8 min read

How to Start a Tea Business

Quick answer

How to start a tea business, in short: pick the form you will sell (loose leaf, bags or bottled tea), check whether your state's cottage food law covers it, and find out if your blending space has to register with FDA. Buying leaves from abroad means prior notice to FDA for every shipment, even samples in the mail. Then choose your pouch or tin and make a label with the tea's name, net weight, ingredients and your address. Plain tea leaves usually skip Nutrition Facts; sweetened mixes and bottled tea usually need one.

How to start a tea business: kraft pouches and tins of loose leaf tea being filled and labeled on a workbench
Source, blend, pack, label, sell
01

Starting a tea business in seven steps

  • Choose your product: straight teas, your own blends, tea bags, a sweetened mix or a bottled tea drink
  • Find your suppliers, and plan how leaves from other countries reach you
  • Decide where you blend and pack: your home under your state's cottage food law, or a licensed space
  • Register that space with FDA if the rules require it, and get your state or local license
  • Pick packaging that fits your price and your label
  • Make the label for every tea and every size
  • Choose where you sell: markets, your own website, cafes or shops
02

Loose leaf, tea bags or bottled tea: the form sets the rules

A dry tea and a bottled tea drink look like the same business, but they are two different products in the eyes of a regulator. Dry leaves keep on a shelf. A brewed drink is a beverage, and many cottage food laws leave beverages out.

What you sellUsual starting pointLabel note
Straight loose leaf teaOften possible at home where your state lists teaOne ingredient, so no ingredient list; plain tea is exempt from Nutrition Facts without claims
Herbal, fruit or spiced blendsHome or licensed space, depending on your stateEvery leaf, herb, spice and flavor listed by weight
Sweetened instant mixCheck your state's dry mix rulesNutrition Facts; the serving is the amount of mix that makes 12 fl oz (360 mL)
Bottled iced tea or sweet teaUsually a licensed kitchen, since many cottage laws exclude drinksNutrition Facts with the serving in mL

Planning a tea sold for a health purpose, like sleep or digestion? Then you may be making a dietary supplement instead of a food, with a Supplement Facts panel and its own rules. Decide this before you design anything, because it changes the whole label.

FDA Tea Labeling Requirements →
03

Can you start a tea business from home?

Often, yes, for dry tea. Cottage food laws are state laws, and several of them name tea directly. Bottled tea is where most home routes end. Some examples from our state pages:

StateWhat the cottage food rules say about tea
ConnecticutDry herbs, seasonings, tea and coffee are allowed; beverages are not
IndianaDried herbs, spices and teas are allowed; kombucha and cold brew coffee are not
ArkansasPackaged teas are on the allowed list
OregonDried tea blends made from commercial food are allowed; bottled brewed tea is out

Check two more things in your own state: whether you may sell online or ship, and whether there is a yearly sales cap. Both decide how far a home tea business can grow.

Cottage Food Law →Food Label Requirements by State →
04

When a tea business must register with FDA

FDA's registration rule covers any facility that manufactures, processes, packs or holds food. For tea, that net is wide: FDA counts mixing, packaging and labeling as manufacturing, so filling pouches with a blend you mixed is enough. A private home is not a facility, so a cottage food tea maker blending in their own kitchen does not register.

The exemption that matters most for a small tea shop is the one for retail food establishments. You qualify when selling straight to consumers is your main business, measured in dollars:

21 CFR 1.227A retail food establishment's primary function is to sell food directly to consumers if the annual monetary value of sales of food products directly to consumers exceeds the annual monetary value of sales of food products to all other buyers.

Cafes and shops are businesses, not consumers. So once your wholesale tea sales outgrow your direct sales from a commercial space, plan on registering. Registration itself costs nothing, and you renew it every other year.

21 CFR 1.231(c)No registration fee is required.
21 CFR 1.227Examples of manufacturing/processing activities include: Baking, boiling, bottling, canning, cooking, cooling, cutting, distilling, drying/dehydrating raw agricultural commodities to create a distinct commodity (such as drying/dehydrating grapes to produce raisins), evaporating, eviscerating, extracting juice, formulating, freezing, grinding, homogenizing, irradiating, labeling, milling, mixing, packaging
FDA, How to Start a Food BusinessBefore registering your facility with FDA, you must obtain a business number from the Dun & Bradstreet (DUNS) registry.
FDA Food Facility Registration →
05

Buying tea from abroad: prior notice and English labels

Most tea is grown outside the US, so many tea businesses import, either directly from a garden or through an importer. FDA treats every imported food as interstate commerce, which means the federal rules apply from day one.

FDA, How to Start a Food BusinessAll imported food is considered introduced into interstate commerce.
  • Prior notice: FDA must receive a prior notice before food shipments arrive in the US, unless an exemption applies
  • Samples count too: for food sent by international mail, the prior notice is due before the package is sent to the United States
  • The PN Confirmation Number goes on the customs declaration that travels with a mailed package
  • Retail packs labeled abroad still need an English label; another language may appear next to the English translation
21 CFR 1.279(c)if the article of food is arriving by international mail, you must submit the prior notice before the article of food is sent to the United States.
FDA, How to Start a Food BusinessThe labels of food products sold in U.S. interstate commerce must be in English. If another language is used, an English translation must appear.

Ask your supplier or customs broker who files the prior notice before you place the first order. Agreeing on it up front saves a shipment from sitting at the port.

06

Choose your packaging before you print labels

Your pouch, tin or box sets how much room the label gets, and that decides which label layout fits. Settle the package first, then the label:

PackageWhat to plan for
Stand-up pouchA flat back panel holds a standard label; weigh the tea, not the pouch, for the net weight
Round tinA curved surface with little flat room: a wide or linear label often fits better than a tall one
Box of tea bagsLabel the box; state the tea's weight, and add the bag count if you like
Bottle of iced teaFluid ounces and mL on the front; a tall, narrow label wraps well

From our tool you download the label as a print-ready PDF in its real size, an SVG your designer can place on the artwork, a 600 dpi PNG, or a sheet that prints on Avery 5126, 5168, 5164 or 5163. When the package changes, you change the layout, not the recipe.

Nutrition Facts Label Formats →
07

The label your tea needs

Every packaged tea shows its name, the net weight, your business name and address, and an ingredient list for blends. Whether you also need Nutrition Facts depends on what is in the package and what you claim. Our tea labeling page covers flavor wording, the iced tea serving size and the juice rule.

For blends and drinks, type the recipe into our tool. Each ingredient gets its USDA match, the list comes out heaviest first, and allergens are picked up: sliced almonds in a chai blend put "Contains: Almonds." on the label. For a bottled tea, the Liquid box declares the serving in mL. You see the finished label free before you pay anything.

Tea Bag Label Template →Start your tea label free →
08

Where to sell your tea

ChannelWhat changes
Farmers markets and fairsThe classic cottage food route; the market may have its own vendor rules
Your own websiteAllowed in many cottage food states, often only within the state; out-of-state orders bring in the federal rules
Cafes and restaurantsWholesale: some cottage food laws don't allow it, and it counts against the retail exemption from FDA registration
Shops and grocery storesUsually a licensed space, plus whatever the store asks of its suppliers
How to Sell Food Online →How to Sell at a Farmers Market →
09

Tea business checklist

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Questions

Questions

It depends on your state and on where you pack. Some cottage food laws let you sell dry tea from your home kitchen with little or no paperwork. A commercial space usually needs a state or local food license, and an FDA registration unless it qualifies as a retail food establishment.

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