Global Herbal Tea Market Outlook
Revenue, 2024
$3.4B
Forecast, 2034
$5.8B
CAGR, 2024 - 2034
5.4%
The Herbal Tea industry revenue is expected to be around $3.6 billion in 2025 and expected to showcase growth with 5.4% CAGR between 2025 and 2034.
Presenting Herbal Tea. A beverage crafted from a diverse blend of herbs, botanicals and spices that provide distinct fragrances and numerous health advantages. Lately there has been a trend in the industry, towards utilizing organic and ethically obtained ingredients showcasing consumers inclination towards sustainability.
Market Key Insights
- The Herbal Tea market is projected to grow from $3.4 billion in 2024 to $5.8 billion in 2034. This represents a CAGR of 5.4%, reflecting rising demand across Health Enhancement, Culinary Ingredient and Relaxation and Stress Relief.
- The market leaders in this sector include Twinings of London and Celestial Seasonings Inc and Dilmah Ceylon Tea Company PLC which determine the competitive dynamics of the market.
- China and U.S. are the top markets within the Herbal Tea market and are expected to observe the growth CAGR of 3.5% to 5.2% between 2024 and 2030.
- Emerging markets including Brazil, Nigeria and Indonesia are expected to observe highest growth with CAGR ranging between 6.2% to 7.5%.
- The market for Herbal Tea will experience a $300.0 million growth increase through 2030 because of the transition toward organic products.
- The Herbal Tea market is set to add $2.4 billion between 2024 and 2034, with manufacturer targeting Millennials & undefined Target Audience projected to gain a larger market share.
- With Rising health awareness, and Digitization boosting online sales, Herbal Tea market to expand 69% between 2024 and 2034.
Opportunities in the Herbal Tea
The growing demand for convenience and quick satisfaction, in the beverage industry indicates a chance to introduce tea into the realm of pod based drinks appealing to the growing number of tea lovers who also use pod coffee and tea makers.
Growth Opportunities in North America and Europe
North America Outlook
The herbal tea market in North America holds promise thanks to the rising focus on health and the preference for natural items by consumers in the region facing strong competition, from local and global brands alike with chances to tap into the expanding vegan and organic sectors.
Europe Outlook
Europe has a tradition of enjoying herbal tea and values its tea drinking customs deeply. The market for tea in Europe is highly competitive due to the presence of well known brands that lead the industry. A noticeable shift towards premium products is evident, in the increasing popularity of specialty and organic herbal teas.
Market Dynamics and Supply Chain
01
Driver: Rising Health Awareness, and Increasing Demand for Organic Products
Consumers globally are also moving towards lifestyles and opting for herbal tea as a part of this movement more frequently nowadays. The perception is also that herbal tea is also a choice compared to other drinks because of its antioxidants and absence of caffeine content. Additionally promoted for health advantages like stress reduction and improving digestion among others such, as managing blood pressure and aiding in weight loss. The rising interest in ethically sourced herbal teas is also having a positive impact, on the herbal tea market sector.
The rise of e commerce platforms is also boosting the demand for tea products. The availability of herbal tea choices and convenient payment and delivery services are also attracting tech savvy shoppers. Digital platforms are also crucial, for reaching customers and increasing sales volumes.
The rise of e commerce platforms is also boosting the demand for tea products. The availability of herbal tea choices and convenient payment and delivery services are also attracting tech savvy shoppers. Digital platforms are also crucial, for reaching customers and increasing sales volumes.
02
Restraint: High Production and Distribution Costs
Despite the advantages of herbal tea for health and its growing fame in the market today the creation and delivery of this beverage come at a steep price tag. This includes costs associated with acquiring top notch herbs the steps involved in production and strict quality checks to guarantee consumer safety. Moreover to make herbal tea accessible worldwide there are expenses tied to packaging extending its shelf life and distributing it internationally. These elevated expenses ultimately lead to prices, for consumers potentially hindering the expansion of the market.
03
Opportunity: Herbal Tea in Hospitalities and Corporations and Herbal Tea Infused Beauty Products
Health and wellness are becoming more important in workplaces and hospitality industries This could result in the addition of teas as a beverage option in these settings Having a selection of herbal teas might become popular in hotels restaurants and offices opening up a new opportunity for growth, in the herbal tea market
The beauty and skincare sector is moving towards using organic ingredients more these days. This shift opens up possibilities for herbal teas to be used in products like face masks and moisturizers due, to their antioxidant properties and other beneficial components.
The beauty and skincare sector is moving towards using organic ingredients more these days. This shift opens up possibilities for herbal teas to be used in products like face masks and moisturizers due, to their antioxidant properties and other beneficial components.
04
Challenge: Intense Market Competition
The market for tea is quite crowded, with many different brands selling similar products out there nowadays! Its not only the old school tea companies that are exploring herbal blends; weve got plenty of new startups popping up all the time with their creative flavors and mixes too!
Supply Chain Landscape
1
Cultivation
Celestial Seasonings
Traditional Medicinals
2
Processing & Blending
Yogi Tea
Twinings
3
Packaging
Dilmah
Pukka Herbs
4
Distribution & Retail
Walmart
Amazon
1
Cultivation
Celestial Seasonings
Traditional Medicinals
2
Processing & Blending
Yogi Tea
Twinings
3
Packaging
Dilmah
Pukka Herbs
4
Distribution & Retail
Walmart
Amazon
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Herbal Tea in Health Enhancement, Culinary Ingredient & Relaxation & Stress Relief
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 being creatively used in cooking as a flavor enhancer by chefs who are incorporating the unique tastes of various herbal teas into their dishes and drinks for a distinctive culinary experience offered by market leader Lipton through their specially crafted tea blends, like the popular Herbal Tea Bag Collection.
Recent Developments
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.
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.
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 Shift Towards Organic Products and Rise of E-commerce in Herbal Tea Market 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
Shift Towards Organic Products
Theres a growing awareness of the advantages of food among consumers leading to a rise in the popularity of organic herbal teas which are devoid of artificial chemicals like fertilizers and pesticides providing a healthier and safer option for individuals concerned about their well being This shift, towards organic goods is transforming the herbal tea industry with a focus to meet the needs of health conscious buyers and stimulate market expansion. This industry transition is expected to add $300 million in the industry revenue between 2024 and 2030.
02
Rise of E-commerce in Herbal Tea Market
The herbal tea sector has also been influenced by the digital transformation wave. An increasing number of people are now purchasing their teas through online platforms due to the convenience it offers and the expanded variety of products available, for selection.