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    Pandan Tea Market

    ID: MRFR/F-B & N/34643-HCR
    128 Pages
    Snehal Singh
    October 2025

    Pandan Tea Market Research Report By Type (Loose Leaf Tea, Tea Bags, Ready-to-Drink Tea), By Distribution Channel (Online Retail, Supermarkets, Specialty Stores, Convenience Stores), By Form (Dried Leaves, Extracts, Bottled), By Flavor Profile (Sweet, Savory, Herbal) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Pandan Tea Market Infographic
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    Pandan Tea Market Summary

    As per MRFR analysis, the Pandan Tea Market Size was estimated at 1.608 USD Billion in 2024. The Pandan Tea industry is projected to grow from 1.712 in 2025 to 3.221 by 2035, exhibiting a compound annual growth rate (CAGR) of 6.52 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Pandan Tea Market is experiencing a robust growth trajectory driven by health consciousness and cultural appreciation.

    • The North American market remains the largest for Pandan tea, reflecting a strong consumer interest in health and wellness.
    • In the Asia-Pacific region, the market is rapidly expanding, driven by increasing awareness of traditional beverages.
    • Loose leaf tea continues to dominate the market, while tea bags are emerging as the fastest-growing segment due to convenience.
    • Health benefits and culinary versatility of Pandan tea are key drivers propelling its popularity across various consumer segments.

    Market Size & Forecast

    2024 Market Size 1.608 (USD Billion)
    2035 Market Size 3.221 (USD Billion)
    CAGR (2025 - 2035) 6.52%

    Major Players

    Tropical Herbal Tea Co (MY), Pandan Leaf Tea Ltd (SG), Green Leaf Tea (VN), Herbal Essence (TH), Nature's Way (PH), Pandan Tea House (ID), Pure Leaf (MY), Tea Time (MY)

    Pandan Tea Market Trends

    The Pandan Tea Market is currently experiencing a notable evolution, driven by a growing consumer interest in herbal and natural beverages. This shift appears to stem from an increasing awareness of health benefits associated with herbal teas, including potential antioxidant properties and digestive support. As consumers become more health-conscious, the demand for unique flavors and natural ingredients is likely to rise, positioning pandan tea as a compelling option. Furthermore, the market seems to be influenced by cultural trends, particularly in regions where pandan is traditionally used, suggesting a blend of heritage and modern preferences. In addition, the rise of e-commerce platforms is reshaping how consumers access pandan tea products. Online retailing offers convenience and a broader selection, allowing consumers to explore various brands and flavors from the comfort of their homes. This trend may lead to increased competition among producers, encouraging innovation in product offerings. As the market continues to expand, it is essential for stakeholders to remain attuned to evolving consumer preferences and emerging distribution channels, which could significantly impact market dynamics in the near future.

    Health and Wellness Focus

    The emphasis on health and wellness is driving interest in pandan tea, as consumers seek beverages that offer potential health benefits. This trend suggests a growing preference for natural ingredients and herbal options.

    Cultural Integration

    Pandan tea is increasingly being integrated into various culinary practices, reflecting a blend of traditional and contemporary uses. This trend indicates a rising appreciation for cultural heritage in food and beverage choices.

    E-commerce Growth

    The expansion of e-commerce platforms is transforming the way consumers purchase pandan tea. This trend highlights the convenience of online shopping and the potential for increased market reach for producers.

    Pandan Tea Market Drivers

    Culinary Versatility

    Pandan tea's unique flavor profile and aromatic qualities contribute to its culinary versatility, which serves as a significant driver in the Pandan Tea Market. This tea is not only consumed as a beverage but is also utilized in various culinary applications, including desserts and savory dishes. The growing trend of fusion cuisine, where traditional ingredients are combined with modern cooking techniques, enhances the appeal of pandan tea. Market data indicates that the food and beverage sector is increasingly incorporating herbal teas, with pandan tea being a notable example. This versatility may attract a diverse consumer base, further expanding the market. The Pandan Tea Market is likely to see increased interest from both culinary professionals and home cooks alike.

    Health Benefits of Pandan Tea

    The increasing awareness of health benefits associated with herbal teas, particularly pandan tea, appears to be a driving force in the Pandan Tea Market. Rich in antioxidants and known for its anti-inflammatory properties, pandan tea is gaining traction among health-conscious consumers. According to recent data, the herbal tea segment is projected to grow at a compound annual growth rate of 5.5% over the next five years. This trend suggests that consumers are increasingly seeking natural remedies and beverages that promote well-being. As a result, the demand for pandan tea is likely to rise, positioning it as a key player in the broader herbal tea market. The Pandan Tea Market is thus poised to benefit from this health-centric consumer behavior.

