Herbal Tea Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

The herbal tea market size is projected to reach US$ 6.18 billion by 2031 from US$ 4.15 billion in 2024. The market is expected to register a CAGR of 6.1% during 2025–2031. The rising demand for organic and clean-label products is expected to create a new trend in the herbal tea market during the forecast period.

Herbal Tea Market Analysis   

Herbal tea has gained significant attention in the global market due to its numerous health benefits, making it a popular choice for consumers seeking natural wellness solutions. As the world becomes increasingly health-conscious, the demand for herbal tea has grown, particularly because of its potential to improve overall well-being without relying on synthetic ingredients. Herbal teas such as peppermint, ginger, and chamomile are renowned for their soothing effects on the stomach and digestive system. These teas can help alleviate symptoms of indigestion, bloating, and nausea, offering a natural remedy for people suffering from digestive discomfort. People are increasingly turning to herbal remedies as a safer and more sustainable option compared to synthetic medications. This trend has been reinforced by the widespread belief in the healing power of nature, supported by traditional practices across various cultures. The health benefits of herbal tea, ranging from digestive support to stress relief and antioxidant properties, continue to drive its success in the global market.

Herbal Tea Market Overview

The demand for herbal tea is increasing globally due to a growing awareness of health and wellness among consumers. As people seek natural alternatives to traditional beverages, herbal teas, known for their potential health benefits such as improved digestion, relaxation, and immune support, have gained popularity. Additionally, the rising trend toward organic and plant-based products, combined with the desire for stress reduction and better overall well-being, has fueled interest in herbal teas. Moreover, the increasing availability of various blends and flavors, along with their perceived therapeutic properties, has contributed to their expanding market appeal. The key players operating in the market include Universal Tea Company, Inc; Harney & Sons Fine Teas; The Hain Celestial Group Inc; Donna McCafferty & Co LLC; East West Tea Company, LLC; Bigelow Tea; Bird & Blend Tea Co.; JADE LEAF, LLC; Traditional Medicinals; Tata Consumer Products Ltd; Bell Industries LLC; Star Spangled Tea; LIPTON Teas and Infusions; Associated British Foods Plc; and Rishi Tea & Botanicals. These players are adopting various strategies such as expansion, product innovation, and merger & acquisition to provide innovative products to their consumers and increase their market share.

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Herbal Tea Market: Strategic Insights

Herbal Tea Market Drivers and Opportunities

Strategic Development Initiatives by Key Market Players

Manufacturers of herbal tea are making significant strategic investments in product innovation, expansion, merger and acquisition, and partnerships to improve their customer base and meet emerging consumer demands. They focus on providing herbal tea infused with new flavors, enhanced nutritional content, and products that are gluten-free, caffeine-free, and non-GMO to meet the diverse requirements of consumers. For instance, in June 2023, Bigelow Tea, a US-based company, announced the launch of two new flavors in the herbal tea category: Whispering Wildflowers Herbal Tea plus L-Theanine and Ginger Honey Herbal Tea plus Zinc. Similarly, in September 2022, TH-Group, a Vietnam-based company, launched a set of herbal teas with filter bags named TH true HERBAL. Such product innovations help companies widen their reach and gain an advantage over their competitors in international markets.

Growth of E-Commerce

The organized retail sector has undergone a massive transformation recently. The emergence of e-commerce has resulted in significant changes in the way consumers shop. A rise in penetration of smartphones and the Internet, an upsurge in purchasing power, the ease of accessing emerging technologies, a Mercado Livre, and the convenience provided by online retail platforms from anywhere at any time are a few of the major factors bolstering the growth of e-commerce across the globe. For instance, according to the International Trade Administration, the B2C e-commerce industry in the US is expected to register a CAGR of 11.2% between 2023 and 2027. Moreover, there is a rising penetration of quick commerce, fueled by evolving consumer behavior and the increasing demand for convenience. Consumers now expect fast, on-demand delivery of essential products. Apps such as Flink, Zapp, Blinkit, and Getir are among the well-established players in the quick commerce sector. As consumers prioritize convenience, Q-commerce is expected to expand, potentially transforming how people shop for everyday essentials, leading to greater competition and innovation within the sector. This factor contributes to the rising demand for herbal tea through online shopping platforms, opening new opportunities in the coming years.

Herbal Tea Market Report Segmentation Analysis

Key segments that contributed to the derivation of the herbal tea market analysis are type, form, category, and distribution channel.

• By type, the herbal tea market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. The blends segment held the largest market share in 2024.
• Based on form, the market is bifurcated into loose tea and tea bags. The tea bags segment dominated the market in 2024.
• In terms of category, the market is segmented into organic and conventional. The conventional segment held a larger share in 2024.
• Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The supermarkets and hypermarkets segment held the largest share of the herbal tea market.

Herbal Tea Market Share Analysis by Geography

The geographic scope of the herbal tea market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The herbal tea market in Asia Pacific is expected to grow significantly during the forecast period.

The Asia Pacific herbal tea market is experiencing significant growth, driven by several factors, including cultural traditions, changing consumer preferences, and the increasing demand for health-conscious products. APAC includes China, India, Japan, and South Korea, has long had a rich history of consuming teas. Asia Pacific has a long-standing culture of tea consumption. As per the Food and Agriculture Organization (FAO) of the United Nations, in 2023, Asia accounted for 85% of worldwide tea production, with China, India, and Sri Lanka being the top three producers, accounting for 62% of the total production. Recently, the health consciousness among consumers in the region has significantly increased, which is boosting the demand for healthy alternatives to conventional tea, such as herbal tea.

The regional trends and factors influencing the Herbal Tea Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Herbal Tea Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Herbal Tea Market Report Scope

Herbal Tea Market Players Density: Understanding Its Impact on Business Dynamics

The Herbal Tea Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Herbal Tea Market News and Recent Developments

The herbal tea market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the herbal tea market are as follows:

• In September 2024, Bigelow Tea announced the groundbreaking of its new state-of-the-art facility located at Blankenbaker Road in Louisville, Kentucky. The ceremony, which took place at the site at 2706 Blankenbaker Road on September 9, 2024, marked the commencement of construction on this significant project. (Source: Bigelow Tea, Company Website, September 2024)
• TKO Miller announced that SBJ Capital, a private investment firm, has partnered with the management team of Rishi Tea & Botanicals ("Rishi"), a leading branded specialty and organic tea and botanicals producer. (Source: TKO Miller, Press Release, February 2023)

Herbal Tea Market Report Coverage and Deliverables

The "Herbal Tea Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Herbal tea market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Herbal tea market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces and SWOT analysis
• Herbal tea market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the herbal tea market
• Detailed company profiles