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Tea Bags Market To Reach $10.66Bn By 2030 | CAGR: 6.7%

Tea Bags Market To Reach $10.66 Billion By 2030 | CAGR: 6.7%

May 2025 | Report Format: Electronic (PDF)

Tea Bags Market Growth and Trends

The global tea bags market size is anticipated to reach USD 10.66 billion by 2030 and is anticipated to grow at a CAGR of 6.7% from 2025 to 2030, according to a new report by Grand View Research, Inc. The global tea bags packaging market is experiencing growth driven primarily by the increasing consumer preference for convenience and on-the-go consumption. Modern consumers seek quick brewing options that fit into their busy lifestyles, creating demand for innovative packaging solutions such as pyramid tea bags, single-serve options, and portable formats. Companies such as Twinings and Tetley have capitalized on this trend by developing premium tea bag packaging that preserves flavor while offering convenient preparation methods.

Sustainability has emerged as a critical driver reshaping the tea bag landscape. Consumers' growing environmental consciousness is demanding eco-friendly alternatives to traditional packaging materials, spurring the development of biodegradable and compostable tea bags. PG Tips' switch to fully biodegradable tea bags exemplifies how brands are responding to this sustainability imperative while simultaneously meeting regulatory requirements aimed at reducing single-use plastics.

Premiumization and product differentiation are driving innovation in tea bag packaging design and functionality. As specialty and premium tea consumption rises, packaging plays a crucial role in conveying quality and justifying higher price points. Brands use distinctive packaging with enhanced visual appeal, improved barrier properties to preserve delicate flavors, and unique opening mechanisms to differentiate their products in an increasingly competitive market. The packaging itself has become a tool for storytelling, with elements that communicate product origin, brewing instructions, and brand heritage.

Europe dominated the market due to sophisticated sustainability demands and premium packaging innovations. The UK Tea Census 2022 reveals that tea remains a beloved staple in British life, with 100 million cups consumed daily and universal participation in tea drinking. Nearly three-quarters (74%) of UK tea drinkers prefer black tea, whether with or without milk, making it the staple choice across the country. Additionally, 55% enjoy green tea, while 47% appreciate herbal infusions, reflecting a diverse range of tea preferences. Despite this variety, black tea remains dominant, with 40% of people drinking it several times a day, highlighting its central role in daily tea consumption habits. This overall outlook is anticipated to positively influence the tea bags market.

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Tea Bags Market Report Highlights

Based on tea type, the black tea segment accounted for the largest share of over 47.0% of the market in 2024. However, the herbal tea segment is expected to grow at the fastest CAGR of 7.3% during the forecast period.
Based on distribution channel, the hypermarket & supermarket segment accounted for the largest share of over 47.0% of the market in 2024. Moreover, online segment is projected to grow at the fastest CAGR of 7.2% during the forecast period.
Based on end use, the household segment dominated the market in 2024 by accounting for the largest revenue share of over 65.0%. The commercial segment is expected to grow at the fastest CAGR of 7.0% over the forecast period of 2025 to 2030.
Based on region, Europe dominated the regional space of the market by registering the largest revenue share of over 32.0% in 2024. The Asia Pacific region is projected to grow at the fastest CAGR of 7.3% over the forecast period of 2025 to 2030.