Health Benefits of Herbal Tea Bolster Herbal Tea Market Growth
According to our latest study on "Herbal Tea Market Size and Forecast (2021–2031), Global and Regional Growth Opportunity Analysis – by type, Form, category, and distribution channel," the market size is expected to grow from US$ 4.15 billion in 2024 to US$ 6.18 billion by 2031; the market is estimated to register a CAGR of 6.1% from 2025 to 2031. The report highlights key factors driving market growth and prominent players along with their developments in the market. Apart from the growth drivers, the report covers the herbal tea market trends and their foreseeable impact during the forecast period.
Chamomile tea is recognized not only as a calming beverage traditionally consumed before bedtime but also for its significant health benefits. It contains a variety of bioactive phytochemicals, particularly flavonoids, which possess notable antioxidant properties. According to the National Library of Medicine (NLM), chamomile tea may also help women who suffer from premenstrual syndrome. Thus, the demand for chamomile tea is increasing. Hibiscus tea provides antioxidant power; it contains small amounts of potassium, calcium, magnesium, and other trace minerals. Hibiscus tea has cardiovascular and antiviral properties, mostly because of its antioxidant "anthocyanins." It has been demonstrated that this herbal tea works well against certain bird flu strains. Additionally, consuming hibiscus tea or extract decreases bad LDL cholesterol and triglyceride levels. Many herbal teas are widely recognized for their stress-relieving and calming properties. Teas such as chamomile, lavender, and valerian root are commonly consumed for their ability to reduce anxiety, promote relaxation, and improve sleep quality. These benefits are especially valuable in today's fast-paced world, where mental health and stress management are growing concerns.
Herbal Tea Market Breakdown – by Region
Herbal Tea Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Chamomile, Peppermint, Ginger, Hibiscus, Blends, and Others), Form (Loose Tea and Tea Bags), Category (Organic and Conventional), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Others), and Geography
Herbal Tea Market Growth Drivers and Opportunities by 2031
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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.
Manufacturers are adopting business expansion and production capacity scaleup strategies to serve their customers better. For instance, in September 2023, New York-based luxury herbal tea brand "Leaves of Leisure" launched a crowdfunding campaign with a focus on zero and low-caffeine teas aimed at growing the brand and expanding into new markets. The campaign hosted by Honeycomb Credit seeks to raise US$ 50,000 in funds to amplify the brand's blend of herbal teas with unique flavor profiles. Thus, business expansion strategies by key market players further boost the herbal tea market growth.
The herbal tea market analysis has been performed by considering the following segments: type, form, category, and distribution channel. In terms of type, the market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. The blends segment held the largest herbal tea market share in 2024. Common blends include combinations of chamomile, peppermint, lemon balm, and lavender, offering a balance of relaxation, digestion, and mental clarity. These blends are increasingly popular as consumers seek tailored wellness solutions that target specific needs such as stress reduction, better sleep, or digestive health. The market for herbal blends continues to expand as people seek more personalized and holistic health options. The appeal of herbal tea blends lies in their ability to cater to various consumer preferences, with options ranging from invigorating blends for energy to calming blends for relaxation. Additionally, herbal blends are often marketed as caffeine-free, providing an alternative to traditional teas and coffees.
Based on form, the herbal tea market is bifurcated into tea bags and loose tea. The tea bags segment is expected to register a higher CAGR during the forecast period. Tea bags offer a quick and simple brewing process, making them highly popular among busy consumers who seek convenience in their daily routines. The wide variety of flavors and blends available in tea bags appeal to a broad demographic, from traditional black and green teas to more exotic herbal and flavored blends. Convenience is the key factor driving the demand for tea bags in the global market. There are various brands of tea bags available in the global market, including Lipton and Tetley.
Asia Pacific dominated the herbal tea market share in terms of revenue in 2024. The herbal tea market in China is a vast and rapidly growing industry driven by rich tea culture. China is the world's largest tea producer and consumer. For thousands of years, the idea of "Let food be thy medicine and medicine be thy food" was widely recognized in China. As a result, the use of herbal teas may have existed for as long as a traditional medicine in the country. China's enormous geography, diverse landforms, and climate contribute to the country's abundance of herbal tea. Teas such as Guangxi Tian Cha (Guangxi sweet tea), Shi Ya Cha (cliff tea), and Teng Cha (rattan tea) are native to China. The popularity of herbal tea is increasing in China owing to its beneficial effect on human health, especially for antioxidant function.
The herbal tea market forecast can help stakeholders plan their growth strategies. 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 are among the prominent players profiled in the herbal tea market report. These market players are focusing on providing high-quality products to fulfill customer demand. They are also adopting strategies such as new product launches, capacity expansions, partnerships, and collaborations to stay competitive in the market.
The herbal tea market is segmented on the basis of type, form, category, distribution channel, and geography. Based on type, the market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. Based on form, the market is bifurcated into loose tea and tea bags. Based on category, the market is divided into organic and conventional. Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others.
The geographic scope of the herbal tea market report focuses on North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The market in North America is further segmented into the US, Canada, and Mexico. The market in Europe is segmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific market is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The herbal tea market in the Middle East & Africa is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The market in South & Central America is further segmented into Brazil, Argentina, and the Rest of South & Central America.
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