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Herbal Tea Market
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Herbal Tea Market

Author: Debadatta Patel - Senior Consultant, Report ID - DS1901076, Published - January 2025

Segmented in Product Type (Green, Black, Flavoured), Target Audience (Health Conscious Individuals, Millennials), Packaging, Distribution Channel and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Herbal Tea Market Outlook

Herbal tea is often seen as a remedy with healing properties and has significantly influenced the beverage industry worldwide due to its health benefits and adaptability to various tastes and preferences of consumers who are increasingly mindful, about what they consume. The market, for Herbal tea was estimated at $3.4 billion in 2024. It is anticipated to increase to $4.7 billion by 2030 with projections indicating a growth to around $6.1 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 5.4% over the forecast period.


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 Size Forecast & Key Insights

2019
$3.4B2024
2029
$5.8B2034

Absolute Growth Opportunity = $2.4B

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 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 Market

Advent of Herbal Tea Pods

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.

Herbal Tea Infused Beauty Products and Herbal Tea in Hospitalities and Corporations

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.

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

Growth Opportunities in North America and Europe

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.

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.

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.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : China, United States, India, Germany, United Kingdom are expected to grow at 3.5% to 5.2% CAGR

2

Emerging Markets : Brazil, Nigeria, Indonesia are expected to grow at 6.2% to 7.5% CAGR

Market Analysis Chart

The Herbal Tea market is mainly influenced by factors such as peoples focus on health and well being lifestyle shifts towards choices the rise in demand for natural products and the increasing awareness of the health benefits of herbal teas. The growing popularity and demand, for these teas can be attributed to the antioxidant, antiinflammatory and healing properties found in the diverse herbs used to create them.

Recent Developments and Technological Advancement

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 Food & Beverage 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 Food & Beverage 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.

1

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.

2

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.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Food & Beverage industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Food & Beverage industry cascade into the Herbal Tea market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

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.

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.

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

Cultivation

Celestial Seasonings

Traditional Medicinals

Processing & Blending

Yogi Tea

Twinings

Packaging
Dilmah / Pukka Herbs
Distribution & Retail
Walmart / Amazon
Cultivation

Celestial Seasonings

Traditional Medicinals

Processing & Blending

Yogi Tea

Twinings

Packaging

Dilmah

Pukka Herbs

Distribution & Retail

Walmart

Amazon

Banner LogoBanner Logo

Leading Providers and Their Strategies

Application AreaIndustryLeadingProvidersProvider Strategies
Health and Wellness
Food & Beverage
Twinings
Focus on sourcing 100% natural herbal ingredients and marketing their therapeutic properties
Skincare and Beauty
Cosmetics
Yogi Tea
Highlight the antioxidant properties of herbal tea in skincare and beauty products
Weight Management
Healthcare and Fitness
Pukka Herbs
Employ a strong marketing strategy emphasizing on the weight loss benefits of herbal tea
Mind Relaxation and Sleep Aid
Pharmaceutical
Celestial Seasonings
Develop and market blends explicitly targeted at stress reduction and sleep improvement

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Herbal Tea market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Herbal Tea in Culinary Ingredient, Relaxation and Stress Relief and Health Enhancement

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.

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.

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.

Herbal Tea vs. Substitutes:
Performance and Positioning Analysis

Infusions made from herbs provide a caffeine alternative that is completely natural when compared to beverages such as coffee and traditional teas like green tea and black tea. The diverse array of flavors and health advantages it offers gives it a spot in the market with significant potential, for expansion.

Herbal Tea
  • Green Tea /
  • Fruit Infusions /
  • Roobios Tea
    Natural source of antioxidants, Several health benefits such as stress relief and digestive support
    Limited scientific research support, Possible side effects with
    Easy to prepare, readily available
    Can be high in artificial sweeteners, lack of natural ingredients

Herbal Tea vs. Substitutes:
Performance and Positioning Analysis

Herbal Tea

  • Natural source of antioxidants, Several health benefits such as stress relief and digestive support
  • Limited scientific research support, Possible side effects with

Green Tea / Fruit Infusions / Roobios Tea

  • Easy to prepare, readily available
  • Can be high in artificial sweeteners, lack of natural ingredients

Infusions made from herbs provide a caffeine alternative that is completely natural when compared to beverages such as coffee and traditional teas like green tea and black tea. The diverse array of flavors and health advantages it offers gives it a spot in the market with significant potential, for expansion.

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Research Methodology

This market research methodology defines the Herbal Tea market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Food & Beverage ecosystem, we analyze Herbal Tea across Green, Black, and Flavoured Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:

Food and Agriculture Organization (FAO)

Food Substances - FDA

Prodcom / Census US / Statcan / e-stat Japan / ABS Australia / KOSIS Korea

USA Trade Census

DEFRA UK / Ifastat

Climate.gov

Annual Reports / Industry Magazines / Country Level Ministerial Sources

We benchmark competitors such as Twinings of London, Celestial Seasonings Inc, and Dilmah Ceylon Tea Company PLC by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Cultivation, Processing & Blending, and Packaging. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Food & Beverage revenues to estimate the Herbal Tea segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Cultivation (Celestial Seasonings, Traditional Medicinals), Processing & Blending (Yogi Tea, Twinings), and Packaging. Our parallel substitute analysis examines Green Tea, Fruit Infusions, and Roobios Tea, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Twinings of London, Celestial Seasonings Inc, and Dilmah Ceylon Tea Company PLC, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Herbal Tea market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Herbal Tea Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 3.6 billion
Revenue Forecast in 2034USD 5.8 billion
Growth RateCAGR of 5.4% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 20243.4 billion
Growth OpportunityUSD 2.4 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 20243.4 billion USD
Market Size 20274.0 billion USD
Market Size 20294.4 billion USD
Market Size 20304.7 billion USD
Market Size 20345.8 billion USD
Market Size 20356.1 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredProduct Type, Target Audience, Packaging, Distribution Channel
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledTwinings of London, Celestial Seasonings Inc, Dilmah Ceylon Tea Company PLC, Harney and Sons, TAZO Global LLC, Emami Group, R. Twining and Company Limited, Teavana Corporation, Unilever NV, Hain Celestial Group Inc, Numi Organic Tea and Pukka Herbs Ltd
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Herbal Tea Market Size, Opportunities & Strategic Insights, by Product Type

4.1Green
4.2Black
4.3Flavoured
Chapter 5

Herbal Tea Market Size, Opportunities & Strategic Insights, by Target Audience

5.1Health Conscious Individuals
5.2Millennials
Chapter 6

Herbal Tea Market Size, Opportunities & Strategic Insights, by Packaging

6.1Bottled
6.2Loose Leaf
Chapter 7

Herbal Tea Market Size, Opportunities & Strategic Insights, by Distribution Channel

7.1Online Retail
7.2Physical Stores
Chapter 8

Herbal Tea Market, by Region

8.1North America Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Herbal Tea Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Twinings of London
9.2.2Celestial Seasonings Inc
9.2.3Dilmah Ceylon Tea Company PLC
9.2.4Harney and Sons
9.2.5TAZO Global LLC
9.2.6Emami Group
9.2.7R. Twining and Company Limited
9.2.8Teavana Corporation
9.2.9Unilever NV
9.2.10Hain Celestial Group Inc
9.2.11Numi Organic Tea
9.2.12Pukka Herbs Ltd