In 2026, the potential of the used chaipatti (tea waste) business has evolved from a niche hobby into a structured industrial opportunity.
India produces over 1 million tonnes of tea annually, and the waste generated from this production represents a massive untapped resource. This waste can be transformed into Vegan Tea Leather, an eco-friendly alternative gaining global attention.
Brands like Malai and Pinatex have already demonstrated that plant-based leather products can sell for ₹2,000–₹5,000 per meter, proving strong commercial demand.
A Turkish company named Wastea is reportedly valued at $550 million by producing tea leather handbags. At an average international selling price of $40–$60 (₹3,300–₹5,000) per meter, such companies target annual revenues between $20 million and $50 million (₹160 Cr – ₹400 Cr).
How to Start a Vegan Tea Leather Business
Below is the step-by-step process used to manufacture tea leather from used tea waste.
Preparation
Mix washed tea waste with:
- Water
- Sugar
- Vinegar
This mixture forms the base solution for fermentation.
The SCOBY Addition
Introduce a SCOBY (Symbiotic Culture of Bacteria and Yeast) into the prepared tea solution. This culture is responsible for growing the leather-like material.
Fermentation Process
- Pour the mixture into a large, flat tray.
- Allow it to sit for 14–21 days.
During this period, bacteria consume the tea and sugar, forming a thick cellulose “leather” layer on the surface.
Harvesting
- Peel off the formed layer.
- Wash it thoroughly.
- Treat it with Glycerol or Vegetable Oils to improve softness and flexibility.
Finishing
Press the material under heat to create a leather-like texture suitable for product manufacturing.
Bonus Tip
Profit potential in this business can reach 300% – 500%.
Unit Economics of Tea Leather Production
- Raw Material Cost: ₹25–₹40 per kg (tea waste + sugar)
- Production Cost: Approximately ₹800 per sq. meter
- Selling Price: ₹2,500–₹4,500 per sq. meter
Target Customers
Fashion Brands
- Zouk
- Ethik
Automotive & Interior Design
- Tata Motors and Mahindra, both moving toward green interiors for EV lines
Other Buyers
- Material contractors
Machinery & Instruments Required
| Item | Product & Price (IndiaMART) | Purpose |
|---|---|---|
| SCOBY Culture | Kombucha SCOBY (₹500 – ₹600) | Bacteria culture that grows leather |
| Waste Shredder | Industrial Waste Shredder (₹15,000) | Grinding dried tea into powder |
| Manual Hand Press | Manual Leather Press (₹8,000) | Flattening and texturing leather |
| Embossing Machine | Manual Embossing Press (₹5,500 – ₹8,200) | Heat stamping patterns/logos |
| Stackable Trays | Thermoformed Plastic Trays (₹10 – ₹100/pc) | Used during 21-day growth process |
| Solar Dryer | Portable Solar Dryer (₹11,000 – ₹29,000) | Drying harvested sheets without electricity |
Total Estimated Setup Cost: ₹40,000 – ₹55,000
Legal & Licensing Requirements (2026 Updated)
Tea Waste License
You must register on the Tea Board of India e-portal under the Tea Waste (Control) Order, 1959.
- Fee: Approximately ₹3,300 + GST
- Website: https://www.teaboard.gov.in/
Pollution Board Consent (SPCB)
Since waste is being processed, a Consent to Establish certificate from the State Pollution Control Board is required.
MSME / Udyam Registration
Helps in accessing government schemes and loans such as PMEGP (up to ₹25 lakh).
Trade License
Required from your local Municipal Corporation.
GST Registration
Necessary for selling products to large brands such as mCaffeine or Ugaoo.
Conclusion
The used tea waste industry in 2026 presents a strong opportunity by converting agricultural waste into high-value vegan leather products. With low setup costs, scalable production, and growing demand for sustainable materials, tea leather manufacturing is emerging as a viable green business model.