Herbal Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Flavor Type, By Packaging, By Distribution Channel, By Region & Competition, 2021-2031F

The Global Herbal Tea Market is projected to expand from USD 4.01 Billion in 2025 to USD 5.23 Billion by 2031, registering a CAGR of 4.53%. Technically defined as tisanes, these caffeine-free beverages are brewed from dried flowers, fruits, spices, or herbs rather than the traditional Camellia sinensis plant. The industry's growth is primarily fueled by increasing global health awareness and a strong consumer appetite for functional drinks that provide specific benefits, such as digestion support and stress relief. This momentum is further bolstered by a transition toward premium, experiential consumption; according to the UK Tea & Infusions Association, in 2024, 28% of adults aged 18 to 29 reported a preference for loose-leaf varieties, signaling a distinct shift toward higher-quality habits.

However, the volatility of the raw material supply chain presents a significant barrier to broader market scalability. Unlike traditional tea monocultures, herbal blends depend on a fragmented network of diverse botanical sources that are highly sensitive to seasonal inconsistencies and climate change. This unpredictability in ingredient quality and availability disrupts procurement strategies and prevents cost stabilization, making it challenging for manufacturers to ensure the consistent product standards required for mass-market expansion.

Market Driver

The escalating demand for immunity-boosting and functional blends is a primary catalyst reshaping the Global Herbal Tea Market, as consumers increasingly treat these beverages as preventative healthcare tools rather than mere refreshments. This trend is defined by the rapid proliferation of products infused with ayurvedic ingredients, probiotics, and adaptogens that target specific needs like stress management, digestion, and sleep latency. Manufacturers are aggressively diversifying their portfolios to leverage this shift, transforming herbal tea from a niche grocery item into a functional supplement. Highlighting this strategic focus, Tata Consumer Products reported in its 'Integrated Annual Report 2023-24' (June 2024) a 2.40-fold increase in new health and wellness product launches compared to fiscal year 2020-21, confirming the market's movement toward value-added blends that command premium pricing.

In parallel, the rising popularity of clean-label and organic products is driving purchasing decisions, with consumers showing a clear preference for ethical sourcing and transparency. This shift compels brands to obtain rigorous certifications as shoppers actively avoid products containing microplastics and artificial additives. The commercial success of purpose-led brands underscores this trend; according to The Grocer's September 2024 report on hot beverage trends, the organic and fair-trade brand Clipper experienced a 55% rise in value sales for fruit and herbal infusions over the previous year, significantly outperforming the wider sector. Reflecting this growing engagement, the Tea and Herbal Association of Canada noted in 2024 that one-third of herbal tea drinkers increased their consumption compared to the prior year.

Market Challenge

Supply chain volatility remains a primary obstacle limiting the scalability of the global herbal tea industry. Since the sector relies on a disjointed network of diverse botanical sources instead of a standardized monoculture, it is uniquely vulnerable to harvest inconsistencies and climate-induced disruptions. This unpredictability generates severe inventory risks, making it difficult for manufacturers to secure the large-scale volume agreements necessary for partnerships with major retail chains. Without a dependable flow of ingredients, brands struggle to maintain the consistent shelf presence required to transition from niche health stores to mainstream mass markets.

Furthermore, these sourcing complexities threaten both cost stability and product integrity. As manufacturers rush to secure ingredients during shortages or poor harvests, the industry faces elevated risks regarding ingredient purity and standard verification. According to 2024 analysis from the American Botanical Council, high demand and supply pressures exacerbated quality control issues, with adulteration rates in certain high-value botanical supply chains reaching as high as 53%. This variability forces companies to incur increased costs for verification processes to prevent reputational damage, thereby eroding profit margins and stalling broader market growth.

Market Trends

The incorporation of herbal teas into alcohol-free mocktail recipes is establishing a new consumption occasion, driven by the global "sober curious" movement and a demand for complex, adult-oriented beverages without alcohol. Consumers are increasingly using herbal infusions as sophisticated bases, leveraging their tannins and botanical profiles to mimic the depth and mouthfeel of spirits. This trend extends the category beyond traditional hot consumption, positioning herbal tea as a premium ingredient for social and evening settings. Evidencing this shift, Beverage Daily reported in August 2025 that Waitrose saw a 32% increase in low and no-alcohol beverage sales compared to the previous summer, a growth trajectory heavily supported by the rising popularity of botanical and tea-based non-alcoholic options.

Simultaneously, innovation in global botanical flavor fusions and exotic fruits is transforming the market as consumers move away from standard varieties in favor of adventurous, internationally inspired blends. Manufacturers are responding by introducing formulations that combine traditional herbs with novel ingredients such as yuzu, hibiscus, and superfruits, catering to a younger demographic seeking sensory exploration. This diversification allows the herbal segment to decouple from the stagnation affecting traditional categories. Illustrating this divergence, The Grocer reported in September 2025 that fruit and herbal tea bag volumes in the UK grew by 1.4%, significantly outperforming the everyday black tea segment, which experienced a 5% volume decline over the same period.

Key Market Players

• Tielka
• Mountain Rose Herbs
• Tega Organic Teas
• Terra teas
• Aror teas
• Tetley
• Indigo herbs
• The Indian Chai
• Twinings
• Organic India

Report Scope

In this report, the Global Herbal Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Herbal Tea Market, By Flavor Type

• Chamomile
• Peppermint
• Lemongrass
• Ginger
• Hibiscus
• Fruits

Herbal Tea Market, By Packaging

• Loose Tea
• Paper Pouches
• Tea Bags
• Plastic Containers
• Aluminum Tins

Herbal Tea Market, By Distribution Channel

• Online
• Offline

Herbal Tea Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Herbal Tea Market.

Available Customizations:

Global Herbal Tea Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).