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Tea is a significant part of contemporary Australian culture, largely inherited from British tea culture. Tea drinking habits in Australia are generally linked to age, with Baby Boomers consuming the most tea and coffee of all generations, and Generation Z Australians more likely to consume hot chocolate. Tea consumption in Australia has increased dramatically over the last five years, with the market expected to continue its growth trajectory in the coming years.
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What You'll Learn
Tea consumption by generation
Tea consumption in Australia varies across generations, with Baby Boomers (born between 1946 and 1960) being the top tea drinkers, with around 61% drinking tea each week. This generation's tea consumption habits may be influenced by Australia's historical and cultural ties to tea. Introduced by British colonisation, tea has long been a part of Australian culture, with afternoon tea and morning tea traditions mirroring those of the British.
Generation Z Australians, on the other hand, exhibit different preferences. While they contribute significantly to the iced tea market, they are more inclined to choose hot chocolate over tea. This generation's interest in specialty tea options and flavoured blends reflects a shift in the Australian tea market.
Women, in general, consume more tea than men, with 55% of women drinking at least one cup per week compared to 45% of men. Tea consumption also tends to increase with age, as seen in the 14-17 age group, where 25% drink tea once a week.
The Australian tea market is influenced by the growing Asian population, blending traditions from Korea, Japan, China, Taiwan, India, and Sri Lanka. Additionally, health-conscious consumers are turning to tea for its antioxidant properties, potential weight management benefits, and calming effects, contributing to the growing popularity of specialty teas.
While tea consumption patterns vary across generations, the overall Australian tea market is valued at $1.2 billion, with a compounded growth rate of 3.5% through 2023.
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Tea consumption by gender
Tea drinking in Australia has been influenced by British tea culture, with Australians drinking tea at morning tea and afternoon tea. However, Australian tea culture has also been influenced by Asian tea cultures from countries like Japan, China, and India.
Tea consumption in Australia is linked to age, with younger generations preferring specialty teas and older generations consuming more tea overall. Baby Boomers (those born from 1946 to 1960) consume the most tea of all generations, with 61% drinking tea each week. In contrast, Generation Z Australians are more likely to consume hot chocolate. Tea consumption increases with age, with 25% of Australians aged 14-17 drinking tea once a week, and this percentage rising with each age group.
Women consume more tea than men in Australia, with 55% of women drinking at least one cup per week compared to 45% of men. Hot tea drinkers are more likely to be women, and they tend to be well-educated, older, and living in households without children. In contrast, more than half of the iced tea market is made up of people under 35, with a concentration in Generation Z.
The Australian tea market is growing, valued at $1.2 billion in 2019 and expected to reach $1.31 billion in 2025. Tea revenue per capita is high, at $46.99, and most tea purchases are made in supermarkets. The market is transitioning, with younger consumers moving away from standard black tea towards specialty teas, including green tea, fruit teas, herbal tisanes, and black specialty teas. This shift is driven by marketing and education, with consumers demonstrating more sophisticated palates and product knowledge.
While tea is widely consumed in Australia, a recent poll found that almost half of the 543 participants did not drink tea at all. Of those who did drink tea, 21% enjoyed a single cup per day, 16% drank two cups per day, 6% drank three cups, 7% drank up to four cups, and only 6% identified as avid tea drinkers, consuming five or more cups daily.
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Tea production in Australia
Tea is an essential part of contemporary Australian culture, inherited from British tea culture. However, Australia's tea culture has been influenced by Asian tea cultures from countries like Korea, Japan, China, Taiwan, India, and Sri Lanka due to the growing Asian population in the country.
Tea was introduced to Australia through British colonisation. It was first brought to the country by the First Fleet in 1788, and in 1883, Alfred Bushell opened the first tea shop in present-day Queensland. The first commercial tea plantation was established in Bingil Bay, northern Queensland, by the Cutten brothers in 1884. Allan Maruff started the first commercial tea plantings in Australia since then, in 1886, in the Nerada valley, south of Cairns, Queensland. In 1969, Tea Estates of Australia (TEA) began tea planting adjacent to the Nerada plantation, and in 1971, they opened Australia's first commercial tea factory.
Today, tea is grown on over 500 hectares of land in Australia, with approximately 6,000 tonnes of green leaves harvested annually. Almost all the tea produced in Australia is green tea, with some black tea production in the tropical north of the country. The largest tea producer in Australia is the Nerada plantation, which covers over 1,000 acres of tea and delivers more than 6 million kilos of fresh tea leaves for processing each year. Other tea producers include the Byron Bay Tea Company in New South Wales, the Red Sparrow Tea Company in Coffs Harbour, the Daintree Tea Company in Queensland, the Tinbeerwah Tea Company in Noosa, Queensland, and the Two Rivers Green Tea Company in Victoria.
The tea market in Australia is expected to continue growing, with a forecasted volume of 15.40 million kilograms in 2025. However, the country still imports about 97% of the tea consumed, with India, Sri Lanka, and Indonesia being the top suppliers.
