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Herbal Tea Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Herbal Tea Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Published: Jul 2024 153 Pages SKU: IRTNTR75221

Market Overview at a Glance

$848.1 Mn
Market Opportunity
4.6%
CAGR
4.17
YoY growth 2023-2024(%)

Herbal Tea Market Size 2024-2028

The herbal tea market size is forecast to increase by USD 848.1 million at a CAGR of 4.6% between 2023 and 2028.

  • The market is experiencing significant growth, driven by several key factors. Widely available alternatives to traditional tea, such as fruit and herbal infusions, are gaining popularity due to their unique flavors and health benefits. Consumers are increasingly seeking out products that cater to their health concerns, leading to a surge in demand for herbal teas. Additionally, the rapid growth of e-commerce platforms has made it easier for consumers to access these products from the comfort of their homes. These trends are expected to continue, making the market an attractive investment opportunity for businesses. However, challenges such as increasing competition and the need for product differentiation remain, requiring companies to innovate and adapt to stay competitive.
  • Overall, the market is poised for continued growth, driven by consumer demand for healthier alternatives and the convenience of online shopping.

    • What will be the Size of the Herbal Tea Market During the Forecast Period?

    Herbal Tea Market Size

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  • The market encompasses a diverse range of tea blends, derived from various plants and herbs, excluding the Camellia sinensis plant used for traditional black, green, and oolong teas. This sector is driven by a growing consumer preference for natural, clean label foods and alcohol-free beverages. Ecological processes and biodiversity are essential considerations in herbal tea farming, ensuring the soil maintains its health and fertility. Sustainable agricultural practices are increasingly adopted to cater to this market, ensuring a working population involved in ethical and eco-friendly production. Retail markets are thriving due to the popularity of herbal teas, with key ingredients including licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, and turmeric.
  • Consumers prioritize food safety, quality, taste, and the absence of pesticides when purchasing herbal teas, making it a competitive yet rewarding industry.

    • How is this Herbal Tea Industry segmented and which is the largest segment?

    The herbal tea industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

    • Type
      • Green
      • Black
      • Yellow
    • Distribution Channel
      • Offline
      • Online
    • Geography
      • APAC
        • China
        • India
      • Europe
        • Germany
        • UK
      • North America
        • US
      • South America
        • Middle East and Africa

        By Type Insights

        • The green segment is estimated to witness significant growth during the forecast period.

        The herbal tea industry has experienced significant growth due to increasing consumer preference for natural, clean label foods and pesticide-free commodities. Tea farming, adhering to ecological processes and sustainable agricultural practices, is essential to maintain plant biodiversity and soil health. Herbal tea offerings, including licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and various blends, cater to diverse consumer needs. Key flavors like Tulsi Detox, Peppermint Refresh, Moringa hibiscus, and Simply Chamomile address cognitive health and wellness concerns. Herbal tea is available in tea bags and loose leaves, and retail markets cater to obesity and overweight issues, offering products free from synthetic chemicals.

        Brands like Sea Berry Tea and Gut Goodness Tea emphasize food safety and quality, ensuring a natural and authentic taste. Online stores provide easy access to these alcohol-free beverages, appealing to consumers seeking health, weight loss, and wellness benefits. Keywords: the market, tea farming, ecological processes, biodiversity, sustainable agricultural practices, natural ingredient, clean label foods, pesticide-free commodities, food safety, quality, taste, alcohol-free, licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, blends, Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, cognitive health, tea bags, loose leaves, obesity, overweight issues, synthetic chemicals, Soothing Sleep, Sea Berry Tea, Gut Goodness Tea, online store, health, weight loss, wellness, dietary supplements, cherry, hibiscus, orange detox, tropical turmeric, chamomile lavender.

        Herbal Tea Market Size

        Get a glance at the  Herbal Tea Industry report of share of various segments Request Free Sample

        The Green segment was valued at USD 1530.20 million in 2018 and showed a gradual increase during the forecast period.

        Regional Analysis

        • APAC is estimated to contribute 38% to the growth of the global market during the forecast period.

        Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

        Herbal Tea Market Share by Geography

        For more insights on the market share of various regions, Request Free Sample

        The herbal tea industry experienced steady growth in 2023, with APAC leading the market due to increasing health consciousness and rising disposable income. Consumers in this region prefer natural ingredient-based, pesticide-free commodities, aligning with clean label food trends. companies cater to this demand by expanding their e-commerce presence, particularly through platforms like Amazon, to reach a broader consumer base. The Internet's increasing penetration and the growing trend of online shopping in APAC significantly contribute to market expansion. Key herbal teas, such as licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and blends, are popular for cognitive health benefits and taste.

