Tea Bags Market By Product Type (Single-Chamber Tea Bags, Double-Chamber Tea Bags, Pyramid Tea Bags, Round Tea Bags, Square Tea Bags, String & Tag Tea Bags, Non-String Tea Bags), By Material Type (Filter Paper, Cotton, Silk, Nylon, Non-Woven Fabric, Corn-Based PLA Mesh, Others), By Tea Type (Black Tea, Green Tea, Herbal Tea, Oolong Tea, White Tea, Fruit & Floral Infusions, Others), By Packaging Type (Individually Wrapped Tea Bags, Loose Tea Bags in Pouches, Tea Bags in Tins or Jars, Boxed Tea Bags, Recyclable Packaging, Luxury Gift Packs), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Health Food Stores, Tea Boutiques, Others), and By End User (Households, Foodservice Outlets, Offices & Institutions, Hospitals & Wellness Centers), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape this market in the coming years?

The Tea Bags market accounted for USD 7.34 Billion in 2024 and USD 7.83 Billion in 2025 is expected to reach USD 15.03 Billion by 2035, growing at a CAGR of around 6.73% between 2025 and 2035. The tea bags market denotes the global business associated with the manufacturing, distribution, and selling of tea in small porous sacks that can easily be brewed in. This is a market that has taken off fast, and it has become by far more affordable for a large population to prepare tea fast and readily, which was caused by the busy lifestyles. It features different kinds of tea, including black and green tea, herbal tea, and speciality varieties to suit tastes. Such factors as health trends, premiumisation, and sustainable packaging have an impact on the market. Some of the major players would be tea manufacturers, packagers, and retailers, as they also cater to the growing demand across the world.

What do industry experts say about the market trends?

"Our pyramid tea bags provide the same high‑quality tea experience our customers expect, in an innovative, plant‑based, compostable design—perfect for busy lifestyles without compromising on sustainability."

• Matthew Ebrani, Chief Operating Officer at Heavenly Tea Leaves

"We're addressing a critical health and environmental issue while simultaneously elevating the tea‑drinking experience by introducing microplastic-free cotton tea bags—a paradigm shift in how we approach tea production and consumption."

• Bijit Sarma, Founder and CEO at Esah Tea

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the market?

Rising health awareness increasing demand for herbal tea products globally

The demand for herbal tea products is rising because of a worldwide health awareness, which further increases the tea bag market. The consumers are also becoming sensitive about natural and organic products and desire beverages with health-giving properties like antioxidants, better digestion, stress release, etc. The Centres for Disease Control and Prevention (CDC) believe that a shift in lifestyles towards healthier choices has increased the intake of functional food and beverages, of which herbal teas fall under. Moreover, an analysis issued by the U.S. Department of Agriculture (USDA) predicts that there has been increasing consumption of organic tea due to a desire by customers to use products that do not contain manmade chemicals.

The National Institute of Health (NIH) acknowledges the medicinal quality of herbal teas, leading to the escalated research on the topic and legitimising the previously held beliefs. This increasing health-conscious consumer market comes with on-hand accessibility of tea bags that are convenient and consistent in the brewing process, hence increasing the market penetration all over the world. Therefore, the entire effect of the health trends, the convenience of the consumers, and the increasing understanding of the advantages of herbs gives a good impetus to the expansion of the tea bag market.

Expanding e-commerce platforms boosting online tea bag sales significantly

Online sales have increased considerably due to the rising popularity of e-commerce stores, especially in the sales of tea bags, as more and more consumers prefer convenience and variety. As the world becomes health-conscious, most consumers are moving to tea as a healthier substitute for other sweet drinks, which also makes a strong force that drives demand. Moreover, busy living recommends the use of fast and simple methods of doing things, and tea bags meet the demands of consumers more than loose-leaf tea.

The United States Department of Agriculture (USDA) reported that the average year-on-year rise of tea consumption in the United States was 6% during the last couple of years, and it presented an even increment of ready-to-use tea products, such as tea bags. Studies on education, like that of the Food and Agriculture Organisation (FAO), emphasise the role played by urbanisation and penetration of the internet in the accessibility and popularity of tea purchases online using the internet.

The interest in seeking premium tea bags about sustainability in agriculture and practices of organic farming by government-supported programmes in tea farming is also influencing consumers to purchase ethical sources of tea bags. All this is facilitating the tea bag industry to rise, particularly via online retailing.

