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US Organic Tea Market

ID: MRFR/FnB/19518-HCR
200 Pages
Snehal Singh
October 2025

US Organic Tea Market Research Report: By Type (Green, Black, Others), By Form (Dried Leaf, Powder, Others) and By Distribution Channel (Store-Based, Non-Store Based) - Forecast to 2035

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US Organic Tea Market Infographic
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US Organic Tea Market Summary

As per analysis, the US organic tea market Size was estimated at 211.75 USD Million in 2024. The US organic tea market is projected to grow from 223.14 USD Million in 2025 to 376.65 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5.38% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US organic tea market is experiencing robust growth driven by health consciousness and sustainability.

  • The largest segment in the US organic tea market is herbal tea, while the fastest-growing segment is green tea.
  • E-commerce channels are expanding rapidly, reflecting a shift in consumer purchasing behavior towards online platforms.
  • Health and wellness trends are increasingly influencing consumer preferences, leading to a rise in demand for organic tea products.
  • Rising consumer awareness and innovative product development are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 211.75 (USD Million)
2035 Market Size 376.65 (USD Million)
CAGR (2025 - 2035) 5.38%

Major Players

Twinings (GB), Yogi Tea (DE), Numi Organic Tea (US), Stash Tea (US), Harney & Sons (US), Rooibos Ltd (ZA), Pukka Herbs (GB), Teavana (US)

US Organic Tea Market Trends

The organic tea market is experiencing a notable transformation, driven by increasing consumer awareness regarding health and wellness. As individuals become more conscious of their dietary choices, the demand for organic products has surged. This shift is reflected in the growing preference for beverages that are perceived as natural and free from synthetic additives. Retailers are responding to this trend by expanding their offerings, ensuring that a diverse range of organic tea options is available to meet consumer expectations. Furthermore, the rise of e-commerce platforms has facilitated easier access to organic tea, allowing consumers to explore various brands and flavors from the comfort of their homes. In addition to health considerations, sustainability plays a crucial role in shaping the organic tea market. Many consumers are increasingly concerned about the environmental impact of their purchases. This has led to a preference for brands that prioritize sustainable sourcing and eco-friendly packaging. As a result, companies are adopting practices that align with these values, such as using biodegradable materials and supporting fair trade initiatives. The intersection of health consciousness and environmental responsibility is likely to continue influencing consumer behavior, suggesting a promising outlook for the organic tea market in the coming years.

Health and Wellness Focus

The organic tea market is witnessing a surge in demand as consumers prioritize health and wellness. This trend is characterized by a growing interest in natural ingredients and the perceived benefits of organic teas, which are often associated with improved well-being.

Sustainability and Ethical Sourcing

Sustainability is becoming increasingly important in the organic tea market. Consumers are gravitating towards brands that emphasize ethical sourcing and environmentally friendly practices, reflecting a broader commitment to sustainability in their purchasing decisions.

E-commerce Growth

The rise of e-commerce is significantly impacting the organic tea market. Online platforms are providing consumers with greater access to a variety of organic tea products, enabling them to explore different brands and flavors conveniently.

US Organic Tea Market Drivers

Rising Consumer Awareness

The organic tea market is experiencing a notable increase in consumer awareness regarding health benefits associated with organic products. As individuals become more informed about the potential risks of pesticides and artificial additives, they are gravitating towards organic tea options. This shift is reflected in market data, which indicates that organic tea sales have surged by approximately 20% over the past year. Consumers are increasingly seeking transparency in sourcing and production methods, which further drives demand for organic tea. This heightened awareness is not only influencing purchasing decisions but also encouraging brands to enhance their product offerings, thereby expanding the organic tea market.

Sustainability Initiatives

Sustainability initiatives are increasingly influencing the organic tea market, as consumers become more environmentally conscious. Brands that adopt sustainable practices, such as eco-friendly packaging and responsible sourcing, are likely to resonate with a growing demographic of eco-aware consumers. Market data suggests that approximately 40% of consumers are willing to pay a premium for products that are sustainably sourced. This trend encourages companies to invest in sustainable practices, thereby enhancing their brand image and attracting environmentally conscious buyers. As sustainability becomes a core value for consumers, the organic tea market is poised for growth.

