Australia Tea Market Overview, 2031

The tea market in Australia has been steadily rising due to a variety of factors. The country's multicultural character, with a diversified population that carries with it a diversity of tea-drinking habits, is one of the key factors. This variety has resulted in a growth in demand for many types of tea, ranging from basic black and green teas to exotic herbal infusions. Tea has been an important component of worldwide beverage culture for millennia because of its rich history and unique flavours. Tea is having a renaissance in Australia, a country known for its robust coffee culture, engaging consumer palates, and progressively gaining momentum in the beverage business. Tea is becoming increasingly popular among health-conscious Australians due to its well-documented health advantages. Green tea, in particular, is sought-after for its antioxidant properties and potential health improvements. As the nation embraces a greater focus on well-being, the demand for teas perceived as healthier alternatives to sugary drinks and caffeine-rich beverages is growing. Tea can be grown in a variety of locations in Australia. Far North Queensland's tropical rainforest region has been its natural heartland, and it is where the majority of tea manufacturing in Australia takes place. With the rise of specialised tea shops and cafés, Australians have been introduced to the world of premium and artisanal teas. These facilities provide a carefully chosen range of teas from around the world, allowing customers to experiment with new flavours and smells. Speciality teas such as oolong, white tea, and rare single-origin varietals have developed a following among tea connoisseurs. Local tea production has also increased in Australia, particularly in Queensland and New South Wales. Australian-grown teas have a distinct flavour that is influenced by the country's climate and terroir. This homegrown feature of tea production has grabbed the interest of ecologically aware consumers who prefer items that are supplied locally.

According to the research report, ""Australia Tea Market Outlook, 2031,"" published by Bonafide Research, the Australia Tea market is expected to reach a market size of more than USD 1.02 Billion by 2031. The burgeoning cafe culture in Australia, which is known for its high-quality coffee, is increasingly including tea in its offerings. Many cafes now sell a variety of teas alongside espresso-based beverages, recognising the demand for variety and catering to both tea and coffee enthusiasts. While coffee is still a daily ritual for many Australians, tea usage is increasing. Tea ceremonies and traditional afternoon tea are being reinterpreted in modern contexts, encouraging a sense of ritual and relaxation associated with tea-drinking. Consumers are getting more concerned about environmental issues and ethical sourcing. They seek teas that are produced in a sustainable manner and supplied from reputable vendors. In response to this demand, the Australian tea market is introducing certified organic and ethically sourced choices. Australia's diversified landscapes and moderate temperature are ideal for tea tourism. Tea plantations, tea tastings, and immersive tea experiences are all growing in popularity as tourist attractions. Visitors can study the route from tea leaf to cup while enjoying lovely scenery at these locations. The multiculturalism of Australian society has resulted in the exchange of tea customs. Communities from various backgrounds share their distinct tea habits, introducing new flavours and rituals to the general public. In Australia's tea market, the blending of cultures creates an intriguing and diversified scene. As the Australian tea market expands, there is the possibility for much more growth in the future years. Tea will undoubtedly remain a prominent factor as consumers embrace health-conscious options and careful consumption.

Tea consumption in Australia is shaped by health trends, multicultural influences, and evolving urban lifestyles. Black tea remains the most consumed variety, particularly in households and workplaces across cities such as Sydney, Melbourne, Brisbane, and Perth. English Breakfast and Earl Grey are especially popular among traditional consumers, with brands like Twinings, Dilmah, and T2 widely available in supermarkets, specialty stores, and cafés. Green tea has grown significantly in metropolitan areas, driven by wellness trends, antioxidant awareness, and increased adoption in cafés, organic shops, and specialty outlets. Japanese matcha and sencha are particularly popular for health-conscious consumers and younger demographics seeking premium or functional beverages. Oolong tea holds a niche market, available in specialty tea houses and Asian grocery stores catering to connoisseurs interested in unique flavor profiles. Herbal teas are widely consumed for relaxation, digestion, and immunity support, with chamomile, peppermint, rooibos, and lemongrass among the most common choices. White tea is positioned in the premium segment, appealing to consumers who prefer delicate flavor and minimal processing. Other tea types include fruit-infused blends, spiced teas, and wellness combinations incorporating hibiscus, berries, and spices, reflecting the growing interest in natural and functional beverages. Seasonal variations influence consumption patterns, with hot teas preferred during winter and iced teas gaining popularity in coastal regions such as Queensland and New South Wales during summer. Cafés, wellness centers, and hotels provide curated tea menus, promoting both domestic and international varieties. Tourism, urbanization, and international exposure contribute to diversifying tea consumption. Australia’s tea market balances traditional black teas with emerging specialty, green, herbal, and fruit teas, reflecting consumer preference for health, flavor variety, and lifestyle integration across households, commercial establishments, and hospitality venues nationwide.

