PDF Cover

Rooibos Tea Market

The market for Rooibos Tea was estimated at $742 million in 2025; it is anticipated to increase to $957 million by 2030, with projections indicating growth to around $1.23 billion by 2035.

Report ID:DS1901173
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Rooibos Tea
Share
Report Summary
Market Data
Methodology
Table of Contents

Global Rooibos Tea Market Outlook

Revenue, 2025

$742M

Forecast, 2035

$1.23B

CAGR, 2026 - 2035

5.2%

The Rooibos Tea industry revenue is expected to be around $742.4 million in 2026 and expected to showcase growth with 5.2% CAGR between 2026 and 2035. This steady expansion underscores Rooibos Tea’s rising importance in the global premium tea market, supported by its positioning as a caffeine-free tea option aligned with health and wellness lifestyles. Demand is increasingly concentrated in supermarkets and hypermarkets and online retail channels, which together account for 78.0% of distribution, reflecting consumers’ preference for convenient access and broad product assortments. Within product types, Red Rooibos Tea has emerged as the dominant category, generating approximately $565.68 million in sales in 2025 and reinforcing brand investment in antioxidant-rich, ethically sourced offerings. These dynamics confirm Rooibos Tea as a resilient segment that benefits from the broader shift toward natural wellness beverages and transparent, sustainable supply chains.

Rooibos Tea, a naturally caffeine-free herbal tea derived from the Aspalathus linearis plant, is valued for its smooth, slightly sweet flavor profile, low tannin content, and high polyphenol levels. Its key features gentle on digestion, non-bitter taste, and suitability for all age groups support widespread use in loose-leaf and bagged formats, ready-to-drink functional beverages, lattes, and specialty blends. Major applications include standalone infusions, flavored rooibos variants, and organic rooibos formulations targeting relaxation, heart health, and skin support. Recent trends driving demand include premiumization, clean-label ingredient lists, innovative flavor combinations, and cross-category use of Rooibos Tea in nutraceuticals and better-for-you desserts, consolidating its role as a versatile, globally relevant beverage ingredient.

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

Market Key Insights

  • The Rooibos Tea market is projected to grow from $742.4 million in 2025 to $1.23 billion in 2035. This represents a CAGR of 5.2%, reflecting rising demand across Health & Fitness Segment, Cosmetic Industry, and Culinary Exploits.

  • Rooibos, Khoisan Tea, and Cape Natural Tea Products are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Rooibos Tea market and are expected to observe the growth CAGR of 3.4% to 5.0% between 2025 and 2030.

  • Emerging markets including Brazil, South Korea and UAE are expected to observe highest growth with CAGR ranging between 6.0% to 7.2%.

  • Transition like Rise in Health Consciousness has greater influence in U.S. and China market's value chain; and is expected to add $25 million of additional value to Rooibos Tea industry revenue by 2030.

  • The Rooibos Tea market is set to add $490 million between 2025 and 2035, with manufacturer targeting key segments projected to gain a larger market share.

  • With

    increasing awareness about health benefits, and

    Growing Preference for Herbal Tea, Rooibos Tea market to expand 66% between 2025 and 2035.

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

Opportunities in the Rooibos Tea

North American specialty cafés and coffee chains increasingly seek caffeine-free tea alternatives that complement plant-based milks and barista formats. Rooibos Tea lattes, chai-style red rooibos tea concentrates, and bottled cold-brew infusions remain underrepresented on menus despite strong consumer interest in indulgent, non-coffee beverages with natural antioxidants. Leveraging strategic collaborations between rooibos growers, flavor houses, and foodservice operators can unlock premium pricing. Red Rooibos Tea used in latte and ready-to-drink applications is also expected to outpace overall market growth in major US and Canadian cities.

Growth Opportunities in Europe and North America

In Europe, Rooibos Tea is gaining traction as a premium herbal tea within mainstream grocery, making supermarkets and hypermarkets the most influential distribution channel for scale, while online retail serves as a high-margin niche for specialty and organic rooibos offerings. Top opportunities center on expanding caffeine-free tea assortments in large retail chains, co-developing private-label antioxidant-rich tea ranges, and bundling rooibos into functional drinks and wellness beverages targeting gut health, sleep, and stress relief. Competition is intensifying from established herbal and specialty tea shops, private-label retailers, and emerging e-commerce tea brands that emphasize sustainable farming, origin transparency, and clean labels. Key regional drivers include strong consumer demand for natural, plant-based beverages, tightening regulations around artificial additives, and retailers’ focus on premiumization, all of which support strategic investments in differentiated packaging, organic certification, and in-store education programs to secure long-term shelf dominance for Rooibos Tea.
In North America, Rooibos Tea growth is most strongly leveraged through online retail, where digital-native brands, subscription services, and marketplaces can rapidly test flavors, formats, and functional positioning while supermarkets and hypermarkets remain essential for mainstream visibility. Top opportunities lie in positioning rooibos as a versatile caffeine-free tea base for ready-to-drink wellness beverages, cross-promotions with fitness and holistic health platforms, and innovation in flavored and blended organic rooibos lines tailored to dietary trends such as sugar reduction and plant-based lifestyles. Competition is characterized by agile specialty brands, private-label grocery lines, and direct-to-consumer e-commerce tea brands that emphasize storytelling around origin, sustainability, and antioxidant-rich tea benefits. Core market drivers include rising awareness of herbal tea as an everyday alternative to coffee and soft drinks, the rapid adoption of functional drinks among younger demographics, and strong consumer receptivity to sustainable farming narratives, creating a favorable environment for investment in digital marketing, influencer partnerships, and data-driven assortment optimization to unlock incremental value in Rooibos Tea across both online and offline channels.

