Herbal Tea Market Forecasts to 2032 – Global Analysis By Product (Green Tea, Black Tea, Lemongrass, Peppermint, Chamomile, Ginger, Hibiscus and Other Products), Function, Packaging, Distribution Channel, End User and By Geography
Description
According to Stratistics MRC, the Global Herbal Tea Market is accounted for $4.1 billion in 2025 and is expected to reach $7.4 billion by 2032 growing at a CAGR of 8.6% during the forecast period. Herbal tea is a beverage made by infusing various herbs, flowers, spices, or other plant materials in hot water, excluding traditional tea leaves from the Camellia sinensis plant. Unlike black or green tea, herbal teas are naturally caffeine-free and are consumed for their therapeutic properties, flavor profiles, and wellness benefits. Popular ingredients include chamomile, peppermint, hibiscus, ginger, and rooibos, each offering distinct health-supportive functions such as relaxation, digestion, or immune support. Herbal teas are widely embraced across cultures as part of holistic health routines, often marketed as functional beverages that align with clean-label, organic, and plant-based lifestyle preferences.
Market Dynamics:
Driver:
Rising health & wellness focus
The global shift toward preventive health and natural remedies is fueling demand for herbal teas. Consumers increasingly seek functional beverages that support immunity, digestion, and stress relief. This wellness-driven consumption is amplified by growing awareness of plant-based ingredients and clean-label preferences. Herbal teas, rich in antioxidants and adaptogens, are positioned as daily wellness rituals, especially among urban and aging populations. This trend is expected to sustain long-term growth across both premium and mass-market segments.
Restraint:
Regulatory complexity & claims restrictions
Despite rising demand, the herbal tea market faces regulatory hurdles around health claims and ingredient approvals. Varying standards across regions—especially in labeling, permissible botanicals, and therapeutic assertions—create compliance challenges for manufacturers. These constraints limit product differentiation and slow innovation cycles. Additionally, the lack of harmonized global regulations makes cross-border expansion difficult, particularly for blends marketed with cognitive or metabolic benefits, thus it hinders market expansion.
Opportunity:
Product innovation & functional blends
Innovation in herbal tea formulations is unlocking new growth avenues. Brands are introducing targeted blends for sleep, focus, gut health, and immunity—often combining traditional herbs with trending botanicals like ashwagandha, turmeric, and CBD. Ready-to-drink formats, cold brews, and sustainable packaging further enhance appeal among younger consumers. Functional positioning, backed by clinical validation and storytelling, is driving premiumization. This segment offers high-margin potential, especially in e-commerce and wellness-focused retail channels.
Threat:
Supply chain volatility & seasonality
Supply chain volatility and seasonality pose significant challenges to the herbal tea market, disrupting consistent access to key botanicals like chamomile and peppermint. Climate fluctuations, geopolitical tensions, and limited harvesting windows lead to unpredictable pricing and inventory gaps. These disruptions hinder product availability, strain margins, and complicate long-term planning. Brands face increased pressure to diversify sourcing and invest in resilient logistics, or risk losing consumer trust and market share due to inconsistent supply.
Covid-19 Impact
The pandemic initially disrupted herbal tea supply chains but simultaneously accelerated consumer interest in immunity-boosting and stress-relieving beverages. Lockdowns and remote work increased at-home consumption, driving trial and adoption of functional blends. E-commerce channels saw a surge in herbal tea sales, while wellness narratives gained traction. Post-pandemic, this behavioral shift is expected to persist, with consumers integrating herbal teas into daily routines for holistic health.
The chamomile segment is expected to be the largest during the forecast period
The chamomile segment is expected to account for the largest market share during the forecast period, due to its widespread recognition as a calming and sleep-enhancing ingredient. Its gentle flavor profile and versatility across blends make it a staple in both traditional and functional formulations. Chamomile’s association with stress relief and digestive health resonates strongly with wellness-conscious consumers. Its popularity spans geographies and demographics, reinforcing its position as a foundational botanical in herbal tea portfolios and driving consistent demand.
The cognitive health segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the cognitive health segment is predicted to witness the highest growth rate, due to rising consumer interest in mental clarity, focus, and neuroprotection. Herbal teas infused with ingredients like ginkgo biloba, bacopa, and green tea catechins are gaining traction among professionals and students. As stress and digital fatigue rise, demand for natural cognitive enhancers is surging. This segment benefits from strong functional positioning, especially when supported by scientific claims and targeted marketing strategies.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to deep-rooted cultural consumption, expanding middle-class populations, and rising health awareness. Countries like China, India, and Japan have long-standing traditions of herbal infusions, now being modernized through premium packaging and functional branding. Urbanization and retail expansion are further boosting accessibility. The region’s rich biodiversity also supports local sourcing and innovation, making it a strategic hub for both production and consumption.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to growing consumer preference for natural wellness solutions and clean-label beverages. The region’s dynamic health trends—such as adaptogenic blends, nootropic teas, and organic certifications—are fueling premium segment growth. E-commerce penetration and influencer-led wellness narratives are accelerating trial among younger demographics. Regulatory clarity and innovation-friendly ecosystems support rapid product launches, making North America a hotspot for functional herbal tea expansion.
