Global Herbal Tea Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2031

Herbal Tea Market Analysis

The global herbal tea market is on a growth trajectory, driven by increasing consumer awareness of health and wellness and a shift towards natural, organic beverages. As people seek healthier alternatives to conventional drinks, herbal teas have gained popularity for their perceived health benefits and flavors. The market is diverse, featuring a variety of herbal teas such as chamomile, peppermint, and hibiscus, each known for specific health properties. Regions such as North America and Asia-Pacific are leading this market due to cultural inclinations towards herbal consumption and innovative product offerings. The rising incidence of lifestyle-related health issues, such as obesity and stress, has also fueled demand for functional beverages that can aid in wellness. Additionally, the convenience of herbal tea, available in ready-to-drink formats and as convenient sachets, appeals to busy consumers. Moreover, continuous research and development efforts in herbal tea formulations are expected to enhance product diversity and quality, making them more appealing to a broader audience. With an increase in online retail platforms, accessibility to herbal teas has improved, further supporting market growth.

Herbal Tea Market Size

The global herbal tea market size was valued at USD 3.70 billion in 2023 and is projected to reach USD 4.76 billion by 2031, with a CAGR of 3.20% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Herbal Tea Market Trends

“Rising Adoption of Wellness-Focused Blends”

The herbal tea market is experiencing a significant trend toward wellness-focused blends, driven by increasing consumer demand for health benefits associated with herbal ingredients. As more individuals seek natural remedies for stress relief, digestion, and immune support, brands are developing innovative herbal tea formulations that cater to these needs. For instance, chamomile and peppermint blends are gaining popularity for their soothing properties, while turmeric and ginger teas are favored for their anti-inflammatory benefits. This trend reflects a broader shift towards holistic health, with consumers prioritizing products that promote physical and mental well-being. Furthermore, the rise of organic and ethically sourced ingredients is shaping the market, appealing to environmentally conscious consumers. Brands such as Celestial Seasonings and Yogi Tea are at the forefront of this trend, offering a variety of herbal blends that taste great and align with consumers’ health-conscious lifestyles.

Report Scope and Herbal Tea Market Segmentation 

Herbal Tea Market Definition

Herbal tea, also known as tisane, is a beverage made by infusing various herbs, flowers, fruits, and spices in hot water. Unlike traditional tea, which is derived from the Camellia sinensis plant, herbal tea does not contain caffeine and can be made from a wide variety of botanical ingredients. Common herbs used in herbal teas include chamomile, peppermint, hibiscus, and rooibos, each offering unique flavors and potential health benefits. Herbal teas are often enjoyed for their soothing properties, nutritional benefits, and as a natural remedy for various ailments. They can be served hot or cold and are popular among those seeking caffeine-free alternatives or specific therapeutic effects.

Herbal Tea Market Dynamics

Drivers

• Rising Health Consciousness

Health and wellness trends significantly drive the herbal tea market, as consumers become increasingly aware of the health benefits associated with these beverages. A survey conducted by the Tea Association of the U.S.A. found that over 70% of tea drinkers consume tea for its health benefits, with herbal teas often highlighted for properties such as improved digestion, relaxation, and immune support. For instance, herbal ingredients such as chamomile and peppermint are renowned for their calming effects and digestive aid properties, respectively. The strong demand fueled by the health-conscious consumer base owing inclination towards health-oriented products positions herbal teas as a favorable choice among consumers seeking natural remedies and wellness solutions, thus driving market growth.

• Rising Disposable Income in Emerging Economies

Rising disposable income in emerging economies is a significant market driver for the herbal tea sector, enabling consumers to invest in premium and specialty products. As economies such as India, China, and Brazil experience rapid economic growth, their middle-class populations are expanding and seeking higher-quality lifestyle products, including herbal teas. According to a report by the World Bank, the global middle class is projected to grow to approximately five billion people by 2030, with a substantial portion residing in emerging markets. This increase in disposable income empowers consumers to prioritize health and wellness, leading to a greater willingness to spend on premium herbal tea brands known for their quality and health benefits. For instance, the premium herbal tea brand, Pukka Herbs, has reported substantial growth in sales in markets such as India, driven by consumers seeking organic and ethically sourced herbal options. Thus, the rising disposable income fuels demand for herbal teas and encourages brands to innovate and offer diverse, high-quality products that cater to this affluent consumer base.

Opportunities

• Growing Preference for Natural and Organic Products

The growing preference for natural and organic products over synthetic alternatives presents a significant market opportunity for herbal teas, which are often crafted from whole, natural ingredients. A survey by Nielsen revealed that over 66% of consumers are willing to pay more for products made from natural ingredients, reflecting a broader shift towards healthier and more sustainable food and beverage choices. Herbal teas, such as those containing organic chamomile, ginger, or hibiscus, cater to this demand and promote transparency in sourcing and production, which resonates with health-conscious consumers. Brands such as Yogi Tea and Traditional Medicinals have successfully capitalized on this trend by offering certified organic herbal teas that emphasize their commitment to using high-quality, natural ingredients. This growing inclination towards natural products enhances consumer trust and positions herbal teas as a preferred choice, driving market growth in the health and wellness sector.

• Rising Introduction of Innovative Flavors and Formats

The introduction of innovative flavors and formats in the herbal tea market represents a significant opportunity for manufacturers aiming to attract younger consumers and those seeking novel experiences. As consumer preferences evolve, brands are experimenting with unique flavor combinations and convenient packaging solutions, such as ready-to-drink herbal teas. For instance, companies such as Sweet Leaf Tea have launched flavored herbal tea blends such as "Peach Lemonade" and "Mint & Honey," tapping into the desire for refreshing and exciting options. Additionally, brands such as Tea on Tap are offering functional blends designed for specific benefits, such as energy boosts or relaxation, packaged in grab-and-go formats that cater to busy lifestyles. This innovation enhances product appeal and aligns with the growing trend of personalization and convenience among younger consumers, thereby driving sales and market growth in the herbal tea sector.

