How to Start a Tea Business – A Complete Guide

Tea isn’t just a drink but a culture, a lifestyle, and a growing industry with lots of room for creative entrepreneurs. Whether you want to sell leaf tea, create your own tea blends, or start an online tea business, you’re entering a market with a loyal customer base and tons of opportunity.

But where do you even start? That’s what this guide is for. We’ll learn how to start a tea business successfully from finding your niche, sourcing tea to branding, marketing, and legal requirements.

Let’s get started and get you on the path to launching your own tea brand!

Tea Market Trends and Consumer Insights

Before you start selling tea, it’s crucial to understand the current trends, consumer preferences, and growth opportunities in the tea industry. The tea business isn’t just about tradition anymore as modern consumers are looking for health benefits, sustainability, and unique tea flavors.

The global tea market is massive and continues to expand. According to Market Research Future, the industry is expected to reach $93.2 billion by 2027, with demand fueled by health-conscious consumers and the rise of specialty teas. More people are swapping sugary drinks for functional teas that promote wellness, such as green tea for antioxidants, chamomile for relaxation, and ginger tea for digestion. Additionally, with sustainability at the forefront, ethically sourced teas are gaining traction, with buyers actively seeking organic, fair-trade, and eco-friendly packaging options.

What’s Trending in the Tea Market?

• Health-Focused Teas: Wellness is a major driver in the industry. People are looking for detox blends, herbal infusions, and antioxidant-rich teas. Popular varieties include matcha, turmeric tea, and herbal blends that support sleep, digestion, and immunity.
• Sustainability & Ethical Sourcing: Consumers care about where their tea comes from. Organic and fair-trade certifications are becoming standard, and many tea brands now emphasize direct trade with small farmers to ensure ethical sourcing. Compostable tea bags and plastic-free packaging are also big selling points.
• Unique & Custom Blends: Standard black and green teas still sell, but innovative tea flavors are capturing attention. Expect to see botanical infusions (like lavender or hibiscus), exotic spices (such as saffron or cardamom), and teas infused with adaptogens (like ashwagandha or reishi mushrooms).
• Tea Subscription Boxes: With the rise of e-commerce and personalized experiences, monthly tea subscription services are booming. Companies offer curated selections of seasonal, rare, or custom-blended teas to keep customers engaged and encourage repeat purchases.

These trends show that now is a great time to start a tea business, especially if you can align your brand with what modern consumers want: health benefits, sustainability, and an exciting variety of flavors.

Is Tea a Profitable Business?

Tea is one of the most profitable beverage products in the market. The cost of sourcing high-quality leaf tea is relatively low compared to the retail price customers are willing to pay. For example, a pound of premium loose leaf tea might cost $20 wholesale, but once packaged and marketed correctly, it could sell for $80–$100 retail. That’s a 300–400% markup, making tea an incredibly high-margin product.

The global tea industry is growing steadily, fueled by increasing consumer demand for organic, functional, and specialty blends. According to Statista, the global tea market is projected to grow at an annual rate of 6.75% from 2024 to 2028, reaching a market volume of $99 billion by 2028. As more people embrace health-conscious lifestyles, teas like green tea, herbal blends, and antioxidant-rich infusions are becoming even more popular.

However, profitability isn’t just about having great tea. The tea market is competitive, and success depends on branding, positioning, and marketing strategies. A strong online presence, unique offerings, and a well-thought-out pricing structure can make a significant difference. If done right, starting a tea business, whether as an online store, subscription box, or wholesale supplier, can be a highly lucrative venture.

How to Start a Tea Business

Starting a tea business is exciting, but it takes more than just a love for tea. You need a clear plan, quality tea products, and a unique brand that stands out in a competitive market. Whether you're selling organic blends, handcrafted leaf teas, or a full line of tea accessories, this guide will walk you through everything—from choosing your niche to getting your first customers.

1. Find Your Tea Niche

The tea industry is massive, and you need a specific angle to make your brand unique. Think about what excites you most about tea. Are you passionate about wellness teas that help with sleep and digestion? Do you want to sell exotic, high-end leaf teas for true connoisseurs? Or maybe you’re interested in creating a line of fun, flavored teas like caramel chai or lavender vanilla green tea?

Beyond flavors, consider how your brand will stand out. Organic and sustainably sourced teas appeal to eco-conscious consumers. Herbal, caffeine-free teas are great for people looking for a relaxing drink. Matcha kits and brewing accessories could be a big hit if you're targeting a younger, trendier audience. Your niche is what will make people remember your brand, so choose wisely!

2. Create a Business Plan

A business plan might sound intimidating, but think of it as your game plan. It helps you map out your goals, finances, and strategy so you don’t get lost along the way.

Start with your business name, something catchy, memorable, and relevant to your brand. Next, figure out your target market. Are you selling to casual tea drinkers, wellness enthusiasts, or tea experts looking for premium leaves?

Decide what tea products you’ll offer. Will you focus on leaf tea, iced teas, sell tea accessories, or a mix of both? Maybe you’ll include accessories like infusers, teapots, or even subscription boxes.