Market Dynamics and Supply Chain

01

Driver: Rising Consumer Health Awareness and Increasing Demand for Antioxidant-Rich, Caffeine-Free Beverages

The rooibos tea market is also primarily driven by growing consumer health consciousness and rising interest in antioxidant-rich, caffeine-free beverages. Health-conscious consumers are also seeking alternatives to traditional caffeinated teas and coffees to reduce anxiety, improve sleep, and maintain overall well-being, making rooibos an attractive choice. Simultaneously, the increasing awareness of antioxidants’ role in combating oxidative stress and supporting immunity has also elevated rooibos’s appeal due to its high polyphenol and aspalathin content. Technological advancements in packaging, flavor infusion, and cold-brewing methods enhance the convenience and palatability of rooibos products. Brands like Twinings, Teekanne, and Celestial Seasonings are also leveraging these trends with ready-to-drink teas, flavored infusions, and functional wellness blends. These innovations, combined with clean-label positioning, expand the beverage’s adoption in cafes, gyms, and retail outlets globally, fueling consistent market growth.
A significant driver of rooibos tea demand is also its rising use in cosmetics and skincare. Rich in antioxidants, anti-inflammatory compounds, and polyphenols, rooibos extracts are also incorporated into creams, serums, masks, and haircare products to combat free radicals and soothe sensitive skin. Brands like L’Occitane and The Body Shop leverage rooibos’s natural properties in clean-beauty formulations. This trend aligns with consumer preference for plant-based, functional ingredients in personal care, boosting rooibos adoption beyond beverages and supporting overall market expansion across health and cosmetic segments.
02

Restraint: Premium Pricing and Limited Consumer Awareness Restrict Rooibos Tea Adoption

One major restraint in the rooibos tea market is its premium pricing combined with limited consumer awareness in many global regions. Rooibos often costs more than conventional black or green tea due to specialized sourcing from South Africa and smaller production volumes. In price‑sensitive markets, consumers may opt for cheaper tea alternatives, limiting revenue growth for retailers and producers. Additionally, lack of awareness about rooibos’s health benefits outside core markets like Europe and North America means slower adoption. This reduced demand discourages wider distribution and marketing investment, constraining market expansion in Asia and Latin America where tea consumption is high but rooibos familiarity remains low.
03

Opportunity: Premium organic rooibos wellness infusions for European millennials and Green rooibos functional beverages for Asia-Pacific sports consumers

Rooibos Tea is positioned within the European herbal tea market as a caffeine-free tea that aligns with clean-label, plant-based lifestyles. Premium organic rooibos tea blends targeting millennials and Gen Z seeking natural antioxidants and immune support remain underdeveloped on retail shelves. With global Red Rooibos Tea revenue forecast to grow from $565.68 million in 2025 to $704.94 million by 2030 at 4.5% CAGR, demand for value-added wellness infusions and sustainable sourcing certifications in Western and Northern Europe is expected to drive the fastest growth.
Green rooibos tea enables innovation in functional beverages aimed at active, urban consumers across Asia-Pacific who prioritize gut health, hydration, and performance. The segment is still niche compared with established energy and isotonic drinks, yet global Green Rooibos Tea revenue is projected to rise from $176.68 million in 2025 to $251.58 million by 2030, a 7.32% CAGR. Formulating ready-to-drink Rooibos Tea sports infusions with natural electrolytes, reduced sugar, and clean botanical positioning offers the highest growth potential for green rooibos in Japan, Korea, and Australia.
04

Challenge: Supply Chain Vulnerabilities and Seasonal Harvest Variability Impact Market Stability

Another key restraint is supply chain vulnerability tied to seasonal harvest variability and geographic concentration of production. Rooibos is predominantly grown in limited regions of South Africa’s Western Cape, making supply susceptible to droughts, climate shifts, and logistical disruptions. Poor harvests or export bottlenecks can lead to price spikes and inventory shortages for global distributors. For example, adverse weather conditions can reduce crop yields, squeezing supply and forcing manufacturers to source alternative herbs or blends. These fluctuations impact market dynamics by creating uncertainty in pricing, limiting long‑term contracts, and dampening consistent revenue growth for producers and retailers.