Restraints/Challenges

• Varying Regulations Regarding the Labeling and Health Claims

Regulatory hurdles present a significant challenge for the global herbal tea market, as different countries enforce varying regulations regarding the labeling and health claims of herbal products. Navigating these complex regulations can be both time-consuming and costly for manufacturers, often requiring extensive documentation and compliance efforts. For instance, in the European Union, herbal teas must comply with the EU Novel Food Regulation, which mandates that any new herbal ingredient undergo rigorous safety assessments before being marketed. This contrasts with the regulatory landscape in the U.S., where the Food and Drug Administration (FDA) allows greater flexibility for herbal products but still enforces strict labeling requirements and prohibits misleading health claims. Such disparities can deter companies from entering certain markets or expanding their product lines, potentially limiting growth opportunities. Brands such as Celestial Seasonings, which has successfully navigated these regulations in the U.S., may find it more challenging to introduce their products in regions with stricter compliance demands.

• High Cost of Herbal Tea Compared to Traditional Tea

The high cost of herbal tea compared to traditional tea varieties poses a significant market challenge, as price-sensitive consumers may opt for more affordable options. Herbal teas often require more expensive ingredients, which can include rare herbs, botanicals, and organic certifications, contributing to their premium pricing. For instance, brands such as Harney & Sons offer specialty herbal teas that can retail for two to three times the price of standard black or green teas. This price disparity can limit the appeal of herbal teas to a broader audience, particularly in developing markets where consumers prioritize cost over health benefits. Moreover, as competition intensifies, the perception of herbal tea as a luxury item rather than a staple beverage may further hinder its market penetration and growth potential.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Herbal Tea Market Scope

The market is segmented on the basis of type, function, packaging type, raw material, product type, application, and distribution channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Cinnamon
• Dandelion
• Chamomile
• Ginger
• Turmeric
• Blends
• Others

Function

• Cognitive Health
• Gut and Digestive Health
• Multifunctional
• Others

Packaging Type

• Loose Tea
• Paper Pouches
• Tea Bags
• Carton Packs
• Can Packaging

Raw Material

• Green Tea
• Black Tea
• Yellow Tea

Product Type

• Syrups
• Premixes
• Powdered Ready to Drink
• Liquid Ready to Drink

Application

• Commercial Consumption
• Individual Consumption

Distribution Channel

• Store-Based
• Non-Store-Based

Herbal Tea Market Regional Analysis

The market is analysed and market size insights and trends are provided by country, type, function, packaging type, raw material, product type, application, and distribution channel as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific herbal tea market is projected to lead globally, driven by the increasing production and sales of tea in countries such as China, Japan, and India. This growth is attributed to the rising popularity of herbal teas for their anti-aging and detoxifying benefits, along with a surge in tea consumption among diverse age groups and demographics. In particular, China is anticipated to dominate the market and exhibit the fastest growth rate, fueled by a growing number of tea retail outlets and a cultural inclination towards herbal beverages. As consumers become more health-conscious, the demand for herbal teas is likely to strengthen throughout the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.  

Herbal Tea Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Herbal Tea Market Leaders Operating in the Market Are:

• Tata Consumer Product Limited (India)
• Unilever (U.K.)
• Associated British Foods plc (U.K.)
• VAHDAM (India)
• Celestial Seasonings (U.S.)
• The Bombay Burmah Trading Corporation, Limited (India)
• Stash Tea (U.S.)
• Bigelow Tea (U.S.)
• Shangri La Tea Company Inc. (U.S.)
• Yogi (U.S.)
• PEET'S COFFEE (Canada)
• Numi, Inc. P.B.C (U.S.)
• Ono Teas (India)
• Dilmah Ceylon Tea Company PLC (Sri Lanka)
• Apeejay Surrendra Group (India)

Latest Developments in Herbal Tea Market

• In September 2022, TH Group, a Vietnamese dairy company, launched a new line of herbal teas made from ingredients such as jiaogulan, lingzhi, adenoma cordifolium, chrysanthemum, perilla, ginger, passion flower, and lotus embryos sourced from the forest buffer zones of the Ky Son district in the central Nghe An province
• In June 2022, The Hain Celestial Group, Inc. became part of the How2Recycle label program, a standardized labeling initiative in the U.S. and Canada that helps companies communicate proper recycling methods for their packaging, enhancing the reliability and transparency of recyclability claims
• In July 2022, Opteamal, a health-oriented tea brand, launched a new online store that offers a range of organic and natural teas aimed at promoting health, weight loss, and overall wellness. To help newcomers ease into their health journey, Opteamal features six flavors: cherry, hibiscus, golden milk, orange detox, tropical turmeric, and chamomile lavender, alongside dietary supplements and weight loss products
• In April 2022, Unilever acquired Pukka Herbs Ltd., a prominent herbal tea brand, to enhance its portfolio of organic and natural offerings. This strategic move aims to strengthen Unilever’s position in the rapidly growing herbal tea market and cater to the increasing consumer demand for healthier beverage options
• In March 2022, Tata Global Beverages launched a new range of herbal teas branded as “Teavana Wellness Teas.” This initiative is part of Tata’s strategy to bolster its presence in the herbal tea sector and respond to the rising consumer interest in wellness-focused products globally

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