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Herbal Tea Market Factors Analysis, Share, Growth, Trends, Revenue, Overview, Forecast To 2025

Market Overview

The sale of herbal tea is growing exponentially as consumers are opting for a healthy lifestyle. Many key players in beverages market are investing in R&D to focus on product development which enriches the flavors in herbal tea. Moreover, herbal tea is gaining popularity across the globe, as the demand for healthy food & beverages has been increasing in recent years. These factors will support the herbal tea market and is estimated to grow at the rate of about 5.1% from 2017 to 2023.

The Global Herbal Tea Market is witnessing an impressive growth over the last few years. This is attributed to the rising health conscious people both in developed and developing economies. Also, increasing disposable income of the consumers is anticipated to be the significant reason for the growth of the herbal tea market during the forecast period. Increasing cardiovascular diseases and obesity cases are anticipated to further fuel the sales of herbal tea during the forecast period.

Downstream analysis

The global herbal tea market is segmented into ingredient, function, packaging, and distribution channel.

Based on the ingredient, it is segmented into cinnamon, dandelion, chamomile, ginger, turmeric, lemongrass, and others. Among all the ingredients, the cinnamon segment holds the major market share followed by the segment dandelion.

Based on the function, it is segmented into cognitive health, gut & digestive health, general wellness, and others. Among all the functions, the cognitive health segment is dominating the market.

Based on the packaging, it is segmented into tea bags, loose leaf, powder, and others. Among all the packaging types, the tea bags segment is dominating the market followed by the loose-leaf segment owing to the ease of use and handling.

Competitive analysis

The major players in herbal tea market

  • Associated British Foods Plc. (U.K)
  • Dilmah Ceylon Tea Company Plc. (Sri Lanka)
  • ITO EN (North America) Inc. (U.S.)
  • Tata Global Beverages Ltd. (India)
  • The Unilever Group (U.K)
  • Barry’s Tea Ltd. (Ireland)
  • C. Bigelow, Inc. (U.S.)
  • Celestial Seasonings, Inc. (U.S.)
  • Harney & Sons Tea Corp. (U.S.)
  • Mighty Leaf Tea Company (U.S.)

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Regional Analysis

The global herbal tea market is segmented into North America, Europe, Asia Pacific, and rest of the world (RoW). Asia Pacific is dominating the global herbal tea market followed by North America. High growth in emerging economies such as China, India, Japan, Australia, and the Latin American countries, offers ample opportunities for expansion to major players.

The North American herbal tea market is projected to grow at a steady pace in the review period. The high consumption of tea in growing economies of Asia Pacific and Latin America and growing demand for healthy beverages especially in China and India will be the crucial factor underlining the market growth.

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