Herbal Tea Market Research Report - Global Forecast till 2027

Global Herbal Tea Market: Information by Type (Cinnamon, Dandelion, Chamomile, Ginger, Turmeric, Blends, Others), Function (Cognitive Health, Gut & Digestive Health, Multifunctional, Others), Form (Tea Bags, Loose Leaf), Distribution Channel (Store-Based [Supermarkets & Hypermarkets, Convenience Stores and others] and Non-Store-Based) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2027

ID: MRFR/F-B & N/3977-CR | February 2021 | Region: Global | 100 pages

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Herbal Tea Market Overview

The herbal tea market is expected to grow at a CAGR of 4.94 percent, reaching USD 4,226.9 million during the forecast period, says market research future (MRFR). Improved demand for functional flavored beverages and the introduction of new and modern flavors have boosted the herbal tea market in India and around the world. Many tea manufacturers worldwide are venturing into the food and beverage business, which is a major reason for the expansion of the global herbal tea market. The rising demand for functional beverages will likely drive the herbal tea industry.

Consumers can get various benefits from herbal teas, including overcoming sluggishness and sleeping better. If herbal tea is viewed as a natural alternative to prescription medications, it could be a key factor in increasing its popularity. Some of the major and important factors that will likely accelerate the growth of the herbal tea market in the projected timeframe include intensifying creation of innovative flavors, rising health awareness among users regarding the benefits of tea, an escalating number of residents across the globe, and amplifying trends of herbal product among the young population.

COVID 19 Impacts and effects

The herbal tea market in the USA and in India on a global scale has been surging all time, and the whole market of organic herbal tea has witnessed a tremendous rise in the past couple of years. The main reason is the constant demand for premium and chemical-free products. Globally, the need for organic products, be it food, beverages, or even herbs & spices is rising. Therefore, as per experts, the herbal tea market share during Covid-19 will not decrease but it will remain constant.

No doubt, in spite of some slowdown, farmers' market herbal tea across the US has been good during COVID 19. It will continue to unleash its maximum potential in the years to come. Due to the constant increasing awareness and need to consume organic foods among common individuals, the demand for herbs & spices has been steadily rising. On the other hand, people are getting more cautious about food safety and health hazards on processed foods, this has triggered higher demand for organic tea & spices. The shift of preferences in food trends encouraging the herbal tea sprouts market’s consumption. Farmers are also focusing on new methods of farming herbal tea and spices to increase the volume of production.

Market Dynamics

  • Major Drivers Of The Market

The demand for herbal tea is rising across the globe, it has a pleasant flavor, few stimulating effects, and lots of medicinal properties. The rise of the global herbal tea market is contributed by the high demand for healthy beverages and flavor variants. The increasing demand for herbal products in developed nations is expected to create lucrative opportunities for bigger players in the years to come. However, the farming costs of herbal tea are high compared to its regular counterpart and less product awareness in poor nations are contributing factors that hamper the growth of the herbal tea market share at the global platform during the forecast period.

  • Significant Opportunities For The Market

In Spite of all the internal and external factors, the CAGR is expected to reach USD 1,405.1 million by the end of 2025 in the primary herbal tea market. The requirement for blends of herbal tea is supported by the numerous health benefits offered by the combination of two or more medicinal herbs. At the same time, with a rise in product launches of herbal tea, the supply and demand cycle will be boosted up soon during the forecast period.  

The Global Herbal tea Market has been divided as per the Coffee Type and distribution channel. The coffee type segment has been further divided into old and Decaf segments. As per the dependency on the distribution channel, the market street organic herbal tea market has been segmented into store-based and Non-store based types. The store-based segment is again segregated into Supermarkets and hypermarkets, Convenience Stores, and others.

  • Market Restraints

The outbreak of COVID-19 has hard severely knocked out the growing pace of the organic herbal tea market because of mandatory closures of herbs markets and farming across the globe, the profit share has fallen apart. COVID19 has disrupted the entire supply chain. Continuous lockdown created a negative impact and affected the morale of the farmers. The major retailers, such as supermarkets & hypermarkets and whose main job is selling organic herbal tea have gone through acute shortage despite having demand in certain areas across the globe.

  • Market Growth Challenges

The native region of Asia-Pacific bagged the largest market share of 36.47% of the global herbal tea market in 2018 across the world. Traditionally, Asians are tea drinkers, the highest production of tea comes from this region. Without a doubt, China is the biggest producer and consumer of herbal tea in the world market. There has been a continuous demand for functional beverages in European countries, the USA, and Australia, this fact is fueling the rise of the European and herbal tea market in the USA. The demand for organic herbal tea is quite high in western countries due to the rising consumer inclination toward organic food & beverages.