Key players in the market
Some of the key players profiled in the Herbal Tea Market include Lipton Teas and Infusions, Twinings, Celestial Seasonings, Traditional Medicinals, Numi Organic Tea, Bigelow Tea Company, TEEKANNE, Yogi Tea, Tata Consumer Products, ITO EN, Ahmad Tea, Dilmah, The Republic of Tea, Harney & Sons and Clipper Teas.
Key Developments:
In July 2025, Celestial Seasonings launched its new “Anytime Wellness” tea line, including exclusive blends like Good Vibes™ Lemon Mint, available first at Walmart. The line supports mood, detox, and immune health.
In May 2025, Yogi Tea partnered with Park Yoga to support free outdoor yoga sessions across England. Include branded activations, tea sampling, and a Community Day on International Yoga Day.
In May 2024, Lipton transferred ownership of its tea estates in Kenya, Rwanda, and Tanzania to Browns Investments, forming a long-term partnership to raise global tea standards. Include a new Community Welfare Trust and shared equity for local communities.
Products Covered:
• Green Tea
• Black Tea
• Lemongrass
• Peppermint
• Chamomile
• Ginger
• Hibiscus
• Other Products
Functions Covered:
• Cognitive Health
• Gut & Digestive Health
• Multifunctional
• Other Functions
Packagings Covered:
• Loose Tea
• Tea Bags
• Instant Mixes
• Bottled & Canned
Distribution Channels Covered:
• Supermarkets/Hypermarkets
• Specialty Stores
• Online Retail
• Convenience Stores
• Other Distribution Channels
End Users Covered:
• Household
• Foodservice
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Market Dynamics:
Driver:
Rising health & wellness focus
The global shift toward preventive health and natural remedies is fueling demand for herbal teas. Consumers increasingly seek functional beverages that support immunity, digestion, and stress relief. This wellness-driven consumption is amplified by growing awareness of plant-based ingredients and clean-label preferences. Herbal teas, rich in antioxidants and adaptogens, are positioned as daily wellness rituals, especially among urban and aging populations. This trend is expected to sustain long-term growth across both premium and mass-market segments.
Restraint:
Regulatory complexity & claims restrictions
Despite rising demand, the herbal tea market faces regulatory hurdles around health claims and ingredient approvals. Varying standards across regions—especially in labeling, permissible botanicals, and therapeutic assertions—create compliance challenges for manufacturers. These constraints limit product differentiation and slow innovation cycles. Additionally, the lack of harmonized global regulations makes cross-border expansion difficult, particularly for blends marketed with cognitive or metabolic benefits, thus it hinders market expansion.
Opportunity:
Product innovation & functional blends
Innovation in herbal tea formulations is unlocking new growth avenues. Brands are introducing targeted blends for sleep, focus, gut health, and immunity—often combining traditional herbs with trending botanicals like ashwagandha, turmeric, and CBD. Ready-to-drink formats, cold brews, and sustainable packaging further enhance appeal among younger consumers. Functional positioning, backed by clinical validation and storytelling, is driving premiumization. This segment offers high-margin potential, especially in e-commerce and wellness-focused retail channels.
Threat:
Supply chain volatility & seasonality
Supply chain volatility and seasonality pose significant challenges to the herbal tea market, disrupting consistent access to key botanicals like chamomile and peppermint. Climate fluctuations, geopolitical tensions, and limited harvesting windows lead to unpredictable pricing and inventory gaps. These disruptions hinder product availability, strain margins, and complicate long-term planning. Brands face increased pressure to diversify sourcing and invest in resilient logistics, or risk losing consumer trust and market share due to inconsistent supply.
Covid-19 Impact
The pandemic initially disrupted herbal tea supply chains but simultaneously accelerated consumer interest in immunity-boosting and stress-relieving beverages. Lockdowns and remote work increased at-home consumption, driving trial and adoption of functional blends. E-commerce channels saw a surge in herbal tea sales, while wellness narratives gained traction. Post-pandemic, this behavioral shift is expected to persist, with consumers integrating herbal teas into daily routines for holistic health.
