Herbal Tea Market Size, Share, Trends, Growth, Forecast (2025-2034)

Market Overview

The herbal tea market size reached around USD 3.81 billion in 2024 and is projected to grow at a CAGR of 6.60% between 2025 and 2034, reaching nearly USD 7.22 billion by 2034. This growth can be attributed to the increasing consumer awareness about health and wellness, with herbal teas being recognized for their beneficial properties such as aiding digestion, improving sleep quality, and enhancing overall immunity. Additionally, consumers are turning towards more natural and plant-based products, and herbal teas fit well within these preferences. The market is also benefiting from the rising demand for functional beverages, with consumers seeking alternatives to sugary drinks and caffeinated beverages.

A key factor driving the herbal tea market is the growing trend towards organic and sustainably sourced ingredients. As more people adopt healthier lifestyles and shift towards wellness-focused products, the herbal tea market is seeing a robust demand for blends that provide functional health benefits. Furthermore, innovations in flavors and packaging are encouraging greater adoption among younger, health-conscious consumers. This demand spans across regions, with North America, Europe, and Asia leading the way in consumption.

Market Segmentation

By Raw Material

Green Tea
Green tea, known for its high antioxidant properties, is one of the most popular herbal tea options in the market. With its numerous health benefits, including improving brain function, enhancing fat burning, and reducing the risk of various diseases, green tea remains a significant player in the herbal tea market. As consumers increasingly seek out products that provide long-term health benefits, the demand for green tea continues to rise, especially in North America and Europe. The popularity of green tea blends, which combine green tea with other herbs and flavors, further contributes to its market growth.

Black Tea
Though more commonly associated with traditional tea, black tea is gaining ground in the herbal tea market due to its versatility and health benefits. Black tea contains theaflavins and catechins, which are known to reduce the risk of heart disease and improve overall cardiovascular health. Its bold flavor and diverse applications, including in iced teas and as a base for herbal tea blends, make it a favorite among consumers looking for both taste and health benefits. As people continue to search for healthier alternatives, the black tea segment is expected to maintain its prominence in the market.

Yellow Tea
Yellow tea, a rarer and more exclusive tea type, is gaining traction for its mild flavor and health-promoting properties, such as improving digestion and boosting metabolism. Though it accounts for a smaller portion of the herbal tea market, yellow tea is a growing niche with consumers seeking unique and premium options. The production of yellow tea is more labor-intensive than other types, making it a high-value segment. The market for yellow tea is expected to expand as consumers develop a taste for premium and specialty herbal teas.

Others
Other raw materials used in the production of herbal teas include white tea, oolong tea, and various herbal blends such as rooibos, lemongrass, and hibiscus. These materials are gaining popularity as consumers experiment with different flavors and seek teas that provide additional health benefits. The diversity of options within this category is contributing to the overall growth of the herbal tea market.

By Type

Chamomile
Chamomile tea, known for its calming and sleep-inducing properties, is one of the most popular types of herbal tea. The demand for chamomile tea is driven by its reputation as a natural remedy for insomnia, stress, and anxiety. As consumers increasingly seek natural alternatives to pharmaceutical products, chamomile tea is expected to continue growing in popularity. Its gentle flavor and soothing properties make it a go-to choice for many, particularly in North America and Europe.

Peppermint
Peppermint tea is widely consumed for its digestive benefits, as it helps relieve bloating, indigestion, and nausea. The popularity of peppermint tea has been growing steadily due to its health benefits and refreshing flavor. Peppermint is also often blended with other herbs, offering versatility in flavor and function. As digestive health becomes a greater priority for consumers, the demand for peppermint-based teas is expected to rise, especially in markets where digestive issues are prevalent.

Lemongrass
Lemongrass tea is known for its fresh, citrus-like flavor and potential health benefits, such as aiding digestion, improving skin health, and promoting detoxification. Its popularity has been steadily increasing, particularly in regions like Asia-Pacific, where lemongrass is a common ingredient in local herbal teas. As the global demand for detox and cleansing beverages grows, lemongrass tea’s role in these categories makes it an important player in the market.

Ginger
Ginger tea, celebrated for its digestive and anti-inflammatory benefits, has been a staple in many cultures for centuries. As interest in natural remedies grows, ginger tea is gaining attention for its ability to support the immune system, alleviate nausea, and reduce inflammation. With increasing consumer awareness about the health benefits of ginger, this segment is projected to experience robust growth. Its widespread use in both wellness and culinary applications helps expand its appeal.

Hibiscus
Hibiscus tea, with its tart flavor and vibrant red color, is rich in vitamin C and antioxidants. It is popular for its ability to lower blood pressure, improve cholesterol levels, and boost overall health. The rising demand for hibiscus tea is fueled by its health-promoting properties, along with its refreshing taste. As consumers seek out beverages that offer both flavor and health benefits, hibiscus tea is expected to continue gaining market share.