    Sustainability and Organic Farming

    The rising consumer preference for sustainable and organic products is influencing the Pandan Tea Market. As more consumers become environmentally conscious, the demand for organically grown pandan tea is expected to increase. This shift towards sustainability is reflected in market trends, where organic tea sales have seen a notable uptick, with a growth rate of approximately 7% annually. Producers who adopt sustainable farming practices may find themselves at a competitive advantage, appealing to eco-conscious consumers. The Pandan Tea Market could potentially benefit from this trend, as brands that emphasize organic and sustainable sourcing are likely to resonate with a growing segment of the market.

    Cultural Significance and Tradition

    Pandan tea holds cultural significance in various regions, particularly in Southeast Asia, where it is often associated with traditional practices and rituals. This cultural relevance serves as a driver in the Pandan Tea Market, as consumers seek authentic experiences and flavors that connect them to their heritage. The increasing interest in cultural foods and beverages has led to a resurgence in traditional drinks, including pandan tea. Market Research Future suggest that products with cultural ties are more likely to attract consumers, as they offer a sense of nostalgia and authenticity. The Pandan Tea Market is thus likely to benefit from this cultural appreciation, as it aligns with the broader trend of valuing heritage in food and beverage choices.

    Digital Marketing and Social Media Influence

    The rise of digital marketing and social media platforms is transforming the way consumers discover and engage with products, including pandan tea. The Pandan Tea Market is experiencing a shift as brands leverage social media to reach a wider audience and create brand awareness. Influencer marketing, in particular, appears to be a powerful tool in promoting pandan tea, as influencers share their experiences and recipes with their followers. Data indicates that brands utilizing social media effectively can see a significant increase in sales, with some reporting growth rates of up to 30% after targeted campaigns. This trend suggests that the Pandan Tea Market is likely to evolve rapidly, driven by the digital landscape and changing consumer behaviors.

    Market Segment Insights

    By Type: Loose Leaf Tea (Largest) vs. Tea Bags (Fastest-Growing)

    In the Pandan Tea Market, Loose Leaf Tea currently holds the largest market share among the segment values, largely due to its perceived quality and premium experience that discerning consumers prefer. Tea Bags, on the other hand, are becoming increasingly popular as consumers shift towards convenience without sacrificing flavor. Ready-to-Drink Tea, while smaller in share, offers unique opportunities for growth as it caters to on-the-go lifestyles and health-conscious consumers looking for instant access to their favorite beverage.

    Loose Leaf Tea: Dominant vs. Tea Bags: Emerging

    Loose Leaf Tea stands out as the dominant force in the Pandan Tea market, celebrated for its superior flavor and aromatic richness, appealing to tea aficionados who appreciate the brewing experience. Its versatility allows for various infusion methods, enhancing its attraction among traditionalists. Conversely, Tea Bags are emerging rapidly, capitalizing on the demand for convenience and fast preparation. This segment's growth is bolstered by innovations such as biodegradable packaging and diverse flavor offerings, catering to younger consumers' preferences for sustainable and accessible options. While Loose Leaf Tea represents heritage and authenticity, Tea Bags are redefining the tea experience for a modern audience.

    By Distribution Channel: Online Retail (Largest) vs. Supermarkets (Fastest-Growing)

    In the Pandan Tea Market, the distribution of market share among various channels is notable. Online Retail holds the largest share, reflecting a significant shift toward digital commerce and convenience for consumers. Supermarkets follow closely, capturing a substantial portion of the market due to their widespread availability and the preference for brick-and-mortar shopping experiences. The growth trends in this segment are driven by the increasing popularity of online shopping, especially among younger consumers who prioritize convenience and variety. Meanwhile, supermarkets are rapidly evolving to embrace fresh food offerings and specialty products, including Pandan Tea, making them a crucial channel for growth. The combined influences of consumer preferences and purchasing behaviors are shaping the dynamics of distribution channels within the market.

    Online Retail (Dominant) vs. Specialty Stores (Emerging)

    Online Retail stands out as a dominant force in the Pandan Tea Market, leveraging the increasing trend of e-commerce where consumers seek convenience and variety right at their fingertips. This segment reflects an extensive selection of products, attractive pricing strategies, and home delivery options, appealing to a broad demographic. On the other hand, Specialty Stores represent an emerging segment that caters to discerning consumers looking for high-quality and authentic Pandan Tea. These stores offer curated selections and a personalized shopping experience, making them particularly appealing to niche markets. As health and wellness trends continue to rise, both segments are poised to influence consumer choices, with Online Retail driving volume and Specialty Stores focusing on quality.