Increased Retail Availability

The organic tea market benefits from enhanced retail availability, which plays a pivotal role in driving sales. Major grocery chains and specialty stores are increasingly dedicating shelf space to organic products, including tea. This trend is evidenced by a 30% increase in the number of retail outlets offering organic tea in the past two years. The convenience of access allows consumers to easily incorporate organic tea into their daily routines. Furthermore, the rise of health-focused cafes and restaurants that feature organic tea options contributes to this growing availability, thereby fostering a more robust market environment.

Innovative Product Development

Innovation within the organic tea market is a critical driver, as brands continuously seek to differentiate their products. The introduction of unique flavors, blends, and functional teas that cater to specific health needs is becoming increasingly prevalent. For instance, the market has seen a rise in herbal blends that target wellness aspects such as digestion and relaxation. This trend is supported by market data showing that specialty organic teas have gained a 15% share of the overall organic tea market. As companies invest in research and development, the variety and appeal of organic tea products are likely to expand, attracting a broader consumer base.

Shift Towards Natural Ingredients

A significant driver in the organic tea market is the growing consumer preference for natural ingredients. As health-conscious individuals seek to avoid artificial additives and preservatives, organic tea emerges as a favorable choice. This trend is underscored by market data indicating that 70% of consumers prioritize natural ingredients when selecting beverages. The demand for clean-label products is prompting brands to reformulate their offerings, ensuring that they align with consumer expectations. This shift not only enhances the appeal of organic tea but also positions it as a leader in the beverage sector, potentially increasing market share.

Market Segment Insights

By Type: Green (Largest) vs. Black (Fastest-Growing)

In the US organic tea market, Green tea holds the largest market share due to its established popularity and health benefits among consumers. Black tea, while smaller in share compared to Green, has been gaining traction rapidly, driven by changing consumer preferences and the growing awareness of its health benefits. Other tea types, including herbal and flavored varieties, also contribute to the market but are not as dominant as Green and Black teas. The growth trends in the US organic tea market reflect a shift towards healthier lifestyles and the rising inclination for organic products. Black tea's rapid growth highlights this trend, fueled by innovative flavors and blends, attracting a younger demographic. Meanwhile, Green tea continues to thrive as consumers seek natural wellness solutions, making it a mainstay in the organic beverage category.

Green: Dominant vs. Black: Emerging

Green tea stands out as the dominant segment in the organic tea landscape, characterized by its rich antioxidant properties and myriad health benefits. It has established a loyal consumer base that appreciates its various forms, including loose leaves and bags. Black tea, on the other hand, is emerging rapidly, especially among younger consumers seeking bold flavors and unique blends. As both segments evolve, they are increasingly influenced by trends towards sustainability and health, with brands innovating to attract health-conscious buyers, ensuring a dynamic competitive environment between them in the organic tea sphere.

By Form: Dried Leaf (Largest) vs. Powder (Fastest-Growing)

In the US organic tea market, Dried Leaf continues to hold the largest market share among the form segment, appealing to traditional tea drinkers who favor the authenticity and richness of loose-leaf preparations. Powdered tea, while currently smaller in share, is gaining traction, especially among health-conscious consumers seeking convenient and concentrated options for their beverages. The 'Others' category comprises niche products that cater to unique preferences but remains minor in comparison. The growth trends within the segment are heavily influenced by evolving consumer behaviors. The demand for powdered tea is rapidly rising, largely due to its versatility in beverage preparation and as an ingredient in smoothies and foods. Factors such as increasing awareness of health benefits tied to tea consumption and the trend toward organic and natural products are driving growth. This segment's dynamics suggest a sustained interest in both traditional and innovative forms of tea in the market.

