Out of Home Tea Market

Out of Home Tea Market Size and Forecast

The Out of Home Tea Market was valued at USD 70.56 Billion in 2022 and is projected to reach USD 124.72 Billion by 2030, growing at a CAGR of 7.5% from 2024 to 2030. The market growth is driven by increasing consumer preference for tea as an alternative to carbonated drinks, especially in regions like North America, Europe, and Asia Pacific. As the demand for convenient and ready-to-drink beverages grows, the out-of-home consumption of tea is becoming a popular trend. Consumers increasingly prefer to enjoy their tea in cafes, restaurants, and convenience stores, which contributes to market expansion across global regions. Furthermore, the growing awareness of the health benefits of tea, including antioxidants and other functional properties, plays a key role in market growth. With the rise of premium tea offerings and varied flavor profiles, out-of-home tea consumption continues to rise, especially among health-conscious millennials and Gen Z consumers. The increased focus on sustainability and eco-friendly packaging by tea outlets further enhances the attractiveness of the market. This growth is expected to continue as tea consumption habits evolve and diversify globally, providing substantial opportunities for market players through 2030.

Download Full PDF Sample Copy of Market Report @

Out of Home Tea Market Research Sample Report

Out of Home Tea Market By Application

The Out of Home Tea Market, categorized by application, has seen substantial growth across various segments. The demand for tea outside of the home has expanded significantly due to the increasing preference for beverages consumed in social settings and on-the-go consumption. These applications are pivotal in driving market dynamics, with key segments such as Quick Service Restaurants (QSRs), Restaurants, Bars & Pubs, Hotels, Cafe/Coffee Shop Chains, Workplaces, Outdoor venues, and others contributing to the overall market expansion. The diverse range of tea offerings in these venues caters to different consumer tastes and preferences, driving the growth of this sector.

In the following sections, we delve into the specific subsegments of the Out of Home Tea Market by application, analyzing their unique characteristics, growth factors, and impact on the market. Each application offers a distinct consumer experience, whether it’s through fast-paced service in QSRs or the more leisurely atmosphere of cafes and restaurants, contributing to the versatility and broad appeal of out-of-home tea consumption.

Quick Service Restaurants (QSRs)

Quick Service Restaurants (QSRs) represent a significant portion of the out-of-home tea market, offering customers convenient and fast tea options for consumption during their busy schedules. The tea offerings in QSRs typically include standard tea types, such as black tea, green tea, and specialty blends, catering to a wide range of customer preferences. The speed of service, value for money, and availability of these beverages on-the-go contribute to the growing popularity of tea in this segment. Moreover, with the increasing focus on healthy and functional beverages, QSRs have been expanding their tea menus to include options like iced teas, herbal infusions, and organic varieties, meeting the demand for wellness-focused alternatives.

QSRs also benefit from technological advancements, such as mobile ordering and self-service kiosks, which enhance the customer experience and make it easier to purchase tea beverages quickly. Additionally, the demand for sustainable packaging and environmentally friendly practices has prompted many QSR chains to adapt their offerings accordingly. The quick service model’s emphasis on convenience, affordability, and variety makes it an ideal setting for the out-of-home tea market, with consumers increasingly opting for tea as a refreshing alternative to other caffeinated beverages like coffee and soft drinks.

Restaurants

Restaurants, especially those in the casual dining and fine dining segments, have also contributed significantly to the out-of-home tea market. In these establishments, tea is often positioned as a complement to meals, offering a refined and relaxing beverage experience. The tea offerings in restaurants tend to focus on quality, variety, and customer experience, with a broader selection that may include specialty teas, exotic blends, and premium loose-leaf teas. Restaurants often curate their tea menus to pair with their food offerings, enhancing the overall dining experience and catering to health-conscious customers looking for a non-alcoholic beverage option.

Tea in restaurants is not only a popular beverage choice during meals but also a key feature in specialized tea services, such as afternoon tea or traditional tea ceremonies. The trend toward artisanal and gourmet teas has spurred restaurants to elevate their tea offerings, with some establishments even featuring exclusive tea blends created in collaboration with renowned tea suppliers. As consumers increasingly prioritize health and wellness, the demand for organic, fair-trade, and caffeine-free teas has grown within this sector. Thus, restaurants are adapting their tea offerings to meet evolving consumer preferences and stay competitive in a rapidly changing market.

