Yunnan Province is the important tea-producing area in China and the world, and the tea industry is an important part of Yunnan’s agricultural economy. In the face of domestic tea inventory pressure, it is very important to study the sustainable development of the Yunnan tea industry. This study clarifies the current situation of tea supply and consumption in China; investigates the tea garden area, tea production, and tea export volume in China and Yunnan Province; analyzes the data of domestic primary tea and finished tea production, consumption, and inventory from 2018 to 2023; and highlights the problems of inventory pressure and structural imbalance in the product supply side of China's tea industry. On this basis, it is proposed that the development of the ecological tea industry and the utilization of diversified tea resources are paths to sustainable development of the tea industry in Yunnan Province. These ideas are proposed in four aspects: the construction of ecological tea gardens, the development of a technology system for an ecological tea industry, staying up to date with the new tea consumption market, and expanding the production of functional terminal tea goods.