India Herbal Tea Market

Market Overview: 

The India herbal tea market size reached INR 1,697.6 Crore in 2023. Looking forward, IMARC Group expects the market to reach INR 5,617.1 Crore by 2032, exhibiting a growth rate (CAGR) of 13.79% during 2024-2032. The increasing demand for functional flavored beverages, the launch of the latest and contemporary flavors, and the rising health consciousness among the masses represent some of the key factors driving the market.

The Increasing Demand Among Health-Conscious Consumers

The growing awareness among consumers about the health benefits associated with consuming herbal tea is a significant contributor to the market growth. Herbal tea provides a range of benefits, including reduced inflammation, improved immune system function, and a decreased risk of cancer. The polyphenols in tea, according to the National Cancer Institute, may decrease the risk of tumor growth. Moreover, regular consumption of herbal tea also reduces the risk of diabetes, high cholesterol, kidney disease, Parkinson’s disease, and osteoporosis. In addition, herbal teas are made by steeping herbs, fruits, seeds, or roots in hot water and have lower concentrations of antioxidants than green, white, black, and oolong teas. These ingredients are rich in vitamins, minerals, and antioxidants, which can provide a range of short and long-term health benefits. Owing to these properties, there is an escalating demand for herbal tea across India.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented with a number of small and large players operating in the industry due to the presence of a large number of regional and international players. The volume of new entrants is moderate in the India herbal tea industry due to the fragmented market structure and the presence of numerous competitors in the market.

What is Herbal Tea?

Herbal tea is a beverage made by infusing a variety of leaves, fruits, flowers, and roots from edible, non-tea plants. Unlike traditional tea, herbal tea does not contain any caffeine or leaves from the Camellia sinensis plant. It can be enjoyed hot or cold and used to make a variety of recipes, such as beverages, desserts, and sauces. It is prepared by pouring boiling water over the desired plant parts and allowing it to steep for several minutes. The tea is then strained, sweetened if desired, and served hot or cold. Some of the most common types of herbal teas include chamomile, peppermint, ginger, hibiscus, and rooibos. They offer numerous health benefits, such as soothing digestive issues, promoting relaxation, or boosting the immune system. Moreover, they can be consumed hot or cold and can be brewed using loose herbs or pre-packaged tea bags. They are also used as a base for a variety of recipes, including iced teas, smoothies, cocktails, and baked goods.

COVID-19 Impact:

The COVID-19 pandemic outbreak has caused a severe problem for the herbal tea industry and imposed unprecedented challenges across the country. In India, a national lockdown prompted by the WHO announcement coincided with and destroyed the first flush harvests of both Darjeeling and Assam, causing ripples throughout the herbal tea market. Due to supply chain challenges, tea plants were damaged. Moreover, shopping behavior changed dramatically as the coronavirus pandemic spread, leading many retailers to adopt new strategies. Furthermore, the strict lockdown measures in India shut down the production of all agricultural industries for several weeks in March and April, hence impacting the herbal tea industry significantly.

India Herbal Tea Market Trends:

The market for herbal tea has witnessed significant growth in India due to increasing demand for functional and flavorful beverages, as well as the launch of contemporary flavors. Herbal tea is known for its pleasant taste, minimal stimulating effects, and numerous medicinal properties, which have contributed to its growing popularity among health-conscious consumers. In addition, the launch of innovative flavored variants ranging from traditional chai blends to more exotic blends that feature ingredients like lemongrass, ginger, and turmeric, represents another major growth-inducing factor. Besides this, with changing lifestyles, a growing population is now opting for herbal tea over traditional caffeinated teas. This, coupled with the growing awareness among the masses regarding the health benefits of herbal tea, is propelling market growth. Moreover, the increasing product consumption by the masses for treating common disorders, the rising disposable incomes, and the easy availability of herbal tea on e-commerce and offline retail platforms are some of the other factors creating a favorable market outlook across the country.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India herbal tea market, along with forecasts at the regional and country level 2024-2032. Our report has categorized the market based on type, pack type, pack size, and distribution channel.

