THE QUIET BEVERAGE SHIFT: TEA FINDS NEW MOMENTUM
Tea is experiencing a resurgence in Australia, driven by wellness trends, cost pressures and changing consumer habits. While older Australians remain the core market, younger drinkers are reshaping the category through specialty, herbal and premium teas, creating new opportunities for hospitality operators to rethink their beverage mix.
While coffee continues to dominate Australia’s beverage landscape, tea is quietly building momentum. Recent survey data shows that around half of Australians now drink tea weekly, a noticeable increase from earlier national benchmarks of closer to 38%. This growth is being driven by a combination of health awareness, affordability, and a shift toward more considered, at-home consumption habits.
For hospitality operators, the more important story lies in who is drinking tea. Consumption remains strongest among older Australians, with data indicating participation rises from just 27.6% among those aged 19–30 to nearly 67% in the 70+ category. Roy Morgan research reinforces this trend, showing Australians aged 65+ are the most frequent tea drinkers, averaging around 11 cups per week. However, there are early signals of change: younger consumers, particularly Gen Z, are engaging with tea differently, leaning into matcha, iced teas and functional herbal blends rather than traditional black tea.
This shift is closely tied to evolving consumer drivers. Tea is increasingly viewed through a wellness lens, benefiting from its association with antioxidants, lower caffeine and relaxation. At the same time, cost-of-living pressures are positioning tea as an accessible alternative to café coffee, particularly for repeat, daily consumption. These factors are contributing to steady market expansion, with forecasts suggesting the Australian tea market will grow at around 5–6% annually through the next decade.
The most significant transformation, however, is occurring within the category itself. While black tea still accounts for the majority of consumption, its dominance is gradually softening. Research highlights strong growth in green tea, matcha and herbal infusions, with fruit and functional blends emerging as the fastest-growing segments. Traditional varieties like English Breakfast and Earl Grey are no longer the default choice, particularly among younger consumers seeking variety, provenance and perceived health benefits.
For venues, this presents a clear strategic opportunity. Tea is no longer just a secondary, low-margin menu item, it is evolving into a premium, experience-led category. Expanding tea offerings to include loose leaf options, iced formats, and wellness-focused blends can unlock incremental revenue while appealing to both older loyalists and younger, trend-driven consumers.
In a market defined by coffee culture, tea’s growth may be understated, but it is far from insignificant. For operators willing to rethink their approach, tea represents a low-risk, high-potential category ready for reinvention.
