Wellness, Premium Teas Reshape India’s Tea Market
Food & Beverage.

Wellness, Premium Teas Reshape India’s Tea Market

Celebrating International Tea Day on May 21, Hansa Research Group study finds matcha, bubble tea and functional wellness blends rapidly entering mainstream urban consumption in India

 

India’s tea culture is rapidly evolving beyond traditional chai into a wellness-led and premium consumption category, according to a new study released by Hansa Research Group ahead of International Tea Day on May 21.

The report highlights that tea continues to remain deeply embedded in Indian lifestyles, with nearly 84 per cent of respondents consuming tea daily and more than 55 per cent drinking multiple cups each day. Traditional milk chai remains the most preferred tea format at 42 per cent, followed by black tea, green tea and cutting chai.

At the same time, global tea trends are increasingly entering mainstream urban consumption patterns. Around 66 per cent of respondents said they had tried matcha, while 57 per cent reported consuming bubble tea, indicating that these formats are no longer niche or imported trends but are steadily becoming part of everyday beverage choices.

The study found that wellness is emerging as the strongest driver behind specialty tea adoption in India. More than 51 per cent of respondents cited health and wellness perceptions as the primary reason for consuming specialty teas, ahead of 39 per cent who attributed it to social media influence and 22 per cent who pointed to influencer recommendations.

Researchers noted that specialty teas are increasingly being viewed as credible wellness products rather than merely aesthetic or trend-led beverages.

Functional tea consumption is also witnessing significant growth, with nearly 73 per cent of respondents saying they already consume wellness-oriented tea variants. Stress-relief teas emerged as the dominant category at nearly 40 per cent, ahead of immunity-support, sleep-enhancing and gut-health blends.

The findings suggest that post-pandemic concerns around stress management and mental wellness are increasingly shaping beverage preferences among urban consumers.

The report further highlighted changing ingredient preferences within the tea category. Adaptogens emerged as the most preferred functional ingredient segment, followed by protein-infused ingredients, collagen-based formulations, plant-based blends and natural sweeteners.

A strong premiumisation trend is also becoming visible within India’s tea market. While the largest segment of consumers remains comfortable spending between Rs 100 and Rs 200 on specialty tea beverages, nearly 78 per cent of respondents earning above Rs 10 lakh annually said they are willing to pay Rs 350 or more per cup for premium tea experiences.

The long-term outlook for the category remains highly positive, with nearly 92 per cent of respondents believing specialty teas will become mainstream in India over the coming years. The findings point towards strong growth opportunities for premium tea cafés, ready-to-drink tea formats, wellness-led innovations and functional beverage products.

Praveen Nijhara, CEO of Hansa Research Group said India’s tea market is transitioning into a broader lifestyle and wellness-focused category.

“Consumers are increasingly associating tea with stress relief, functionality, health, and premium experiences. What stands out is that specialty tea adoption today is being driven more by wellness needs than by social media influence, indicating genuine long-term behavioural change,” Nijhara said.

The study suggests that tea is emerging as one of India’s most dynamic consumer categories, balancing heritage, health, premiumisation and global beverage trends simultaneously.

 

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