—both bottled and canned—are becoming more popular. These products, often available in fruit-infused or mildly sweetened variants, cater to health-conscious consumers who want a refreshing yet functional drink without the need for brewing. Similarly, instant green tea powders and sachets have gained traction, particularly among office-goers and young professionals who seek quick and easy ways to consume green tea. The availability of single-serve sachets, cold-brew options, and dissolvable green tea tablets further enhances convenience, making green tea more accessible to a broader audience.

Growing Influence of Sustainable and Organic Green Tea

Sustainability is becoming a crucial trend in the Indian green tea market, with increasing consumer preference for organic, ethically sourced, and environmentally friendly products. Consumers are more conscious about the origins of their tea, how it is grown, and whether it aligns with sustainability standards. This has led to a surge in demand for organic green tea certified by organizations such as India Organic, USDA Organic, and the Rainforest Alliance. Additionally, brands are adopting eco-friendly packaging solutions, such as biodegradable tea bags, recyclable tins, and plastic-free packaging, to appeal to environmentally conscious consumers. Transparency in sourcing, fair-trade certifications, and sustainable farming practices are also influencing purchasing decisions. As sustainability awareness continues to rise, brands that emphasize ethical production and minimal environmental impact are likely to gain a competitive edge.

Influence of Digital Marketing and Direct-to-Consumer (D2C) Brands

The increasing dominance of digital marketing and the rise of direct-to-consumer (D2C) brands are reshaping the way green tea is marketed and sold in India. Traditional retail models are gradually being complemented by online-first brands that use social media, influencer marketing, and e-commerce platforms to reach target audiences directly. Companies are leveraging Instagram, YouTube, and wellness blogs to educate consumers about green tea’s benefits, showcase product innovations, and build brand loyalty. Subscription-based green tea services, personalized wellness recommendations, and AI-driven customer engagement tools are also enhancing the shopping experience. Additionally, the D2C approach allows brands to experiment with limited-edition flavors, seasonal launches, and customized tea blends, giving consumers more options and flexibility in their purchasing decisions. As internet penetration and digital adoption grow, the online segment will continue to play a vital role in expanding the reach of green tea in India.  

Segmental Insights

Type Insights

The flavored green tea segment is the fastest-growing category in the India green tea market, driven by evolving consumer preferences and the demand for better taste and functional benefits. Many first-time green tea drinkers find plain green tea bitter, prompting brands to introduce variants infused with flavors like honey-lemon, mint, jasmine, tulsi, ginger, and berries. These options not only enhance taste but also offer additional health benefits, such as improved digestion, stress relief, and immunity-boosting properties. Younger demographics and urban consumers are particularly drawn to these flavored options, which align with their wellness-oriented lifestyles. The rise of premium, organic, and herbal-infused flavored green tea further accelerates this trend, making it a key driver of market expansion in India.

Distribution Channel Insights

The online segment is the fastest-growing distribution channel in the India green tea market, driven by increasing internet penetration, convenience, and the rise of direct-to-consumer (D2C) brands. E-commerce platforms like Amazon, Flipkart, and specialty health stores have made green tea easily accessible across urban and rural regions. Consumers prefer online shopping due to attractive discounts, subscription models, and the ability to compare a wide variety of flavors, organic options, and premium brands. Digital marketing, influencer endorsements, and social media promotions have further boosted online sales. Additionally, the COVID-19 pandemic accelerated the shift toward e-commerce, with many consumers opting for doorstep delivery of health-focused beverages. This trend is expected to continue, making online the dominant growth channel.

Download Free Sample Report

Regional Insights

North India was the dominant region in the India green tea market, driven by high consumer awareness, rising health consciousness, and a strong preference for premium and organic beverages. Major states like Delhi, Punjab, Haryana, Uttar Pradesh, and Rajasthan have a large urban population with higher disposable incomes, making them key markets for green tea consumption. The increasing adoption of fitness trends and wellness products has further fueled demand, with consumers shifting from traditional black tea to healthier alternatives. The presence of leading brands, strong distribution networks, and widespread availability through supermarkets, specialty stores, and online platforms contribute to the region’s market leadership. Additionally, North India’s colder climate encourages tea consumption, further strengthening its dominance in the green tea market.

Recent Developments

• In 2025, Organic India launched "Purely Chamomile," the first offering in its new Single-Origin Tea line, certified under Regenerative Organic Certification (ROC). This caffeine-free tea, crafted from single-origin chamomile flowers, reflects the company's commitment to sustainability, biodiversity, and ethical sourcing through regenerative agriculture practices.
• ​In 2024, Japanese tea company ITO EN announced plans to enter the Indian market with its flagship ready-to-drink green tea brand, Oi Ocha. The company appointed La Ditta Singapore Pte Ltd as its exclusive marketing and distribution partner in India.
• In 2023, Coca-Cola India launched "Honest Tea," a ready-to-drink iced green tea made with organic green tea sourced from Luxmi Tea's Makaibari Tea Estate. Available in Lemon-Tulsi and Mango flavors, the beverage targets health-conscious consumers seeking refreshing, high-quality tea-based drinks in select Indian cities.
• In 2023, Laval Green Tea launched effervescent green tea tablet in India, designed for on-the-go convenience.

Key Market Players

• Organic India Pvt. Ltd.
• Tata Consumer Products Ltd.
• Girnar Food and Beverages Pvt. Ltd.
• Hindustan Unilever Ltd.
• Amar Tea Pvt. Ltd.
• Sresta Natural Bioproducts Pvt. Ltd.
• Nestlé Alimentana SA
• Dilmah Ceylon Tea Company PLC.
• Panella Foods and Beverages Private Limited
• Teaxpress Pvt. Ltd.

Report Scope:

In this report, the India Green Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Green Tea Market, By Type:

o   Flavoured

o   Unflavoured

• India Green Tea Market, By Distribution Channel:

o   Supermarkets/Hypermarkets

o   Convenience Stores

o   Online Stores

o   Others

• India Green Tea Market, By Region:

o   North

o   West

o   South

o   East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Green Tea Market.

Available Customizations:

India Green Tea Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).