Herbal Tea Market

Herbal Tea Market:

The global herbal tea market size reached USD 3.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.4 Billion by 2033, exhibiting a growth rate (CAGR) of 5.67% during 2025-2033. 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.

Convenience and accessibility in the herbal tea market

One of the major herbal tea market trends is the increasing focus on convenience and availability, in line with changing consumer lifestyles and health-seeking behavior. As busy people look for functional wellness solutions more and more, there is greater demand for herbal tea products with convenient preparation and convenience of portability. This has given rise to the growth of ready-to-drink (RTE) packaging, single-serve sachets, cold brews, and resealable packaging, all meant to make consumption easy without affecting nutritional value. In addition, the growth of online retail channels and e-commerce platforms has greatly enhanced the reach of diverse herbal tea options among urban and semi-urban areas. Subscription services and curated herbal tea collections further increase accessibility and customization. This transition represents a wider industry reaction to contemporary consumer demand, whereby convenience is centrally located in purchasing behavior. As a result, the emphasis on accessible formats increasingly drives product innovation and enhances market reach across the international herbal tea market.

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 2025-2033. 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.

Key Regional Takeaways:
 

Asia Pacific Herbal Tea Market Analysis

Asia Pacific continues to dominate the herbal tea market growth, fueled by its embedded tea culture and increased demand for traditional wellness solutions. China, India, and Japan are major contributors due to mass consumption of herbal ingredients such as ginseng, tulsi, and matcha. Increasing awareness about preventive healthcare, coupled with improving disposable incomes, is driving the demand for functional herbal drinks. Modern consumption trends are also being shaped by urbanization and an increasing population of millennials, particularly with ready-to-drink and flavored herbal infusions. Trends in herbal mixtures custom-blended for digestive well-being, immunity, and stress management are extremely in-demand. Online growth, along with domestic and foreign brand penetration, has increased access in rural and urban spheres. As governments and health authorities boost traditional systems of medicine, such as Ayurveda and Traditional Chinese Medicine (TCM), the region's consumption of herbal tea will continue to experience solid volume and value growth in the years ahead.

Europe Herbal Tea Market Analysis

The herbal tea market size in Europe is mature but dynamic, with positive growth due to heightened awareness of health and a growing interest among consumers in plant-based wellness products. Western Europe, more specifically Germany, France, and the UK, registers strong demand for chamomile, peppermint, and rooibos teas because of their soothing and digestive effects. European consumers are particularly interested in product origin, organic certification, and sustainability, which has led companies to emphasize fair trade and environmentally friendly packaging. Herbal tea is not just enjoyed for pleasure but also incorporated into everyday wellness regimens, with an emphasis on stress reduction and immunity boost. Increased older population further increases demand for herbals that promote cardiovascular and metabolic wellness. Innovative flavor profiles, sugar-free, and caffeine-free options appeal to a wide audience. In addition, regional players utilize solid distribution via pharmacies, supermarkets, and specialty outlets. Clarity of regulation regarding functional claims continues to influence product development and consumer confidence throughout the European herbal tea market.

North America Herbal Tea Market Analysis

North America is experiencing significant growth in the market for herbal tea, driven mainly by growing health consciousness and rising popularity of natural and functional drinks. United States and Canadian consumers are increasingly looking for caffeine-free and reduced-calorie alternatives with wellness benefits, resulting in strengthened demand for herbal teas that offer digestion, relaxation, detoxification, and immunity. Urban consumers prefer convenient packages, such as tea bags, sachets, and cold bottled infusions. Functional herbs such as elderberry, echinacea, and turmeric have become popular due to their perceived healthy attributes. The availability of health food stores, e-commerce websites with a wellness focus, and specialty coffee shops sustains the growth of the market. Branding efforts that highlight clean labels, sustainable sourcing, and non-GMO ingredients find wide appeal with a highly educated and label-aware consumer base. Market is also gaining from greater interest in alternative medicine and plant lifestyles, and thus herbal tea is a common feature of most North American households' daily wellness routine.

Latin America Herbal Tea Market Analysis

Latin America herbal tea market is growing steadily backed by a culture of consuming medicinal herbs for wellness as well as growing awareness of their health value. Markets such as Brazil, Argentina, and Chile have a long tradition of drinking herbal infusions like yerba mate and boldo, and today are adopting a wider variety of functional herbal teas. Increased disposable incomes and urbanization have motivated consumers to try convenient and premium herbal tea products. Health-focused younger groups are interested specifically in herbal mixtures that aid weight loss, relaxation, and energy. There is also increasing demand for local ingredients like guarana, lemongrass, and hibiscus, which is fueling the need for locally inspired products. Online channel growth and wellness-driven retail formats are increasing product availability, particularly in cities. Moreover, greater marketing around immunity and detox benefits has turned herbal tea into an all-year-round consumption versus a seasonal option. This shifting trend is slowly changing Latin America's beverage consumption habits.

Middle East and Africa Herbal Tea Market Analysis

The Middle East and Africa are witnessing slow but encouraging growth in the herbal tea market due to both traditional habits of consumption and rising health awareness. Morocco, Egypt, and South Africa have well-established herbal tea traditions based on ingredients such as mint, hibiscus, rooibos, and anise. The growing urban population along with lifestyle diseases awareness is turning consumer preference towards healthier beverage options. Herbal teas are becoming popular for their natural attributes, lack of caffeine, and possible therapeutic benefits. Governments and health campaigns increasingly support herbal and traditional medicine, which suits the increased popularity of herbal infusions. Local markets are experiencing a boom in demand for digestive, sleep-promoting, and detox teas. Retail channels like supermarkets and specialty herbal stores are increasing visibility, while online business offers greater accessibility to premium options. Overall, the region's use of herbal tea is changing with a mix of cultural heritage and contemporary health trends.

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

Latest News and Developments:

• In May 2025, NutraTea boosted its women's wellness portfolio in May 2025 with two fresh herbal teas—NutraMeno for menopause relief and Spearmint & White Peony for PCOS comfort. Composed of 100% active botanicals, the blends take inspiration from Ayurvedic traditions and aid hormonal balance, as well as align with the brand's B-Corp certified mission to be sustainable and health-driven.
• In May 2025, Pukka Herbs introduced five newly reformulated herbal tea blends—Night Time Berry, Lemon Ginger & Manuka Honey, Three Ginger, Morning Berry, and Three Mint—designed to promote wellness and taste. Featuring organic ingredients and a functional benefits focus, the launch supports growing worldwide demand for health-oriented herbal teas.
• In January 2025, Rapid Organic introduced its Jaivik Jeera Chai, an organic cumin tea, in January 2025 at ICAR-NRCSS Ajmer during the Silver Jubilee celebration. Formulated by 15 years of contract farming, the tea is known to aid digestion and detoxification while benefitting Rajasthan's farmers and fulfilling the brand's vision of health-conscious, sustainable living through B2C.
• 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 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 2019-2033.
• 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.