Global Herbal Tea Market Report and Forecast 2024-2032

Global Herbal Tea Market Size

The global herbal tea market reached approximately USD 3.81 billion in 2023. The market is projected to grow at a CAGR of 6.6% between 2024 and 2032, reaching a value of around USD 6.77 billion by 2032.

Herbal Tea Market Outlook

• Functional herbal teas are often promoted for their calming, digestive, and immune-boosting properties, contributing to their popularity.

• Brands that prioritise sustainability and fair-trade practices are gaining a competitive edge in the herbal tea market.

• Attractive and convenient packaging, such as pyramid tea bags and single-serve sachets, has contributed to the market's growth.

Herbal Tea Market Growth Rate

Herbal tea refers to a type of tea which contains herbs and can include a blend of several non-tea plant components such as leaves, fruits, bark, roots, or flowers. This tea comes with some remarkable health benefits owing to its antioxidant, anti-inflammatory, and hydration-promoting properties. Herbal teas offer a pleasing aroma, refreshing taste, and healing properties.

The heightened adoption of healthy drinking habits is one of the crucial factors fuelling the herbal tea market growth. Growing cases of cardiovascular diseases, obesity, diabetes mellitus, and several viral diseases, among others, are likely to fuel the sale of herbal tea, thereby strengthening the market value. Elderly populations, that are likelier to suffer from insomnia, improper digestion, and various other health conditions, can often benefit from the health advantages of herbal teas. In this regard, the increasing geriatric population across the world is likely to expand the target market in the forecast period.

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Key Trends and Developments

Wide variety of packaging; functional and wellness teas; flavour innovation; and  sustainability and ethical sourcing are the major trends impacting the herbal tea market expansion

February 28th, 2024

A Chinese herbal tea manufacturer is aiming to broaden its global footprint by introducing its brand, "WALOVI," to the international market.

February 15th, 2024

D’Amazonia company in the herbal tea market announced the launch of functional tea designed to aid women going through menopause.

September 20th, 2023

Leaves of Leisure, a luxury herbal tea brand, initiated a crowdfunding campaign to support the brand's growth and facilitate expansion into new markets.

June 28th, 2023

Wander.com and Good Pharma formed a partnership to enhance the vacation experience by combining the distinctive advantages of mushroom-infused beverages with Wander's vacation rental offerings.

Wide variety of packaging

Packaging such as tea bags, plastic containers, loose tea, and aluminium tins offer consumers numerous options to choose from

Functional and wellness teas

Herbal teas that target specific health concerns, such as sleep, digestion, or detoxification, are becoming increasingly popular.

Flavour innovation

Consumers are seeking unique taste experiences, leading to the introduction of blends with ingredients like turmeric, ginger, hibiscus, and various herbs and spices.

Sustainability and ethical sourcing

Consumers are showing a preference for brands that prioritise sustainable farming practices, fair trade, and ethical sourcing of ingredients.

Herbal Tea Market Trends

Herbal teas have long been used for their therapeutic properties, and in recent years, there has been a growing trend towards herbal teas that target specific health concerns. This trend is driven by an increased awareness of health and wellness, as well as a desire for natural and holistic approaches to health management. Many herbal teas are formulated with a blend of herbs, each selected for its specific health benefits which creates a synergistic effect that can enhance the tea's overall efficacy.

Key players in herbal tea products market are enhancing their reach by introducing their products on a global level. A Chinese herbal tea manufacturer announced in February 2024 that it is taking steps to expand its reach beyond its domestic market by launching its brand, "WALOVI," internationally. By introducing "WALOVI" to consumers outside of China, the manufacturer is likely seeking to tap into the growing demand for herbal teas worldwide, driven by increasing health consciousness.

