The business of tea is at an inflection point. Traditional perceptions are being redefined, and the … [+]
There’s an old British saying from the playwright Arthur Wing Pinero: “Where there’s tea, there’s hope”. And it seems there’s plenty of hope brewing in the business world, as tea stages an impressive comeback, not just in the UK but across the globe.
Long associated with comforting rituals and rainy afternoons, tea has often been seen as the quieter counterpart to coffee’s buzzy, fast-paced energy. Yet, today, its appeal is expanding well beyond its traditional roots. From trendy matcha’s in New York to artisan tea bars in London and functional wellness teas in Japan, consumers are rediscovering the humble leaf. And with this resurgence comes a fresh wave of business opportunities.
So, what’s driving the shift? And more importantly, how are retailers, brands, and hospitality businesses making the most of it?
A Cultural Staple Finds New Fans
Tea has always been a mainstay of British culture, but recent years have seen significant changes in drinking habits. While black tea remains the nation’s favourite, herbal, green, and speciality teas are carving out a more substantial share of the market.
A survey by the UK Tea & Infusions Association found that interest in herbal and fruit teas rose by 80% during lockdowns, as consumers sought out functional drinks with added health benefits. The demand for alternatives to traditional black tea has continued to climb, particularly among younger consumers. More than a third of Millennials and Gen Z now drink herbal tea weekly, with ingredients like turmeric, ginger, and peppermint leading the charge. The same organisation released 2024 data that highlights the trends for selecting loose leaf varieties amongst the youngest (18-29-year-old) adults. Dr Sharon Hall, CEO explains: “Both herbal infusions and green tea, (amount to) more than a quarter (28%) of this age group”.” This compares to only 5% of the older adults”.
This trend isn’ just a passing fancy, it reflects broader lifestyle changes. Health-consciousness, sustainability, and a desire for more mindful consumption are all influencing the way people think about their daily brews.
The Health Halo: Tea as a Lifestyle Choice
The rise of wellness culture has been a major catalyst for teas growing popularity. Unlike coffee, which is often associated with high caffeine and an on-the-go mentality, tea is increasingly positioned as a drink that supports well-being.
In the US, tea consumption has grown significantly, with Americans now drinking around 85 billion servings of tea each year. Matcha, kombucha, and functional tea’s infused with adaptogens, collagen, or probiotics are at the forefront of this boom.
HeyTea (喜茶) is a Chinese tea brand that was founded in 2012 in Jiangmen, Guangdong Province. The … [+]
HeyTea (喜茶) is a Chinese tea brand that was founded in 2012 in Jiangmen, Guangdong Province. The brand is known for its inventive teas and stylish locations and has opened a stylish store in Times Square, New York as well as Los Angeles, Irvine, Rowland Heights, and Seattle.
Retailers and brands are responding by diversifying their offerings. Major supermarkets have expanded their tea selections, while specialist brands like Pukka, Twinings, and Teapigs have capitalised on the health-conscious movement with targeted product lines. Even high-street coffee chains are now investing in tea-led innovations. Starbucks, for example, has seen steady growth in sales of matcha and chai-based drinks, particularly among younger customers looking for alternatives to high-caffeine options.
Beyond the Supermarket Shelf: The Business of Tea Experiences
Whilst British grocery stores once stocked a limited amount of tea brands and blends, now retailers have tuned into selling the tea experience. The UK’s independent tea scene has flourished, with boutique tea shops offering tasting sessions, subscription services, and limited-edition blends.
Luxury brands are also tapping into tea’s premium potential. Harrods, Fortnum & Mason, and specialist retailers like Mariage Freres have elevated tea into a high-end offering, turning it into an indulgent purchase rather than just a daily necessity.
Meanwhile, cafes and hospitality businesses are rethinking their approach to tea. London-based chains like EL&N and Saint Aymes have transformed tea-drinking into a social media moment, pairing beautifully presented teas with curated aesthetic experiences.
The Sustainability Imperative
Tea’s resurgence isn’t just about health, it’s about ethics too. As consumers become more conscious of sourcing and environmental impact, organic, fair-trade, and plastic-free packaging are becoming industry must-haves.
Brands such as Clipper and Teapigs have led the charge, ensuring their teas are not only ethically sourced but also packaged sustainably. Loose-leaf teas, once seen as a niche offering, are gaining traction among eco-conscious consumers looking to avoid single-use packaging.
At the same time, traceability and transparency are becoming key selling points. Consumers want to know where their tea comes from, how it was farmed, and whether workers were paid fairly. This shift is reshaping the entire supply chain, prompting brands to rethink their ethical commitments.
A Global Phenomenon with Local Impact
In Japan, where tea has always been central to daily life, younger generations are rekindling an interest in traditional brewing techniques, spurring new artisanal businesses.
In China, where coffee culture was once on the rise, tea is now making a strong comeback, with modern tea houses popping up in major cities.
Even in historically coffee-dominated markets like the US, tea is gaining ground. The rise of bubble tea culture, matcha-based drinks, and functional wellness teas has driven a significant shift in consumer behaviour. The US tea market is now projected to grow by nearly 20% over the next five years, proving that coffee may no longer hold the monopoly on daily caffeine habits.
What’s Brewing Up Next?
The business of tea is at an inflection point. Traditional perceptions are being redefined, and the opportunity for innovation is vast.
For retailers and brands, this is a moment to rethink their approach whether by investing in premium product ranges, crafting more immersive customer experiences, or doubling down on ethical sourcing.
For cafe’s and hospitality venues, the message is clear: tea is no longer the secondary option, but a major revenue driver. Whether it’s through bespoke blends, high-end tea experiences, or creative tea-based drinks, the businesses that embrace this shift will be the ones that thrive.
Ultimately, the rise of tea is about more than just changing tastes, it’s about how consumers see themselves, their health, and their connection to the world. And as long as those priorities remain, the kettle will keep on boiling.
