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Home ➤ Food and Beverage ➤ Food Ingredients ➤ Herbal Tea Market
Herbal Tea Market
Herbal Tea Market
Published date: Oct 2023 • Formats:
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  • Home ➤ Food and Beverage ➤ Food Ingredients ➤ Herbal Tea Market

Global Herbal Tea Market By Raw Material Type (Green Tea, Black Tea, and Yellow Tea), By Flavor Type (Chamomile, Peppermint, and Others), By Packaging Type, By Distribution Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

  • Published date: Oct 2023
  • Report ID: 16694
  • Number of Pages: 260
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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  • Quick Navigation

    • Report Overview
    • Key Takeaways
    • Driving Factors
    • Restraining Factors
    • By Raw Material Analysis
    • By Flavor Type Analysis
    • By Packaging Type Analysis
    • By Distribution Channel Analysis
    • Key Market Segments:
    • Growth Opportunity
    • Latest Trends
    • Regional Analysis
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    In 2022, the global Herbal Tea market was valued at USD 3.5 billion and is expected to reach USD 6.9 billion in 2032. This market is estimated to register the highest CAGR of 7.2% between 2023 and 2032.

    Herbal teas are commonly made from entire plants such as leaves, stems, flowers, spices, or herbs in water. Herbal tea is not true because it is emerging as a new trend with a rise in health awareness among individuals worldwide.

    Herbal tea is becoming more popular among individuals worldwide because it reduces inflammation and stress and boosts the immune system. Herbal teas are widely used as a traditional medicine due to their health-promoting activities such as anticancer, antidiabetic, antimicrobial, and antioxidant properties. Herbal teas are caffeine-free due herbal tea is more popular among individuals worldwide.

    Herbal Tea Market by raw material

    Key Takeaways

    • Market Growth: In 2022, the Herbal Tea market was valued at USD 3.5 billion; by 2032 it is projected to experience a compound annual growth rate (CAGR) of 7.2% between 2023-2032.
    • Health Awareness Ignites Demand: Increasing health consciousness around the globe has given herbal tea an upsurge in popularity due to its potential ability to reduce inflammation, alleviate stress, and bolster immunity systems.
    • Health Benefits of Herbal Tea: Herbal teas have long been recognized for their health-giving benefits, including anticancer, antidiabetic, antimicrobial, and antioxidant effects. As they contain no caffeine content they appeal more broadly.
    • Stress Reduction and Anxiety Relief: Due to industrialization’s hectic lifestyle, herbal tea has seen an incredible surge in its use as an anxiety remedy, providing comfort from joint pain, headaches, breast cancer, and more.
    • Green Tea Dominance: Green tea has the largest market share among all raw materials used to manufacture herbal tea, with 45.45% in 2022. Green tea has long been recognized for its benefits to heart health, cholesterol levels, and blood clotting risk mitigation.
    • Chamomile Popularity: Chamomile remains one of the top-selling herbal tea flavors worldwide, accounting for 34% market share by 2022. Chamomile tea has long been recognized for its therapeutic and relaxation-inducing benefits such as relieving menstrual cramps, treating diabetes, and encouraging overall relaxation.
    • Tea Bag Packaging: Tea bags dominated the market at 39% by volume in 2022 and were most commonly seen in luxury hotels and restaurants due to their ease of use and convenient form factor.
    • Supermarkets and Hypermarkets Are Leaders in Distribution: Supermarkets and hypermarkets account for 32% of total market distribution channels in terms of herbal tea products sold there, providing customers with ample opportunity to interact directly with these offerings.
    • Global Trends: Individual awareness of the health benefits associated with herbal tea is rapidly rising and due to rising food industry demands it has even become available in luxury hotels. Market players have taken steps such as competitive pricing strategies, product innovation, and mergers in order to remain viable within this rapidly changing sector.
    • Asia Pacific holds a 32% market revenue share for herbal tea sales globally, thanks to increasing populations and health concerns across countries like China, India, Japan and Australia.
    • Key Players: Key players in this market include Bigelow Tea, Tega Organic Teas, Tetley and Tazo Tea Company as well as Typhoo Tea Limited Organic India Pvt Ltd Mountain Rose Herbs Republic of Tea Inc and others.

