Herbal Tea Market by Type (Black Tea, Green Tea, Yellow Tea), Packaging Type (Carton Packs, Herbal Tea Bags, Herbal Tea Paper Pouches), Form, Flavor, Distribution Channel - Global Forecast 2024-2030

Herbal Tea Market by Type (Black Tea, Green Tea, Yellow Tea), Packaging Type (Carton Packs, Herbal Tea Bags, Herbal Tea Paper Pouches), Form, Flavor, Distribution Channel - Global Forecast 2024-2030

The Herbal Tea Market size was estimated at USD 14.03 billion in 2023 and expected to reach USD 14.77 billion in 2024, at a CAGR 5.34% to reach USD 20.21 billion by 2030.

Herbal tea is made from the infusion or decoction of herbs, spices, or other plant materials in hot water. Unlike traditional teas brewed from the camellia sinensis plant, herbal teas do not generally contain caffeine. They are known for their varied flavors, scents, and purported health benefits, ranging from relaxing and soothing to digestive and immune system support. Herbal teas are widely consumed for their health benefits, flavors, and natural remedies for ailments such as colds, insomnia, and digestion. The primary consumers range from health-conscious individuals to those seeking herbal alternatives for relaxation and wellness. The market serves various end-users, including residential, cafes, restaurants, and wellness industries. The scope of the herbal tea market includes the cultivation and sourcing of herbal ingredients, production and packaging of herbal tea products, and distribution and retail across various platforms ranging from supermarkets to health stores and online outlets. Influential growth factors include a rising health-conscious consumer population, growing preference for natural and organic products, increasing popularity of wellness and self-care trends, and the increasing accessibility of herbal teas through various retail channels. Additionally, the integration of herbal teas into the lifestyle and wellness routines of consumers worldwide supports market expansion. However, the adoption of herbal tea is hindered by competition from traditional teas and other beverages, stringent regulations and quality standards for herbal products, and fluctuations in the availability and price of herbal ingredients due to climate change and agricultural issues. On the other hand, a rising focus on sustainable and eco-friendly packaging, strategic partnerships with wellness influencers and lifestyle brands, development of functional herbal teas tailored for specific health benefits, enhanced online presence, and direct-to-consumer sales channels present potential opportunities for the herbal tea market.

Regional Insights

In the Americas, particularly the United States and Canada, the herbal tea market is experiencing robust growth driven by a surge in health-conscious consumers and the diversification of product offerings. The United States has seen a rise in herbal tea startups utilizing e-commerce to reach niche markets, focusing on wellness trends, such as sleep enhancement and stress reduction. In Canada, sustainability and ethically sourced ingredients are significant factors influencing consumer purchases, alongside an interest in exploring international herbal blends. In South America, the herbal tea market is benefiting from the local tradition of herbal infusion consumption, which has seamlessly integrated these products into daily habits, supporting overall market growth. In the EMEA region, diverse consumer needs and purchasing behaviors are evident. EU countries have shown a profound interest in organic and fair-trade certified products, reflecting a broader societal commitment to environmental and social responsibility. The Middle East presents a growing market characterized by a strong tradition of herbal tea consumption, with investments targeting luxury tea experiences and the health benefits of herbal offerings. Africa's market is emerging with local startups exploring indigenous herbs, underpinned by initiatives to enter global markets while ensuring fair trade practices. The APAC region, particularly China, Japan, and India, has adopted herbal tea due to historical consumption patterns and an increasing awareness of health benefits. In China, herbal tea has been a staple for centuries, with consumers focusing on its medicinal properties. Japan's market is distinguished by its demand for quality and a growing interest in organic varieties. India's market is booming due to traditional Ayurvedic practices, driving consumer preference towards local herbs.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Herbal Tea Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Rising health-conscious consumer population
Growing preference for natural and organic products
Increasing popularity of wellness and self-care trends

Market Restraints

High cost of the herbal tea

Market Opportunities

Rising focus on sustainable and eco-friendly packaging
Strategic partnerships with wellness influencers and lifestyle brands

Market Challenges

Concerns associated with the availability of substitute products

Market Segmentation Analysis

Type: Increasing preference for green tea among consumers for weight management
Distribution Channel: Rising popularity of eCommerce platforms to purchase herbal tea

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Herbal Tea Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Herbal Tea Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Tata Consumer Acquires Capital Foods, Organic India

Tata Consumer Products Ltd (TCPL) announced definitive agreements to purchase 100% equity shares of Capital Foods, the entity behind popular brands such as Ching’s Secret and Smith & Jones, alongside acquiring Organic India, known for its organic herbal teas and health supplements. This strategic move aligns with TCPL's objective to diversify its product suite and broaden its market reach, particularly in the swiftly growing segments of non-Indian cuisines and organic health foods.

Bigelow Tea Expands Its Line of Wellness Teas With New Flavour

Bigelow Tea expanded its Bigelow Benefits wellness tea line by introducing a new flavor, Throat Defense Ginger Honey Lemon Herbal Tea, in the United States. This latest addition is expertly crafted to meet throat care needs, featuring a blend of high-quality, natural ingredients, including ginger, honey, lemon, licorice, and marshmallow root, known for their soothing properties. This launch underscores Bigelow Tea's ongoing commitment to offering functional teas that have contributed positively to consumer health.

Bridge Goodness Pvt Ltd Launches FromBhutan, a Wellness Herbal Tea Brand, with Three New Variants

FromBhutan, an initiative of Bridge Goodness Pvt Ltd, led by Shailendra Sirikonda, enriches the tea culture by introducing three exotic herbal teas - Soothing Sleep, Hippy Happy, and Gut Goodness, crafted from the premium quality Cordyceps, Sea Berry, and Matsutake mushrooms respectively, sourced from Bhutan’s pristine mountain steps. Emphasizing sustainable, chemical-free farming, these teas blend traditional wisdom with innovative medicinal, dietary, or leisurely flavors.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Herbal Tea Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Herbal Tea Market, highlighting leading vendors and their innovative profiles. These include Adagio Teas, Apeejay Surrendra Group, Arbor Teas, Associated British Foods PLC, Bigelow Tea, Bombay Burmah Trading Corporation Limited, Buddha’s Herbs, Dilmah Ceylon Tea Company PLC., East West Tea Company, LLC, Global Herbitech, Green Earth Products Pvt. Ltd., Hindustan Unilever Limited, Indigo Herbs Ltd., Martin Bauer GmbH & Co. KG, Mighty Leaf Tea, Mountain Rose Herbs, Nu-Tea Company Ltd., Numi, Inc., ONO TEAS Pvt. Ltd., Shangri-la Tea, Stash Tea Company, Tata Consumer Products Limited, Terra teas, The Hain Celestial Group, Inc., The Republic of Tea, Inc., Tielka Pty Ltd., and Vahdam Teas Private Limited.

Market Segmentation & Coverage

This research report categorizes the Herbal Tea Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
Black Tea
Green Tea
Yellow Tea
Packaging Type
Carton Packs
Herbal Tea Bags
Herbal Tea Paper Pouches
Loose Tea
Form
Instant Premixes
Liquid & Powdered RTD
Syrups
Flavor
Chamomile Herbal Tea
Fruit Herbal Tea
Ginger Herbal Tea
Hibiscus Herbal Tea
Lemongrass Herbal Tea
Peppermint Herbal Tea
Distribution Channel
Offline
Online
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year