Then, plan how you’ll sell your tea. Most new tea businesses start online through a website, Amazon, or platforms like Etsy. If you dream of opening a physical tea shop or pop-up store, include that in your plan too.

Lastly, consider your budget and startup costs. How much will it cost to source tea, design packaging, and market your business? Having a solid plan in place makes the whole process smoother.

3. Source Quality Tea Suppliers

The heart of your tea business is, well, the tea. If your tea isn’t high quality, customers won’t come back. This is why finding the right suppliers is crucial.

You can buy tea from wholesale suppliers or directly from tea farms. Some of the best tea-producing regions include China, India, Sri Lanka, and Japan. If you want organic, fair-trade, or rare specialty teas, look for certified farms that align with your values.

Before choosing a supplier, always order samples. The taste, aroma, and freshness of the tea will define your brand, so don’t settle for anything less than amazing.

If possible, attend tea expos like the World Tea Expo to meet suppliers and learn more about the industry. Networking with farmers and wholesalers can also help you get better pricing and exclusive tea varieties.

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4. Branding and Packaging

Your tea might be incredible, but if your branding and packaging don’t grab attention, customers will scroll right past you. Your brand should tell a story—whether it’s about sustainability, wellness, or a unique cultural influence.

A memorable business name and logo will help you stand out, but packaging is equally important. Eco-friendly, sustainable packaging is a huge plus since many tea lovers prefer brands that align with their values. A well-designed, eye-catching tea package can make your product feel premium and gift-worthy.

Strong branding also means having a consistent online presence. Social media platforms like Instagram and TikTok are perfect for showing off beautiful blends, demonstrating how to brew the perfect cup, and sharing behind-the-scenes glimpses of your business.

5. Register Your Business

Nobody loves paperwork, but getting your business legally set up is essential.

First, decide on your business structure. A sole proprietorship is easy to start, but an LLC (Limited Liability Company) is often better because it protects your personal assets.

Next, check your local business licensing requirements. In most cases, you will need some form of license or permit to sell tea either at a brick-and-mortar store or online. The specific requirements can depend on a few factors, including the country, state, or region you're selling in, as well as the type of tea you're selling (e.g., loose-leaf, pre-packaged, flavored, etc.)

Finally, open a business bank account. Keeping your personal and business finances separate makes accounting (and tax season) way easier.

6. Build Your Online Store & Start Selling Tea Online

Most new tea businesses start online because it’s more affordable than opening a physical store. You’ll need a website where customers can browse your tea products, learn about your brand, and make purchases.

Shopify and WooCommerce are great platforms for e-commerce or online stores, while Etsy can be a good option if you want to start small. No matter what platform you choose, your store should be easy to navigate, visually appealing, and mobile-friendly.

Your product descriptions matter, too! Instead of just listing ingredients, tell a story about each tea blend. Where does it come from? What flavors can customers expect? How should they brew it? High-quality product photos are also a must—customers can’t taste your tea through the screen, so make it look as inviting as possible!

7. Marketing Your Tea Business

Now that your store is live, it’s time to attract customers. Marketing is where many new businesses struggle, but don’t worry because there are tons of ways to get your tea brand noticed.

Social media is your best friend. Platforms like Instagram, TikTok, and Pinterest are perfect for showing off your teas. Post beautiful photos, behind-the-scenes videos, and even short clips of customers enjoying your tea. You can also create brewing tutorials, tea pairing guides, and fun challenges to keep your audience engaged.

Email marketing is another powerful tool. Start building an email list early by offering discounts or free samples in exchange for sign-ups. Send out newsletters with tea tips, new product launches, and special offers to keep your customers coming back.

If you want fast exposure, consider partnering with influencers and bloggers. Sending free samples to tea influencers can get your brand in front of thousands of potential customers.

And don’t forget about SEO (Search Engine Optimization)! Optimize your website with keywords like “buy organic leaf tea” or “best herbal teas for sleep” so people can find you through Google searches.

8. Legal and Financial Considerations

Before you start selling tea, you’ll need to make sure your business is legally compliant and financially stable. First, research the food and beverage regulations in your country or state. Since tea is a consumable product, you may need to follow specific health and safety guidelines, especially if you’re blending or packaging the tea yourself. Look into labeling requirements as well as many regions require businesses to list ingredients, allergens, and expiration dates on packaging.

On the financial side, set up a business bank account to keep your personal and business finances separate. Track all expenses, including sourcing, packaging, and marketing costs, so you have a clear picture of your profit margins. If you plan to scale your business, consider working with an accountant or using accounting software to manage taxes, inventory, and cash flow efficiently. Proper financial planning from the start will help you avoid costly mistakes and set you up for long-term success.

How Much Does It Cost to Start a Tea Business?

Starting a tea business can be relatively affordable compared to other food and beverage ventures, but costs vary depending on your business model, sourcing strategy, and marketing approach. If you’re planning to start an online tea business, your expenses will likely be lower than if you open a physical tea shop. Still, there are a few key costs you need to consider before you start selling tea online.