    Driving Factors

    Increasing Health Concerns Among Individuals Driving the Demand for Herbal Tea in the Market

    Individuals worldwide are more aware of the health and nutritional values of herbal teas, so consumers are more inclined towards herbal teas. Due to rapid industrialization, individuals are more engaged with their work, and an increasingly hectic lifestyle has surged demand for herbal teas to reduce stress and anxiety.

    Herbal tea has several health benefits, such as relief from joint pain, headaches, and breast cancers have surged demand for herbal teas.

    Also, herbal teas are available in different flavors, so herbal tea is more popular among individuals. Worldwide, women are shifting towards health concerns and reducing fats, which has surged demand for green teas in the market.

    Intake of eucalyptus tea is increasing because it provides antibacterial properties and helps to enhance dental health. Due to changing lifestyles and an increasing geriatric population, diabetic patients are increasing.

    Herbal tea helps with diabetes cure. Due to this, the demand for herbal tea is increasing. Rising people’s concerns about healthy and organic drinks drive the demand for herbal teas. Also, the emergence of supermarkets and hypermarkets is driving the growth of the market.

    Introduction to online shopping channels provides easy and doorstep services, driving the sales of herbal tea through online channels and driving the market growth.

    Restraining Factors

    Side Effects of Herbal Tea Restraining the Growth of the Global Herbal Tea Market

    Most herbal teas are safe for regular consumption, but some herbs have toxic and allergic effects, which is the primary factor restraining the market growth. Some people show side effects to herbal tea, such as soreness in the mouth, dermatitis, vomiting, and hormonal imbalance, which have a negative impact on market growth. Also, high consumption of herbal tea causes critical liver problems and strong headaches.

    By Raw Material Analysis

    The Green Tea Segment is Dominant in the Market

    Based on the raw material, the market is segmented into green, black, and yellow tea. The green tea segment was dominant in the market, with the largest market share of 45% in 2022.  Green tea helps boost heart health, reduces cholesterol levels, and reduces the risks of blood clotting.

    Green tea has also positively affected breast, prostate, and liver cancers. Individuals are more inclined towards green tea consumption due to its high health benefits.

    Changing lifestyles, increasing consumption of junk foods, and a sedentary lifestyle resulted in obesity and increased body fat. Due to this, individuals are shifting towards green tea to lose body fats and cholesterol levels, which is the main growth factor of this segment.

    In recent years matcha which is a common form of green tea has grown in popularity among individuals due to its high antioxidant properties as compared to regular tea.

    Also, green tea consumption in women helps in reducing menstrual pain because green tea delivers a lot of antioxidants. Black tea is made from leaves of the camellia sinensis plant, which helps in inflammation and supports healthy immune function.

    Yellow tea is gaining popularity in the market due to its high health benefits, such as dental health, and helps to prevent neurodegenerative diseases.

    By Flavor Type Analysis

    The Chamomile segment is Dominant in the Market, with Largest Market Revenue Share

    By flavor type, the market is segmented into chamomile, peppermint, lemongrass, ginger, hibiscus, and others. The chamomile segment was dominant in the market, with the largest market revenue share of 34% in 2022, and is expected to remain dominant in the market during the forecast period. Chamomile tea is mainly used as a traditional folk remedy due to its high health benefits, which is the main factor for the growth of the segment.

    Chamomile contains chemicals such as flavonoids. Flavonoids are present in various plants as they are nutrition rich they are used in many medicines. Chamomile teas show a major effect on reducing menstrual cramps in women. Also, chamomile tea plays an important role in treating diabetes and lowering blood sugar, reduces inflammation, helps sleep and relaxation, and is used in treating mild skin conditions.

    Peppermint tea reduces cold symptoms and soothes sore throats. Mints have antiviral properties, and they help reduce inflammation. Ginger tea helps reduce morning sickness, is also used to treat chronic indigestion, and helps reduce joint pain. Due to this, ginger tea has more demand from the geriatric population. Hibiscus tea plays an important role in lowering blood pressure and preventing the formation of kidney stones.

    Herbal Tea Market by flavour type

    By Packaging Type Analysis

    The Tea Bag Segment is Dominant in the Market

    Based on packaging type, the market is segmented into loose tea, tea bags, plastic containers, and aluminum tins. The tea bag segment was dominant in the market, with the largest market revenue share of 39% in 2022. The segment growth is attributed to the high demand for herbal tea bags in luxury hotels and restaurants.