    By Form: Dried Leaves (Largest) vs. Extracts (Fastest-Growing)

    In the Pandan Tea Market, the form segment features a diverse landscape primarily dominated by dried leaves. Dried leaves make up the largest share of the market, signifying a strong preference among consumers for traditional, whole leaf options that preserve the rich flavors and aromas inherent to Pandan tea. Extracts, while currently a smaller portion of the market, are rapidly gaining traction, appealing mainly to health-conscious consumers looking for convenience and potency. Bottled variants remain a niche yet stable segment, with their appeal based on ready-to-drink convenience. Growth trends within the form segment reveal a shift towards health-oriented products, with extracts emerging as the fastest-growing category. The increasing consumer inclination towards natural remedies and wellness products is driving demand for extracts. Furthermore, the convenience associated with bottled options is helping to expand their market presence. However, dried leaves continue to hold a substantial market share, with traditional brewing methods remaining popular, especially among purists and tea aficionados.

    Dried Leaves: Dominant vs. Extracts: Emerging

    Dried leaves represent the dominant choice within the Pandan Tea Market due to their traditional appeal and authentic flavor profile. Consumers who prefer this form value the meticulous brewing process that enhances the sensory experience of tea-drinking. On the other hand, extracts are emerging rapidly as a market segment, particularly among younger consumers seeking convenience and health benefits. Extracts provide a potent solution for those looking to enjoy the essence and benefits of Pandan tea in a more versatile manner, suitable for various applications from cooking to functional beverages. Both segments thus cater to distinct consumer demands: dried leaves to the traditionalists and extracts to the modern, health-focused demographic.

    By Flavor Profile: Sweet (Largest) vs. Herbal (Fastest-Growing)

    In the Pandan Tea Market, the flavor profile segment exhibits significant diversity, with 'Sweet' emerging as the dominant flavor choice among consumers. This segment not only leads in popularity but also captures a substantial share of the market thanks to its appealing taste, which resonates well with a broad audience. On the other hand, 'Herbal' flavors are gaining traction, appealing to those seeking unique and health-centric options, showcasing an interesting blend of tradition and modernity. The growth trends within the flavor profile segment indicate a shift towards more diverse flavor offerings. The 'Savory' segment, while historically less favored, shows signs of emerging interest as consumers explore new tea experiences. Meanwhile, the 'Herbal' flavor is witnessing the fastest growth, driven by rising health awareness and the demand for natural ingredients. This trend is augmented by increasing consumer preference for wellness-oriented beverages, forging a promising outlook for these profiles in the coming years.

    Sweet (Dominant) vs. Herbal (Emerging)

    The 'Sweet' flavor profile in the Pandan Tea Market has established itself as the cornerstone of consumer preference, appealing to those who enjoy a gentle balance of taste that combines sweetness with the distinctive aroma of pandan leaves. This profile resonates especially well in markets where traditional sweet tastes are deeply embedded in cultural norms. As a result, it holds a significant position, lending itself to innovation through product variations that enhance flavor experience. Conversely, the 'Herbal' segment is rapidly emerging, favored for its association with wellness and natural ingredients. Often infused with additional botanicals, this profile appeals to consumers increasingly prioritizing health benefits and holistic living. The rising trend towards natural flavors and organic options is propelling this segment forward, leading to innovations that cater to health-conscious consumers, thereby positioning 'Herbal' as a key player in the future of the Pandan Tea market.

    Get more detailed insights about Pandan Tea Market

    Regional Insights

    North America : Emerging Market for Herbal Teas

    The North American Pandan Tea market is witnessing a surge in demand, driven by increasing consumer interest in herbal and natural beverages. The region is characterized by a growing health-conscious population, with the U.S. and Canada leading the market, holding approximately 60% and 25% market shares respectively. Regulatory support for herbal products is also enhancing market growth, as consumers seek alternatives to traditional teas. In North America, key players such as Tropical Herbal Tea Co and Pure Leaf are establishing a strong presence, focusing on organic and sustainably sourced products. The competitive landscape is evolving, with new entrants and established brands vying for market share. The increasing availability of Pandan Tea in specialty stores and online platforms is further driving its popularity among health-conscious consumers.

