Australia Tea Market Size, Share, and COVID-19 Impact Analysis, By Product (Black, Green, Oolong, Herbal, and Others), By Distribution Channel (Hypermarkets & Supermarkets, Convenience Stores, Grocery Stores, Online, and Others), and Australia Tea Market Insights, Industry Trend, Forecasts to 2035

Australia Tea Market Insights Forecasts to 2035

• The Australia Tea Market Size Was Estimated at USD 1489.4 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 6.11% from 2025 to 2035
• The Australia Tea Market Size is Expected to Reach USD 2859.5 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Australia Tea Market Size is anticipated to reach USD 2859.5 Million by 2035, Growing at a CAGR of 6.11% from 2025 to 2035. The tea market in Australia is driven by growing health consciousness, the desire for herbal and speciality teas, the expansion of café culture, the growing inclination towards organic products, new tastes, and robust retail and e-commerce distribution networks.

Market Overview

The Australia tea market refers to the production, import, distribution, and sale of various tea products, including black, green, herbal, oolong, and specialty blends. Tea functions as a daily drink that people use to achieve refreshment and relaxation while experiencing health advantages. Applications extend across households, cafés, restaurants, and hospitality sectors. The rising demand for organic functional ready-to-drink teas drives the nationwide expansion of its business operations and retail presence.

Tea companies in Australia benefit from agricultural support and export support programs. The Export Market Development Grants (EMDG) provide up to 50% reimbursement of eligible export promotion expenditure, with a maximum payment of approximately AUD200,000 per annum. Federal funding in excess of AUD500 million provides for the reform of the export system and improvement of biosecurity, enhancing the efficiency of trade and improving market access to tea products.

In 2024, Daintree Tea expanded its operations in Australia by increasing its production of locally sourced pesticide-free tea, while T Bar Tea introduced microplastic-free tea bags in 2025. The market develops through its use of sustainable packaging and premium tea blends, ready-to-drink tea products, and its expanding e-commerce subscription services, which focus on health-conscious customers.

Report Coverage

This research report categorizes the market for the Australia tea market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia tea market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia tea market.

Driving Factors

The tea market in Australia is driven by the rising health awareness, growing demand for herbal drinks and functional beverages and increased consumer preference for organic and natural products. The expanding café culture, together with premium tea experiences, has resulted in higher consumption of speciality tea. Product innovation through new flavours, sustainable packaging, and ready-to-drink products, together with strong supermarket and e-commerce distribution networks enable continuous market expansion in both urban and regional areas.

Restraining Factors

The tea market in Australia is mostly constrained by the intense competition between coffee and other beverages and rising import costs, together with supply chain issues, consumer price sensitivity and the country's limited tea farming, which forces it to rely on imported tea ingredients.

Market Segmentation

The Australia tea market share is classified into product and distribution channel.

• The black segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Australia tea market is segmented by product into black, green, oolong, herbal, and others. Among these, the black segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. Compared to green, oolong, and herbal varieties, black tea is the most popular in Australia because of its long history of use, low cost, robust retail presence, and extensive use in homes and dining establishments.

• The hypermarkets & supermarkets segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. 

The Australia tea market is segmented by distribution channel into hypermarkets & supermarkets, convenience stores, grocery stores, online, and others. Among these, the hypermarkets & supermarkets segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. In contrast to convenience stores and internet platforms, these stores are the main source of purchases in Australia due to their large selection of products, competitive prices, significant private-label presence, and high customer traffic.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia tea market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Nerada Tea Pty Ltd
• Madame Flavour
• T2
• Madura Tea Estates
• Yarra Valley Tea Co.
• T BAR Purveyors of Tea Pty Ltd.
• Australian Tea Company
• Byron Bay Tea Company
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In December 2025, Australian consumers were introduced to a new generation of Chinese tea brands and high-end tea experiences during the 2025 Sydney Tea Expo.

• In August 2024, saw the launch of Unilever's Lipton Exclusive Selection premium tea line was launched in Australia, which includes blends supplied sustainably from the Rainforest Alliance.

• In March 2024, New herbal and speciality teas, including "Coconut Cream Pie" and "Peachy Green", became available countrywide as part of David's Tea's internet expansion.

Market Segment

This study forecasts revenue at the Australia, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Australia tea market based on the below-mentioned segments:

Australia Tea Market, By Product

• Black
• Green
• Oolong
• Herbal
• Others

Australia Tea Market, By Distribution Channel

• Hypermarkets & Supermarkets
• Convenience Stores
• Grocery Stores
• Online
• Others