PDF Cover

Herbal Tea Market

The market for Herbal Tea was estimated at $3.6 billion in 2025; it is anticipated to increase to $4.6 billion by 2030, with projections indicating growth to around $6.0 billion by 2035.

Report ID:DS1901076
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Herbal Tea
Share
Report Summary
Market Data
Methodology
Table of Contents

Global Herbal Tea Market Outlook

Revenue, 2025

$3.6B

Forecast, 2035

$6.0B

CAGR, 2026 - 2035

5.1%

The Herbal Tea industry revenue is expected to be around $3.6 billion in 2026 and expected to showcase growth with 5.1% CAGR between 2026 and 2035. This robust outlook underscores the growing significance of Herbal Tea as a mainstream choice in the global Herbal Tea market, driven by intensifying consumer focus on natural wellness, digestive health, and immunity-supporting herbal infusions across both developed and emerging economies. Within this landscape, Commercial and Residential end-use segments collectively account for 100.0% of demand, illustrating how cafés, hotels, and restaurants now mirror the strong at-home adoption of Herbal Tea as part of everyday hydration and ritualized consumption. In 2025, the Others Product Type segment led industry revenue with $0.92 billion in sales, reflecting rising preference for differentiated formulations that position Herbal Tea as part of broader wellness beverages and functional beverages, often emphasizing clean-label ingredients, low sugar content, and transparent sourcing

Herbal Tea, typically prepared from leaves, flowers, roots, spices, and fruits rather than traditional tea leaves, is characterized by its versatility, naturally soothing profile, and compatibility with both hot and cold formats, including loose leaf products, convenient tea bags, and ready-to-drink offerings. Key features such as perceived digestive support, relaxation and sleep benefits, and the absence of jitters associated with conventional tea or coffee make Herbal Tea and related caffeine-free drinks highly attractive to health-conscious consumers seeking everyday balance. Major applications span Residential use for daily self-care rituals, Commercial service in foodservice outlets and hospitality venues, and integration into retail-ready wellness beverages and premium blends, with recent trends centering on organic herbal tea launches, flavor innovation, and targeted formulations that align with clean eating, plant-based lifestyles, and sustainable packaging expectations

Herbal Tea market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Herbal Tea Market Outlook

Market Key Insights

  • The Herbal Tea market is projected to grow from $3.6 billion in 2025 to $6.0 billion in 2035. This represents a CAGR of 5.1%, reflecting rising demand across Health Enhancement, Relaxation and Stress Relief, and Culinary Ingredient.

  • Tata Consumer Products, The Hain Celestial Group, and Bigelow Tea are among the leading players in this market, shaping its competitive landscape.

  • China and U.S. are the top markets within the Herbal Tea market and are expected to observe the growth CAGR of 3.3% to 4.9% between 2025 and 2030.

  • Emerging markets including Brazil, Nigeria and Indonesia are expected to observe highest growth with CAGR ranging between 5.9% to 7.0%.

  • Transition like Rise of Functional and Wellness Teas has greater influence in China and United States market's value chain; and is expected to add $89 million of additional value to Herbal Tea industry revenue by 2030.

  • The Herbal Tea market is set to add $2.3 billion between 2025 and 2035, with manufacturer targeting Residential Application projected to gain a larger market share.

  • With

    rising health consciousness coupled with increasing demand for natural and organic beverage alternatives, and

    Innovative Flavor Infusions and Premium Blends Attracting Experiential Beverage Consumers, Herbal Tea market to expand 64% between 2025 and 2035.

herbal tea market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Herbal Tea - Country Share Analysis

Opportunities in the Herbal Tea

The Asia-Pacific foodservice and hospitality industry presents significant untapped potential for ready-to-drink Herbal Tea in convenience stores, quick-service restaurants, and hotels. As operators diversify beyond carbonated beverages, ginger and cinnamon formats can leverage strong traditional health associations. Globally, cinnamon Herbal Tea is also projected to increase from 0.59 billion USD in 2025 to 0.75 billion by 2030, while ginger leads category growth at a 5.7% CAGR. Partnerships with vending technology providers and delivery platforms can speed RTD innovation and route-to-market efficiency.