Tea packaging in Australia is influenced by convenience, sustainability, and premium positioning. X ray inspection systems are widely employed in larger packaging facilities to ensure food safety and detect foreign objects, particularly for exported and high-quality teas. Paper boards are frequently used for outer cartons, enhancing shelf presentation, recyclability, and brand perception. Plastic packaging remains present for loose leaf teas, bulk herbal blends, and specialty products, providing protection from moisture and preserving aroma during storage and transport across diverse climates. Loose tea packaging is popular in specialty tea shops, cafés, and organic stores in Sydney, Melbourne, Brisbane, and Perth, allowing consumers to inspect leaves visually and control portion sizes. Aluminium tins are commonly used for premium, gift-oriented teas such as matcha, sencha, and rooibos, providing protection from light and air while emphasizing quality and aesthetics. Tea bags dominate household and workplace consumption due to convenience, hygiene, and standardized portioning. Pyramid-shaped tea bags have grown in adoption for herbal and specialty teas to enhance infusion. Ready-to-brew sachets are offered for cold and iced teas, particularly in cafés and wellness outlets. Environmental awareness has driven the adoption of biodegradable and compostable tea bags, supported by retailers such as Woolworths, Coles, and specialty brands. Packaging frequently includes origin, flavor profile, brewing instructions, and wellness benefits to appeal to informed consumers. Climate conditions, storage requirements, and transport efficiency influence material selection. Packaging innovation balances sustainability, aesthetics, and functionality, ensuring accessibility for everyday, premium, and specialty teas across households, cafés, and hospitality channels in Australia.

Tea consumption in Australia spans residential and commercial applications, influenced by lifestyle, wellness, and cultural diversity. Residential consumption is prevalent across households where tea is prepared for breakfast, afternoon, and evening relaxation. Black teas dominate daily consumption, while herbal teas such as chamomile, peppermint, rooibos, and lemongrass are popular for wellness, digestive support, and calming purposes. Green teas, particularly matcha and sencha, are increasingly consumed in urban households in Sydney, Melbourne, Brisbane, and Perth, reflecting health-conscious trends and international influences. Seasonal patterns show higher hot tea consumption during winter months and greater adoption of iced teas and cold brews in summer, particularly in coastal areas such as Queensland. Commercial applications encompass offices, cafés, restaurants, hotels, healthcare facilities, and educational institutions. Offices provide tea in kitchens and meeting rooms, typically black and herbal varieties. Hotels and resorts integrate tea into breakfast services, room amenities, and wellness offerings, often highlighting specialty or imported teas. Cafés and tea houses offer curated menus featuring loose leaf, premium, and specialty teas to attract urban professionals, tourists, and wellness-oriented consumers. Hospitals and care facilities provide caffeine-free herbal teas for patient comfort. Universities, schools, and conference centers supply tea in cafeterias and staff areas. Seasonal events, wellness programs, and tourism peaks further boost commercial tea consumption. Residential and commercial applications collectively demonstrate tea’s integration into daily routines, wellness practices, and social activities, balancing traditional black tea use with emerging specialty, green, herbal, and functional tea offerings across Australia.

Tea distribution in Australia operates through supermarkets, specialty stores, and online channels to ensure widespread availability. Supermarkets and hypermarkets such as Woolworths, Coles, and IGA serve as primary points of sale, offering black, green, herbal, and fruit teas across multiple price segments, including private label and organic options. Specialty stores, tea boutiques, and organic shops provide access to premium, loose leaf, and curated teas, particularly in metropolitan areas such as Sydney, Melbourne, Brisbane, and Perth, enabling niche and boutique brands to reach informed consumers. Convenience stores supply ready-to-drink iced teas, tea bags, and single-serve formats for commuters and urban populations. Online distribution has grown rapidly through e-commerce platforms, brand websites, and subscription services, allowing consumers to access imported, specialty, and functional teas not widely available in retail outlets. Foodservice distributors supply hotels, cafés, restaurants, healthcare facilities, and educational institutions through bulk procurement arrangements to ensure consistent supply and quality. Seasonal demand, tourism, and promotional campaigns influence inventory planning and distribution strategies. Efficient transport and logistics networks facilitate delivery from production facilities to retail, specialty, and online outlets nationwide. Multi-channel distribution ensures accessibility for conventional, premium, and specialty teas, allowing households, offices, and hospitality sectors to obtain products conveniently. Retail marketing, loyalty programs, and online promotions enhance visibility and consumer reach. Together, these channels support diverse consumption patterns and facilitate access to traditional, herbal, green, and specialty tea varieties across Australia.

Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Tea Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Tea Type
• Black tea
• Green tea
• Oolong tea
• Herbal tea
• White tea
• Other tea

By Packaging type
• Paper boards
• Plastic
• Loose tea
• Aluminium tin
• Tea bags

By Application
• Residential
• Commercial

By Distribution Channel
• Supermarkets /hyper markets
• Speciality stores
• Convenience stores
• Online Show more