The chamomile segment is expected to be the largest during the forecast period
The chamomile segment is expected to account for the largest market share during the forecast period, due to its widespread recognition as a calming and sleep-enhancing ingredient. Its gentle flavor profile and versatility across blends make it a staple in both traditional and functional formulations. Chamomile’s association with stress relief and digestive health resonates strongly with wellness-conscious consumers. Its popularity spans geographies and demographics, reinforcing its position as a foundational botanical in herbal tea portfolios and driving consistent demand.
The cognitive health segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the cognitive health segment is predicted to witness the highest growth rate, due to rising consumer interest in mental clarity, focus, and neuroprotection. Herbal teas infused with ingredients like ginkgo biloba, bacopa, and green tea catechins are gaining traction among professionals and students. As stress and digital fatigue rise, demand for natural cognitive enhancers is surging. This segment benefits from strong functional positioning, especially when supported by scientific claims and targeted marketing strategies.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to deep-rooted cultural consumption, expanding middle-class populations, and rising health awareness. Countries like China, India, and Japan have long-standing traditions of herbal infusions, now being modernized through premium packaging and functional branding. Urbanization and retail expansion are further boosting accessibility. The region’s rich biodiversity also supports local sourcing and innovation, making it a strategic hub for both production and consumption.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to growing consumer preference for natural wellness solutions and clean-label beverages. The region’s dynamic health trends—such as adaptogenic blends, nootropic teas, and organic certifications—are fueling premium segment growth. E-commerce penetration and influencer-led wellness narratives are accelerating trial among younger demographics. Regulatory clarity and innovation-friendly ecosystems support rapid product launches, making North America a hotspot for functional herbal tea expansion.
Key players in the market
Some of the key players profiled in the Herbal Tea Market include Lipton Teas and Infusions, Twinings, Celestial Seasonings, Traditional Medicinals, Numi Organic Tea, Bigelow Tea Company, TEEKANNE, Yogi Tea, Tata Consumer Products, ITO EN, Ahmad Tea, Dilmah, The Republic of Tea, Harney & Sons and Clipper Teas.
Key Developments:
In July 2025, Celestial Seasonings launched its new “Anytime Wellness” tea line, including exclusive blends like Good Vibes™ Lemon Mint, available first at Walmart. The line supports mood, detox, and immune health.
In May 2025, Yogi Tea partnered with Park Yoga to support free outdoor yoga sessions across England. Include branded activations, tea sampling, and a Community Day on International Yoga Day.
In May 2024, Lipton transferred ownership of its tea estates in Kenya, Rwanda, and Tanzania to Browns Investments, forming a long-term partnership to raise global tea standards. Include a new Community Welfare Trust and shared equity for local communities.
Products Covered:
• Green Tea
• Black Tea
• Lemongrass
• Peppermint
• Chamomile
• Ginger
• Hibiscus
• Other Products
Functions Covered:
• Cognitive Health
• Gut & Digestive Health
• Multifunctional
• Other Functions
Packagings Covered:
• Loose Tea
• Tea Bags
• Instant Mixes
• Bottled & Canned
Distribution Channels Covered:
• Supermarkets/Hypermarkets
• Specialty Stores
• Online Retail
• Convenience Stores
• Other Distribution Channels
End Users Covered:
• Household
• Foodservice
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Product Analysis
- 3.7 End User Analysis
- 3.8 Emerging Markets
- 3.9 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Herbal Tea Market, By Product
- 5.1 Introduction
- 5.2 Green Tea
- 5.3 Black Tea
- 5.4 Lemongrass
- 5.5 Peppermint
- 5.6 Chamomile
- 5.7 Ginger
- 5.8 Hibiscus
- 5.9 Other Products