Environmental concerns regarding tea bag waste and packaging disposal

One big problem for the tea bag market is that people are starting to worry about how tea bag waste and the packaging will affect the environment. Most traditional teabags are made up of plastic (materials like polypropylene) that cannot decompose quickly, resulting in microplastic contamination of the soil and water. A 2019 study carried out by McGill University showed that almost 93% of single-use tea bags released microplastics into the environment when placed in water.

The Environmental Protection Agency (EPA) states that non-degradable packaging also causes a lot of landfill waste, which worsens the pollution problem. The associated environmental costs are leading to an increased need among consumers and regulators to have sustainable alternatives, hence curbing the rise of the traditional tea bags unless they switch to alternative, eco-friendly solutions. This emerging consciousness and regulatory weight can constrain market growth until manufacturers reduce the packaging's unsustainability.

Innovation in biodegradable tea bags enhancing eco-friendly product appeal

As consumers become ever more environmentally conscious, there is a significant opportunity to innovate biodegradable tea bags in the tea market. Plastic is commonly used in traditional tea bags; therefore, biodegradable products attract the attention of environmentally friendly consumers. As per the U.S. Environmental Protection Agency (EPA), in 2018, nearly 292.4 million tonnes of municipal solid waste were produced, a big part of which includes plastics, which is why the issue of biodegradable packaging should be on top of the priorities list. Moreover, the Food and Agriculture Organisation (FAO) report insists on the fact that sustainable agricultural and packaging practices can be considered as the driving forces of the future food and beverage sectors.

With governments all over the world encouraging their citizens to reduce their plastic waste levels by implementing regulations and incentives, tea brands that will switch to the use of biodegradable tea bags have a chance of gaining a competitive advantage by appealing to these environmental concerns. This invention makes it more environmentally friendly and appeals to an ever-growing market niche that appreciates openness, sustainability, and sustainable consumption to boost the world tea industry.

Increasing demand for functional teas supporting wellness and immunity

The increasing consumer interest in health and the immune system stimulated the development of new and strong growth potential in the tea bag market, namely, in the sphere of functional and wellness teas. Since people are now more aware of the preventive health efforts, there is a greater demand for teas that are mixed with natural ingredients that are known to be immune boosters, like ginger, turmeric, and green tea extracts. The U.S. National Institutes of Health (NIH) state that substances present in most herbal teas have antioxidant and anti-inflammatory properties that can enhance the effectiveness of the immune system.

The Centres for Disease Control and Prevention (CDC) emphasised the use of diet and natural supplements in a bid to have a strong immune system, a trend that consumers are turning to natural wellness products. Such a changing consumer behaviour challenges tea marketers to experiment with immunity and well-being blends and increase their market. Further, the convenience of tea bags can be provided in a convenient and accessible form, used by those people who are health-conscious and who want to receive immune-boosting products with minimum effort and time. Overall, these trends in health offer a potential path of development in the market of tea bags in the world.

What are the key market segments in the industry?

Based on the product type, the Tea Bags market has been classified into Single-Chamber Tea Bags, Double-Chamber Tea Bags, Pyramid Tea Bags, Round Tea Bags, Square Tea Bags, String & Tag Tea Bags, and Non-String Tea Bags. Single-chamber tea bags are the brightest ones in the tea bag market. These tea bags are broadly popular, as they are simple, cost-effective, and easy to use, and manufacturers and consumers tend to utilise them. They are practical in holding the tea leaves but at the same time, facilitate the maximum infusion, which is attractive to customers. Furthermore, they fit automated line processing systems and reduced manufacturing costs that add to their domination in the market as opposed to other formats, such as pyramid or multi-chamber tea bags.

Based on the Tea Type, the Tea Bags market has been classified into Black Tea, Green Tea, Herbal Tea, Oolong Tea, White Tea, Fruit & Floral Infusions, and Others. In the tea bag market, the most notable and dominating segment is black tea. Black tea is renowned for being very strong in flavour as well as the volume of caffeine, which helps this type to makes it more in demand among consumers worldwide. It is also widely used among other cultures, and many times it is the default option in the tea bags due to its strength and adaptability. Black tea has a more able shelf life and is more appropriate for large-scale operations, thus becoming the leading segment, way ahead of other tea types, such as green, herbal, or even tea bag form.

Which regions are leading the market, and why?