Dried Leaf (Dominant) vs. Powder (Emerging)

Dried Leaf represents a dominant force in the US organic tea market, favored for its high-quality flavor and aroma that appeal to tea connoisseurs. The preparation method often enhances the sensory experience, making it a popular choice among traditionalists. On the other hand, Powder, particularly in forms like matcha, is emerging rapidly, attracting younger consumers looking for health benefits and convenience. With its ease of use in modern diets and recipes, this segment is capitalizing on trends like wellness and ingredient integrity. As consumers increasingly prioritize health and premium experiences, both Dried Leaf and Powder are positioned favorably, with Dried Leaf maintaining strong loyalty while Powder captures emerging market segments.

By Distribution Channel: Store-Based (Largest) vs. Non-Store Based (Fastest-Growing)

In the US organic tea market, the distribution channels reveal a clear distinction between store-based and non-store based segments. Store-based channels dominate the market with a significant share, driven by traditional retail outlets including supermarkets and health food stores. This segment's strength lies in its established customer relationships and immediate access to a diverse product range. On the other hand, the non-store based segment is rapidly gaining traction, primarily through online retailing and direct-to-consumer models. The convenience of shopping from home and the expanding reach of e-commerce platforms are primary growth drivers for this segment, appealing to a tech-savvy consumer base that values accessibility and a broad product selection.

Store-Based (Dominant) vs. Non-Store Based (Emerging)

The store-based segment in the US organic tea market is characterized by its entrenched presence in traditional retail environments, offering a tactile shopping experience that many consumers prefer. These channels typically include supermarkets, health food stores, and specialty shops that cater to health-conscious consumers. In contrast, the non-store based segment is emerging as a formidable player, leveraging e-commerce platforms and social media to attract customers seeking convenience and variety. This segment resonates especially with millennials and younger consumers who prioritize online shopping. The rapid expansion of these platforms reflects changing consumer behavior and a shift towards digital solutions in the retail landscape.

Get more detailed insights about US Organic Tea Market

Key Players and Competitive Insights

The organic tea market in the US is characterized by a dynamic competitive landscape, driven by increasing consumer demand for health-conscious products and sustainable sourcing practices. Major players such as Numi Organic Tea (US), Yogi Tea (DE), and Harney & Sons (US) are strategically positioned to capitalize on these trends. Numi Organic Tea (US) emphasizes innovation in product development, focusing on unique blends and organic certifications, which enhances its appeal among health-oriented consumers. Meanwhile, Yogi Tea (DE) leverages its strong brand heritage and commitment to wellness, often integrating herbal remedies into its offerings, thereby differentiating itself in a crowded market. Harney & Sons (US) adopts a premium positioning strategy, focusing on high-quality ingredients and artisanal production methods, which collectively shape a competitive environment that values quality and authenticity.

Key business tactics within the organic tea market include localizing manufacturing and optimizing supply chains to enhance efficiency and sustainability. The market structure appears moderately fragmented, with a mix of established brands and emerging players. This fragmentation allows for diverse consumer choices but also intensifies competition among key players, who must continuously innovate to maintain market share.

In October 2025, Numi Organic Tea (US) announced a partnership with a local farm in California to enhance its supply chain transparency and sustainability efforts. This strategic move not only strengthens Numi's commitment to organic sourcing but also resonates with consumers increasingly concerned about the origins of their food and beverages. By fostering local partnerships, Numi positions itself as a leader in sustainable practices, potentially attracting a loyal customer base.

In September 2025, Yogi Tea (DE) launched a new line of functional teas aimed at specific health benefits, such as stress relief and digestive support. This initiative reflects a growing trend towards personalized wellness solutions, allowing Yogi to tap into niche markets. The introduction of these products may enhance brand loyalty and expand Yogi's market presence, as consumers seek tailored health solutions in their beverage choices.

In August 2025, Harney & Sons (US) expanded its distribution channels by entering into a collaboration with a major online retailer, significantly increasing its visibility and accessibility. This strategic action is indicative of the ongoing shift towards e-commerce, particularly in the beverage sector. By enhancing its online presence, Harney & Sons can reach a broader audience, potentially driving sales growth in a competitive market.

As of November 2025, current competitive trends in the organic tea market include a pronounced focus on digitalization, sustainability, and the integration of AI technologies in supply chain management. Strategic alliances among companies are increasingly shaping the landscape, fostering innovation and enhancing operational efficiencies. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. Companies that prioritize these aspects may find themselves better positioned to meet the demands of a discerning consumer base.