The US is the biggest market for tea in North America, followed by its neighbor Canada. Due to the high prevalence of obesity and overweight issues in the region, the consumption and desire to have herbal tea is surging as it leads to weight loss. There has been a continuous increase in the demand for herbal tea. This tea claims to be weight loss and is a major reason driving the growth of the herbal tea market in countries like South America with Brazil, Argentina, and Peru being the major country-level markets.

  • Cumulative Growth Analysis

The primary herbal tea market claims to have a CAGR and an expected income of USD 1,405.1 million by the end of 2025. The demand for blends of herbal tea has risen because it offers many health benefits. The Asian countries are focusing to increase the production of herbal tea to meet the demand. And supply chain

  • Value Chain Analysis

There has been a growing demand for organic tea in us, the demand is rising everywhere including U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, etc. In the Asia Pacific market, the industry is surpassing all previous records. China and India are major players. The upstream value chain analysis can be done based on the estimated records. In Spite of the challenges the companies are facing globally but due to the strong supply chain, they will surpass all the hurdles. People love organic tea and this trend is not going to stop!!

Segment Overview

  • By Form

Due to the increasing demand for natural species globally, new products are coming every day. Market Research Future, a firm that specializes in market reports related to the spice industry, recently forecasted in its report on Herbal Tea Market Research Report - Global Forecast till 2025 that the organic tea market will demonstrate an exceptional rise in CAGR during the forecast period.

  • By Sales Channel

China remains the volume-wise highest exporter of spices globally. Globally, organic herbal tea has an increasing market share since 2017. The major players of the global herbal tea market are concentrating on product launches, acquisitions, and strengthening their distribution channels across the globe. North America, Europe, Asia Pacific, and the Rest of the World (RoW) are the markets for selling organic teas.

  • By Application:

Organic herbal tea is highly consumed across homes. Herbal tea has medicinal properties. This is making it more popular. The companies are focusing on increasing product innovations. But developing countries are growing faster.

Regional Analysis

If we look at the bigger picture, geographically the global herbal tea market has been divided into North America, Europe, Asia-Pacific, and the regions of the Middle East and Africa.

As per the statistics of 2018, Asia-Pacific holds the largest market share of 36.47% of the global herbal tea market is estimated to increase in the forecast period. China is the biggest manufacturer and consumer of herbal tea across the globe.


European markets are also significant, the herbal tea market expected to increase because it is a functional beverage and rising consumer inclination toward organic food and beverages. The US is the biggest herbal tea market in North America, Canada is the second biggest market due to the high prevalence of obesity.

Competitive Landscape of organic tea

The market players for the organic herbal market share are:

The major countries are:

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

    • Rest of Europe

  • Asia-Pacific

    • China

    • India

    • Japan

    • Australia and New Zealand

    • Rest of Asia-Pacific

  • Rest of the World (RoW)

    • Middle East

    • South America

Recent Developments

  • Mar 2022 Irish Distillers recently released a limited-edition selection of single pot still whiskeys aged in unusual Japanese casks. Three single pot-still whiskeys are included in the series, including a 33-Year-Old aged three years in Japanese Mizunara oak and two other expressions aged for more than a year in Japanese Chestnut and Japanese Cedarwood casks. The cedar logs come from the Kyushu region of southern Japan, where the warm, damp climate produces a fragrant and porous wood that gives the whiskey its depth of flavor of herbal tea, clove spice, caraway seeds, and as a fruit finish.

  • Mar 2022 Starbucks has introduced a series of six iced tea drinks that are only available in Singapore. Starbucks locations in the city-state provide a variety of six iced tea drinks produced with various tea kinds, including black, oolong, and hibiscus. In 2016, Starbucks began selling drinks produced with its tea brand, Teavana, in over 6,2000 locations across Asia. According to Nikkei Asia, the concoctions are "more complicated" than the herbal and green tea-based cocktails popular in the United States.

Report Overview

  • Market overview highlights the global recognition of the herbal tea market share

  • Analysis based upon COVID 19

  • Explanation upon the Market Dynamics

  • Value chain analysis for the Herbal Tea Market Share

  • Market segmentation overview

  • The regional analysis of the Herbal Tea Market

  • Competitive landscape analysis

  • Recent Developments of Herbal Tea Market

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Frequently Asked Questions (FAQ) :

Organic tea market volume would be USD 1,405.1 million by 2025

Organic spices and herbs market CAGR would be 36.47% during the forecast period.

The USA and CANADA would dominate the organic spices and herbs market.