    Herbal tea bags are small and lightweight, so they can be able to carry anywhere and are easy to use.  Tea bags are typically porous pouches that contain dried leaves, flowers, or herbs that are infused in hot water to make tea.  Packaging herbal tea in aluminum tin helps protect the real quality of the product and prevents it from the external environment.

    By Distribution Channel Analysis

    The Supermarkets & Hypermarkets Segment is Dominant in the Market

    On the basis of distribution channels, the market is classified into supermarkets & hypermarkets, specialty stores, convenience stores, and online retail stores. The supermarkets & hypermarkets segment was dominant in the market, with the largest market revenue share of 32% in 2022. Supermarkets and hypermarkets provide a wide variety of herbal tea products with different flavors.

    Consumers can touch, smell, or able to taste the product. Due to this, consumers prefer supermarkets & hypermarkets for purchasing products. Supermarkets give attractive discounts and offers on products to attract customers. This is the main factor for increasing sales from supermarkets & hypermarkets.

    Herbal tea products are also available in mortar stores which are convenient for reaching consumers. The online retail stores’ segment is expected to grow at the fastest CAGR during the forecast period. The emergence of e-commerce and the increasing adoption of smartphones resulted in an increase in online shopping channels. Online channels provide 24×7 doorstep services. Due to this, sales of herbal teas through online channels are increasing.

    Key Market Segments:

    Based on raw Material Type

    • Green Tea
    • Black Tea
    • Yellow Tea

    Based on Flavor Type

    • Chamomile
    • Peppermint
    • Lemongrass
    • Ginger
    • Hibiscus
    • Other

    Based on the Packaging Type

    • Loose Tea
    • Tea Bag
    • Plastic Containers
    • Aluminum Tins

    Based on the Distribution Channel

    • Supermarkets & Hypermarkets
    • Specialty Stores
    • Convenience Stores
    • Online Retail Stores

    Growth Opportunity

    High Consumer Demand is Expected to Create Significant Growth Opportunities in the Market

    Worldwide demand for healthy and natural drinks is increasing, which is propelling market growth. Increasing urbanization, changing lifestyles, and increasing health awareness are expected to create lucrative growth opportunities in the global herbal tea market.

    Key companies in the herbal tea market are focusing on the attractive packaging of herbal teas to attract customers. Companies in the herbal tea market are introducing a variety of flavors to meet high consumer demand. This is expected to create lucrative growth opportunities in the market. Also, women’s worldwide shift towards physical activities such as Zumba and yoga for their personal care and health due to this demand for herbal tea is anticipated to increase.

    Latest Trends

    Competitive Landscape of Key Players

    Individuals’ awareness regarding the health benefits of herbal teas is increasing. Due to this, they are shifting towards the consumption of green tea, turmeric tea, and peppermint tea, which are natural and health-beneficial. Several types of research prove that herbal tea is beneficial in the treatment of chronic diseases and in the treatment of cancers.

    Therefore, the intake of herbal teas is increasing in daily life. In addition, several luxury hotels started serving herbal tea as a morning drink due to the increasing demand for herbal tea in the food industry. Several key players in the herbal tea market are focusing on market strategies such as competitive pricing, product innovation, and merging. Such trends are currently observed in the global herbal tea market.

    Regional Analysis

    Asia Pacific Holds the Largest Market Revenue Share in the Global Herbal Tea Market

    Asia Pacific region holds a major share of the global herbal tea market, with the largest market share of 32%. Market growth in the Asia Pacific region is attributed to the increasing population and rising health concerns among individuals in emerging economies such as China, India, Japan, and Australia. Also, the presence of key companies such as Alpino Organic and Zhejiang Tea Group, Ltd. In the Asia Pacific region, driving the growth of the market.

    North America is anticipated to gain significant market growth during the forecast period due to increasing health concerns and high demand for organic drinks & foods in developed countries such as U.S. and Canada.