    Europe : Traditional Market with Growth Potential

    Europe is experiencing a gradual increase in the demand for Pandan Tea, driven by the rising trend of herbal teas and natural ingredients. The largest markets in this region are Germany and the UK, which together account for approximately 55% of the market share. Regulatory frameworks in the EU are supportive of herbal products, promoting consumer safety and quality, which is crucial for market expansion. Leading countries like Germany and the UK are home to several key players, including Pandan Leaf Tea Ltd and Herbal Essence. The competitive landscape is marked by a mix of local and international brands, with a focus on organic certifications and innovative product offerings. The growing trend of wellness and natural remedies is expected to further boost the market for Pandan Tea in Europe.

    Asia-Pacific : Dominant Market for Herbal Beverages

    The Asia-Pacific region is the largest market for Pandan Tea, driven by cultural preferences and a strong tradition of herbal consumption. Countries like Vietnam and Thailand dominate the market, holding approximately 40% and 30% shares respectively. The increasing health awareness and demand for natural remedies are key growth drivers, supported by favorable regulations promoting herbal products in the region. In this competitive landscape, key players such as Green Leaf Tea and Herbal Essence are capitalizing on the growing trend of herbal beverages. The presence of local brands and the increasing export of Pandan Tea products are enhancing market dynamics. The region's rich agricultural resources and established supply chains further support the growth of the Pandan Tea market.

    Middle East and Africa : Emerging Market with Unique Flavors

    The Middle East and Africa region is witnessing a gradual emergence of the Pandan Tea market, driven by the growing interest in herbal and exotic flavors. Countries like South Africa and the UAE are leading this market, holding approximately 35% and 25% shares respectively. The increasing focus on health and wellness, along with supportive regulations for herbal products, is fostering market growth in this region. In this competitive landscape, local brands and international players are beginning to explore the potential of Pandan Tea. The presence of key players such as Pandan Tea House and Nature's Way is contributing to the market's expansion. The unique flavor profile of Pandan Tea is attracting consumers looking for new and diverse beverage options, further enhancing its market presence.

    Key Players and Competitive Insights

    The Pandan Tea Market is currently characterized by a dynamic competitive landscape, driven by increasing consumer interest in herbal teas and the health benefits associated with pandan leaves. Key players such as Tropical Herbal Tea Co (MY), Pandan Leaf Tea Ltd (SG), and Green Leaf Tea (VN) are strategically positioning themselves to capitalize on this growing demand. Tropical Herbal Tea Co (MY) focuses on innovation in product development, introducing new blends that incorporate pandan with other herbal ingredients, thereby appealing to health-conscious consumers. Meanwhile, Pandan Leaf Tea Ltd (SG) emphasizes regional expansion, having recently entered the Southeast Asian market, which is expected to enhance its market share. Green Leaf Tea (VN) is leveraging digital transformation, enhancing its online presence to reach a broader audience, thus shaping a competitive environment that is increasingly reliant on both product diversity and digital engagement.

    In terms of business tactics, companies are localizing manufacturing to reduce costs and optimize supply chains, which is particularly relevant in the context of the Pandan Tea Market. The market appears moderately fragmented, with several players vying for consumer attention. However, the collective influence of these key players is significant, as they drive trends in product innovation and consumer engagement, ultimately shaping the market's structure.

    In August 2025, Tropical Herbal Tea Co (MY) launched a new line of organic pandan tea products, which has been well-received in both local and international markets. This strategic move not only aligns with the growing trend towards organic products but also positions the company as a leader in sustainability within the herbal tea segment. The introduction of these products is likely to enhance brand loyalty and attract environmentally conscious consumers.

    In September 2025, Pandan Leaf Tea Ltd (SG) announced a partnership with a local wellness brand to co-develop a range of health-focused pandan tea blends. This collaboration is significant as it allows Pandan Leaf Tea Ltd to tap into the wellness market, which is experiencing robust growth. By aligning with a brand that shares similar values, the company is likely to enhance its market presence and appeal to a broader demographic.

    In October 2025, Green Leaf Tea (VN) reported a substantial increase in online sales following the implementation of an AI-driven marketing strategy. This strategic pivot towards digital marketing not only reflects the current trend of digitalization but also indicates the company's commitment to leveraging technology for competitive advantage. The integration of AI in marketing efforts is expected to optimize customer engagement and drive sales growth.

    As of October 2025, the competitive trends in the Pandan Tea Market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing product offerings and market reach. Looking ahead, competitive differentiation is likely to evolve, shifting from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This transition suggests that companies that prioritize these aspects will be better positioned to thrive in an increasingly competitive landscape.