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Tea imports and exports
Tea is a significant part of Australian culture, largely inherited from British tea culture. In 2023, Australia imported $110 million worth of tea, making it the 20th largest importer of tea in the world. The primary sources of tea imports into Australia are the United Arab Emirates ($21 million), Sri Lanka ($18.1 million), Poland ($16.3 million), India ($15.5 million), and Indonesia ($11.1 million). The fastest-growing import markets for Australia between 2022 and 2023 were Morocco ($3.7 million), the Netherlands ($237,000), and Japan ($231,000).
In the same year, Australia exported $5.06 million worth of tea. The main destinations for Australian tea exports were Japan ($1.6 million), New Zealand ($904,000), the United Kingdom ($579,000), Singapore ($223,000), and Fiji ($201,000). The highest export potential for Australian tea is in the United States, with an export gap of $426,000.
Tea production in Australia is relatively small, primarily in northern New South Wales and Queensland. Over 500 hectares of tea plantations have been grown in Australia, with approximately 6,000 tonnes of green leaves harvested each year. Almost 1,000 tonnes of processed black tea are produced in Australia, with 450 tonnes exported and 11,000 tonnes imported. The largest supplier of Australian-grown tea is Nerada Tea, with over 990 acres of tea planted in the Cairns Region, producing 1,500,000 kg of black tea.
The tea market in Australia is expected to continue growing, driven by health-conscious consumers seeking healthier alternatives to sugary drinks, as well as sustainability and ethical sourcing trends. The market consists of black tea, green tea, and mate sold in tea bags or as loose-leaf tea. Revenue from the tea market in Australia is projected to reach a combined total of $1.31 billion in 2025.
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Tea's health benefits
Tea is deeply ingrained in Australian culture, inherited from British tea culture, with Australians drinking tea and observing afternoon tea much like the British. Tea was first introduced to Australia by the British during colonisation, with records showing that tea was aboard the First Fleet in 1788.
Tea is the second most popular beverage in the world, after water, with an estimated 18 to 20 billion cups consumed daily. In Australia, tea consumption has grown dramatically over the last five years, with a particular increase in herbal and speciality teas.
Tea is considered a healthy beverage choice, with a growing body of scientific literature supporting its health benefits. Here are some of the key health benefits associated with tea consumption:
Cardiovascular Health
Polyphenolic compounds present in green and black tea have been linked to a reduced risk of cardiovascular diseases, including atherosclerosis and coronary heart disease. These compounds help prevent the oxidation of LDL cholesterol particles, which can lead to inflammation and hardening of arteries. Regular tea drinkers have also been found to have lower levels of "bad" cholesterol (LDL).
Cancer Prevention
Studies have shown that green tea has cancer-preventive effects, and emerging data suggests that black tea may offer similar benefits. The polyphenols in tea, particularly catechins in green tea, are believed to contribute to these cancer-fighting properties.
Antioxidant Properties
Tea is rich in polyphenols, which act as antioxidants in the body. These antioxidants neutralise free radicals, preventing them from damaging DNA and reducing their harmful effects on health. Green tea, in particular, is known for its strong antioxidant properties.
Weight Management
Some studies suggest that the caffeine and catechins in tea may support weight loss. However, conflicting evidence exists, especially regarding decaffeinated teas, and other lifestyle factors like physical activity may also play a role.
Stress Relief
Tea is associated with the mindfulness movement and is often consumed to promote relaxation and relieve stress. Certain compounds in tea have been found to lower blood pressure, contributing to its calming effects.
While tea offers these health benefits, overconsumption can have negative consequences, including caffeine overload, gastrointestinal issues, and potential interference with certain medications. Additionally, drinking tea that is too hot (above 131-140° F or 55-60° C) may increase the risk of oesophageal and stomach cancers.
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Frequently asked questions
It is unclear exactly how many people in Australia drink tea, but a poll of 543 Australians found that almost half of the participants did not drink tea at all. However, tea consumption is an essential part of contemporary Australian culture, and 15.2 million Australians consume hot drinks weekly.
In 2000, Australia consumed 14,000 tonnes of tea annually. The tea market is expected to show a volume growth of 15.4 million kilograms in 2025.
Almost 1,000 tonnes of processed black tea are produced in Australia, with 450 tonnes exported and 11,000 tonnes imported. Tea is grown on more than 500 hectares, with approximately 6,000 tonnes of green leaves harvested.
The most common tea in Australia is black tea in bags, with British-inspired blends being the most popular. However, there is a growing trend towards specialty teas, such as green tea, fruit teas, herbal tisanes, and black specialty teas.
Tea consumption in Australia is linked to age, with older generations such as Baby Boomers consuming more tea than younger generations like Generation Z. Women are also more likely to drink tea than men, with 55% of women drinking at least one cup per week compared to 45% of men.