Growth Opportunities in North America and Europe

The herbal tea market in North America holds significant promise due to a growing emphasis on health and wellness, coupled with a strong consumer preference for natural and organic products. The region faces intense competition from both established local brands and global players, driving innovation in flavors and functional blends. Compared to Europe and Asia-Pacific, North American consumers are increasingly exploring vegan, organic, and specialty herbal teas, presenting opportunities for brands to capitalize on the expanding demand for premium, health-focused beverage options.
Europe has a long-standing tradition of enjoying herbal tea and places high value on its tea-drinking customs. The market is highly competitive, driven by the presence of well-established brands that dominate the industry. Compared to other regions, European consumers show a strong preference for premium products, reflected in the rising popularity of specialty, organic, and sustainably sourced herbal teas. This trend contrasts with emerging markets, where affordability and accessibility remain primary factors influencing consumption, highlighting Europe’s focus on quality and wellness-oriented offerings.

Market Dynamics and Supply Chain

01

Driver: Rising Health Consciousness Coupled with Increasing Demand for Natural and Organic Beverage Alternatives

The surge in consumer health awareness is also driving the global herbal tea market. Consumers are also actively seeking beverages that provide functional health benefits such as improved digestion, stress relief, and immunity support. Herbal teas like chamomile, peppermint, and ginger are also being favored for their natural therapeutic properties. Simultaneously, the demand for natural and organic alternatives is also accelerating growth. People are also shifting away from artificial ingredients and synthetic additives, prompting manufacturers to innovate with organic blends. This trend encourages sustainable farming practices, traceable sourcing, and transparent labeling. As a result, brands are also developing specialty herbal teas with clean, natural profiles, appealing to a niche audience that values wellness and sustainability, thereby expanding the market reach and reinforcing herbal tea’s positioning as both a health-conscious and lifestyle-oriented beverage.
Herbal tea manufacturers are also introducing unique flavor infusions and premium blends to appeal to consumers seeking novel also experiences. Innovations such as exotic fruit, floral, and adaptogenic ingredients are also capturing interest, allowing brands to differentiate in a competitive market. Specialty tea collections, limited editions, and customized flavor profiles are also becoming popular, particularly among younger consumers who value taste exploration alongside wellness. These product advancements not only enhance sensory appeal but also strengthen brand loyalty by offering a personalized and premium tea-drinking experience.
02

Restraint: Inconsistent herb quality, supply chain disruption and regulatory pressure undermine herbal‑tea reliability

Herbal teas rely on agricultural herbs whose quality and availability fluctuate widely. Unpredictable weather, climate change, and geopolitical disruptions can reduce yields, degrade potency or cause raw‑material shortages - forcing manufacturers to raise prices or cut volumes. For example, droughts in key sourcing regions have driven raw herb costs up 15–20%, squeezing margins and triggering retail price hikes up to 12%, which in turn suppresses demand and slows revenue growth. At the same time, regulatory scrutiny over pesticide residues, purity, labeling and health‑claim compliance is increasing. Producers failing to meet strict safety or potency benchmarks risk recalls or delisting, damaging brand reputation and scaring off cautious buyers - particularly in premium and export markets.
03

Opportunity: Premium Herbal Tea adoption in European online specialty retail channels and Rising demand for functional wellness Herbal Tea among urban millennials worldwide

In Europe, rising disposable incomes and stricter ingredient scrutiny are accelerating demand for premium Herbal Tea via online specialty retailers. Consumers increasingly seek traceable, sustainable sourcing and certified organic herbal tea positioned as premium tea for relaxation and immune support. Global “others” blends, including complex detox tea formulations, are forecast to grow from 0.92 billion USD in 2025 to 1.18 billion by 2030. European e-commerce channels are expected to outpace traditional grocery, especially for customized gift sets and curated wellness subscription boxes.
Urban millennials are increasingly replacing sugary drinks with Herbal Tea as daily functional beverages, seeking stress relief, better sleep, and digestive health support. This demand favours chamomile and ginger herbal infusions, with chamomile revenues projected to rise from 0.88 billion USD in 2025 to 1.13 billion USD by 2030 and ginger from 0.78 to 1.03 billion at the fastest 5.7% CAGR. Brands can target this evolving consumer need through personalized botanical blends, tailored Herbal Tea subscriptions, and data-driven wellness drinks formulations.
04

Challenge: Higher production costs and price sensitivity limit adoption in price‑conscious and developing markets

Producing high‑quality or organic herbal teas often demands premium herbs, careful processing, and adherence to certification and safety standards - all of which raise costs. For smaller producers, lack of economies of scale further magnifies these costs. As a result, retail prices of herbal teas tend to be significantly higher than conventional teas or other beverages. In many emerging or price‑sensitive markets, consumers thus prefer cheaper options such as regular tea, coffee, or soft drinks over premium herbal teas. This price‑driven consumer behavior restricts market penetration, especially among lower‑income segments, limiting expansion and slowing market‑wide growth

