Herbal Tea Market Size, Share & Industry Growth to 2032

According to the report by Expert Market Research (EMR), the global herbal tea market share reached a value of USD 3.81 billion in 2023. Aided by factors increasing health consciousness, growing consumer demand for natural and organic products, and rising awareness about the therapeutic benefits of herbal ingredients, the market is projected to further grow at a CAGR of 6.6% between 2024 and 2032 to reach a value of USD 6.77 billion by 2032.

Herbal tea, also known as tisane or herbal infusion, is a beverage made from the infusion or decoction of herbs, spices, flowers, fruits, and other plant-based ingredients in hot water. Unlike traditional tea made from the leaves of the Camellia sinensis plant, herbal tea is caffeine-free and offers a wide range of flavours, aromas, and health benefits. Common herbal tea ingredients include chamomile, peppermint, ginger, hibiscus, lavender, rooibos, and various medicinal herbs used in traditional medicine systems such as Ayurveda and Traditional Chinese Medicine (TCM).

As per the herbal tea market analysis, as consumers become increasingly health-conscious and seek alternatives to sugary beverages and artificial additives, there is a growing demand for natural and functional beverages like herbal tea. Herbal teas are perceived as wholesome, nutritious, and therapeutic, offering various health benefits such as improved digestion, stress relief, immunity enhancement, detoxification, and relaxation. With consumers prioritising health and wellness, the demand for herbal teas with specific functional properties and targeted health benefits is on the rise.

The market is witnessing a surge in innovation and product diversification, with manufacturers introducing new flavour profiles, blends, and product formats to cater to evolving consumer preferences. From traditional herbal blends to exotic fruit-infused teas, floral teas, and wellness teas, there is a wide range of options available to consumers seeking unique taste experiences and functional benefits. Moreover, the introduction of innovative packaging designs, convenient formats, and ready-to-drink herbal tea products is further driving the herbal tea market growth and consumer adoption.

The proliferation of distribution channels and the growing popularity of online retailing platforms are facilitating greater accessibility and availability of herbal tea products to consumers worldwide. In addition to traditional brick-and-mortar stores, herbal tea brands are leveraging e-commerce platforms, specialty tea shops, health food stores, and supermarket chains to reach a wider audience and expand their market presence. The convenience of online shopping, coupled with the ability to access a diverse range of herbal tea products and personalised recommendations, is driving online sales and fuelling herbal tea market development.

Market Segmentation                            

The market can be divided based on the raw material, type, packaging, distribution channel, and region.

Market Breakup by Raw Material

• Green Tea
• Black Tea
• Yellow Tea
• Others

Market Breakup by Type

• Chamomile
• Peppermint
• Lemongrass
• Ginger
• Hibiscus
• Turmeric
• Others

Market Breakup by Packaging

• Loose Tea
• Tea Bags
• Plastic Containers
• Aluminium Tins
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in global herbal tea market. Some of the major players explored in the report by Expert Market Research are as follows:

• The Hain Celestial Group, Inc.
• Pukka Herbs Limited
• Tielka Pty Ltd
• Culinary Teas
• Harney & Sons Fine Teas
• Twining and Company Limited
• Numi, Inc.
• ORGANIC INDIA USA, LLC
• Bigelow
• MJF Group (Dilmah)
• Others

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FAQ: Deep Dive into the Global Herbal Tea Market (2024-2032)

1. What differentiates herbal tea from other types of tea in terms of health benefits?

• Herbal tea differs from traditional teas because it's typically caffeine-free and derived from a variety of herbs, spices, and other plant materials, each offering unique health benefits. For example, chamomile is known for its calming effects, while ginger aids digestion and turmeric has anti-inflammatory properties.

2. How are consumer lifestyle changes impacting the herbal tea market?

• Consumer lifestyle changes towards healthier living are significantly impacting the herbal tea market. As people seek more natural, health-promoting products, herbal teas are becoming a popular choice due to their perceived health benefits and natural ingredients.

3. What technological advancements are influencing the herbal tea industry?

• Technological advancements such as augmented reality (AR) and virtual reality (VR) for immersive shopping experiences, as well as advancements in production and farming techniques, are influencing the herbal tea industry by improving the quality of products and enhancing consumer engagement.

4. How do cultural influences shape the herbal tea market?

• Cultural influences play a significant role in shaping the herbal tea market. Traditional practices in regions like Asia, where tea is a staple, influence global market trends. Additionally, the adoption of ancient health practices like Ayurveda and Traditional Chinese Medicine in Western markets also contributes to the popularity of specific herbal teas.

5. What impact does the rise of online shopping have on the herbal tea market?

• The rise of online shopping has expanded the reach of herbal tea products, making them more accessible to a global audience. It allows consumers to explore a vast variety of products and brands, compare prices, read reviews, and discover new flavors and blends that may not be available locally.

6. How are manufacturers innovating in the herbal tea segment to attract more consumers?

• Manufacturers are innovating by introducing a variety of new flavors, blending herbs with traditional teas, and offering organic and sustainably sourced products. They are also enhancing packaging designs to be more appealing and eco-friendly and are increasingly focusing on creating ready-to-drink herbal tea beverages.

7. What role does sustainability play in the herbal tea market?

• Sustainability is a significant factor in the herbal tea market as consumers increasingly prefer products that are not only good for their health but also environmentally friendly. This includes organic farming practices, sustainable sourcing of ingredients, and packaging materials that are recyclable or biodegradable.

8. What challenges does the herbal tea market face, and how are companies overcoming them?

• Challenges include maintaining product quality and consistency, competing in a crowded market, and navigating varying regulatory environments. Companies overcome these challenges by investing in quality control, innovative marketing strategies, and adapting products to meet local regulations and consumer preferences.