Indian tea industry expects 6.98% CAGR in 2025-30
The Indian tea market is witnessing a steady growth, with rising domestic consumption and strong export potential to Russia, Iran and the UAE, having made significant shipments, according to an industry report.
The tea industry in India is expected to reach Rs.1.47 trillion by 2029, expanding at a compound annual growth rate (CAGR) of 6.98% during the 2025-2030 period. It was valued at Rs.1.00 trillion in 2024, says the “Tea Industry in India (2025-2030)” report which has been added to ResearchAndMarkets.com’s offering since 3 Apr.
India, the world’s second-largest tea producer, holds a strong global position with its diverse tea varieties, including Assam, Darjeeling, and Nilgiri teas.
Government initiatives like the Tea Development & Promotion Scheme (TDPS) are fostering industry growth by modernizing tea estates and enhancing global competitiveness.
However, challenges such as rising production costs, labor migration, and climate change impact overall productivity and pricing dynamics. Sustainable practices, including organic tea farming and mechanization, are gaining traction to counteract these issues https://fieo.org/.
With tea being an integral part of Indian culture, the industry contributes significantly to employment and exports, said the report.
Despite fluctuating domestic demand and rising competition from other tea-producing nations, India’s tea sector continues to evolve, driven by premiumization, health-conscious consumer trends, and sustainability efforts https://www.commerce.gov.in/.
India’s tea industry comprises four segments: black tea, green tea, herbal tea, and specialty teas. As of 2024, the black tea segment dominated the market, accounting for 38.80% of the total sector. By the end of 2030, the black tea segment is expected to hold a share of around 44.11% of the overall market.
The industry is led by:
Dhunseri Tea & Industries Limited;
Jay Shree Tea & Industries Limited;
Tata Consumer Products Limited;
Chamong Tea Exports Private Limited;
Gujarat Tea Processors and Packers Limited. Fiinews.com
