Australia Tea Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Tea Market Trends

The Australia tea market presents a wide variety of tea types to suit different preferences. Many teas provide health benefits, such as antioxidants and anti-inflammatory properties. Tea consumption holds cultural importance, enhancing social bonds, while a growing interest in sustainably sourced and organic options encourages environmental responsibility, contributing to the Australia tea market growth. The Australian government has supported the tea industry through initiatives aimed at promoting local production and ensuring adherence to quality standards. Source: Department of Agriculture, Water, and the Environment, 2021.

The Australia tea market supports local economies by aiding tea growers. Ongoing innovation brings new flavours and blends to satisfy consumer preferences, while ready-to-drink options offer convenience for busy lifestyles. In May 2023, T2 introduced a premium iced tea range with three flavours: Peach Amore, Lemon Coco Breeze, and Watermelon Fiesta. These teas are low in sugar, free from artificial ingredients, and made sustainably using Rainforest Alliance-certified tea.

Australia Tea Market Growth

The Australia tea market is enhanced by the growth of tea tourism, which showcases local farms and experiences. Tea is a favoured option for social gatherings, encouraging community engagement. Furthermore, Australian tea products have export potential, and niche markets for herbal and speciality teas that offer additional growth opportunities in the Australia tea market. In August 2023, Pukka Herbs introduced a range of organic herbal teas, including unique blends like "Elderberry and Echinacea" and "Turmeric Gold," designed to support immunity and overall well-being.

The Australia tea market is thriving, as tea remains an affordable beverage choice that attracts budget-conscious consumers. Speciality teas have gained popularity as gifts, especially during holidays. Increasing health awareness has driven demand for low-calorie, natural options, while the introduction of functional teas targeting specific health issues, such as sleep and digestion, further boosts consumer interest. In January 2024, Teavana launched a new line of matcha teas, including flavours like “Ceremonial Matcha” and “Matcha Green Tea Latte,” catering to the rising interest in matcha among health-focused consumers.

Australia Tea Market Insights

• According to the ABS, tea production in Australia is concentrated in northern New South Wales and Queensland, with black tea as the main type.

• In 2021, Australia produced approximately 1,500 tonnes of tea, predominantly from northern New South Wales and Queensland, as reported by ABARES, 2021.
• According to Industry Reports indicate that Australia imported over 20,000 tonnes of tea in 2021.
• Oolong is anticipated to see a CAGR of 5.2% throughout the forecast period in the Australia tea market.
• Supermarkets and hypermarkets are projected to grow at a CAGR of 6.1%, while convenience stores are expected to grow at 5.4% during the forecast period.
• The tea market in Victoria and the Australian Capital Territory is expected to grow at a CAGR of 5.5% and 4.6% respectively during the forecast period.

Industry News

March 2023

Origin Tea introduced a new range of sparkling iced teas, now available at Woolworths. This exciting line includes refreshing flavours such as Lemon Ginger and Peach Passion, appealing to consumers looking for a fizzy alternative to traditional iced tea, ideal for enjoying in warm weather.

February 2023

Chinese tea chain Mixue made its debut in Australia by opening its first store in Sydney's World Square shopping centre. To celebrate the launch, it ran a marketing campaign offering complimentary drinks to 1,000 Sydney students, assuring customers that, although prices would vary from its home market, the quality would remain consistent.

Australia Tea Market Drivers

Health and Wellness Focus

The Australia tea market is increasingly influenced by health-conscious consumers looking for natural and functional beverages. Many are choosing teas recognised for their health benefits, including antioxidants and anti-inflammatory properties. Herbal and speciality teas that address specific health issues, such as digestion and sleep, are becoming more popular. This trend in the Australia tea market is further enhanced by growing awareness of wellness and mindfulness, leading consumers to prefer low-calorie, organic options. Consequently, brands are innovating with blends that promote health, aligning with consumer demands for transparency and natural ingredients in their drinks. In October 2023, Nana Joes launched a range of functional herbal teas, featuring blends such as "Digestive Harmony" and "Calm and Restore," aimed at addressing specific health issues and enhancing overall wellness.

Convenience and Ready-to-Drink Options

The Australia tea market is experiencing growth driven by a rising demand for ready-to-drink tea options. As busy lifestyles push consumers to seek convenient beverages, brands are innovating with single-serve and bottled teas available in various flavours and blends to cater to diverse preferences. Retailers are expanding their selections in convenience stores and supermarkets. This trend towards ready-to-drink teas not only boosts consumer satisfaction but also creates opportunities for brands to increase their market share in a competitive landscape prioritising convenience, thereby contributing to the Australian tea industry revenue. In June 2023, Mister Tea introduced a selection of sparkling iced teas in cans, offering flavours like "Lemon Ginger" and "Berry Bliss." This range aimed to appeal to health-conscious consumers seeking low-calorie, refreshing beverage options.

