Herbal Tea Market

Herbal Tea Market:

The global herbal tea market size reached US$ 3.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 6.2 Billion by 2032, exhibiting a growth rate (CAGR) of 5.91% during 2024-2032. The escalating consumer consciousness regarding health and wellness, the rising demand for organic and natural beverages due to their numerous health benefits, and easy product accessibility through numerous retail channels are some of the major factors propelling the market.

Herbal tea is a beverage produced from the infusion or decoction of spices, herbs, or other plant materials in hot water. Unlike traditional tea, which is derived from the Camellia sinensis plant, herbal tea does not contain any leaves from the tea plant. Instead, it utilizes various parts of plants, such as flowers, fruits, seeds, stems, and roots. Herbal teas exhibit a wide range of flavors, aromas, and potential health benefits. Popular herbal tea varieties include chamomile, peppermint, ginger, hibiscus, and lavender. These teas are often consumed for their soothing and relaxing properties, as well as their potential therapeutic effects.

With escalating awareness and focus on health and wellness, consumers are seeking natural and organic alternatives to traditional beverages, which is primarily driving the market growth. Moreover, herbal teas are perceived as a healthier choice due to their natural ingredients and potential health benefits such as relaxation, stress relief, improved digestion, boosted immunity, weight management, and blood sugar regulation. In addition to this, the shifting preference for caffeine-free beverages is presenting remunerative growth opportunities for the market. Furthermore, the convenience and availability of herbal teas through various online and offline retail channels, where consumers can access a wide variety of herbal tea options, are contributing to the market growth. Other factors, such as rising population, rapid urbanization, changing lifestyles and dietary habits, and the inflating disposable income of consumers, are positively impacting the market growth.

Herbal Tea Market Trends/Drivers:

Increasing Consumer Health Consciousness

Consumers are becoming more health conscious and are increasingly incorporating herbal teas into their daily routines, as they are perceived as nourishing and beneficial for overall well-being. Concurrent with this, the growing focus on wellness and self-care has propelled the adoption of healthy herbal tea beverage options, further presenting lucrative opportunities for the market growth. Moreover, the rising awareness about the various health benefits of herbal tea, such as detoxification, relaxation, digestion, and immune support, is propelling its adoption as a functional beverage. In addition to this, the expansion of the geriatric population that seeks health-promoting beverages, including herbal teas known for their potential antioxidant, anti-inflammatory, and cognitive health benefits, is acting as another significant growth-inducing factor.

Rising Demand for Natural and Organic Products

The growing consumer preference for natural and organic alternatives that are free from artificial additives, chemicals, and pesticides, over traditional beverages represent one of the prime factors driving the herbal tea market. In line with this, the escalating concerns among consumers about the harmful effects of chemical additives, synthetic fertilizers, and pesticides present in food and beverages are creating a favorable outlook for the market. In addition to this, the diverse flavors and aroma profiles of herbal teas attract consumers with varying taste preferences. For instance, chamomile offers a calming effect, whereas peppermint is refreshing on the taste bud, thus catering to different consumer preferences and strengthening the market growth. Furthermore, the rising demand for sustainable and environmentally friendly packaging options, such as biodegradable tea bags or recyclable packaging, has influenced herbal tea brands to adopt sustainable practices, which, in turn, is favoring the market growth.

The expanding product availability through numerous retail channels

The expanding retail markets play a crucial role in bolstering the growth of the herbal tea market. The availability of herbal teas in various retail channels contributes to increased consumer access and awareness, thus driving market expansion. The bolstering growth of various retail markets provides significant visibility, accessibility, and convenience for herbal tea products, which, in turn, is creating a positive outlook for the market. In addition to this, the increasing establishment of various supermarkets and hypermarkets that offer a wide range of herbal tea brands and flavors and a one-stop shopping experience for consumers is contributing to the market growth. Furthermore, the proliferation of various online channels that offer multiple payment gateways and 24-hour doorstep delivery is aiding in market expansion. Besides this, the wide reach of online platforms allows herbal tea brands to tap into global markets and target a broader consumer base, leveraging the advantages of direct-to-consumer sales and bypassing traditional retail channels.

Herbal Tea Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global herbal tea market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type, raw material, packaging, and distribution channels.

Breakup by Type:

• Chamomile
• Peppermint
• Lemongrass
• Ginger
• Hibiscus
• Turmeric
• Others
   

Ginger dominates the market

The report has provided a detailed breakup and analysis of the herbal tea market based on the type. This includes chamomile, peppermint, lemongrass, ginger, hibiscus, turmeric, and others. According to the report, ginger represented the largest segment.

The rising demand for chamomile, peppermint, lemongrass, ginger, hibiscus, and turmeric herbal teas due to their perceived health benefits and natural and organic appeal is presenting remunerative growth opportunities for the market. As consumer preferences continue to prioritize wellness and natural ingredients, the herbal tea market is expected to witness steady growth in the coming years. Concurrent with this, the versatility of herbal teas in terms of flavors and their ability to be consumed hot or cold has contributed to their popularity. Moreover, they offer a refreshing and flavorful alternative to traditional caffeinated beverages, thus appealing to a broad range of consumers.

