The global herbal tea market is forecasted to be valued at USD 3,962.7 million in 2023. During the forecast period from 2023 to 2033, herbal tea sales are expected to grow at a CAGR of 7.3%, valued at USD 7,693.5 million. With the growing health and wellness trend, the global tea market, particularly for herbal teas, is growing rapidly.
It has been observed that the rise of the health industry, as a direct consequence of the fat-burning properties of herbal teas, has greatly contributed to the growth of this market. During the historical period 2018 to 2022, herbal tea demand grew at a 7.1% value CAGR.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value (2023) | USD 3,962.7 million |
| Anticipated Forecast Value (2033) | USD 7,693.5 million |
| Projected Growth Rate (2023 to 2033) | 7.3% CAGR |
Herbal tea is becoming more famous as its use of natural ingredients makes it more popular in the market. The rise in health consciousness among people has led to the emergence of this trend. Due to an increase in awareness about health and nutrition, the herbal tea market has gained traction in recent years. Because of the use of synthetic ingredients in packaged food, people tend to avoid this type of food and instead opt for herbal teas in the market.
Herbal tea is steadily becoming more important as people's lifestyles change, and a large proportion of people prefer herbal tea to regular tea. Having a regular customer base will ensure the growth of the market in the future. The use of herbal teas for medical purposes varies according to the type of tisane. A variety of cultures have traditionally used herbal teas for their health-promoting effects, including anticancer, anti-diabetic, anti-inflammatory, and antioxidant properties.
Tea bags are often packaged in compostable or biodegradable outer packaging these days. Consequently, these processes reduce atmospheric carbon dioxide in the environment. A ready-to-drink variant is also being introduced in the market in order to increase the company's overall sales. Innovative marketing strategies and endorsements from celebrities are also expected to fuel market growth in the coming years.
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Several factors driving herbal tea consumption in the anticipated years, including an increase in the population, increased health awareness of the consumers, disposable income, as well as wellness trends. As a liver detoxifier, Lipton Herbal Tea aids in the removal of toxins from the body, thereby treating liver problems.
There are many cases in which the boundary between consumption and medicinal purposes has become obscured. Due to these trends, herbal tea extract producers have been able to contribute new ingredients to the functional food and nutraceutical markets. Social factors such as trends and awareness among citizens heavily influence the demand for herbal tea. Herbal tea has become increasingly popular as people switch to a healthier diet and seek out products that are both healthy and nutritionally beneficial to their bodies.
In traditional medicine, herbal teas have been used for centuries for their health-promoting benefits, including the ability to fight cancer, diabetes, inflammation, and antioxidants. Additionally, the rise in consumption of instant tea is driving the growth of the herbal tea industry. With the rise of the health industry in recent years, the rise of fat-burning tea has unwittingly contributed to the growth of the market by stimulating the rise of the health industry.
With more health consultants and consumers becoming aware of the potential hazards of herbal tea, there is a growing unwillingness to use herbal tea, which could hamper the growth of the herbal tea market.
As a result of certain phytonutrients in herbal tea, certain herbs may be considered toxic and may cause sickness, which may further hinder the market's growth. Moreover, allergic reactions may further hinder the growth of herbal tea in the market.
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According to the analysis, Asia Pacific is expected to be the most lucrative and fastest-growing market for herbal tea during the forecast period. As the regional market develops, herbal tea consumption in countries like India and China is expected to make the largest contribution to the market.
The anti-aging properties of herbal tea make it a potential and established market. The herbal tea market is expected to experience a robust CAGR over the next few years as consumers demand more processed foods and ready-to-drink beverages in the market. Increasing disposable incomes and a high spending habit on healthy foods have made it possible for these markets to flourish.
According to Future Market Insights, the prevalence of health consciousness and weight loss programs, the market for herbal tea is expected to be dominated by this region. North America is anticipated to account for a market share of 33.3% by the end of 2022.
Growing working populations, rising well-to-do product demand, and expanding retail markets are among the factors driving global market growth. A growing number of personal care products are incorporating herbal tea as a natural ingredient, which is expected to drive growth in the global herbal tea market. The proliferation of small businesses in North America during the projection period also generate opportunities for the herbal tea market.
Based on raw material, the herbal tea market is segmented into green tea, black tea, and yellow tea. Market growth is expected to be the fastest in the green tea market. It is perceived that green herbal tea is healthier and more suitable for young adults in the market which is why market demand for green herbal tea is growing in demand. Compared to black herbal tea, green herbal tea offers a greater variety of choices and advancements in the market.
