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Tea Production in the US Industry Data and Analysis
The US tea production industry is navigating a dynamic landscape driven by evolving consumer preferences and intensified import competition. Despite strong overall tea consumption, domestic production faces challenges related to climate variability, changing demand for traditional teas and a growing interest in specialty and functional varieties. These challenges have contributed to a slight drop in profit over the past five years from 9.3% in 2020 to 8.5% in 2025. Black and green teas dominate the market, but herbal and alternative options are gaining momentum. Also, sustainability concerns and packaging innovations increasingly influence production and branding strategies. In response, US tea producers are adapting to remain competitive in a rapidly diversifying market. Industry-wide revenue has been inching up at a CAGR of 0.1% over the past five years and is expected to total $1.8 billion in 2025 when revenue will expand by an estimated 0.4%.
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What's included in this industry analysis
IBISWorld's research coverage on the Tea Production industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.
About this industry
What's this industry report about?
The Tea Production industry in the United States operates under the NAICS industry code 31192b. This industry comprises businesses that blend and package tea. It includes companies that process, flavor and distribute loose-leaf, bagged and specialty teas for retail or wholesale markets. Related terms covered in the Tea Production industry in the United States include ready-to-drink (rtd), oolong, oxidation and united states-mexico-canada agreement (usmca).
What's included in this industry?
Products and services covered in Tea Production industry in the United States include Bagged black tea, Loose black tea and Bagged green tea.
What companies are included in this industry?
Companies covered in the Tea Production industry in the United States include Unilever N V and Starbucks Corporation.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Tea Production industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Tea Production industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Tea Production industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Tea Production industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Tea Production industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Tea Production industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Tea Production industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Tea Production industry in the United States.
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Frequently Asked Questions
What is the market size of the Tea Production industry in the United States in 2026?
The market size of the Tea Production industry in the United States is $1.8bn in 2026.
How many businesses are there in the Tea Production industry in the United States in 2026?
There are 345 businesses in the Tea Production industry in the United States, which has grown at a CAGR of 7.4 % between 2021 and 2026.
How may import tariffs affect the Tea Production industry in the United States?
The Tea Production industry in the United States is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Tea Production industry in the United States?
The Tea Production industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Tea Production industry in the United States grown or declined over the past 5 years?
The market size of the Tea Production industry in the United States has been growing at a CAGR of 0.1 % between 2021 and 2026.
What is the forecast growth of the Tea Production industry in the United States over the next 5 years?
Over the next five years, the Tea Production industry in the United States is expected to grow.
What are the biggest companies in the Tea Production industry in the United States?
The biggest companies operating in the Tea Production industry in the United States are Unilever N V and Starbucks Corporation
What does the Tea Production industry in the United States include?
Importing tea leaves and Tea leaf oxidation are part of the Tea Production industry in the United States.
Which companies have the highest market share in the Tea Production industry in the United States?
The company holding the most market share in the Tea Production industry in the United States is Unilever N V.
How competitive is the Tea Production industry in the United States?
The level of competition is moderate and increasing in the Tea Production industry in the United States.
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