India’s tea market is witnessing a major transformation as consumers increasingly shift from traditional tea-drinking habits towards wellness-focused, functional, and premium tea experiences, according to a new study by Hansa Research Group.
The survey highlights that tea remains deeply rooted in Indian daily life, with nearly 84% of respondents consuming tea every day and over half drinking multiple cups daily. Traditional milk chai continues to dominate preferences, followed by black tea, green tea, and cutting chai.
However, the study points to a growing acceptance of international tea formats among urban consumers. Around two-thirds of respondents said they had tried matcha, while more than half reported consuming bubble tea, indicating that global tea trends are steadily entering mainstream Indian consumption patterns.
Researchers found that wellness has emerged as the biggest driver behind the rise of specialty teas. More than 51% of respondents said health and wellness benefits motivated their tea choices, outpacing social media influence and celebrity-driven trends.
Functional teas are also gaining strong traction in the country. Nearly 73% of surveyed consumers said they already consume teas associated with specific health benefits, with stress-relief teas emerging as the most preferred segment. Other growing categories include immunity-support, sleep-enhancing, and gut-health teas.
The report suggests that rising stress levels and increased focus on mental well-being after the pandemic are significantly influencing beverage preferences among urban Indian consumers.
Ingredient preferences within the category are also evolving rapidly. Adaptogens emerged as the most favoured functional ingredient segment, followed by protein-enriched formulations, collagen-based blends, plant-based ingredients, and natural sweeteners.
The study additionally highlights a strong premiumisation trend within India’s tea sector. While most consumers remain comfortable spending between ₹100 and ₹200 on specialty tea beverages, higher-income consumers are increasingly willing to pay premium prices for elevated tea experiences. Nearly 78% of respondents with annual incomes above ₹10 lakh said they would spend ₹350 or more per cup on premium tea offerings.
According to the report, almost 92% of respondents believe specialty teas will become mainstream in India over the next few years, creating significant opportunities for premium tea cafés, ready-to-drink tea products, and wellness-oriented beverage innovations.
Commenting on the findings, Praveen Nijhara said India’s tea industry is steadily evolving from a traditional beverage category into a wellness and lifestyle-driven market.
He noted that consumers are increasingly associating tea with stress management, health benefits and premium consumption experiences, signaling long-term behavioural changes rather than short-term social media trends.