Bars & Pubs

Bars and pubs are a unique but growing segment in the out-of-home tea market, as more consumers opt for non-alcoholic beverages or light refreshment alternatives. The appeal of tea in these venues lies in its versatility and ability to be incorporated into mocktails and other non-alcoholic drinks. Bartenders are experimenting with tea-based cocktails, blending flavors of tea with fresh fruit juices, herbs, and syrups to create innovative and refreshing beverages. Iced teas and herbal infusions are becoming increasingly popular, particularly as people seek lighter, less sugary drinks while still enjoying a flavorful experience.

Furthermore, the rise of health-conscious consumers is driving the demand for alcohol-free alternatives in bars and pubs. As a result, some bars are developing specialized tea menus or offering a selection of premium and exotic teas as part of their drink offerings. With the shift toward healthier lifestyles and mindful drinking, bars and pubs are becoming key players in the out-of-home tea market, offering consumers an alternative beverage option that is both flavorful and low in calories. Tea’s growing presence in these venues reflects broader trends in consumer behavior, where convenience, innovation, and health-conscious choices take center stage.

Hotels

Hotels are another significant application for out-of-home tea consumption, particularly in the hospitality industry, where premium service and a diverse range of offerings are expected. Hotels typically serve tea in various settings, including restaurants, lounges, and room service, offering guests a wide range of options to suit their preferences. The demand for high-quality teas in luxury hotels has prompted many establishments to curate extensive tea menus, offering specialty blends, loose-leaf options, and exclusive teas sourced from renowned suppliers. The ability to deliver an exceptional tea experience is part of the broader trend of hotels enhancing their overall guest experience with gourmet beverages and wellness-oriented offerings.

Tea service in hotels is often associated with high-end experiences, such as afternoon tea or personalized tea tasting sessions. Additionally, the increasing demand for health-focused services in hotels has led many establishments to offer organic, detox, and herbal teas as part of wellness packages. The tea market in hotels benefits from the rise in experiential travel, where consumers seek unique and memorable experiences, including specialty tea services. As wellness tourism continues to grow, the role of tea in hotel offerings will likely expand, providing both relaxation and health benefits for guests during their stay.

Cafe/Coffee Shop Chains

Cafe and coffee shop chains have become synonymous with out-of-home tea consumption, as these venues typically cater to customers looking for a variety of hot and cold beverages in a casual, relaxed environment. Tea offerings in cafes and coffee shops have evolved significantly, with chains now providing an extensive selection of teas, ranging from traditional black and green teas to more adventurous blends such as chai, matcha, and bubble teas. The rise of premium, organic, and wellness-oriented teas has influenced many cafes to diversify their tea menus to cater to health-conscious consumers.

Moreover, the growing demand for iced teas, flavored teas, and innovative tea-based drinks such as tea lattes and tea frappes has spurred cafe chains to experiment with new ways of serving tea. The trend towards customization also plays a key role, as customers are increasingly looking for tea drinks that align with their personal taste preferences, dietary restrictions, and lifestyle choices. The combination of a cozy atmosphere, convenience, and diverse tea offerings makes cafes and coffee shop chains a vital application segment in the out-of-home tea market, appealing to a broad customer base ranging from busy professionals to tea enthusiasts.

Workplaces

The workplace is another growing segment for out-of-home tea consumption, driven by the increasing focus on employee wellness and the need for convenient, healthy beverage options during the workday. Many companies are offering a range of tea options in their break rooms or cafeterias, providing employees with easy access to refreshing, low-calorie beverages. Tea consumption in workplaces is often encouraged as a healthier alternative to sugary sodas or caffeine-heavy coffee, aligning with corporate wellness initiatives that prioritize mental clarity, focus, and overall health.

In addition, the growing trend of remote and flexible work arrangements has led to an increase in at-home tea consumption, but workplaces remain an essential venue for fostering collaboration and relaxation through tea breaks. The demand for diverse tea options, including herbal teas, green tea, and specialty blends, is expected to rise as companies continue to prioritize employee well-being and satisfaction. The workplace segment represents a unique opportunity for tea suppliers to introduce products that align with corporate health initiatives and meet the preferences of a diverse, productivity-focused consumer group.