Type Insights:

• Mixed Blend 
  • Herbs and Herbs
  • Herbs and Flower Tea
  • Herbs and Fruits
  • Others       
• Single Blend 
  • Flower Tea
  • Herbs
  • Fruit
     

The report has provided a detailed breakup and analysis of the India herbal market based on the type. This includes mixed blend (herbs and herbs, herbs and flower tea, herbs and fruits, and others) and single blend (flower tea, herbs, and fruit). According to the report, mixed blend herbal tea represented the largest segment due to the growing preference for combination ingredients, the advent of chamomile and hibiscus, tea, lemon and ginger, lemongrass and blue pea tisane flower herbal tea combo, and the presence of nutritional property and health functionalities in this tea.

Pack Type Insights:

• Pouches
• Jars/Cans
• Tea Bag
   

A detailed breakup and analysis of the India herbal tea market based on the wall type has also been provided in the report. This includes pouches, jars/cans, and tea bag. According to the report, pouches accounted for the largest market share as they have zippers, resealing, and are easy to store at minimum space, making them the preferred packaging for herbal tea among families. Moreover, the incorporation of hang holes, spouts, tear notches will further push the demand for herbal tea in pouches.

Pack Size Insights:

• Upto 120 Grams
• 250 Grams
• Others
   

A detailed breakup and analysis of the India herbal tea market based on the pack size has also been provided in the report. This includes upto 120 grams, 250 grams, and others. According to the report, upto 120 grams accounted for the largest market share as herbal tea are expensive and the consumers prefer smaller size packs to start with. Apart from that, smaller sizes, i.e., 30 grams to 80 grams packs with around 25 tea bags are also gaining popularity among consumers.

Distribution Channel Insights:

• Supermarket and Hypermarket     
• Online Stores
• Convenience Stores
• Specialty Stores
• Others
   

A detailed breakup and analysis of the India herbal tea market based on the distribution channel has also been provided in the report. This includes Supermarket and Hypermarket, online stores, convenience stores, specialty stores, and others. According to the report, online stores accounted for the largest market share on account of the availability of different brands and packaging sizes, and the easy availability of customized herbal tea on various websites.

Regional Insights:

• North India 
  • Delhi NCR
  • Uttar Pradesh
  • Haryana
  • Rajasthan
  • Punjab
  • Others
• West and Central India 
  • Maharashtra  
  • Gujarat
  • Madhya Pradesh
  • Others
• South India 
  • Tamil Nadu
  • Karnataka
  • Andhra Pradesh
  • Others       
• East India 
  • West Bengal
  • Orissa
  • Jharkhand
  • Bihar 
  • Others
     

The report has also provided a comprehensive analysis of all the major regional markets, which include North India (Delhi NCR, Uttar Pradesh, Haryana, Rajasthan, Punjab, and others), West and Central India (Maharashtra, Gujarat, Madhya Pradesh, and others), South India (Tamil Nadu, Karnataka, Andhra Pradesh, and others), and East India (West Bengal, Orissa, Jharkhand, Bihar, and others). According to the report, North India was the largest market for India herbal tea. Some of the factors driving the North India herbal tea market included the rising health consciousness among the masses, the easy availability of herbal tea on e-commerce brands and distribution channels, and the rising urbanization and migration of the rural population to urban areas.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the India herbal tea market. Some of the companies covered in the report include:

• Associated British Foods PLC
• Dabur India Limited
• Dharmsala Tea Company
• Goodwyn Tea
• Hain Celestial Group
• Hindustan Unilever Ltd.
• Organic India Pvt. Ltd.
• Sresta Natural Bioproducts Pvt. Ltd.
• Tata Consumer Products
• Teabox
• Typhoo India Tea Limited
• Yogi Tea
   

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

India Herbal Tea Market Report Coverage:

Key Questions Answered in This Report:

• How has the India herbal tea market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India herbal tea market?
• What is the impact of each driver, restraint, and opportunity on the India herbal tea market?
• What are the key regional markets?
• Which countries represent the most attractive India herbal tea market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the India herbal tea market?
• What is the breakup of the market based on the pack type?
• Which is the most attractive pack type in the India herbal tea market?
• What is the breakup of the market based on the pack size?
• Which is the most attractive pack size in the India herbal tea market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the India herbal tea market?
• What is the competitive structure of the India herbal tea market?
• Who are the key players/companies in the India 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 India herbal tea market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India 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 India 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.