The global herbal tea market is projected to reach a market value of USD 13.4 billion by 2023, growing at a Compound Annual Growth Rate (CAGR) of 7.5% from 2023 to 2031. By 2031, the market is expected to reach USD 24.1 billion.
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The Global Herbal Tea Market refers to the production, distribution, and consumption of non-caffeinated beverages made from the infusion of herbs, flowers, roots, and other plant materials. The market is driven by growing consumer demand for natural and health-oriented beverages, particularly those with perceived benefits such as stress relief, digestion support, and immune system enhancement. Key factors influencing the market include increasing health awareness, rising popularity of wellness trends, and innovation in flavor combinations. The market is also shaped by regional preferences, evolving retail channels, and sustainability concerns in sourcing raw materials.
The Global Herbal Tea Market is primarily driven by a rising consumer preference for natural and health-conscious beverage options. Increasing awareness of the health benefits associated with herbal teas, such as improved digestion and stress relief, fuels demand. The growth is further supported by expanding wellness trends and a shift towards preventive healthcare. Additionally, innovation in flavor profiles and packaging, coupled with expanding distribution channels including e-commerce, enhances market accessibility and appeal. Regional variations and a focus on sustainable sourcing also contribute to the market’s expansion.
The global herbal tea market is witnessing a surge in demand, driven by the growing popularity of healthy and natural beverages. Key trends include the increasing adoption of herbal teas for their perceived health benefits, such as stress relief and digestive aid. Additionally, the market is seeing a shift towards more exotic and unique flavor profiles, as well as a growing demand for organic and fair-trade herbal teas. Furthermore, the market is expected to see a rise in e-commerce sales, as consumers increasingly turn to online platforms to purchase herbal teas.
Market Segmentation: The Global Herbal Tea Market is segmented by technology By Type (Chamomile Tea, Peppermint Tea, Ginger Tea, Rooibos Tea, Hibiscus Tea) By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Retailers, Convenience Stores) and geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market size and forecasts for revenue (USD million) for all the above segments.
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Market Drivers:
Growing demand for healthy and natural beverages:
The global herbal tea market is driven by the increasing demand for healthy and natural beverages. Consumers are becoming more health-conscious and are seeking alternatives to traditional tea and coffee. According to a report by the International Tea Committee, the global herbal tea market is expected to grow by 15% annually between 2020 and 2025. This growth is driven by the increasing popularity of herbal teas such as turmeric, ginger, and peppermint, which are perceived to have health benefits. As consumers continue to prioritize their health and wellness, we expect the demand for herbal teas to increase, particularly in regions with high disposable incomes.
Increasing adoption of herbal teas for stress relief and digestive aid
Herbal teas are increasingly being adopted for their perceived health benefits, such as stress relief and digestive aid. The global wellness industry is growing rapidly, and herbal teas are a key component of this trend. According to a report by the Global Wellness Institute, the global wellness industry is expected to reach USD 5.5 trillion by 2025. Herbal teas are being marketed as a natural and effective way to manage stress and anxiety, and as a digestive aid. As consumers become more aware of the benefits of herbal teas, we expect the demand for these products to increase, particularly in regions with high stress levels and a growing wellness industry.
Market Restraints:
The global herbal tea market is facing challenges related to fluctuating raw material prices and supply chain disruptions. The prices of key herbs such as turmeric, ginger, and peppermint are subject to fluctuations due to factors such as weather conditions, pests, and diseases. Additionally, supply chain disruptions caused by factors such as trade wars, tariffs, and logistics issues can impact the availability of these herbs. According to a report by the International Trade Centre, the global herbal tea market is expected to face supply chain disruptions due to the COVID-19 pandemic. As a result, herbal tea manufacturers are facing challenges in maintaining consistent quality and prices, which may impact their competitiveness in the market. To mitigate these risks, manufacturers are adopting strategies such as diversifying their supplier base and investing in sustainable and resilient supply chains.
The COVID-19 pandemic significantly impacted the Global Herbal Tea Market, initially causing disruptions in supply chains and retail operations due to lockdowns and movement restrictions. Despite these challenges, the market experienced a surge in demand as consumers increasingly sought out herbal teas for their perceived health benefits and immune-boosting properties. The pandemic accelerated the shift towards online purchasing and home consumption, as people prioritized health and wellness while spending more time at home. Additionally, the focus on natural and preventive health measures during the pandemic boosted interest in herbal remedies, contributing to a favorable long-term outlook for the market as consumer preferences continue to lean towards natural and health-oriented products.
Segmental Analysis:
Chamomile Tea Segment is Expected to Witness Significant Growth Over the Forecast Period
Chamomile tea has gained popularity in the Global Herbal Tea Market due to its well-known calming effects and its potential to improve sleep quality. Recent developments in this sub-segment include increased product innovation, such as chamomile blends with additional herbs like lavender or mint to enhance relaxation benefits. The growing consumer interest in natural sleep aids and stress relief solutions has driven demand. Additionally, the expansion of chamomile tea offerings in ready-to-drink formats and the rise of premium, organic chamomile options are catering to health-conscious consumers. Driving factors include increasing awareness of mental health benefits and a shift towards natural remedies in wellness routines.