Outdoor

The outdoor segment is a rapidly growing category within the out-of-home tea market, encompassing outdoor events, food trucks, festivals, and other recreational activities. Tea consumption in outdoor settings has gained traction due to the demand for refreshing and healthy beverages that can be enjoyed while engaging in physical activities or socializing in natural environments. Iced teas, fruit-infused teas, and pre-brewed tea in convenient packaging have become popular options for outdoor consumption, offering both hydration and refreshment.

Additionally, the trend toward sustainability and eco-friendly practices in the outdoor segment has influenced the packaging and sourcing of tea products. Many outdoor vendors and event organizers are adopting sustainable packaging for tea, aligning with growing consumer demand for environmentally responsible products. As outdoor experiences continue to grow in popularity, the role of tea as a key beverage choice for consumers seeking convenience, refreshment, and health benefits is expected to increase, providing opportunities for tea brands to expand their presence in this space.

Others

The "Others" segment in the out-of-home tea market includes all applications that don't fall within the primary categories mentioned above. This could include tea service in airports, transportation hubs, schools, hospitals, or even specialized events such as tea festivals and tea-tasting experiences. Although smaller in scale compared to other segments, these applications still present growth potential due to the increasing interest in tea as a lifestyle beverage.

In many of these "Other" venues, tea consumption is driven by convenience and accessibility. The market for tea in airports, for instance, thrives on the need for quick, refreshing beverages for travelers. Similarly, in healthcare and educational institutions, tea offers a healthier, soothing alternative to traditional snacks and beverages. As the appeal of tea grows across diverse settings, the "Other" category continues to evolve, presenting new opportunities for innovation and consumer engagement in the out-of-home tea market.

Key Trends and Opportunities in the Out of Home Tea Market

The Out of Home Tea Market is experiencing several key trends that are shaping its future. One of the most notable trends is the growing demand for health-conscious and functional beverages. Consumers are increasingly looking for tea options that offer health benefits, such as detoxification, weight management, and stress reduction. Herbal teas, green teas, and organic blends are particularly popular among health-conscious consumers. This trend presents an opportunity for tea producers to focus on promoting the wellness benefits of their products and cater to a more health-aware audience.

Another important trend is the increasing demand for premium and exotic tea varieties. Consumers are willing to pay more for high-quality, rare, and specialty teas, which has led to a rise in offerings such as single-origin teas, loose-leaf options, and artisanal blends. This shift toward premium products opens up opportunities for premium tea brands to expand their presence in cafes, restaurants, and hotels, where quality and authenticity are highly valued. Additionally, the trend toward sustainability in both production and packaging is driving tea suppliers to adopt eco-friendly practices, making this an area with significant growth potential.

Frequently Asked Questions (FAQs)

What are the main types of tea served in out-of-home venues?

Common types of tea served include black tea, green tea, herbal infusions, iced teas, and specialty blends like chai and matcha.

How is the demand for out-of-home tea growing?

The demand for out-of-home tea is growing due to increased consumer interest in healthier, non-caffeinated beverage options in social and professional settings.

What are the key factors driving the growth of the out-of-home tea market?

Key drivers include health trends, the rise of specialty tea offerings, and the increasing popularity of tea as a social and lifestyle beverage.

How do Quick Service Restaurants contribute to the out-of-home tea market?

QSRs contribute by offering convenient, affordable tea options for consumers seeking quick refreshment on the go, including iced teas and functional blends.

What tea trends are popular in cafes and coffee shops?

Cafes are focusing on premium teas, innovative tea lattes, and bubble teas, catering to both traditional and modern tastes.

Is there a rising interest in organic tea options?

Yes, consumers are increasingly choosing organic, fair-trade, and wellness-focused teas, which are becoming more prevalent in various out-of-home venues.

What impact has health and wellness had on the tea market?

The focus on health and wellness has driven the popularity of functional teas such as detox, herbal, and green teas, contributing to market growth.

How are tea suppliers adapting to sustainability demands?

Tea suppliers are adopting eco-friendly packaging and sustainable sourcing practices to appeal to environmentally conscious consumers.

What role does tea play in hotels and resorts?

In hotels, tea is often part of premium guest experiences, such as afternoon tea services and wellness-oriented offerings.

What is the outlook for the outdoor tea segment?

The outdoor tea segment is growing as consumers seek convenient, healthy beverage options for events, festivals, and outdoor activities.

For More Information or Query, Visit @ Out of Home Tea Market Size And Forecast 2025-2030