Pandan Tea Market Size & Growth Forecast 2026–2035, By Segments (Distribution Channel, Form), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape

Market Size and Growth Outlook

Pandan Tea Market size was around USD 341.15 Million in 2025 and is slated to grow at a 7.8% CAGR from 2026 to 2035, reaching USD 722.99 Million by 2035. The industry revenue for 2026 is assessed at USD 364.49 million.

• Base Year Value (2025): USD 341.15 Million
• CAGR (2026-2035): 7.8%
• Forecast Year Value (2035): USD 722.99 Million
• Historical Data Period: 2022-2025
• Largest Region: Asia Pacific
• Forecast Period: 2026-2035

Pandan Tea Market Intelligence Snapshot:

• Regional Market Dynamics:

  • Asia Pacific held the largest market share in 2025, supported by strong consumer familiarity with pandan and steady everyday consumption across beverage and food applications.
  • Asia Pacific is expected to expand at an 8.81% CAGR as wider packaged tea offerings, evolving formats, and sustained demand for familiar herbal beverages increase adoption.

• Segment Momentum:

  • Tea Bags accounted for a 47.37% share in 2025, supported by consumer demand for convenient preparation, consistent portions, and suitability for routine household tea consumption.
  • Online channels are growing quickly because they improve access to specialty pandan tea, provide wider product assortments, and enable convenient home delivery while helping brands reach targeted consumer groups.

• Market Expansion Drivers:

  • Increasing consumer preference for functional herbal beverages accelerating pandan tea consumption globally.
  • Expanding wellness and organic product trends strengthening demand for antioxidant-rich pandan tea products.
  • Rising ready-to-drink herbal beverage innovation expanding commercial pandan tea product portfolios.

• Leading Market Participants:

  Key players in the pandan tea market include Dilmah Ceylon Tea Company PLC (Sri Lanka), T2 Tea Pty Ltd. (Australia), Rishi Tea & Botanicals, LLC (U.S.), My Blue Tea (Thailand), ETTE TEA COMPANY (Thailand), Tsaa Laya (Philippines), FreshDrinkUS (U.S.), TWG Tea Company Pte. Ltd. (Singapore), Harney & Sons Fine Teas (U.S.), Traditional Medicinals, Inc. (U.S.).

Unlock Complete Insights

Global Market Forecast Snapshot:

• Market Outlook:

  • 2025 Market Size: USD 341.15 Million
  • Projected Market Size: USD 722.99 Million by 2035
  • Growth Forecasts: 7.8% CAGR (2026-2035)

• Regional and Segment Outlook:

  • Leading Regional Market: Asia Pacific
  • High-Growth Regional Hub: Asia Pacific
  • Core Revenue Segment: Offline (Distribution Channel) | Tea Bags (Form)
  • Emerging Opportunity Segment: Online (Distribution Channel) | Loose Leaves (Form)

Market Growth Drivers and Industry Trends

Increasing consumer preference for functional herbal beverages accelerating pandan tea consumption globally

As consumers shift away from conventional caffeinated drinks and sugar-heavy refreshment options, the pandan tea market is benefiting from stronger interest in herbal beverages associated with everyday wellness, digestive comfort, and plant-based ingredients. This preference changes purchasing behavior in practical ways: retailers allocate more shelf space to herbal tea assortments, online sellers position pandan tea alongside functional infusions, and brands emphasize its natural profile to capture health-oriented demand. The result is broader product visibility and more frequent trial, particularly among buyers seeking routine beverage choices that align with preventive health habits, driving demand for the pandan tea market through regular consumption rather than occasional specialty use.

Expanding wellness and organic product trends strengthening demand for antioxidant-rich pandan tea products

Wellness-led consumption is pushing buyers to scrutinize ingredient origin, processing methods, and perceived nutritional value, which is aiding market expansion for products that present pandan tea as a clean-label, naturally derived option. In the pandan tea market, this encourages suppliers to introduce organic variants, improve sourcing transparency, and refine packaging claims around botanical quality and antioxidant positioning. These decisions influence merchandising and pricing in practice, allowing pandan tea to move beyond traditional ethnic or niche channels into premium wellness-oriented retail environments where consumers are prepared to pay for products that fit broader lifestyle and health preferences.

Rising ready-to-drink herbal beverage innovation expanding commercial pandan tea product portfolios

Product innovation in ready-to-drink formats is making pandan tea more accessible to consumers who want convenience without preparing loose leaves or tea bags, increasing market adoption through everyday retail and on-the-go consumption occasions. In the pandan tea market, manufacturers are using bottled, canned, and blended herbal beverage launches to widen usage beyond traditional tea drinkers, while distributors gain a format that fits supermarkets, convenience stores, cafés, and e-commerce beverage assortments. This commercial shift matters because ready-to-drink development turns pandan tea into a packaged beverage category with stronger repeat purchase potential, supporting market development through broader portfolio depth and more consistent consumer exposure.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Increasing consumer preference for functional herbal beverages accelerating pandan tea consumption globally	1.90%	Low	North America, Asia Pacific	High	Near Term
Expanding wellness and organic product trends strengthening demand for antioxidant-rich pandan tea products	1.70%	Moderate	Europe, North America	Medium	Mid Term
Rising ready-to-drink herbal beverage innovation expanding commercial pandan tea product portfolios	1.40%	Low	Asia Pacific, Europe	Emerging	Long Term

Regional Demand Dynamics

Asia Pacific (Largest & Fastest-Growing Region)

Asia Pacific held the largest regional share of the pandan tea market in 2025 and is also projected to expand at an 8.81% CAGR over the forecast period, reflecting both its established consumption base and continued demand acceleration. The region’s leadership is backed by strong familiarity with pandan in everyday beverage and food use, which keeps demand grounded in regular consumption rather than niche trial. That same cultural and commercial foundation is also sustaining growth momentum, as wider product availability, evolving packaged tea formats, and continued consumer interest in regionally familiar herbal beverages help broaden adoption across both traditional and modern retail channels.

