PUBLISHER: The Insight Partners | PRODUCT CODE: 1713254
PUBLISHER: The Insight Partners | PRODUCT CODE: 1713254
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.
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.
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.
Moreover, 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.
Based on type, the market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. The chamomile segment expected to register the highest CAGR in the forecast period. Chamomile tea is one of the most popular herbal teas worldwide, known for its calming and relaxing properties. It is made from the dried flowers of the Matricaria chamomilla plant, commonly consumed to help with insomnia, stress, and anxiety. Chamomile is also consumed for its potential digestive benefits, as it may reduce bloating and aid in digestion. It has a mild, floral flavor. The demand for chamomile tea continues to grow due to increasing awareness of its health benefits and the rising demand for natural and caffeine-free alternatives.
A few players operating in the herbal tea market are 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 and among others. Players operating in the herbal tea market focus on providing innovative and healthy products at affordable prices to fulfill customer demand.
The overall herbal tea market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers-along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the herbal tea market.