Chai Sutta Bar®

Investing in the Future: How Tea Businesses Are Adapting to Changing Markets

Tea is one of the world’s oldest beverages and the most consumed drink in the world. As per reports, the tea industry is expected to rise to 268.5 billion by 2025. The tea industry is seeing a significant transformation. The future of the tea business lies in adapting to the transformation. 

In this blog, we will be talking about insights into the tea market and why it is so popular along with the trends and how the tea business can adapt to them.

Tea Market India Insights:

➡️In 2024, the Indian tea market is expected to generate $14.4 billion in revenue.

➡️The anticipated annual growth rate for the tea industry (CAGR 2024–2028) is 5.99%.

➡️India’s future tea business is projected to account for 0.83kg units in terms of average volume per person in 2024.

➡️India’s market for tea is flourishing because of the nation’s long association with tea and the rising desire for speciality teas.

*The Statistics data has been taken from Statista.

Why Tea is becoming so popular?

The demand for teas has increased as customers look for healthier beverage options, raising the value of the tea business to unprecedented levels.

Furthermore, the global consumer consciousness regarding carbonated beverages and health concerns has transformed the tea industry by:

A wider variety of tea alternatives has resulted from the acceptance of ethnic elements.

There is a rise in the number of health-conscious customers of products like herbal teas for relaxation and digestion or green tea for helping people lose weight.

Another reason for tea’s popularity is knowledge about the harmful consequences of carbonated soft drinks on health. 

Tea bags are a convenient and mess-free way to prepare tea, which has revolutionised tea drinking.

The future of the tea business is dynamic and always changing. The tea trends are always ready to keep growing and adapting to satisfy consumers’ shifting needs across the globe.

Key Tea Consumption Trends

Trends include the growth of premium tea experiences, innovation in tea formats and mixes, sustainability, and ethical sourcing. The future of the tea business is anticipated to maintain its development trajectory in the upcoming years due to a growing consumer base and changing preferences.

The recent trends regarding the future of the tea business are as follows:

  1. Focus on Health and Wellness: 

In 2024, consumers are expected to continue to be more health-conscious than they are now. The tea industry can gain from this because of its many health advantages. Franchises that sell teas that promote well-being and mindfulness could become a customer favourite.

  1. Sustainable Practices: 

Eco-friendliness is not just a buzzword; it’s a lifestyle. Tea enthusiasts are more conscious about the environmental impact of their choices. Tea franchises adopting sustainable practices, like biodegradable packaging or sourcing from eco-friendly suppliers, might attract a wider audience.

  1. Exotic and Unique Flavors: 

Ditching the conventional, people are increasingly drawn to unique and exotic flavours. Whether it’s rare blends from different regions or innovative concoctions, offering a diverse and exciting flavour profile can set a tea franchise apart. Think beyond the usual and surprise your customers’ taste buds!

  1. Ambience and Social Media Trending Cafe:

It’s not just about the tea; it’s about the entire experience. Creating a visually appealing and Instagram-worthy ambience can draw in more customers. Aesthetically pleasing decor, comfortable seating, and perhaps even themed setups enhance the overall customer experience. Encourage social media sharing by incorporating elements that are ‘Instagrammable,’ turning your customers into brand ambassadors.

  1. Mushrooming of tea cafes:

Chains of tea cafés are opening up throughout India. They provide customers with an alternative option apart from roadside stalls and homes. To increase consumption, tea franchises are now relying on innovation and the application of fresh marketing strategies. 

This also means that the future of tea business is very competitive and market-oriented. 

How to adapt to these trends in the tea market?

Adapting to market trends isn’t just a strategy; it’s a necessity for the modern tea business. 

Here’s how your tea business can not only adapt but thrive.

  1. Steeping in Wellness:
  • Today’s consumers are increasingly health-conscious. Embrace this trend by getting wellness-focused teas into your menu.
  • Highlight the health benefits of herbal blends, such as antioxidant properties or stress-relief qualities.
  • Consider collaborating with health influencers or experts to create health-based tea products.
  1. Sustainable Sips:
  • Make eco-friendly choices in your packaging, sourcing, and operational practices.
  • Communicate your commitment to sustainability to customers, building a loyal base that matches your eco-conscious values.
  • Explore partnerships with eco-friendly organizations or certifications to establish your business as a sustainable choice.
  1. Diversity in Flavors:
  • Break away from the ordinary and introduce a diverse range of tea flavours to your menu.
  • Experiment with global influences, local ingredients, and unique blends.
  • Consider rotating seasonal flavours to keep customers excited and coming back for new taste experiences.
  1. Creating an Inviting Ambiance:
  • It’s not just about the tea; it’s about the entire experience. Invest in creating an inviting and Instagram-worthy ambience.
  • Thoughtful decor, comfortable seating, and themed setups contribute to a memorable experience for your customers.
  • Encourage social media sharing by incorporating elements that make your tea shop visually appealing.
  1. Staying Competitive:
  • In a competitive market, staying ahead requires constant innovation. Keep an eye on your competitors and industry trends.
  • Utilize technology to streamline operations, offering online ordering and loyalty programs through apps.
  • Regularly update your menu, adapting to emerging flavour preferences and staying ahead of the curve.

Chai Sutta Bar has multiple outlets across India, making it a convenient destination for food and beverage lovers. The brand has strategically opened its cafes in areas with high footfall, such as shopping malls, universities, and commercial complexes. This makes it easy for customers to drop in for a quick snack or drink on the go

Way Forward:

Brands need to adjust to the ever-evolving tea market to ensure their continued relevance and prosperity. Therefore, it’s critical to understand how consumers are refocusing on sustainability, creative marketing, and health and wellness. The future of tea businesses will continue to be relevant and consumer-friendly if these trends are followed.


Along with adhering to these trends, brands should also be adaptable, creative, and sensitive to customer feedback. In order to plan strategically and make better decisions, they must also rely on facts. Tea franchises can stay ahead of the curve and prosper in the tea business by being flexible and open to changing with their consumers’ wants.