Tea is one of the best franchise businesses for entrepreneurs in the beverage segment to dive in. The tea market has shown dramatic growth in the past few years as a result of changing the behavior of the consumers. Tea drinkers are more interested in high-quality products with a great story and drinks that give them specific health benefits. It is also viewed as a sensual and wellness drink by most younger consumers. People are now interested in innovative flavors when it comes to different types such as ginger, matcha, turmeric, and cumin which are in higher demand. Another foodservice phenomenon is cheese tea which is especially popular in Asian countries such as Malaysia, Taiwan, and China.

Since customers are increasingly opting for unique and experience-led products, an interesting trend on the tea market is the tea pairing menus. Different restaurants have been trying to enhance the culinary experience by introducing a several-course tea pairing menu. Black tea is the largest segment of the tea industry in India.

India is globally the second largest producer of tea after China and is also a leading consumer of beverages. The annual growth of tea exports from the country was only moderate due to the high domestic consumption. Almost 80% of the total output in India is consumed domestically. The market in the country is projected to witness tremendous growth in the forecast period of 2022-2027, growing at a CAGR of 4.2%.

Accounting for over three-fourths of the industry, North India is the leading region for the industry in India. Nearly a fifth of the industry is accounted for by South India with major production in the Nilgiris. The South Indian region is being driven by its production of premium varieties of superior quality even though it has a significantly lower output compared to North India. Due to the perceived superior quality of packed tea, consumers are consistently choosing packaged over unpackaged varieties. 80% of the households in urban India and almost 75% of the households in rural India prefer buying packaged tea products.

Assam is the major tea-producing state in India. Assam and Darjeeling tea types are globally the most recognized types of beverage. The tea market has also been expanding outside the category of hot beverages with the development of new ready-to-go drinks and iced tea variants.

Tea café is a highly popular business in India with some very popular brands across the country have been using the franchise model of expansion. Business starters can look for these businesses at locations for the Tea franchise in Mumbai, Pune, and Chennai being the prime locations.