Opportunities in the Australia Tea Market

Tea Tourism

The Australia tea market is experiencing growth as tea tourism gains popularity, promoting local tea farms, and offering unique visitor experiences. This trend enhances consumer involvement in tea culture through tastings, farm tours, and educational events, benefiting local economies and raising the profile of Australian-grown tea products. The Australia tea market dynamics and trends are further influenced by the rise in experiential travel, prompting tea producers to develop offerings that highlight their products in genuine settings. Consequently, tea tourism strengthens community connections and provides marketing opportunities for local producers to attract both domestic and international visitors interested in tea culture. Australia offers a variety of tea-related tourism experiences, including notable sites like Nucifora Tea Estate in Far North Queensland and Nerada Tea Plantation, where visitors can observe mechanical tea processing.

Market Restraints

The Australia tea market faces several key restraints. Intense competition from established domestic and international brands makes it difficult for new entrants to gain visibility, often leading to price wars and reduced profit margins. Shifting consumer preferences towards alternatives, such as coffee and functional beverages, requires brands to innovate and adapt continually. Additionally, navigating complex regulatory challenges regarding food safety and labelling can impose significant costs.

Supply chain disruptions can affect the availability and price of raw materials, while economic fluctuations may lead consumers to opt for cheaper options. There’s also a need for consumer education about tea varieties, sustainability pressures demand eco-friendly practices, and seasonal demand variability that complicates inventory management.

Australia Tea Industry Segmentation

“Australia Tea Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Organic
• Conventional

Market Breakup by Type

• Black
• Green
• Oolong
• White
• Others

Market by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Tea Market Share

By Source Analysis

The Australia tea market benefits significantly from organic tea, especially among health-conscious consumers seeking products free from synthetic pesticides and fertilisers. These teas support environmental sustainability by promoting biodiversity and soil health, thereby reducing ecological impact. Many consumers believe organic teas have a superior flavour, enhancing their overall tea-drinking experience. The increasing demand for organic products drives Australia tea industry growth, creating valuable opportunities for producers. In August 2023, Tea Tonic launched a collection of certified organic teas, featuring varieties like "Calming Chamomile" and "Refreshing Peppermint," with a focus on health benefits and natural ingredients.

The Australia tea market benefits from conventional tea, which is typically more affordable, making it accessible to a broad range of consumers and sustaining steady demand. Its widespread presence in supermarkets ensures that a variety of options are readily available. Conventional farming methods produce consistent quality and flavour, appealing to those who prefer familiar tastes. Additionally, these techniques yield higher outputs, benefiting producers and boosts Australia tea market development. The conventional sector also encourages innovation in processing and blending, resulting in unique tea varieties that cater to diverse consumer preferences, keeping the market dynamic and competitive. In September 2023, Lipton expanded its conventional tea range with new flavours like "Peach Iced Tea" and "Mint Green Tea," focusing on refreshing and accessible everyday options.

By Type Insights

The Australia tea market benefits from black tea, which is celebrated for its high antioxidant content that helps combat free radicals and reduce the risk of chronic diseases, attracting health-conscious consumers. Its elevated caffeine content offers a natural energy boost, making it a favourite for an afternoon pick-me-up. The growth of the Australia tea market is supported by the versatility of black tea, which can be enjoyed hot, iced, or incorporated into recipes, enhancing its appeal. As one of the most popular teas in Australia, it enjoys strong brand recognition and remains a staple in many households. Daintree Australian FNQ Plain Black Tea is a fully Australian-owned, grown, and processed product, rich in antioxidants and cultivated without pesticides in the pristine Daintree Rainforest.

The Australia tea market is strengthened by green tea, which is well-known for its many health benefits, such as aiding weight management and boosting metabolism, attracting health-focused consumers. Its lower caffeine content, compared to black tea, provides a milder energy boost, appealing to those who prefer gentler options. The tea demand growth is further supported by the wide range of blends and infusions available, encouraging consumers to explore different flavours. As wellness and mindfulness trends become more popular, green tea aligns with consumer preferences for natural and healthy choices. Green tea is expected to grow at a CAGR of 5.8% during the forecast period. In February 2023, Lindsay’s Tea launched a collection of green teas, including "Jasmine Green" and "Mint Green," aimed at health-conscious consumers seeking refreshing options.

By Distribution Channel Analysis

The Australia tea market is enriched by speciality stores that offer a carefully selected range of unique and high-quality teas not typically found in mainstream outlets. These shops focus on educating customers about various tea types, enhancing the overall experience. Furthermore, they cultivate a community spirit among tea lovers and support local producers. By showcasing artisanal and organic products, they attract health-conscious consumers who seek natural and ethically sourced options. This personalised service and expert guidance foster customer loyalty, encouraging repeat visits and driving growth of the Australia tea industry. In September 2023, Tea Drop launched a selection of hand-blended teas, such as "Berry Bliss" and "Mint Medley," in their physical locations, highlighting high-quality, ethically sourced ingredients.