Supply Chain Landscape

1

Herbal Tea Cultivation

Tata Consumer Products LimitedOrganic India Pvt LtdDilmah Ceylon Tea Company
2

Herbal Tea Blending

Tata Consumer Products LimitedThe Hain Celestial GroupBigelow Tea
3

Herbal Tea Packaging

The Hain Celestial GroupBigelow TeaDilmah Ceylon Tea Company
4

Consumer End Use

Wellness beveragesFunctional beveragesRetail supermarkets
Herbal Tea - Supply Chain

Use Cases of Herbal Tea in Health Enhancement & Culinary Ingredient

Health Enhancement : Herbal teas are often consumed for their benefits in enhancing overall well being because of their abundance of antioxidants and anti inflammatory properties as well as their ability to revitalize the bodys functions. In addition to promoting digestion and assisting in weight management efforts tea blends may also help bolster the immune system and alleviate feelings of stress or anxiety. Trusted brands in the market such as Traditional Medicinals and Yogi have recognized these advantages by introducing herbal tea varieties, like Turmeric Ginger tea targeting inflammation and Echinacea Plus tea designed to support immunity.
Relaxation and Stress Relief : Herbal teas are recognized for their soothing effects. Are considered a natural alternative for relaxation and stress reduction compared to other therapeutic methods available in the market today. Chamomile tea stands out for its known calming properties and is often promoted for its ability to provide comfort and relaxation. Leading brands, like Celestial Seasonings and Mighty Leaf are highly regarded in offering stress relief tea blends that cater to individuals seeking a sense of tranquility and calmness.
Culinary Ingredient : Herbal tea is increasingly being explored as a versatile ingredient in modern cuisine, not only as a beverage but also as a flavor enhancer in recipes ranging from desserts to savory dishes. Chefs are experimenting with the unique aromas and natural essences of various herbal teas to create distinctive culinary experiences. Market leader Lipton supports this trend through specially crafted blends, such as the popular Herbal Tea Bag Collection, offering consumers innovative taste possibilities.

Recent Developments

Lately the market for Herbal Tea has seen an uptick as more people are turning to natural and healthful drinks as their beverage of choice. This rise can be attributed to the health advantages linked with different herbal tea components such as enhanced digestion capabilities and immune system function as well, as stress reduction.

December 2024 : Twinings of London introduced a range of organic herbal tea blends to attract health conscious individuals and those who embrace plant based diets.
October 2024 : Celestial Seasonings of Hain Celestial Group ventured into the market by launching distinct herbal tea varieties such, as Asian Pear Harmony to cater to the local flavors and preferences.
September 2024 : Yogi Tea launched an eco friendly packaging for their range of herbal tea offerings as part of their efforts to lessen their environmental impact and promote sustainability, in the market.

Impact of Industry Transitions on the Herbal Tea Market

As a core segment of the Packaged & Processed F&B industry, the Herbal Tea market develops in line with broader industry shifts. Over recent years, transitions such as Rise of Functional and Wellness Teas and Growth of Organic and Sustainable Sourcing have redefined priorities across the Packaged & Processed F&B sector, influencing how the Herbal Tea market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Rise of Functional and Wellness Teas

The rapid rise of functional and wellness-focused Herbal Tea is reshaping the global value chain, particularly in China and the United States, where it is expected to unlock an additional $89 million in industry revenue by 2030. Demand is shifting toward premium herbal tea blends fortified with adaptogens, vitamins, and antioxidants that deliver targeted benefits in immune support, stress relief, and digestive health, blurring boundaries with nutraceutical and health beverage categories. This transition accelerates innovation in ready-to-drink and premium beverages, incentivizing manufacturers to co-develop formulations that integrate herbal extracts across supplements and fortified drinks. Retailers and online marketplaces capture higher-margin growth from wellness-positioned herbal tea products, while strategic partnerships and cross-category collaborations become critical to capturing incremental value and strengthening competitive differentiation.
02

Growth of Organic and Sustainable Sourcing

Herbal tea production is moving toward organic, ethically sourced, and environmentally sustainable ingredients to meet consumer demand for transparency and eco-conscious products. This trend influences agriculture and packaging industries, encouraging sustainable farming practices and biodegradable or recyclable packaging solutions. Brands adopting certified organic and fair-trade ingredients gain competitive advantage, appealing to environmentally aware consumers. Additionally, this transition supports premium pricing strategies, strengthens brand reputation, and fosters partnerships with local farmers, ensuring a stable supply chain while promoting sustainable growth in both domestic and international herbal tea markets.