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Herbal Tea Market

Herbal Tea Market

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 growth to around $6.1 billion by 2035.

Report ID:DS1901076
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Herbal Tea
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Report Price: $4,200
Report Summary
Market Data
Methodology
Table of Contents

Global Herbal Tea Market Outlook

Revenue, 2024

$3.4B

Forecast, 2034

$5.8B

CAGR, 2025 - 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. The Herbal Tea industry is increasingly recognized as a key segment in the global beverage market, driven by rising consumer preference for natural, health-enhancing drinks. Growing awareness of the therapeutic benefits of herbs-such as stress reduction, digestive support, detoxification, and immunity boosting-has strengthened demand across diverse demographics. Additionally, the trend toward organic, sustainably sourced ingredients, innovative flavor combinations, and convenient packaging formats continues to reinforce herbal tea’s relevance in both retail and specialty channels worldwide.

Herbal teas are beverages crafted from a variety of plant parts, including leaves, flowers, seeds, roots, and spices, offering distinct health and wellness benefits. Popular in ready-to-drink, tea bag, and loose-leaf formats, they cater to consumers seeking functional and lifestyle-oriented drinks. Recent trends driving market growth include organic and ethically sourced products, wellness-focused blends targeting specific health needs, premium packaging, and global expansion of specialty tea offerings, enhancing adoption and market penetration.

Herbal Tea market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
Herbal Tea Market Outlook

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, Relaxation and Stress Relief, and Culinary Ingredient.

  • Twinings of London, Celestial Seasonings Inc, and Dilmah Ceylon Tea Company PLC 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 3.5% 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%.

  • 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 $121 million of additional value to Herbal Tea industry revenue by 2030.

    .

  • The Herbal Tea market is set to add $2.4 billion between 2024 and 2034, with manufacturer targeting key segments 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.

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 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

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: 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.

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

Cultivation

Celestial SeasoningsTraditional Medicinals
2

Processing & Blending

Yogi TeaTwinings
3

Packaging

DilmahPukka Herbs
4

Distribution & Retail

WalmartAmazon
Herbal Tea - Supply Chain

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 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 herbal tea industry is shifting toward functional and wellness-focused blends, enriched with adaptogens, vitamins, and antioxidants to support immunity, relaxation, and digestion. This transition impacts the nutraceutical and health beverage industries, encouraging innovation in herbal formulations and ready-to-drink products. Consumers increasingly prefer teas that offer tangible health benefits, driving product diversification and premiumization. Retailers and online marketplaces benefit from higher-margin wellness offerings, while food and beverage manufacturers explore collaborations to integrate herbal extracts into beverages, supplements, and fortified drinks, expanding the overall market ecosystem. This industry transition is expected to add $121 million in the industry revenue between 2024 and 2030.
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.

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