Turmeric
Turmeric tea has grown in popularity in recent years due to the increasing awareness of turmeric's anti-inflammatory and antioxidant properties. As more consumers turn to herbal teas for their functional benefits, turmeric tea is emerging as a powerful player in the market. It is particularly popular among health-conscious consumers seeking natural ways to reduce inflammation and promote joint health. The demand for turmeric tea is expected to grow, particularly in regions like North America, where functional beverages are gaining momentum.

Others
Other herbal tea types, including rooibos, lavender, and rosehip, contribute to the diverse range of options available to consumers. As herbal teas become more integrated into daily wellness routines, these alternative types are expected to gain traction. Their unique flavors and health benefits make them appealing to consumers looking for variety in their tea choices.

By Packaging

Loose Tea
Loose tea packaging is favored by traditional tea drinkers and those who prefer a more authentic tea experience. While it requires a tea infuser or strainer, loose tea is often considered higher quality and fresher compared to pre-packaged tea bags. The growing demand for premium and organic teas is driving the popularity of loose tea, especially among connoisseurs. This segment is expected to experience steady growth as more consumers seek to explore and enjoy tea in its most natural form.

Tea Bags
Tea bags remain the most common and convenient packaging option for herbal teas. The rise in demand for quick and easy preparation methods has made tea bags a preferred choice among busy consumers. The market for tea bags continues to grow, with innovations in biodegradable and eco-friendly materials helping address environmental concerns. Tea bags offer a convenient way to enjoy herbal tea, contributing to their widespread popularity.

Plastic Containers
Plastic containers are used for packaging larger quantities of herbal tea, particularly in bulk retail and online sales. While this packaging format provides convenience, it has faced criticism for its environmental impact. However, manufacturers are responding to consumer demand for more sustainable options by introducing recyclable and eco-friendly plastic containers. This segment is expected to grow, particularly in e-commerce, where customers prefer larger packaging sizes.

Others
Other packaging options include glass jars, metal tins, and paper pouches, each offering its own benefits in terms of preservation, aesthetics, and sustainability. The growing demand for eco-friendly packaging solutions is driving innovation in this category, with brands offering more sustainable and reusable packaging options.

By Distribution Channel

Supermarkets/Hypermarkets
Supermarkets and hypermarkets remain the dominant distribution channel for herbal teas, thanks to their widespread reach and accessibility. The variety of herbal tea options available in these stores, along with the convenience of purchasing from one-stop shops, makes them a popular choice for consumers. As the demand for healthy beverages continues to rise, herbal teas are increasingly being stocked in larger quantities, driving the growth of this channel.

Online Retail
Online retail is rapidly becoming a key distribution channel for herbal teas, driven by the rise of e-commerce platforms and consumer preference for shopping from home. Online retailers provide a vast selection of herbal teas, often with the added benefit of direct-to-consumer shipping. As more people shop online for groceries and health products, the online retail channel is expected to experience significant growth.

Specialty Stores
Specialty stores, including health food stores and wellness shops, cater to consumers looking for premium, organic, and niche herbal tea varieties. These stores provide a curated selection of high-quality herbal teas, often with a focus on sustainability and health benefits. As more consumers seek out personalized and wellness-focused products, specialty stores are expected to become an increasingly important distribution channel.

Others
Other distribution channels, such as convenience stores, direct sales, and pop-up markets, also contribute to the herbal tea market. These channels are growing as consumers seek more convenient and localized options for purchasing their favorite herbal tea blends.

Competitive Landscape

The herbal tea market is highly competitive, with both established companies and emerging brands vying for market share. Some of the key players include:

• The Hain Celestial Group, Inc.
• Pukka Herbs Limited
• Tielka Pty Ltd
• Culinary Teas
• Harney & Sons Fine Teas
• Twining and Company Limited
• Numi, Inc.
• ORGANIC INDIA USA, LLC
• Bigelow
• MJF Group (Dilmah)
• Others

These companies are focusing on product innovation, organic and sustainable sourcing, and strategic marketing to capture a larger share of the growing herbal tea market. They are also expanding their product lines to include a variety of herbal tea blends, catering to the diverse preferences of health-conscious consumers.

Future Outlook & Market Forecast (2025-2034)

The herbal tea market is expected to see robust growth in the coming years, driven by rising consumer demand for healthy, natural, and functional beverages. As the market continues to expand, innovations in flavors, packaging, and sustainability will play a crucial role in shaping its future. With the market projected to grow at a CAGR of 6.60%, herbal tea is set to become an increasingly important segment of the beverage industry.