        Herbal teas are also used for soothing sleep, weight loss, and addressing obesity and overweight issues. companies prioritize sustainable agricultural practices, ecological processes, and plant biodiversity to ensure food safety and tea quality. Key herbal teas include Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, Sea Berry Tea, and Gut Goodness Tea. Herbal teas are available in tea bags and loose leaves, catering to diverse consumer preferences.

        Market Dynamics

        Our  researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

        What are the key market drivers leading to the rise In the adoption of Herbal Tea Industry?

        Wide availability of substitutes is the key driver of the market.

      • The herbal tea industry is experiencing significant growth due to the increasing number of health-conscious consumers In the US. Herbal teas, derived from various natural ingredients such as licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and more, offer numerous health benefits. These teas are known to improve blood pressure and circulation, boost good cholesterol levels, reduce bad cholesterol levels, and enhance cognitive health. Herbal teas are also marketed for their ability to reduce stress, improve sleep, and boost immunity. As consumers become more health-conscious, they are seeking out natural ingredient-based, clean label foods, including pesticide-free commodities. Herbal tea manufacturers are responding to this trend by emphasizing food safety and quality, as well as the taste of their products.
      • To cater to the changing preferences of consumers, herbal tea manufacturers are experimenting with new flavor combinations and ingredients, creating unique and diverse blends such as Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, Sea Berry Tea, Gut Goodness Tea, Cherry, Hibiscus Orange detox, Tropical turmeric, and Chamomile lavender. Consumers are also looking for convenient ways to consume herbal teas, with ready-to-drink formats and single-serve tea bags gaining popularity. Herbal tea manufacturers are focusing on sustainable agricultural practices, preserving plant biodiversity, and maintaining ecological processes to ensure the health of the soil and the working population involved in tea farming.
      • The market offers a wide range of options for consumers seeking natural, healthy, and convenient beverage choices.

        • What are the market trends shaping the Herbal Tea Industry?

        Rising demand for products with health benefits is the upcoming market trend.

      • The herbal tea industry is experiencing significant growth due to the increasing preference for natural ingredient, pesticide-free commodities, and clean label foods among consumers. This trend is driving the demand for herbal tea, which is free from synthetic chemicals and offers numerous health benefits. The market encompasses a variety of teas made from different plant species, including licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and many more. Ecological processes and biodiversity play a crucial role in tea farming, ensuring the soil and plant biodiversity remain healthy. Sustainable agricultural practices are being adopted to maintaIn the quality and taste of herbal teas while ensuring food safety.
      • The working population is increasingly turning to herbal tea for cognitive health and wellness, with popular blends such as Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, and others gaining popularity. Online retail markets have become a significant distribution channel for herbal tea, offering consumers a wide range of products at competitive prices. Obesity and overweight issues are driving the demand for herbal teas that offer weight loss benefits, such as Cherry, Hibiscus, Orange Detox, Tropical Turmeric, and Chamomile Lavender. The market is expected to continue growing, with new product innovations and blends being introduced regularly. Consumers can now easily purchase herbal tea online from various online stores, making it a convenient and accessible option for those seeking natural and healthy beverage choices.

        • What challenges does the Herbal Tea Industry face during its growth?

        Rapid growth of e-commerce is a key challenge affecting the industry growth.

      • The herbal tea industry encompasses the production and distribution of herbal teas, derived from various plants and herbs, for consumption as a natural, alcohol-free beverage. Herbal tea farming relies on ecological processes and biodiversity, with a focus on sustainable agricultural practices to maintain plant biodiversity and soil health. Key herbs used in herbal teas include licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and many more. Manufacturers prioritize quality, taste, and food safety In the production of herbal tea blends, such as Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, and others. These teas offer various health benefits, including cognitive health, weight loss, and solutions for obesity and overweight issues.
      • However, the market faces challenges due to the availability of alternatives, such as milk/black tea, fruit-infused water, energy drinks, juices, and other health drinks. Consumer education is crucial to increase awareness of herbal teas' potential health benefits and unique blends. Millennials and Baby Boomers are significant customer segments, as they constitute a significant portion of the working population and prioritize clean label foods, pesticide-free commodities, and dietary supplements. Key herbal tea ingredients include cherries, hibiscus, orange, and tropical turmeric, among others. Herbal teas are available in various forms, such as tea bags and loose leaves, and can be purchased from retail markets and online stores.
      • Some popular herbal tea blends include Cherry Detox, Orange Detox, Tropical Turmeric, Chamomile Lavender, and Sea Berry Tea, among others. In conclusion, the market offers a wide range of natural, healthy, and delicious beverage options, with various health benefits and unique blends. Manufacturers must focus on consumer education and sustainable practices to maintaIn the market's growth and meet the increasing demand from health-conscious consumers.

