Australia Tea Market

Australia Tea Market Overview:

The Australia tea market size reached USD 512.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 761.54 Million by 2033, exhibiting a growth rate (CAGR) of 4.51% during 2025-2033. The rising demand for health-focused beverages, increasing popularity of herbal and specialty teas, growing café culture, expanding retail presence, and heightened consumer awareness of tea’s antioxidant properties are driving the market expansion, supported by product innovation, premiumization trends, and the influence of multicultural preferences on tea consumption habits.

Australia Tea Market Trends:

Rising Demand for Health and Wellness-Oriented Tea Products

The growing consumer interest in health and wellness is leading to a marked shift toward functional and specialty tea variants, which is positively impacting the Australia tea market outlook. Health consciousness is becoming a major influence on beverage choices, prompting consumers to seek products that offer added nutritional or therapeutic value. According to an industry survey, about 73% (three-quarters) of respondents reported that they put effort into maintaining a healthy diet. This heightened focus on preventive health is directly shaping purchasing behavior in the tea segment. Consumers are becoming more selective, prioritizing teas that align with their wellness goals and contribute to overall health management. Herbal teas, detox blends, immunity-boosting infusions, and products formulated with adaptogenic ingredients such as ashwagandha and turmeric are gaining popularity. In addition to this, brands are responding by launching formulations that promote well-being, with labels emphasizing organic sourcing, non-GMO status, and therapeutic ingredients. As consumers increasingly align their beverage choices with lifestyle goals, functional tea products continue to gain traction in both urban and regional markets, particularly among millennials and health-conscious older demographics.

Premiumization and Expansion of Specialty Tea Offerings

The market is undergoing premiumization, with consumers showing a growing interest in artisanal, single-origin, and boutique tea experiences, which is propelling Australia tea market growth. This trend reflects a broader consumer preference for quality, authenticity, and storytelling behind the product. In line with this, loose-leaf teas, hand-blended infusions, and ethically sourced products are gaining popularity, often commanding higher price points. Boutique tea brands and independent tea houses are capitalizing on this shift by offering curated tasting experiences, tea education workshops, and subscription services. Packaging aesthetics, provenance transparency, and limited-edition releases further enhance the appeal of premium offerings. In urban centers like Melbourne and Sydney, specialty tea cafés mirror the third-wave coffee movement, elevating tea consumption to a craft ritual. This movement towards premiumization is not merely about taste; it encompasses sustainability, ethical labor practices, and a refined lifestyle association that appeals to discerning consumers.

Growth of Online Retail and Direct-to-Consumer Channels

Digitalization is a significant factor augmenting Australia tea market share. Online retail and direct-to-consumer (DTC) models are witnessing substantial growth. According to an industry report, approximately 63.94% of Australia’s 26.714 Million population are active eCommerce shoppers. The shift toward digital platforms gained momentum in the aftermath of the COVID-19 pandemic, which prompted widespread changes in shopping behavior. With lockdowns limiting access to physical stores, consumers increasingly turned to e-commerce for their everyday needs, including tea. Moreover, brands are increasingly investing in robust online storefronts, user-friendly mobile apps, and subscription models that ensure regular customer engagement and loyalty. Social media marketing, influencer collaborations, and targeted advertising are becoming key tools for customer acquisition, particularly for niche and specialty tea brands. Consumers also benefit from transparent ingredient sourcing, customer reviews, and educational content online. The convenience of home delivery, coupled with flexible packaging options and exclusive digital discounts, continues to drive momentum for DTC and e-commerce-led growth in the Australian tea segment.

Australia Tea Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on product type, packaging, distribution channel, and application.

Product Type Insights:

• Green Tea
• Black Tea
• Oolong Tea
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes green tea, black tea, oolong tea, and others.

Packaging Insights:

• Plastic Containers
• Loose Tea
• Paper Boards
• Aluminium Tin
• Tea Bags
• Others

A detailed breakup and analysis of the market based on the packaging have also been provided in the report. This includes plastic containers, loose tea, paper boards, aluminium tin, tea bags, and others.

Distribution Channel Insights:

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

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets/hypermarkets, specialty stores, convenience stores, online, and others.

Application Insights:

• Residential
• Commercial

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential and commercial.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Tea Market News:

• June 2024: Gotcha Fresh Tea increased its footprint in Australia by setting a shop in World Square in Sydney, Waverley Garden and Doncaster, Victoria, the Adelaide Myer Centre Rundle Mall, and a flagship store at the Sydney Fish Market. Along with opening a new store in Mexico, the brand also wants to open ten more there and has set a strategic goal of opening 100 outlets throughout the Mexican market. With more than 200 locations worldwide and more than 50 in Australia, Gotcha hopes to open 100 more in the country in the upcoming three years.
• August 16, 2024: Lipton Teas and Infusions introduced its European premium tea collection, the Lipton Exclusive Selection, to the Australian market. This range, already available in over 24 countries, features high-quality blends such as English Breakfast, Earl Grey, Green Tea Sencha, Delicate Mint, and Chamomile Linden, all packaged in plastic-free, high-infusion pyramid teabags. The teas are sourced from Rainforest Alliance-certified farms, emphasizing sustainable and ethical production practices.

Australia Tea Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia tea market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia tea market on the basis of product type?
• What is the breakup of the Australia tea market on the basis of packaging?
• What is the breakup of the Australia tea market on the basis of distribution channel?
• What is the breakup of the Australia tea market on the basis of application?
• What is the breakup of the Australia tea market on the basis of region?
• What are the various stages in the value chain of the Australia tea market? 
• What are the key driving factors and challenges in the Australia tea market?
• What is the structure of the Australia tea market and who are the key players?
• What is the degree of competition in the Australia tea market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia tea market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia tea market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia tea industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.