The Global Out of Home Tea Market is Booming

According to a report by Research and Markets, the Global Out of Home Tea Market is experiencing a robust growth trajectory. Valued at USD $18.6 billion in 2022, the global out of home tea market is projected to grow at a CAGR of 9.1% through 2028 to a value of USD $31.07 billion.

Health & Wellness

Diverse factors are contributing to the expansion of the market, including consumer demand for healthier beverage options and the growing awareness of the health benefits of tea.

Tea aligns well with the health movement as consumers look for functional beverages and alternatives to sugary and carbonated options. Teas also enable consumers to seek out blends and types for different needs like relaxation, digestion, and more. As a result, there has been an influx of innovative tea blends and formulations, including those featuring adaptogens, superfoods, and other natural ingredients. 

Tea Experiences

A growing consumer interest in unique and premium tea experiences is also helping to fuel the market. The rise of specialty tea shops, cafes, and tea loungeshas provided a platform for consumers to explore tea blends, tea varieties, and brewing techniques.

Artisanal and specialty teas, often sourced from specific regions and featuring distinctive flavor profiles, are gaining popularity. The report says, "Tea establishments are capitalizing on this trend by curating premium tea menus and offering elevated tea experiences. The emphasis on craftsmanship, authenticity, and storytelling around the origin of teas contributes to the premiumization of the out-of-home tea market. As consumers increasingly view tea consumption as a sophisticated and cultural experience, this trend is likely to continue influencing the industry."

Tea's connection to cultural practices around the world invites curious consumers to embark on international travel, which creates the ultimate tea experience.

Thanks to the interconnectedness of today's world, these cultures and practices can be spread worldwide, with the availability of teas from around the world in diverse markets. This is only helped by the growth of the online segment of the tea market. With the increasing prevalence of e-commerce platforms, online tea sales have become a dynamic and flourishing segment. 

This allows consumers to embrace and celebrate the unique flavors and rituals associated with different tea cultures. From Japanese matcha and Chinese oolong to Indian chai, and Moroccan mint tea, the out-of-home tea market benefits from a rich tapestry of global tea offerings.

Tea Types

While classic tea varieties remain popular, there is a demand for ready-to-drink (RTD) and on-the-go tea options that reflect today's busy lifestyle without compromising on quality.

RTD teas, often available in convenient packaging such as bottles or cans, cater to consumers' demand for convenience and quality.

Challenges to the Out of Home Tea Market

The Global Out of Home Tea Market faces some challenges to its growth, including:

  • Increasing competition and market saturation
  • Economic uncertainties and pricing pressures
  • Supply chain disruptions
  • Regulatory/compliance standards

Still, the report believes the market will still undergo strong growth, propelled on by RTD teas, innovative tea formats, culinary crossovers with tea, technology in tea, and more.

View more on the Global Out of Home Tea Market report here.


Plan to Attend or Participate in World Tea Expo, March 18-20, 2024

To learn about other key developments, trends, issues, hot topics and products within the global tea community, plan to attend World Tea Expo, March 18-20, 2024 in Las Vegas, co-located with Bar & Restaurant Expo. Visit

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