Supply Chain Landscape

1

Rooibos Cultivation

Rooibos Ltd.Cape Natural Tea Products
2

Rooibos Processing

Rooibos Ltd.Khoisan TeaRed T Company
3

Tea Packaging

Khoisan TeaKing’s ProductsCape Natural Tea Products
4

Rooibos Tea Retail

Herbal tea retailersWellness beverage brandsOrganic grocery chains
Rooibos Tea - Supply Chain

Use Cases of Rooibos Tea in Health & Fitness Segment & Culinary Exploits

Health & Fitness Segment : Grenera Rooibos Tea Bags, BLUE TEA - Rooibos Tea - 50gm, and other rooibos products are widely embraced in the health and fitness segment for their antioxidant‑rich, caffeine‑free profile, which supports wellness and recovery routines. Pure, organic or loose‑leaf rooibos is preferred by fitness enthusiasts and those focused on preventive health due to its high polyphenol content and zero caffeine, making it suitable for hydration, detox blends, and weight‑management tea infusions. Rooibos tea’s soothing effects and antioxidant properties help combat oxidative stress and support metabolism, aligning with consumer demand for natural wellness beverages in gyms, health stores, and online platforms.
Cosmetic Industry : Rooibos tea extracts and brewed infusions are increasingly used in cosmetic and skincare products because of their antioxidant, anti‑inflammatory, and soothing properties. Natural rooibos ingredients are incorporated into creams, serums, masks, and haircare formulations to help protect against environmental stressors, support skin health, and promote radiance. Rooibos’s polyphenols like aspalathin help neutralize free radicals, making it attractive to clean‑beauty brands seeking plant‑based, gentle actives. Leading personal care companies include rooibos in antioxidant‑rich blends to appeal to consumers looking for natural, effective skincare solutions.
Culinary Exploits : In culinary applications, rooibos tea is used beyond traditional brewing as an ingredient in sauces, marinades, desserts, and innovative beverages thanks to its earthy, slightly sweet profile. Rooibos infusions enhance flavor complexity while adding functional benefits, such as antioxidants and subtle aroma, appealing to chefs and food product developers. Its use in baked goods, specialty drinks, and gourmet recipes highlights its versatility as a flavor enhancer and functional ingredient. This crossover into culinary creativity reflects broader food innovation trends that value natural, nutritious components in both sweet and savory dishes.

Recent Developments

Recent developments in the rooibos tea market show strong momentum as brands expand ready‑to‑drink infusions, functional wellness blends, and flavored herbal teas to meet rising health and wellness demand. Producers are also exploring organic certification and sustainable sourcing to appeal to eco‑conscious consumers. A key trend is the integration of rooibos in cosmetic extracts and beauty formulations, leveraging its antioxidant and anti‑inflammatory properties. This diversification beyond traditional beverage consumption is strengthening market reach and supporting broader clean‑label herb tea adoption.

February 2024 : Rooibos Ltd. was part of the industry‑wide benefit‑sharing agreement signed by the South African Rooibos Council, National Khoi‑San Council, and government agencies to provide revenue benefits to traditional Khoi and San communities based on commercial use of rooibos. This landmark agreement ensures a portion of rooibos industry earnings support indigenous communities and aligns the sector with the Nagoya Protocol on access and benefit sharing, promoting ethical sourcing and sustainable industry practices.
January 2025 : Western Cape‑based rooibos producer Carmién–Bergendal Rooibos Tea signed a Memorandum of Understanding (MoU) with Chinese importer ChanX Group during the China International Import Expo to distribute South African rooibos products across China. This strategic partnership aims to strengthen rooibos export presence in an emerging market following significant reductions in import duties, positioning rooibos as a premium health beverage within a rapidly growing Asian market.

Impact of Industry Transitions on the Rooibos Tea Market

As a core segment of the Packaged & Processed F&B industry, the Rooibos Tea market develops in line with broader industry shifts. Over recent years, transitions such as Rise in Health Consciousness and Reinvention of Tea Tasting Experiences have redefined priorities across the Packaged & Processed F&B sector, influencing how the Rooibos Tea market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Rise in Health Consciousness

Accelerating health consciousness is transforming the global Rooibos Tea market from a niche herbal tea segment into a mainstream, value-generating wellness category, with the U.S. and China emerging as the most influential hubs across the value chain. Driven by demand for caffeine-free tea and clean-label products, Rooibos Tea is increasingly embedded in nutraceuticals, dietary supplements, functional beverages, and other wellness-oriented formats, unlocking higher-margin applications for manufacturers and brand owners. This structural shift, supported by growing adoption of organic rooibos tea and fortified wellness drinks, is projected to add about $25 million in incremental industry revenue by 2030, particularly through enhanced ingredient pricing power, co-branded product launches, and deeper penetration into pharmacy, online, and specialty retail channels.
02

Reinvention of Tea Tasting Experiences

Another important transition in the Rooibos Tea industry revolves around the reinvention of tea tasting experiences. More and more tea-drinkers are seeking unique, sensory experiences which incorporate an element of storytelling into the mix. Innovative tea-serving establishments have been using Rooibos Tea as the base for a variety of exotic blends, with the teas sweet and fruity characteristics providing an inviting and novel tasting experience. This has propelled growth within the brewing and blending sector, setting the stage for a new era in the tea industry.