Herbal Tea Production in the US - Industry Market Research Report

Herbal Tea Production in the US - Industry Market Research Report

Herbal Tea Production in the US

Herbal tea producers have prospered over much of the five years to 2023 due to an expansion in health-consciousness and tea consumption among consumers. Consistent demand from the aging population is attributable to intense marketing on the part of herbal tea producers to boost awareness about the health benefits of herbal teas. Price-premium teas with organic blends have swelled in popularity amid expanded discretionary income levels. Competition from low-cost imports, however, has offset some expansion in domestic tea demand amid the strengthening US dollar. IBISWorld estimates that herbal tea revenue will inch down at a CAGR of an estimated 1.0% to $587.3 million through the end of 2023, despite a slight 0.2% anticipated increase in 2023. COVID-19 has contributed to this annualized revenue drop, as well as a dip in profit, across the industry.

Companies in this industry blend and package plant infusions made from any leaf, root, fruit or flower that comes from a plant other than the tea plant. The industry does not include iced and ready-to-drink herbal teas.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.