- 6 Global Herbal Tea Market, By Function
- 6.1 Introduction
- 6.2 Cognitive Health
- 6.3 Gut & Digestive Health
- 6.4 Multifunctional
- 6.5 Other Functions
- 7 Global Herbal Tea Market, By Packaging
- 7.1 Introduction
- 7.2 Loose Tea
- 7.3 Tea Bags
- 7.4 Instant Mixes
- 7.5 Bottled & Canned
- 8 Global Herbal Tea Market, By Distribution Channel
- 8.1 Introduction
- 8.2 Supermarkets/Hypermarkets
- 8.3 Specialty Stores
- 8.4 Online Retail
- 8.5 Convenience Stores
- 8.6 Other Distribution Channels
- 9 Global Herbal Tea Market, By End User
- 9.1 Introduction
- 9.2 Household
- 9.3 Foodservice
- 10 Global Herbal Tea Market, By Geography
- 10.1 Introduction
- 10.2 North America
- 10.2.1 US
- 10.2.2 Canada
- 10.2.3 Mexico
- 10.3 Europe
- 10.3.1 Germany
- 10.3.2 UK
- 10.3.3 Italy
- 10.3.4 France
- 10.3.5 Spain
- 10.3.6 Rest of Europe
- 10.4 Asia Pacific
- 10.4.1 Japan
- 10.4.2 China
- 10.4.3 India
- 10.4.4 Australia
- 10.4.5 New Zealand
- 10.4.6 South Korea
- 10.4.7 Rest of Asia Pacific
- 10.5 South America
- 10.5.1 Argentina
- 10.5.2 Brazil
- 10.5.3 Chile
- 10.5.4 Rest of South America
- 10.6 Middle East & Africa
- 10.6.1 Saudi Arabia
- 10.6.2 UAE
- 10.6.3 Qatar
- 10.6.4 South Africa
- 10.6.5 Rest of Middle East & Africa
- 11 Key Developments
- 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 11.2 Acquisitions & Mergers
- 11.3 New Product Launch
- 11.4 Expansions
- 11.5 Other Key Strategies
- 12 Company Profiling
- 12.1 Lipton Teas and Infusions
- 12.2 Twinings
- 12.3 Celestial Seasonings
- 12.4 Traditional Medicinals
- 12.5 Numi Organic Tea
- 12.6 Bigelow Tea Company
- 12.7 TEEKANNE
- 12.8 Yogi Tea
- 12.9 Tata Consumer Products
- 12.10 ITO EN
- 12.11 Ahmad Tea
- 12.12 Dilmah
- 12.13 The Republic of Tea
- 12.14 Harney & Sons
- 12.15 Clipper Teas
- List of Tables
- Table 1 Global Herbal Tea Market Outlook, By Region (2024-2032) ($MN)
- Table 2 Global Herbal Tea Market Outlook, By Product (2024-2032) ($MN)
- Table 3 Global Herbal Tea Market Outlook, By Green Tea (2024-2032) ($MN)
- Table 4 Global Herbal Tea Market Outlook, By Black Tea (2024-2032) ($MN)
- Table 5 Global Herbal Tea Market Outlook, By Lemongrass (2024-2032) ($MN)
- Table 6 Global Herbal Tea Market Outlook, By Peppermint (2024-2032) ($MN)
- Table 7 Global Herbal Tea Market Outlook, By Chamomile (2024-2032) ($MN)
- Table 8 Global Herbal Tea Market Outlook, By Ginger (2024-2032) ($MN)
- Table 9 Global Herbal Tea Market Outlook, By Hibiscus (2024-2032) ($MN)
- Table 10 Global Herbal Tea Market Outlook, By Other Products (2024-2032) ($MN)
- Table 11 Global Herbal Tea Market Outlook, By Function (2024-2032) ($MN)
- Table 12 Global Herbal Tea Market Outlook, By Cognitive Health (2024-2032) ($MN)
- Table 13 Global Herbal Tea Market Outlook, By Gut & Digestive Health (2024-2032) ($MN)
- Table 14 Global Herbal Tea Market Outlook, By Multifunctional (2024-2032) ($MN)
- Table 15 Global Herbal Tea Market Outlook, By Other Functions (2024-2032) ($MN)
- Table 16 Global Herbal Tea Market Outlook, By Packaging (2024-2032) ($MN)
- Table 17 Global Herbal Tea Market Outlook, By Loose Tea (2024-2032) ($MN)
- Table 18 Global Herbal Tea Market Outlook, By Tea Bags (2024-2032) ($MN)
- Table 19 Global Herbal Tea Market Outlook, By Instant Mixes (2024-2032) ($MN)
- Table 20 Global Herbal Tea Market Outlook, By Bottled & Canned (2024-2032) ($MN)
- Table 21 Global Herbal Tea Market Outlook, By Distribution Channel (2024-2032) ($MN)
- Table 22 Global Herbal Tea Market Outlook, By Supermarkets/Hypermarkets (2024-2032) ($MN)
- Table 23 Global Herbal Tea Market Outlook, By Specialty Stores (2024-2032) ($MN)
- Table 24 Global Herbal Tea Market Outlook, By Online Retail (2024-2032) ($MN)
- Table 25 Global Herbal Tea Market Outlook, By Convenience Stores (2024-2032) ($MN)
- Table 26 Global Herbal Tea Market Outlook, By Other Distribution Channels (2024-2032) ($MN)
- Table 27 Global Herbal Tea Market Outlook, By End User (2024-2032) ($MN)
- Table 28 Global Herbal Tea Market Outlook, By Household (2024-2032) ($MN)
- Table 29 Global Herbal Tea Market Outlook, By Foodservice (2024-2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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