        • Exclusive Customer Landscape

        The herbal tea market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the herbal tea market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

        Herbal Tea Market Share by Geography

         Customer Landscape

        Key Companies & Market Insights

        Companies are implementing various strategies, such as strategic alliances, herbal tea market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

        Associated British Foods Plc - Twinings, a renowned purveyor of premium tea blends, caters to the market with its extensive collection of herbal infusions. These teas, free from traditional tea leaves, are derived from various fruits, flowers, roots, and spices. The herbal tea segment continues to gain traction due to increasing health consciousness and the growing preference for natural and organic beverages. Twinings' herbal tea offerings reflect the brand's commitment to delivering authentic, high-quality infusions, making it a preferred choice for tea connoisseurs and health-conscious consumers alike.

        The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

        • Associated British Foods Plc
        • BARRYS TEA
        • Bigelow Tea
        • FAVA TEA CO.
        • Full Leaf Tea Co. LLC
        • Green Earth Products Pvt. Ltd.
        • Harney and Sons Fine Teas
        • Lake Missoula Tea Co.
        • MB Holding GmbH and Co. KG
        • Mother Parkers Tea and Coffee Inc.
        • Mysooru Tea Co.
        • Nestle SA
        • ORGANIC INDIA Pvt. Ltd.
        • Tata Consumer Products Ltd.
        • The Boulder Tea Co.
        • The Hain Celestial Group Inc.
        • The Mark T. Wendell Tea Co.
        • Vahdam Teas Pvt. Ltd.
        • Veda Tea Co.
        • Yunnancraft

        Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

        Research Analyst Overview

        The market encompasses a diverse range of beverages prepared from various plant species, excluding the Camellia sinensis plant used for traditional tea. The industry's growth is underpinned by several factors, including the increasing focus on natural ingredient-based food and beverage offerings, the demand for clean label foods, and the preference for pesticide-free commodities. Ecological processes and biodiversity play a crucial role In the production of herbal teas. Soil health and plant biodiversity are essential for the growth and development of tea plants. Sustainable agricultural practices are gaining popularity among tea farmers to ensure the long-term viability of the industry and the health of the working population involved in its production.

        Retail markets for herbal teas continue to expand as consumers seek alternatives to synthetic chemicals and artificial additives. The beverage category's appeal is further bolstered by its association with cognitive health and wellness. Herbal teas are often marketed as alcohol-free, making them a popular choice for those seeking a healthier lifestyle. A variety of herbal teas are available, each with unique flavors and health benefits. Licorice tea, with its sweet and slightly anise-like taste, is a popular choice for those seeking a soothing beverage. Apple tea, with its fruity and slightly tart flavor, is another favorite. Cinnamon tea, with its warm and spicy taste, is often used for its potential cognitive health benefits.

        Star anise tea, with its distinct licorice-like flavor, is another popular option. Dandelion tea, made from the leaves and roots of the dandelion plant, is known for its diuretic properties and is often used to support weight loss and detoxification. Chamomile tea, with its calming and soothing properties, is a popular choice for those seeking a good night's sleep. Ginger tea, with its spicy and slightly sweet taste, is often used to aid digestion and reduce inflammation. Turmeric tea, with its earthy and slightly bitter taste, is known for its anti-inflammatory properties. Herbal tea blends continue to gain popularity, with combinations such as Tulsi Detox and Peppermint Refresh offering unique flavor profiles and health benefits.

        Moringa Hibiscus tea, with its tart and slightly sweet taste, is another popular blend, often marketed for its antioxidant properties. Online stores and retailers offer a wide range of herbal teas, making it easy for consumers to access these beverages from the comfort of their own homes. Herbal teas are often sold in both tea bags and loose leaves, catering to various consumer preferences. The market is expected to continue its growth trajectory, driven by the increasing demand for natural and organic food and beverage offerings, the focus on clean label foods, and the health benefits associated with herbal teas.

        The market's expansion is also expected to be fueled by the development of new and innovative tea blends and the growing popularity of herbal teas as a dietary supplement.

