How To Start A Tea Business in India – A typical Indian day cannot begin without tea, and it is a part of our daily existence. Chai is not just a word or a drink for us; It is a feeling. There is a way out for all when they get involved with “tea” and for many, it is the ideal stress reliever. As a design firm, we delve into the tea industry from ancient times to the present. If you want to know how to start tea business in India then read our complete article.
Studies show that Indians drink 30 cups of tea for every cup of coffee. Also, people drink tea in the evening and most tea drinkers do the same throughout the day. An average adult in India drinks two cups of tea every day, with the number of cups fluctuating according to the season and one’s mood. This is one of the main reasons why many consider the tea industry one of the most promising. Additionally, it is the greatest business to start with less capital.
History of Tea in India
India is the second largest tea-producing country in the world after China. Overall, 70% of Indian tea is consumed within India. Additionally, the Assam and Darjeeling tea varieties were grown only in India. The tea market is growing like crazy, with more brands being introduced that use cutting-edge technology.
Between 1800 and 1947, tea was largely grown and consumed by the British, who first discovered it in India. Warren Hastings allowed George Bogle to grow some sugar plants in 1774, but nothing more came of it. Sir Joseph Banks later investigated the subject in 1776 and on his advice, India started tea cultivation.
Tea Business Market in India
India is expected to consume 1.1 billion kg of tea in 2021 and other hot beverages are also used more frequently. The two major regions for tea manufacturers in India are Assam and West Bengal. Assam is one of the top tea-producing states in the world. Tamil Nadu produces the most tea in the South, followed by Munnar and Wayanad.
- From 2022 to 2027, the Indian tea market is projected to grow by around 4.7%. Unlike other sectors, the industry did not suffer during the pandemic.
- According to surveys, businesses will introduce tea sections in pubs and restaurants by 2025. The average volume of this segment is estimated to increase by 0.8 kg per person.
Latest Tea Market of India – 2026
According to IMARC Group, Indian tea was valued at approx. USD 11.86 billion in 2025 and projected to reach around USD 15.44 billion by 2034 at a CAGR of nearly 3%. This growth is driven by premium demand and speciality teas, rising health consciousness and expanding retail channels.
In 2025, black tea will account for over 68% of the market due to everyday consumption patterns and cultural preferences.
Why tea business a great opportunity in India?
There are several reasons to start a tea business in India, such as:
- India accounts for one of the highest volumes of tea consumption globally.
- Wide range of market segments and a new vision of the tea market that allows entrepreneurs to set up the tea franchise:
- Traditional tea stalls
- Tea cafes and premium lounges
- Packaged tea brands
- Tea franchise services
- Growth of speciality and healthy tea that are rapidly penetrating the urban market. The herbal tea market have significantly market in the tea industry.
- Digital Footprints, as with online tea sales, are becoming more consumers’ preference, which makes it easier for new brands to enter the market with minimal upfront distribution costs.
How To Start A Tea Business in India?
Since tea production is one of the most popular industries, Alexa Tea is one of the top Tea manufacturers in India, so you can join Alexa Tea when starting a tea business in India. Tea production is one of the topmost sectors. You need to take care of several factors before setting up a tea business:
Studying Camellia Sinensis
The miracle plant known as Camellia Sinensis is vital to the success of your business if you are a tea connoisseur hard-working to start a new endeavour. If you want to thrive in the wholesale tea industry, you must have a thorough understanding of the plant. We can help you learn more about this plant.
Understand your focus
You need to be specific and consider how to make your brand stand out from the competition. Understanding and assessing your target competitors will help you determine what is already available in the market and how to differentiate yourself from the competition.
Identify your target market
Are tea lovers – who make up over 90% of India’s population – your target market? No, your target audience is attracted to what your brand offers. Even the growing premium tea business in India is a testimony to the fact that individuals have preferences.
Budget and working capital requirements
Knowing your working capital well allows you to allocate resources fairly and implement plans that take it into account. Starting a tea business requires an investment of 25-40 lakhs, which includes renting space, storing raw materials, packaging, branding, marketing, and hiring skilled and unskilled labor.
What are the steps to start a tea business in India?
Step 1: Before investing in the tea business, make sure to research the market local vendors, preferences of customers and pricing trends.
Step 2: Selecting a location plays a major role like near offices, colleges, coaching centres, railway stations and bus stops are highly visible and directly impact daily sales
Step 3: Make sure to follow business compliance so you can build trust with customers. Important documents you need like business registration, GST registeration and shop establishment registration.
Step 4: Basic requirements like tea brewing machines, storage containers, branded cups, serving counters and clean water supply.
Step 5: Staff and Planning for Services
Conclusion
If you are a real or ardent tea lover and planning to start a new business in India, then you are right. The tea business is a highly demanding segment and has a good demand in the Indian region. If you have any doubts about how to start a tea business in India, Alexa Tea will help you out. We are a successful tea brand with vast experience in branding and packaging of tea.
Contact Details
Name: Alexa Tea
Address: SCO – 75, 1st Floor, Sector – 12, Panchkula 134115
Phone Number: 1800-1802-167
FAQs
Why is selecting a tea franchise better for starting my own brand?
Select tea franchise reduces business risk and help new entrepreneurs to start faster compared to building a brand from scratch. Tea franchise offers brand recognition, training, operations and market support.
What are the important documents to start a tea business in India?
For legal operations, you need an FSSAI license, GST registration, and Shop and Establishment registration.
I want to open a tea outlet near a bus stop. Is it profitable?
Yes, they are high traffic areas and one of the best locations for a tea business.
If someone doesn’t have any experience or the thinking to start a tea business. Can they?
In the tea business, experience is not required; franchises like Alexa Tea provide operational support and training to help new entreprenuers to run their business smoothly.
What is the future for the tea business in India>
The future of the tea business in India is strong due to rising domestic consumption, increasing preference for organised outlets and expansion in tier 2 cities.
How much investment do you need to start a tea business in India?
Investment in tea depends on the business model and required of INR 1 to 5 lakh, depending on location, setup size and equipment.