    Key Companies in the Pandan Tea Market market include

    Industry Developments

    Recent developments in the Pandan Tea Market have shown a notable increase in interest from various beverage companies as they explore unique flavor profiles. Visualize Tea and Numi Organic Tea have recently introduced new blends that incorporate pandan, aiming to capitalize on the trend for natural and specialty teas. Current affairs indicate a growing health-conscious consumer base, further driving demand for pandan tea due to its perceived health benefits, including anti-inflammatory and antioxidant properties. Furthermore, Tata Beverages has expanded its product lines significantly to cater to this niche market segment.

    In terms of mergers and acquisitions, Unilever has been actively acquiring small-scale tea brands to diversify their portfolio, enhancing their presence in the herbal and specialty tea sector. This strategic move has positioned the company strongly within the competitive landscape of the tea market. Additionally, companies like Dilmah Ceylon Tea Company and David's Tea are investing in marketing campaigns that highlight the unique properties of pandan, tapping into the wellness trend. Overall, these movements contribute to the overall growth and visibility of pandan tea as a viable product in the beverage market.

    Future Outlook

    Pandan Tea Market Future Outlook

    The Pandan Tea Market is projected to grow at a 6.52% CAGR from 2024 to 2035, driven by increasing health awareness and demand for natural beverages.

    New opportunities lie in:

    • Expansion into organic product lines to capture health-conscious consumers.
    • Development of ready-to-drink Pandan Tea products for convenience-oriented markets.
    • Strategic partnerships with wellness brands to enhance market reach and visibility.

    By 2035, the Pandan Tea Market is expected to achieve robust growth and increased global presence.

    Market Segmentation

    Pandan Tea Market Form Outlook

    • Dried Leaves
    • Extracts
    • Bottled

    Pandan Tea Market Type Outlook

    • Loose Leaf Tea
    • Tea Bags
    • Ready-to-Drink Tea

    Pandan Tea Market Flavor Profile Outlook

    • Sweet
    • Savory
    • Herbal

    Pandan Tea Market Distribution Channel Outlook

    • Online Retail
    • Supermarkets
    • Specialty Stores
    • Convenience Stores

    Report Scope

    MARKET SIZE 20241.608(USD Billion)
    MARKET SIZE 20251.712(USD Billion)
    MARKET SIZE 20353.221(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)6.52% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesGrowing consumer interest in natural beverages enhances opportunities in the Pandan Tea Market.
    Key Market DynamicsRising consumer preference for natural beverages drives growth in the Pandan Tea market, influencing supply chain dynamics.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

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    FAQs

    What is the current valuation of the Pandan Tea Market as of 2024?

    The Pandan Tea Market was valued at 1.608 USD Billion in 2024.

    What is the projected market valuation for the Pandan Tea Market in 2035?

    The market is projected to reach 3.221 USD Billion by 2035.

    What is the expected CAGR for the Pandan Tea Market during the forecast period 2025 - 2035?

    The expected CAGR for the Pandan Tea Market during 2025 - 2035 is 6.52%.

    Which companies are considered key players in the Pandan Tea Market?

    Key players include Tropical Herbal Tea Co (MY), Pandan Leaf Tea Ltd (SG), and Green Leaf Tea (VN), among others.

    What are the different types of Pandan tea segments and their valuations?

    The Loose Leaf Tea and Tea Bags segments are each valued at 0.482 to 0.964 USD Billion, while Ready-to-Drink Tea ranges from 0.644 to 1.293 USD Billion.

    How does the distribution channel impact the Pandan Tea Market?

    The Online Retail, Supermarkets, and Specialty Stores segments each range from 0.482 to 0.964 USD Billion, while Convenience Stores range from 0.162 to 0.323 USD Billion.

    What forms of Pandan tea are available and their market valuations?

    Dried Leaves are valued between 0.5 and 0.9 USD Billion, Extracts between 0.6 and 1.2 USD Billion, and Bottled forms between 0.508 and 1.121 USD Billion.

    What flavor profiles are popular in the Pandan Tea Market?

    The Sweet flavor profile ranges from 0.5 to 0.9 USD Billion, Savory from 0.4 to 0.8 USD Billion, and Herbal from 0.708 to 1.521 USD Billion.

    How does the market for Pandan tea compare to other herbal teas?

    While specific comparisons are not provided, the growth trajectory of the Pandan Tea Market suggests a robust demand for herbal tea alternatives.

    What trends are influencing the growth of the Pandan Tea Market?

    Trends such as increasing health consciousness and the popularity of herbal beverages appear to be driving the growth of the Pandan Tea Market.

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