April 24, 2024

Vancouver, Sept. 21, 2023 (GLOBE NEWSWIRE) — The global herbal tea market size was USD 3.42 Billion in 2021 and is expected to register a revenue CAGR of 4.4% over the forecast period, according to the latest analysis by Emergen Research. Market growth is primarily driven by factors such as rising incidence of sleep disorders due to an increase in stress level, various health benefits associated with drinking herbal tea, and a rise in number of new herbal tea brands. In addition, increasing usage of social media and e-commerce websites for marketing and advertising herbal tea products is another factor driving global herbal tea market revenue growth.
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According to a report, 40% of people with insomnia are affected by a mental health disorder and insufficient sleep. which have an economic impact of over USD 411 billion each year in the U.S. alone. Herbal tea, such as chamomile, lavender, and magnolia, induce sleep and calm down nervous system. According to different studies, chamomile tea was found to safely improve quality of sleep. These properties of herbal tea and various health benefits associated with drinking herbal tea are expected to increase sales and led to wider adoption of herbal tea, which is driving revenue growth of the market.

Some other factors restraining herbal tea market revenue growth are prevalence of allergic reactions associated with consumption of herbal tea and various types of other health consequences associated with consumption of herbal tea. For instance, blood-thinning properties of chamomile tea might be a concern for people taking blood thinners and therefore are advised not to consume this tea These challenges can be overcome with time through continuous development and government intervention through stringent legislation, as well as compliance by private companies.

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Scope of Research

Report Details Outcome
Market Size in 2021 USD 3.42 Billion
CAGR (2022–2030) 4.4%
Size forecast to 2032 USD 5.45 Billion
Base year for estimation 2021
Historical data 2019–2020
Forecast period 2022–2030
Quantitative units Revenue in USD Billion, and CAGR in % from 2022 to 2030.
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends.
Segments covered Raw material, function, distribution channel and region.
Regional scope North America; Europe; Asia Pacific; Latin America; Middle East & Africa.
Country scope U.S., Canada, Mexico, Germany, U.K., France, Spain, BENELUX, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, Israel, Rest of MEA.
Key companies profiled Tielka, Mountain Rose Herbs, TegaOrganicTea, Indigo Herbs Ltd, Tetley, The Indian Chai, R. Twining and Company Limited., Organic India, Arbor Teas, Buddha Teas, and The Hybrid Green Tea
Customization scope 10 hours of free customization and expert consultation.

MAJOR COMPANIES and Competitive Landscape

The global Herbal Tea market is fragmented, with a few large and medium-sized players accounting for majority market revenue. Established companies are engaged in various research and development activities and initiatives to develop and deploy new and more efficient technologies in the Herbal Tea market. Some major companies included in the global market report are:

  • Tielka
  • Mountain Rose Herbs
  • TegaOrganicTea
  • Indigo Herbs Ltd
  • Tetley
  • The Indian Chai
  • R. Twining and Company Limited.
  • Organic India
  • Arbor Teas
  • Buddha Teas
  • The Hybrid Green Tea

Strategic Development

  • On 02 June 2022 Buddha Teas added two new tea blends which are Cranberry Comfort Blend and Echinacea Tea, to its portfolio. These new tea blends are launched to meet the rising customer demand for herbal teas that are delicious and beneficial to an individual’s health. Cranberry Comfort Blend consists of chamomile which allows mental relaxation and the presence of cranberry supports a healthy urinary tract. The presence of antioxidants in the product has many benefits such as managing blood pressure and cholesterol.
  • On 07 October 2021, The Hybrid Green Tea, an Indian-based company launched its varied ranges of A-Grade herbal teas. The tea mix products are hygienic and are subjected to quality control procedures. The company has recently introduced varied flavors of green tea and Kahwa and is currently working on creating hybrid green tea.

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Some Key Highlights from the Report

  • On 05 March 2020, Tetley launched Tetley Herbal Infusions, which is a range of affordable fruit and herbal infusions and is brewed in cold water. Four flavors which were launched are raspberry & cranberry, strawberry & watermelon, and orange & peach, and mint, lemon & cucumber. In addition, each infusion is made with high-quality ingredients and small pieces of real fruit, which offer a caffeine-free and sugar-free flavor.
  • The ginger segment revenue is expected to account for largest share over the forecast period due to its anti-inflammatory properties, which make it effective for people suffering from arthritis. In addition, effectiveness of ginger tea against cough and cold has led to its growing demand for ginger, especially during COVID pandemic.
  • The cognitive health segment revenue accounted for largest share in 2021 and is expected to grow at a rapid rate over the forecast period. This is due to an increase in demand for ayurvedic herbs for making tea, which has potential to improve cognitive health and growing consumer demand for herbal tea that can improve memory.
  • The online segment revenue is expected to account for largest revenue share over the forecast period, which can be attributed to rapid growth of e-commerce and online payment gateway as well as a rapid rise in adoption of digital marketing.
  • The Asia Pacific market is expected to account for largest revenue share over the forecast period. This is due to an increase in production of tea in the region because of favorable climatic conditions and presence of a large consumer base within countries of the region.

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Emergen Research has segmented the global herbal tea market based on raw material, function, distribution channel, and region:

  • Raw Material Outlook (Revenue, USD Billion, 2019–2030)
    • Chamomile
    • Peppermint
    • Lemongrass
    • Ginger
    • Hibiscus
    • Others
  • Function Outlook (Revenue, USD Billion, 2019–2030)
    • Cognitive Health
    • Digestive Health
    • Sleep Disorders
    • Others
  • Distribution Channel Outlook (Revenue, USD Billion, 2019–2030)
  • Regional Outlook (Revenue, USD Billion, 2019–2030)
    • North America
      1. U.S.
      2. Canada
      3. Mexico
    • Europe
      1. Germany
      2. UK
      3. France
      4. Spain
      5. BENELUX
      6. Rest of Europe
    • Asia Pacific
      1. China
      2. India
      3. Japan
      4. South Korea
      5. Rest of APAC
    • Latin America
      1. Brazil
      2. Rest of LATAM
    • Middle East & Africa
      1. Saudi Arabia
      2. UAE
      3. Israel
      4. Rest of Middle East & Africa

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