Key Companies in the US Organic Tea Market market include

Industry Developments

Recent developments in the US Organic Tea Market reveal a rising consumer preference for organic and health-oriented products. Companies such as Davidson's Organic Tea and Yogi Tea are emphasizing sustainable sourcing and product innovation to cater to this trend. Notably, in September 2023, Unilever announced a strategic partnership with Pukka Herbs to enhance its product offerings in the organic segment, reflecting a growing trend of collaboration among industry leaders. The market valuation of the US organic tea sector has surged significantly, visible through increased sales and consumers seeking healthier beverage options.

Major brands like Tazo and Celestial Seasonings are reaping the benefits of this shift, with reported revenue growth. In the past two years, movements in the market have included the expansion of product lines and investments in eco-friendly packaging from companies like Rooibos Limited and Traditional Medicinals. Furthermore, Twinings North America is increasing its direct-to-consumer presence to meet the escalating demand. The overall dynamics indicate an evolving market landscape, driven by health consciousness and environmental sustainability among consumers, making the US Organic Tea Market a promising sector for investment and growth in the coming years.

Future Outlook

US Organic Tea Market Future Outlook

The Organic Tea Market is projected to grow at a 5.38% CAGR from 2024 to 2035, driven by increasing health awareness, sustainable sourcing, and innovative product offerings.

New opportunities lie in:

  • Expansion of online sales platforms for direct-to-consumer access.
  • Development of premium organic tea subscription services.
  • Investment in eco-friendly packaging solutions to attract environmentally conscious consumers.

By 2035, the organic tea market is expected to achieve robust growth, reflecting evolving consumer preferences.

Market Segmentation

US Organic Tea Market Form Outlook

  • Dried Leaf
  • Powder
  • Others

US Organic Tea Market Type Outlook

  • Green
  • Black
  • Others

US Organic Tea Market Distribution Channel Outlook

  • Store-Based
  • Non-Store Based

Report Scope

MARKET SIZE 2024 211.75(USD Million)
MARKET SIZE 2025 223.14(USD Million)
MARKET SIZE 2035 376.65(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 5.38% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Twinings (GB), Yogi Tea (DE), Numi Organic Tea (US), Stash Tea (US), Harney & Sons (US), Rooibos Ltd (ZA), Pukka Herbs (GB), Teavana (US)
Segments Covered Type, Form, Distribution Channel
Key Market Opportunities Growing consumer preference for health-conscious products drives demand in the organic tea market.
Key Market Dynamics Rising consumer preference for health-conscious products drives growth in the organic tea market.
Countries Covered US

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FAQs

What is the expected market size of the US Organic Tea Market in 2024?

The US Organic Tea Market is expected to be valued at 181.5 million USD in 2024.

What will be the market value of the US Organic Tea Market by 2035?

By 2035, the overall market is projected to reach approximately 306.85 million USD.

What is the expected CAGR for the US Organic Tea Market from 2025 to 2035?

The US Organic Tea Market is anticipated to grow at a CAGR of 4.889% from 2025 to 2035.

Which type of organic tea has the largest market share in 2024?

In 2024, Black tea holds the largest market share with a value of 70.0 million USD.

What is the projected market value for Green tea in 2035?

Green tea is expected to reach a market value of 100.0 million USD in 2035.

Who are the key players in the US Organic Tea Market?

Major players include Rooibos Limited, The Republic of Tea, Twinings North America, and Good Earth Tea, among others.

What is the market value of Other types of organic tea in 2024?

The market value for Other types of organic tea is 51.5 million USD in 2024.

What will be the market size for Black tea in 2035?

The market size for Black tea is expected to grow to 130.0 million USD by 2035.

Are there any emerging trends in the US Organic Tea Market?

Key trends include increasing consumer preference for health-conscious beverages and sustainable sourcing practices.

What opportunities exist for growth in the US Organic Tea Market?

Opportunities for growth are driven by rising organic product demand and innovation in tea flavors and health benefits.

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