Sourcing High-Quality Teas

First, sourcing high-quality teas is one of the biggest expenses. Wholesale tea suppliers often require a minimum order quantity, so expect to spend anywhere from $500 to $5,000 on your first batch of tea products. If you’re creating your own unique blends, you may also need herbs, spices, and natural flavors, which add to the cost. Additionally, custom blends require research, testing, and packaging, which can further increase initial expenses.

Packaging and Branding Costs

Speaking of packaging, you’ll need to invest in tea bags, tins, or eco-friendly pouches to store and ship your flavored teas and loose leaf tea. Well-designed, sustainable packaging is a huge selling point for modern consumers, but it does add to your startup costs. Expect to spend anywhere from $300 to $3,000 depending on how premium and customized your branding is.

Building Your Online Store

If you’re selling tea online, you’ll need an online store, which comes with expenses like domain registration, website hosting, and e-commerce platform fees. Platforms like Shopify, WooCommerce, and Etsy offer affordable options, but additional costs like product photography, graphic design, and copywriting can push expenses higher. You might also need to invest in social media marketing, influencer collaborations, and SEO strategies to attract customers and build your customer base.

Legal and Registration Costs

On the legal side, registering your own tea business comes with costs depending on your location. Setting up a limited liability company (LLC) can cost anywhere from $50 to $500 depending on state fees. You may also need a business license, which varies based on local regulations. If you plan to import wholesale tea from international tea suppliers, you might also need to pay customs duties and import fees.

Total Startup Costs

So, how much does it cost to start a tea business? A small-scale online tea business can get off the ground for $2,000 to $5,000, while a fully branded operation with custom tea blends, premium packaging, and a professional e-commerce site can easily cost $10,000 or more. If you plan to open a physical tea shop, costs can skyrocket to $50,000 or beyond, depending on rent, interior design, and staffing. But don’t let these numbers scare you because many successful tea businesses start small and grow over time.

Where to Buy Wholesale Tea?

Finding the right wholesale tea supplier is crucial for ensuring the quality and variety of your offerings. Here are some reputable suppliers to consider:​

Tea Palace (United Kingdom)

Tea Palace is a modern tea emporium that offers one of the widest selections of premium loose leaf teas and infusions in the UK. Founded in London in 2005, they are dedicated to leading the rediscovery of a 'proper cup of tea' and sharing their passion with tea lovers everywhere. Their extensive range includes black single estate teas, exclusive black blends, green teas, oolong teas, white teas, and herbal and fruit infusions. Tea Palace collaborates with Michelin-starred restaurants, five-star hotels, fine dining establishments, and luxury retailers, providing both national and international delivery along with education and training on tea service.

Gemaga Group (Lithuania)

Gemaga Group is a leading company in the FMCG sector, specializing in the import and export of high-quality tea and instant coffee. With over 60 years of experience in tea manufacturing, they are dedicated to delivering exceptional flavors and innovative packaging solutions. Their extensive product range includes renowned brands like POSTI, IMPRA, and MOZUMS, alongside private label options tailored for your needs. ​

Corretto Suite (Italy)

Corretto Suite is a pioneer in importing and processing exclusive and sought-after tea products while ensuring an innovative approach to health and wellness. Their commitment to delivering organic and high-quality beverages sets them apart as they offer a diverse range of products including organic coffee, tea, and herbal blends, aimed at enhancing your daily routine.​

SC Kalpo S.R.L. (Romania)

Vedda is dedicated to crafting high-quality herbal teas and specialty coffees that provide a delightful sensory experience. With a legacy of three decades in the industry, they ensure all their tea products are meticulously selected and tested to meet the highest standards. Their diverse range includes flavored teas, health teas, various coffees, and unique chocolate drinks, appealing to various tastes and preferences.​

Carmine Rondinelli Instant Drink and Coffee (Italy)

Espresso Dolce Vita is a vibrant and dynamic company specializing in the production of high-quality coffee capsules and soluble beverages. With a commitment to both excellence and environmental sustainability, they offer a wide range of compatible products for various coffee machines. Their selection includes coffee, herbal teas, and gourmet drinks that cater to the diverse tastes of consumers, ensuring every sip is a delightful experience.​

When selecting a supplier, consider factors such as product quality, range, customization options, and the supplier's commitment to ethical sourcing and sustainability. Building a strong relationship with a reputable supplier can significantly enhance the success of your tea business.​

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Launch Your Tea Business with Torg!

Sourcing high-quality tea shouldn’t be complicated, and with Torg, it isn’t. Whether you're starting a tea company or expanding your existing tea business, Torg makes finding the right suppliers seamless and efficient.

Torg’s AI-driven platform connects retail and wholesale buyers with over 100,000+ verified food and beverage manufacturers across Europe, including premium tea suppliers. Instead of spending weeks vetting suppliers, you can create a product request in just two minutes and instantly reach hundreds of relevant manufacturers. This means faster sourcing, better deals, and a more transparent market for both buyers and suppliers.

Founded by industry experts from Zalando, Delivery Hero, and Just Eat Takeaway, Torg was designed to solve the inefficiencies of traditional sourcing. The platform streamlines the procurement process, automating manual tasks and allowing businesses to focus on growth instead of logistics.

Ready to find the perfect tea supplier? Start your search today with Torg!