        Market Scope

        Report Coverage

        Details

        Page number

        153

        Base year

        2023

        Historic period

        		 2018-2022

        Forecast period

        2024-2028

        Growth momentum & CAGR

        Accelerate at a CAGR of 4.6%

        Market growth 2024-2028

        USD 848.1 million

        Market structure

        Fragmented

        YoY growth 2023-2024(%)

        4.17

        Key countries

        US, China, India, UK, and Germany

        Competitive landscape

        Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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        What are the Key Data Covered in this Herbal Tea Market Research and Growth Report?

        • CAGR of the Herbal Tea industry during the forecast period
        • Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
        • Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
        • Accurate predictions about upcoming growth and trends and changes in consumer behaviour
        • Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
        • Thorough analysis of the market’s competitive landscape and detailed information about companies
        • Comprehensive analysis of factors that will challenge the herbal tea market growth of industry companies

        We can help! Our analysts can customize this herbal tea market research report to meet your requirements.

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        Table of Contents not available.

        Research Methodology

        Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

        INFORMATION SOURCES

        Primary sources

        • Manufacturers and suppliers
        • Channel partners
        • Industry experts
        • Strategic decision makers

        Secondary sources

        • Industry journals and periodicals
        • Government data
        • Financial reports of key industry players
        • Historical data
        • Press releases

        DATA ANALYSIS

        Data Synthesis

        • Collation of data
        • Estimation of key figures
        • Analysis of derived insights

        Data Validation

        • Triangulation with data models
        • Reference against proprietary databases
        • Corroboration with industry experts

        REPORT WRITING

        Qualitative

        • Market drivers
        • Market challenges
        • Market trends
        • Five forces analysis

        Quantitative

        • Market size and forecast
        • Market segmentation
        • Geographical insights
        • Competitive landscape

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        Frequently Asked Questions

        Herbal Tea market growth will increase by $ 848.1 mn during 2024-2028.

        The Herbal Tea market is expected to grow at a CAGR of 4.6% during 2024-2028.

        Herbal Tea market is segmented by Type( Green, Black, Yellow) Distribution Channel( Offline, Online)

        Associated British Foods Plc, BARRYS TEA, Bigelow Tea, FAVA TEA CO., Full Leaf Tea Co. LLC, Green Earth Products Pvt. Ltd., Harney and Sons Fine Teas, Lake Missoula Tea Co., MB Holding GmbH and Co. KG, Mother Parkers Tea and Coffee Inc., Mysooru Tea Co., Nestle SA, ORGANIC INDIA Pvt. Ltd., Tata Consumer Products Ltd., The Boulder Tea Co., The Hain Celestial Group Inc., The Mark T. Wendell Tea Co., Vahdam Teas Pvt. Ltd., Veda Tea Co., Yunnancraft are a few of the key vendors in the Herbal Tea market.

        APAC will register the highest growth rate of 38% among the other regions. Therefore, the Herbal Tea market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.

        US, China, India, UK, Germany

        • Wide availability of substitutesThe growing population of health-conscious consumers is spurring the demand for herbal tea. Herbal tea improves blood pressure and circulation is the driving factor this market.
        • besides boosting good cholesterol levels and reducing bad cholesterol levels. Herbal teas are often marketed for their perceived health benefits is the driving factor this market.
        • such as reducing stress is the driving factor this market.
        • improving sleep is the driving factor this market.
        • and boosting immunity. Manufacturers of herbal teas are highlighting these benefits to attract health-conscious consumers. Consumers are looking for more convenient ways to consume herbal teas is the driving factor this market.
        • such as in ready-to-drink formats or single-serve tea bags. Herbal tea manufacturers are experimenting with new flavor combinations and ingredients to create unique and diverse blends that cater to the different tastes and changing preferences of consumers. Also is the driving factor this market.
        • consumers are becoming more conscious of the environmental impact of the products they use or consume and is the driving factor this market.
        • therefore is the driving factor this market.
        • are looking for herbal teas that are sourced sustainably and produced without harmful chemicals. Thus is the driving factor this market.
        • due to all these factors is the driving factor this market.
        • the demand for herbal tea is surging is the driving factor this market.
        • which is the driving factor this market.
        • in turn is the driving factor this market.
        • will boost the growth of the global herbal tea market during the forecast period. is the driving factor this market.

        The Herbal Tea market vendors should focus on grabbing business opportunities from the Green segment as it accounted for the largest market share in the base year.