Key Country Insights

United States

Specialty Beverage Expansion

The U.S. pandan tea market is supported by rising interest in botanical beverages and global flavor experiences. Importers and specialty tea brands in the U.S. are broadening premium product selections through online platforms and health-focused retail channels.

Japan

Premium Herbal Infusions

Japan values distinctive herbal beverages with refined flavor profiles and premium presentation. Tea companies in Japan are exploring pandan tea as a niche addition to specialty portfolios targeting wellness-oriented and premium consumers.

South Korea

Functional Beverage Interest

South Korea is experiencing increasing interest in herbal beverages associated with wellness and natural ingredients. Beverage companies in South Korea are introducing pandan tea through premium cafés, online retail, and health-focused product ranges.

Germany

Wellness Tea Portfolio

Germany integrates pandan tea into expanding herbal and wellness beverage offerings. Consumer interest in plant-based infusions encourages suppliers in Germany to position pandan tea alongside functional and naturally sourced tea products.

France

Gourmet Tea Adoption

France supports pandan tea through growing demand for premium herbal infusions and international flavors. Retailers in France increasingly feature specialty teas that emphasize authenticity, natural ingredients, and distinctive sensory characteristics.

Italy

Artisan Tea Selection

Italy is gradually incorporating pandan tea into specialty tea assortments offered by gourmet retailers and cafés. Consumer curiosity for unique botanical beverages encourages Italian distributors to diversify premium imported tea selections.

Segment Leadership and Growth Trends

  Distribution Channel Segment Analysis: Offline (Largest Segment) vs Online (Fastest-Growing Segment)

Within the pandan tea market, offline distribution held the dominant position in 2025 with a 73.87% share. This leadership is maintained through the way consumers typically purchase tea products through supermarkets, specialty stores, and local retail outlets where product visibility, immediate availability, and direct comparison influence buying behavior. Offline channels also remain important for first-time purchases in the pandan tea market, especially where shoppers rely on in-store discovery and trust familiar retail environments for food and beverage selections.

Online distribution is emerging as the fastest-growing channel in the pandan tea market as digital commerce makes niche and specialty tea products easier to access beyond physical store limitations. Its momentum is being underpinned by the convenience of home delivery, broader product assortment, and the ability of brands to reach targeted consumer groups through direct digital storefronts and marketplaces. Compared with offline alternatives, online channels are experiencing stronger uptake because they reduce shelf-space constraints and allow faster visibility for new pandan tea offerings.

Form Segment Analysis: Tea Bags (Largest Segment) vs Loose Leaves (Fastest-Growing Segment)

Tea bags accounted for the largest position in the pandan tea market in 2025, holding a 47.37% share. Their continued leadership reflects strong consumer preference for convenience, portion consistency, and ease of preparation in everyday tea consumption. In the pandan tea market, tea bags fit well with routine household use and quick-serve consumption patterns, which helps maintain broad appeal across mainstream retail settings.

Loose leaves are the fastest-growing form in the pandan tea market, driven by rising interest in more traditional and less standardized tea preparation. Growth in this segment is underpinned by consumers seeking greater control over brewing strength and a more distinctive tea experience than packaged alternatives typically provide. Relative to tea bags, loose leaves are gaining momentum because they align better with consumers who are becoming more selective about preparation style and product authenticity.

Report Segmentation
Segment	Sub-Segment	Largest Segment	Fastest Growing Segment
Distribution Channel	Offline, Online	Offline	Online
Form	Loose Leaves, Powder, Tea Bags	Tea Bags	Loose Leaves

Competitive Landscape and Market Positioning

Top players in the pandan tea market:

1. Dilmah Ceylon Tea Company PLC (Sri Lanka)

2. T2 Tea Pty Ltd. (Australia)

3. Rishi Tea & Botanicals LLC (U.S.)

4. My Blue Tea (Thailand)

5. ETTE TEA COMPANY (Thailand)

6. Tsaa Laya (Philippines)

7. FreshDrinkUS (U.S.)

8. TWG Tea Company Pte. Ltd. (Singapore)

9. Harney & Sons Fine Teas (U.S.)

10. Traditional Medicinals Inc. (U.S.)

Growing interest in herbal and functional beverages is supporting steady expansion of the pandan tea market, where natural wellness positioning is gaining traction. Product innovation focused on unique flavor profiles is enhancing consumer engagement. The market is further supported by sourcing collaborations that strengthen ingredient consistency and authenticity.

Industry Development/News

Company Name	Date	Key Development
LiHO TEA	Aug-21	LiHO TEA unveiled its Singa-Pandan series, creating a custom Pandan Shake paired with cookies and caramel to highlight traditional regional flavors during the Singapore Food Festival 2021.
Gong Cha	Jan-21	Gong Cha collaborated with Singaporean toy retailer ActionCity to celebrate the 25th anniversary of the character To-fu Oyako by releasing a limited-edition, medium-sized green milk drink infused with pandan, coconut, rose, vanilla, and almond notes.