    Herbal Tea Market regional analysis

    Key Regions and Countries

    • North America
      • The US
      • Canada
      • Mexico
    • Western Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Portugal
      • Ireland
      • Austria
      • Switzerland
      • Benelux
      • Nordic
      • Rest of Western Europe
    • Eastern Europe
      • Russia
      • Poland
      • The Czech Republic
      • Greece
      • Rest of Eastern Europe
    • APAC
      • China
      • Japan
      • South Korea
      • India
      • Australia & New Zealand
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Colombia
      • Chile
      • Argentina
      • Costa Rica
      • Rest of Latin America
    • Middle East & Africa
      • Algeria
      • Egypt
      • Israel
      • Kuwait
      • Nigeria
      • Saudi Arabia
      • South Africa
      • Turkey
      • United Arab Emirates
      • Rest of MEA

    Key Players Analysis

    Major key players in the herbal tea market are focusing on increasing the nutritional values of products to fulfill consumers’ demands and stay competitive in the market. Top key players in the herbal tea market include The Bigelow Tea, Tega Organic Teas, Tetley, Tazo Tea Company, Typhoo Tea Limited, Organic India Pvt. Ltd., Mountain Rose Herbs, The Republic of Tea, Inc., and Other Key Players.

    Market Key Players

    Listed below are some of the most prominent key market players in the herbal tea market

    • The Bigelow Tea
    • Tega Organic Teas
    • Tetley
    • Tazo Tea Company
    • Typhoo Tea Limited
    • Organic India Pvt. Ltd.
    • Mountain Rose Herbs
    • The Republic of Tea, Inc.
    • Other Key Players

    Recent Developments

    • In November 2017, Twining Crosfield Company Ltd. Launched lemon delight and berry fusion flavors of herbal tea in the market.
    • In July 2021, Typhoo Tea Ltd. was acquired by a private equity firm Zetland Capital.

    Report Scope

    Report Features Description
    Market Value (2022) US$ 3.5 Bn
    Forecast Revenue (2032) US$ 6.9 Bn
    CAGR (2023-2032) 7.2%
    Base Year for Estimation 2022
    Historic Period 2016-2022
    Forecast Period 2023-2032
    Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments Covered By Raw Material Type- Green Tea, Black Tea, and Yellow Tea; By Flavor Type- Chamomile, Peppermint, Lemongrass, Ginger, Hibiscus, and Others; By Packaging Type- Loose Tea, Tea Bag, Plastic Containers, and Aluminum Tins; By Distribution Channel- Supermarkets & Hypermarkets, Specialty Stores, Convenience Stores, and Online Retail Stores.
    Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA
    Competitive Landscape The Bigelow Tea, Tega Organic Teas, Tetley, Tazo Tea Company, Typhoo Tea Limited, Organic India Pvt. Ltd., Mountain Rose Herbs, The Republic of Tea, Inc., and Other Key Players.
    Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)

    Frequently Asked Questions (FAQ)

    What will be the market size for Herbal Tea Market in 2032?

    In 2032, the Herbal Tea Market will reach USD 6.9 billion.

    What CAGR is projected for the Herbal Tea Market?

    The Herbal Tea Market is expected to grow at 7.2% CAGR (2023-2032).

    List the segments encompassed in this report on the Herbal Tea Market?

    Market.US has segmented the Herbal Tea Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Raw Material Type, market has been segmented into Green Tea, Black Tea and Yellow Tea. By Flavor Type, the market has been further divided into Chamomile, Peppermint, Lemongrass, Ginger, Hibiscus and Other.

    Which segment accounts for the greatest market share in the Herbal Tea industry?

    With respect to the Herbal Tea industry, vendors can expect to leverage greater prospective business opportunities through the Green Tea segment, as this area of interest accounts for the largest market share.

    Name the major industry players in the Herbal Tea Market.

    The Bigelow Tea, Tega Organic Teas, Tetley, Tazo Tea Company, Typhoo Tea Limited, Organic India Pvt. Ltd. and Mountain Rose Herbs and Other Key Players are the main vendors in this market.

    Herbal Tea Market
    Herbal Tea Market
    Published date: Oct 2023
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    • The Bigelow Tea
    • Tega Organic Teas
    • Tetley
    • Tazo Tea Company
    • Typhoo Tea Limited
    • Organic India Pvt. Ltd.
    • Mountain Rose Herbs
    • The Republic of Tea, Inc.
    • Other Key Players
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