COMPETITIVE LANDSCAPE
Twinings maintains leading position through broad portfolio, wellness focus, and strong brand equity
Associated British Foods Plc continued to lead Australia’s tea market in 2025, anchored by the strength of its Twinings brand. Its extensive portfolio, spanning black, green, fruit, herbal, and functional teas, enabled it to maintain relevance across both traditional tea drinkers and younger wellness-oriented consumers.
ITO EN emerges as the most dynamic company, supported by rising matcha demand and localised production
ITO EN was the most dynamic player in 2025, benefitting from the accelerating shift toward green tea and matcha-based beverages. As one of the world’s leading matcha producers, the brand’s authenticity, heritage, and expertise resonated strongly with Australian consumers seeking high-quality matcha experiences.
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Overview:
Understand the latest market trends and future growth opportunities for the Tea industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Tea industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tea in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tea in Australia?
- To what extent are health considerations impacting consumption of Tea in Australia?
- What are the traditional preferences in Tea in Australia? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Tea in Australia?
- Which are the leading brands in Tea in Australia?
- How are products distributed in Tea in Australia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Tea?
- Where is future growth expected to be most dynamic?
Tea in Australia - Category analysis
KEY DATA FINDINGS
Growing wellness demand and matcha-led momentum reshape category performance
Tea sees moderate value growth as matcha drives renewed interest among younger consumers
Green tea emerges as the most dynamic category as matcha moves firmly into the mainstream
Tea expected to maintain steady value growth, driven by wellness-led innovation
Gifting culture becomes an increasingly important volume driver across premium tea
Functionality continues to shape innovation as tea broadens its role in daily wellness routines
Twinings maintains leading position through broad portfolio, wellness focus, and strong brand equity
ITO EN emerges as the most dynamic company, supported by rising matcha demand and localised production
Supermarkets remain the primary distribution channel as retailers expand wellness-focused assortments
E-commerce sees rapid growth as digital investment, convenience, and subscriptions expand reach
Hot Drinks in Australia - Industry Overview
Hot drinks maintain steady value growth amid inflation easing and shifting consumer priorities
KEY DATA FINDINGS
Health, functionality and clean-label trends reshape product development
Ethical sourcing and sustainability strengthen brand positioning
Matcha shifts from niche trend to mainstream staple
Outlook shaped by stabilising prices, renewed confidence and evolving consumer priorities
Functional reformulation and wellness-led innovation to accelerate
Sustainability set to become a baseline expectation
Nestlé maintains category leadership through breadth, innovation and domestic investment
Coffee stands as the most dynamic category, fuelled by both premium and affordable innovation
Supermarkets remain the dominant channel supported by value seeking and private label expansion
E-commerce remains the fastest-growing channel through expanded fulfilment and digitally led retail execution
FOODSERVICE VS RETAIL SPLIT
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Tea
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
Tea
This is the aggregation of Black Tea, Fruit/Herbal Tea, Green Tea, Instant Tea, and Other Tea.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tea research and analysis database.
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