The North American tea bags market is currently registering a slow growth rate, which is occasioned by the change in consumer preference towards convenient and healthy beverage products. The appetites of the U.S. and Canada have been driven by an increased awareness of the health benefits of tea, such as antioxidants and relief from stress. Specific and organic tea bags have been shifting towards the consumers, therefore compelling the manufacturers to innovate with various kinds of teas and environmentally friendly packages.

The development of e-commerce markets and speciality cafes is another trend that promotes the growth of the market due to the wider availability of a variety of superior edition tea brands. Besides, the trend of busy lifestyles is promoting in-line consumption, and this is adding more to the popularity of the tea bag versus loose-leaf tea. Nonetheless, the issues of sustainability as well as the rivalry of ready-to-drink tea beverages are still obstacles. The market prospects are bright, and expanding opportunities can be seen, especially in niche markets like wellness and herbal teas.

The Asia Pacific tea bag market is rapidly expanding due to the well-entrenched culture of tea in the region and the growing importance of convenience amongst the consumers. Other key contributors include countries such as China, India, Japan, and Indonesia because of their extensive performance in terms of tea production and consumption. The growing population of cities and hectic lifestyles is driving the growth of demand for ready-to-brew tea products such as tea bags. Also, more people are embracing high-quality and special tea bags as the population of the middle classes with disposable income increases.

Technological advancements such as packaging and flavours coupled with healthier products generate additional growth in the market. Market expansion in Asia Pacific is enabled by the presence of major manufacturers and the growing retail networks. Overall, the sphere is ready to develop rather dynamically with changing consumer preferences and greater availability of various types of tea bags.

What does the competitive landscape of the market look like?

The tea bags market is considered a competitive market with the presence of both a blend of mega global companies and independent specialty tea firms. Major companies such as Tata Consumer Products, Associated British Foods, or CVC Capital Partners (through Lipton) occupy the first position with a diverse portfolio of products and a wide network of distribution on the international level. These independent brands, which include Bigelow Tea Company, Dilmah, and Harney and Sons, are all expanding their businesses by targeting quality and organic products as consumer demand increases towards healthier and ethically sourced drinks.

Post developments are intensified investments in sustainable tea farming activities and packaging by Tata, and CVC Capital Partners has concentrated on reaching more markets via digital marketing using Lipton. In the meantime, niche brands such as Numi Organic Tea and The Republic of Tea are tapping into the benefits of clean-label and direct-to-consumer markets to find their loyal consumers. The market is changing in general, being highly focused on sustainability, the innovation of products, and diversity in the preferences of consumers.

Tea Bags Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the industry?

• In April 2025, the global tea packaging market saw rapid adoption of biodegradable, recyclable, and barrier-enhanced materials. Flexible packaging held the dominant share in the market. Key innovations included resealable bags, moisture and light blockers, and premium pouches. These designs focused on maintaining freshness and supporting e-commerce needs.
• In January 2025, the tea industry experimented with cellulose films and mushroom-based packaging for tea bags and wrappers. These compostable options were designed for home or industrial use. The goal was to replace traditional plastics and reduce waste. This move aimed to improve sustainability in the tea market.

Report Coverage:

By Product Type

• Single-Chamber Tea Bags
• Double-Chamber Tea Bags
• Pyramid Tea Bags
• Round Tea Bags
• Square Tea Bags
• String & Tag Tea Bags
• Non-String Tea Bags

By Material Type

• Filter Paper
• Cotton
• Silk
• Nylon
• Non-Woven Fabric
• Corn-Based PLA Mesh
• Others

By Tea Type

• Black Tea
• Green Tea
• Herbal Tea
• Oolong Tea
• White Tea
• Fruit & Floral Infusions
• Others

By Packaging Type

• Individually Wrapped Tea Bags
• Loose Tea Bags in Pouches
• Tea Bags in Tins or Jars
• Boxed Tea Bags
• Recyclable Packaging
• Luxury Gift Packs

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Health Food Stores
• Tea Boutiques
• Others

By End User

• Households
• Foodservice Outlets
• Offices & Institutions
• Hospitals & Wellness Centers

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• CVC Capital Partners
• Tata Consumer Products
• Associated British Foods
• Bigelow Tea Company
• Hain Celestial Group
• Dilmah
• Harney & Sons
• The Republic of Tea
• East West Tea Company
• Stash Tea Company
• Numi Organic Tea
• Peet’s Coffee & Tea
• Ahmad Tea Limited
• Akbar Brothers Ltd
• Unilever

Frequently Asked Questions (FAQs)