Minty Flavoured Teas Segment is Expected to Witness Significant Growth Over the Forecast Period
Minty flavoured teas, particularly those featuring peppermint and spearmint, have seen significant growth in the herbal tea market due to their refreshing taste and digestive benefits. Recent trends include the development of new mint blends and products that combine mint with other popular flavors such as citrus or ginger. The growing preference for digestive health and breath-freshening properties has bolstered the demand for minty teas. Additionally, the expansion of these products in ready-to-drink formats and innovative packaging solutions has made them more accessible to consumers. Key drivers include rising health awareness and the desire for natural remedies that support digestive health and overall well-being.
Asia Pacific Region is Expected to Witness Significant Growth Over the Forecast Period
The Asia-Pacific region is expected to witness significant growth in the Global Herbal Tea Market over the forecast period due to several compelling factors. The region's diverse agricultural base and increasing consumer awareness about health and wellness are driving the demand for herbal teas. Countries like China, India, and Japan are seeing rising interest in herbal teas due to their traditional health benefits and natural properties. Additionally, the growing middle class, increasing disposable incomes, and expanding retail channels, including online platforms, are contributing to market expansion. Regional preferences for herbal remedies, coupled with a shift towards healthier lifestyles, further support the strong growth outlook for the herbal tea market in Asia-Pacific.
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The Global Herbal Tea Market is marked by a diverse array of key players vying for market share through product innovation, strategic partnerships, and extensive distribution networks. Leading companies are focusing on expanding their product portfolios with new herbal blends, organic options, and ready-to-drink formats to meet evolving consumer preferences.
Major competitors in the market included:
Recent Development:
1) Tetley launched a new line of functional herbal teas in early 2024, focusing on specific health benefits such as immunity support and stress relief. This new range features advanced herbal blends and natural ingredients designed to address emerging consumer needs for health-focused beverages. The launch is part of Tetley’s strategy to capitalize on the growing demand for wellness products and enhance its market presence through innovation.
2) Pukka Herbs announced the expansion of its product line in 2023 with a series of organic herbal tea blends incorporating adaptogens and superfoods. This move aligns with the rising consumer interest in organic and health-enhancing ingredients. Pukka’s new offerings aim to cater to health-conscious consumers seeking natural solutions for well-being and stress management, reinforcing its commitment to sustainability and high-quality, ethically sourced ingredients.
Q1. What are the driving factors for the Global Herbal Tea Market?
The global herbal tea market is primarily driven by increasing consumer awareness of health and wellness. Herbal teas are often perceived as natural remedies with various health benefits, including improved digestion, relaxation, and enhanced immunity. This trend is further fueled by the growing interest in organic and plant-based products, as consumers seek healthier alternatives to traditional beverages. Additionally, the rise in the popularity of wellness lifestyles, including mindfulness and holistic health practices, has contributed to the demand for herbal teas. Innovations in flavor and packaging are also attracting a broader audience, making herbal teas more accessible and appealing.
Q2. What are the restraining factors for the Global Herbal Tea Market?
Despite its growth potential, the herbal tea market faces several restraining factors. One significant challenge is the lack of standardized regulations and quality control, leading to concerns about product safety and efficacy. Additionally, competition from other beverage categories, such as coffee and flavored teas, can limit market share. The perception that herbal teas are less potent than traditional medicines may also deter some consumers. Furthermore, the relatively high price point of premium herbal tea products can be a barrier for price-sensitive consumers. Seasonal variations in the availability of certain herbs may also affect supply and pricing stability.
Q3. Which segment is projected to hold the largest share in the Global Herbal Tea Market?
The fruit and flower herbal tea segment is projected to hold the largest share in the global herbal tea market. These varieties are popular for their refreshing flavors and vibrant colors, appealing to a wide range of consumers, including those seeking caffeine-free options. Fruit and flower teas often come with added health benefits, such as antioxidants and vitamins, which enhance their appeal. The versatility of these teas, suitable for both hot and iced preparations, further boosts their popularity. As consumer preferences lean towards flavorful, health-oriented beverages, this segment is expected to continue dominating the market.
Q4. Which region holds the largest share in the Global Herbal Tea Market?
North America is anticipated to hold the largest share in the global herbal tea market, driven by a growing health-conscious population and increasing interest in wellness products. The United States, in particular, has seen a surge in herbal tea consumption as consumers shift towards natural remedies and organic options. Retail expansion and the proliferation of specialty tea shops have made herbal teas more accessible to consumers. Additionally, the rise of online sales channels has facilitated the growth of the herbal tea market in this region. However, competition from other beverage segments and changing consumer trends may influence future market dynamics.
Q5. Which are the prominent players in the Global Herbal Tea Market?
Key players in the global herbal tea market include established brands such as Twinings, Celestial Seasonings, and Tetley, which offer a diverse range of herbal tea products. Other prominent companies include Harney & Sons, Stash Tea, and Pukka Herbs, known for their innovative flavors and quality ingredients. These companies are actively investing in marketing strategies and product development to capture emerging consumer trends, such as organic and functional teas. Collaborations with health and wellness influencers, along with a focus on sustainability, are also shaping the competitive landscape. Overall, these players are essential in driving growth and innovation in the herbal tea market.
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
