Tea demand is being driven by rising health awareness, urbanization, and changing lifestyles that favour natural, low-sugar beverages. Markets in Asia Pacific account for a significant share of global consumption, while innovations like eco-friendly packaging and sustainability practices are attracting environmentally conscious consumers.

Despite strong demand, the tea sector grapples with climate-related production risks, supply chain volatility, and rising production costs. Extreme weather events can reduce yields, causing price fluctuations. Additionally, competition from other beverages and increasing expectations for sustainable sourcing put pressure on producers and brands to adapt.

The Asia Pacific region leads the global tea market, with countries like India and China contributing heavily to both production and consumption. Black tea remains the most widely consumed type, while green and specialty teas are growing faster due to their association with health benefits. Market expansion is also supported by online retail and boutique tea brands.