The Australia tea market is bolstered by online retail, which offers unmatched convenience for consumers to explore a wide range of teas from home. This accessibility allows for the discovery of new brands and products that may not be available locally. E-commerce platforms typically include detailed product descriptions and customer reviews, helping buyers make informed decisions. Furthermore, online retailers can provide subscription services, ensuring regular deliveries of favourite teas to accommodate busy lifestyles. The digital environment also enables brands to reach a wider audience, increasing market visibility and creates opportunities in the Australia tea market. In March 2024, David's Tea launched a new online collection of herbal and speciality teas, including "Coconut Cream Pie" and "Peachy Green," available for direct shipping throughout Australia.

Australia Tea Market Regional Insights

New South Wales Tea Market Regional Insights

As per the Australia tea market analysis, New South Wales offers a variety of climates and soils suitable for different tea types, improving both quality and flavour. The New South Wales tea market is expected to grow at a CAGR of 5.8% during the forecast period. Moreover, the increasingly health-conscious population boosts the demand for premium, organic, and speciality teas. At Madura Tea Estate in northern New South Wales, 250,000 tea bushes are cultivated to produce black tea, frequently blended with Sri Lankan varieties.

Queensland Tea Market Trends

Queensland tea producers emphasise organic and sustainable farming practices, attracting environmentally aware consumers and encouraging ethical sourcing. The tea market share in Queensland is projected to increase by 14.8% over the forecast period. Furthermore, the rise of tea tourism, featuring plantation tours and tastings, benefits local economies and increases awareness of Queensland tea products. Arakai Estate in Queensland employs Taiwanese techniques to produce green and black tea.

Western Australia Tea Market Dynamics

Tea producers actively involve local communities, reinforcing connections and supporting regional economies while showcasing the cultural significance of tea. The Western Australia tea market is expected to grow at a CAGR of 4.8% during the forecast period. Furthermore, increased investment in research and development fosters innovation in cultivation and processing methods, improving product offerings. Notable producers, such as the Gooralie Tea Company, prioritise organic and sustainable farming practices to appeal to health-conscious consumers.

Competitive Landscape

The Australia tea market key players focus on crafting high-quality, premium teas that are sourced from both local and international producers. These companies prioritise sustainability and ethical sourcing, offering a diverse range of products, including black, green, and herbal teas. They focus on unique blends and crafted flavours to appeal to health-conscious consumers, while also emphasising transparency in their sourcing practices. By providing detailed information about tea origins, they enhance consumer trust. Combining traditional tea-making methods with contemporary trends, these companies strive to elevate the overall tea-drinking experience in Australia, catering to the evolving preferences of tea enthusiasts.

Key Industry Players

Nerada Tea Pty Ltd: Founded in 1996 and headquartered in Queensland, Nerada Tea Pty Ltd is one of Australia’s largest tea producers. Specialising in high-quality black and green teas, the company prides itself on its sustainable farming practices and commitment to ethical sourcing, ensuring a premium product for tea enthusiasts.

Adore Tea: Established in 2006 and based in Victoria, Adore Tea offers a diverse range of premium loose-leaf teas and herbal infusions. The company focuses on quality and sustainability, sourcing ingredients ethically. Adore Tea aims to enhance the tea-drinking experience with unique blends and a commitment to customer satisfaction.

Tavalon Tea Australia & New Zealand: Tavalon Tea, founded in 2004 and headquartered in Sydney, is renowned for its innovative approach to tea. The company offers a wide variety of premium teas, focusing on quality ingredients and unique blends. Tavalon aims to inspire tea lovers through exceptional flavours and sustainable practices.

Yarra Valley Tea Co.: Founded in 2017 and located in Victoria, Yarra Valley Tea Co. is dedicated to producing high-quality, organic teas. The company focuses on sustainable practices and local sourcing, showcasing the rich flavours of Australian-grown teas. Yarra Valley Tea Co. aims to elevate the tea experience for consumers.

Other key players in the Australia tea market report are T BAR Purveyors of Tea Pty Ltd., Australian Tea Company, Byron Bay Tea Company, Dilmah Ceylon Tea Company Plc, Infuse Tea Company, and Madura Tea among others.

Recent Development

October 2023

Adore Tea released a new selection of white teas, featuring "White Peony" and "Silver Needle," emphasising their delicate flavours and organic sourcing to attract discerning tea enthusiasts.

September 2023

Daintree Tea unveiled its "Australian FNQ Plain Black Tea," a fully Australian-grown offering that is rich in antioxidants and cultivated without the use of pesticides.