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Herbal Tea Industry Segmentation

“Herbal Tea Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Raw Material

• Green Tea

• Black Tea

• Yellow Tea

• Others

Market Breakup by Type

• Chamomile

• Peppermint

• Lemongrass

• Ginger

• Hibiscus

• Turmeric

• Others

Market Breakup by Packaging

• Loose Tea

• Tea Bags

• Plastic Containers

• Aluminium Tins

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Specialty Stores

• Online

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Herbal Tea Market Share

Demand for green tea is increasing rapidly owing to its multiple health benefits

The green tea segment accounts for a healthy share of the market. The increasing awareness about the health benefits offered by green tea, such as enhanced brain function, boosted metabolism, reduced risk of cardiovascular dysfunction, and effective sugar control, among others, is driving the segment’s growth. In addition, green tea is a popular drinking choice of working professionals, who often lead hectic lifestyles that are also sedentary. The relatively mild flavour of green tea makes it highly suitable for supplementation with additional herbs and flavours, increasing its preference as a raw material for herbal teas.

Black tea is anticipated to grow rapidly in the coming years as it is one of the most popular and widely consumed teas in the world. In many countries, black tea is deeply ingrained in the culture. For example, it is a staple in British tea culture, as well as in countries like India and Sri Lanka and the traditional tea ceremonies and rituals contribute to its high demand.

The chamomile segment maintains its dominance in the market due to its calming and soothing properties

The chamomile segment accounts for a significant portion of the herbal tea market. This type of tea helps with sleep, relaxes the body, possesses anti-inflammatory properties, is good for the heart, improves digestion, decreases anxiety, treats sore throat, and boosts the immune system. Hence, the increasing prevalence of lifestyle conditions such as insomnia, cold and cough, cardiovascular diseases, and anxiety disorders, among others, is fuelling the segment’s growth, thereby contributing to the expansion of market size. Moreover, as chamomile teas are equipped with the ability to combat harmful bacteria, rising concerns pertaining to bacterial diseases are expected to propel the sale of chamomile teas and support the overall market growth in the coming years.

Peppermint tea is also highly sought after in the herbal tea market for its refreshing taste and digestive benefits. It is commonly used to relieve symptoms of indigestion, nausea, and irritable bowel syndrome (IBS). The cooling effect of menthol in peppermint leaves makes this tea a preferred choice for many.

Leading Providers of Herbal Tea

The herbal tea market players are increasing their collaboration efforts to meet the evolving regulatory landscape

The Hain Celestial Group, Inc. is a leading food company which provides natural food products and botanically-based personal care products and its product portfolio includes snacks, meat and tea, among others.

Pukka Herbs Limited is a prominent food company which provides products such as herbal food supplements, teas, organic botanicals, bio-nutrients, body care, and skincare.

Tielka Pty Ltd is a comprehensive provider of ethical and quality food sources and is a wholesaler and retailer of gourmet, organic, allergen, and preservative-free speciality foods.

ORGANIC INDIA USA, LLC, a leading global provider of organic herbal and wellness products, is committed to promoting holistic wellness through organic, ethically sourced products.

Other market players include Culinary Teas, Harney & Sons Fine Teas, Twining and Company Limited, Numi, Inc., LLC, Bigelow, and MJF Group (Dilmah), among others.

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Herbal Tea Market Analysis by Region

The market in Europe is witnessing strong growth, supported by the strong culture of tea drinking in the region. The herbal tea market UK is particularly well established, with regular tea drinkers experimenting with new flavours and packaging. The European market also offers a wide variety of herbal teas, including blends with fruits, spices, and flowers. Innovation in flavours and packaging has also attracted more consumers to herbal teas. Moreover, many consumers in Europe are turning to herbal teas for their functional benefits, such as relaxation, digestion aid, detoxification, and immune support which has led to increased demand for specific types of herbal teas like chamomile, peppermint, and ginger.

In the coming years, the market in the United States is projected to expand, fuelled by the growing popularity of tea as an alternative to coffee, particularly among more health-conscious consumers. Meanwhile, the herbal tea market in Australia is expected to witness steady growth due to the increasing innovations in flavours.

Key Highlights of the Report

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Herbal Tea Market Report Snapshots

Herbal Tea Market Size

Herbal Tea Market Growth

Herbal Tea Market Trends

Herbal Tea Market Share

Herbal Tea Companies

Herbal Tea Market Regional Analysis