Breakup by Raw Material:

• Green Tea
• Black Tea
• Yellow Tea
• Others
   

Green tea represents the leading market segment

A detailed breakup and analysis of the herbal tea market based on the raw material has also been provided in the report. This includes green, black, yellow, and others. According to the report, green tea accounted for the largest market share.

Green, black, and yellow tea are a rich source of antioxidants and polyphenols, which have been linked to various health advantages such as improved heart health, enhanced brain function, weight management, and reduced risk of chronic diseases. This is primarily driving their demand among health-conscious consumers. In addition to this, they have deep cultural roots and historical significance in different regions, which has further influenced their demand across the globe. Moreover, each tea variety offers a unique flavor profile, appealing to different taste preferences and propelling the market forward.

Breakup by Packaging:

• Loose Tea
• Tea Bags
• Plastic Containers
• Aluminium Tins
• Others
   

Tea bags account for the majority of the market share

The report has provided a detailed breakup and analysis of the herbal tea market based on the packaging. This includes loose tea, tea bags, plastic containers, aluminium tins, and others. According to the report, tea bags represented the largest segment.

The rising popularity of herbal tea bags among busy individuals or those seeking a quick and hassle-free brewing process due to their convenience and ease of use is aiding in market expansion. Besides this, the increasing interest in premium tea experiences is propelling the demand for loose tea as it provides a more authentic and customizable tea-drinking experience, allowing consumers to control the strength and flavor of their brew. Concurrent with this, aluminum tins are highly favored by tea enthusiasts for their ability to provide protection against moisture, light, and air, preserving tea’s freshness, flavor, aroma, and quality for an extended period.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others
   

Online holds the largest share in the market

A detailed breakup and analysis of the herbal tea market based on the distribution channel has also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, specialty stores, online, and others. According to the report, online accounted for the largest market share.

Supermarkets and hypermarkets play a significant role in driving the herbal tea market due to their wide reach and extensive product offerings. Concurrent with this, the increasing penetration of various e-commerce channels that offer the convenience of doorstep delivery, customer reviews, and the ability to compare prices contribute to the market growth. Moreover, the growing popularity of specialty stores dedicated to providing a curated selection of high-quality herbal teas, catering to tea enthusiasts and health-conscious consumers, is acting as another significant growth-inducing factor.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance in the market, accounting for the largest herbal tea market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

The increasing product adoption across North America due to escalating consumer consciousness regarding health and wellness, combined with the rising preference for natural and organic beverages over traditional options, is contributing to the market growth. Moreover, various countries across Europe and the Asia Pacific, such as Germany, the United Kingdom, France, China, and India, have a long-standing tea-drinking culture and a strong market for herbal teas, which is positively impacting the market growth. Furthermore, traditional herbal remedies are deeply rooted in the culture and are widely accepted in these countries, which is impelling product adoption.

Competitive Landscape:

The global herbal tea market is characterized by a competitive landscape with numerous players vying for market share. The competition within the industry can be attributed to the presence of numerous companies operating in the herbal tea market, including established players as well as new entrants. These players are constantly striving to innovate and introduce new products to the market to stay ahead of the competition. The increasing number of new herbal tea brands globally due to growing consumer demand is further expected to drive the demand for herbal tea and revenue growth. Additionally, the rapid growth in the herbal tea packaging market and the use of social media for marketing and advertising have led to an increase in the popularity of various herbal tea products, thus favoring the market landscape.

The report has provided a comprehensive analysis of the competitive landscape in the global herbal tea market. Detailed profiles of all major companies have also been provided. Some of the key players in the global herbal tea market include:

• Apeejay Surrendra Group
• Arbor Teas
• Bigelow Tea
• Celestial Seasonings (The Hain Celestial Group, Inc.)
• Dilmah Ceylon Tea Company
• Harney & Sons Fine Teas
• Indigo Herbs
• Mountain Rose Herbs
• Numi, Inc.
• Pukka Herbs Limited
• Tielka Pty Ltd.
• Twining and Company Limited

Recent Developments:

• In June 2022, The Hain Celestial Group announced a partnership with How2Recycle to improve the reliability, completeness, and transparency of recyclability claims.
• In March 2023, Bigelow Tea partnered with Stony Creek Brewery, a leading regional craft brewery located in Branford, Conn., to introduce two new tea-infused beers - named No Comment and Carpe Tea-em.
• In September 2022, Harney & Sons Fine Teas announced the launch of a new line of teas in collaboration with Disney. Available now, the Disney Collection from Harney & Sons features five beloved Disney characters as the inspiration for five new tea blends.

Herbal Tea Market Report Scope:

Key Questions Answered in This Report:

• How has the global herbal tea market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global herbal tea market?
• What is the impact of each driver, restraint, and opportunity on the global herbal tea market?
• What are the key regional markets?
• Which countries represent the most attractive herbal tea market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the herbal tea market?
• What is the breakup of the market based on the raw material?
• Which is the most attractive raw material in the herbal tea market?
• What is the breakup of the market based on the packaging?
• Which is the most attractive packaging in the herbal tea market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the herbal tea market?
• What is the competitive structure of the global herbal tea market?
• Who are the key players/companies in the global herbal tea market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the herbal tea market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global herbal tea market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the herbal tea industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.