According to Harvard Medical School, flavonoids found in green tea reduce LDL cholesterol breakdown, reduce blood clotting, and improve blood vessel function, which protects against heart disease. Furthermore, green tea has been linked to reduced cholesterol levels and less artery blockage. Hence market growth for green herbal tea is expected to grow largely in the market.
According to Future Market Insights, during the assessment period 2023 to 2033, demand for ginger herbal tea is expected to grow substantially. Over the forecast period, ginger herbal tea is expected to account for the majority share of the revenue generated by the tea market over the forecast period.
Ginger consumption has shown improvements in cholesterol levels, blood glucose levels, and inflammatory markers in people with known Nonalcoholic Fatty Liver Disease (NFLD). Patients suffering from rheumatoid arthritis and osteoarthritis have proven that ginger tea has anti-inflammatory properties that are beneficial to their condition. Bioactive compounds found in ginger have been proven to be beneficial for throat infections and other illnesses, therefore, the market demand for ginger herbal tea will rise significantly in the future.
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The popularity of healthy lifestyles has led to the emergence of numerous start-ups offering herbal tea in the market. Additionally, these startups also produce and distribute tea flavors that are unique to their industries. In order to gain a competitive edge, entrepreneurs are increasingly turning to long-established franchise business concepts because they offer enhanced durability and long-term revenue potential for both franchisees and franchisors.
The global herbal tea market is very diverse and competitive, with various local and regional rivals. Marketing tactics used by key companies include mergers and acquisitions, expansions, collaborations, and partnerships.
Some of the key participants present in the global herbal tea market include AB Food and Beverages, Tata Global Beverages, Martin Bauer Group, Nestea, Unilever, Buddha’s Herbs, Green Earth Products Pvt. Ltd, Mothers Parkers Tea and Coffee Inc, Global Herbitech, Typhoo India, Rooibos, The Feel Good Tea, Ashford Tea, Silver Leaf Tea, Waku, Opteamal, and Others
Recent Developments
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 7.3% from 2023 to 2033 |
| Market Value in 2023 | USD 3,962.7 million |
| Market Value in 2033 | USD 7,693.5 million |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Material Type, Product Type, Flavor Types, Packaging Type, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, United Kingdom, Spain, France, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC, South Africa, Israel |
| Key Companies Profiled | AB Food and Beverages; Tata Global Beverages; Martin Bauer Group; Nestea; Unilever; Buddha’s Herbs; Green Earth Products Pvt. Ltd; Mothers Parkers Tea and Coffee Inc.; Global Herbitech; Typhoo India; Rooibos; The Feel Good Tea; Ashford Tea; Silver Leaf Tea; Waku; Opteamal |
The market is pegged to attain USD 7,693.5 million by 2033.
The growth potential of the herbal tea market is 7.3% CAGR through 2033.
Ginger herbal tea is making rounds in the market.
AB Food and Beverages, Tata Global Beverages, and Martin Bauer Group are key performers in the market.
Entrepreneurs are seeking long-established franchise business concepts.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Raw Material Type 5.1. Black Herbal Tea 5.2. Green Herbal Tea 5.3. Yellow Herbal Tea 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Instant Premixes 6.2. Liquid Herbal Tea 6.3. Powdered RTD Herbal Tea 6.4. Syrup 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Flavor Types 7.1. Lemongrass Herbal Tea 7.2. Peppermint Herbal Tea 7.3. Fruit Herbal Tea 7.4. Hibiscus Herbal Tea 7.5. Ginger Herbal Tea 7.6. Chamomile Herbal Tea 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Packaging Type 8.1. Can Packaging 8.2. Carton Packs 8.3. Bags 8.4. Paper Pouches 8.5. Loose Herbal Tea 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. AB Food and Beverages 19.2. Tata Global Beverages 19.3. Martin Bauer Group 19.4. Nestea 19.5. Unilever 19.6. Buddha’s Herbs 19.7. Green Earth Products Pvt. Ltd 19.8. Mothers Parkers Tea and Coffee Inc. 19.9. Global Herbitech 19.10. Typhoo India 19.11. Rooibos 19.12. The Feel Good Tea 19.13. Ashford Tea 19.14. Silver Leaf Tea 19.15. Waku 19.16. Opteamal 20. Assumptions & Acronyms Used 21. Research Methodology
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Herbal Tea Market
