Asia Pacific Herbal Tea Market Size and Forecast (2021-2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Chamomile, Peppermint, Ginger, Hibiscus, Blends, Others), Form (Loose Tea, Tea Bags), Category (Organic, Convent
Description
The Asia Pacific herbal tea market is poised for substantial growth, with projections indicating that its size will reach approximately US$ 3,062.91 million by 2031, up from US$ 2,003.14 million in 2024. This growth trajectory reflects a compound annual growth rate (CAGR) of 6.4% from 2025 to 2031.
Executive Summary and Market Analysis
The herbal tea market in the Asia Pacific region is witnessing a remarkable expansion, fueled by a combination of cultural traditions, evolving consumer preferences, and a rising demand for health-oriented products. Countries such as China, India, Japan, and South Korea have a long-standing history of tea consumption, which significantly influences the market dynamics. According to the Food and Agriculture Organization (FAO) of the United Nations, Asia accounted for 85% of global tea production in 2023, with China, India, and Sri Lanka being the leading producers, contributing to 62% of the total output.
In recent years, there has been a notable increase in health consciousness among consumers in the region, which has led to a growing preference for healthier alternatives to traditional tea, such as herbal tea. This shift is supported by rising disposable incomes and an increasing awareness of the health benefits associated with tea extracts, including their antioxidant and anti-inflammatory properties. As consumers seek to replace sugary beverages and caffeinated drinks, herbal teas emerge as a natural, low-calorie option. Furthermore, the trend towards functional beverages that offer specific health benefits—such as stress relief, digestive support, and detoxification—has also contributed to the growth of the herbal tea market in the Asia Pacific.
Strategic Insights
Market Segmentation Analysis
The Asia Pacific herbal tea market can be segmented based on type, form, category, and distribution channel.
The organized retail sector has undergone significant changes recently, particularly with the rise of e-commerce, which has transformed consumer shopping behaviors. Factors such as increased smartphone penetration, higher purchasing power, and the convenience of online shopping have bolstered the growth of e-commerce globally.
The growing trend of e-commerce is prompting herbal tea manufacturers to enhance their online presence by selling products through major platforms like Amazon, Walmart, and Tesco. Additionally, many manufacturers are adopting a direct-to-consumer (D-to-C) strategy by launching their own online retail sites, which allows them to bypass traditional marketing and distribution costs. This shift towards online shopping is expected to create lucrative opportunities for the herbal tea market in the coming years.
Moreover, the rise of quick commerce (Q-commerce) is reshaping consumer expectations, with an increasing demand for fast, on-demand delivery of essential products. Apps like Flink, Zapp, and Getir are leading players in this sector, and as consumers prioritize convenience, Q-commerce is likely to expand, further driving the demand for herbal tea through online platforms.
Country Insights
The Asia Pacific herbal tea market encompasses several countries, including Australia, China, India, Japan, South Korea, and others. In 2024, the Rest of Asia Pacific held the largest market share.
China, in particular, represents a vast and rapidly growing herbal tea market, deeply rooted in its rich tea culture. As the world's largest tea producer and consumer, China has a long history of using herbal teas as part of traditional medicine. The country's diverse geography and climate contribute to a wide variety of herbal teas, such as Guangxi Tian Cha and Shi Ya Cha, which are native to the region. The increasing popularity of herbal tea in China is largely attributed to its health benefits, particularly its antioxidant properties.
Company Profiles
Key players in the Asia Pacific herbal tea market include Associated British Foods Plc, Bell Industries LLC, Bigelow Tea, Bird & Blend Tea Co., East West Tea Company, Harney & Sons Fine Teas, and Tata Consumer Products Ltd, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative products to consumers.
Executive Summary and Market Analysis
The herbal tea market in the Asia Pacific region is witnessing a remarkable expansion, fueled by a combination of cultural traditions, evolving consumer preferences, and a rising demand for health-oriented products. Countries such as China, India, Japan, and South Korea have a long-standing history of tea consumption, which significantly influences the market dynamics. According to the Food and Agriculture Organization (FAO) of the United Nations, Asia accounted for 85% of global tea production in 2023, with China, India, and Sri Lanka being the leading producers, contributing to 62% of the total output.
In recent years, there has been a notable increase in health consciousness among consumers in the region, which has led to a growing preference for healthier alternatives to traditional tea, such as herbal tea. This shift is supported by rising disposable incomes and an increasing awareness of the health benefits associated with tea extracts, including their antioxidant and anti-inflammatory properties. As consumers seek to replace sugary beverages and caffeinated drinks, herbal teas emerge as a natural, low-calorie option. Furthermore, the trend towards functional beverages that offer specific health benefits—such as stress relief, digestive support, and detoxification—has also contributed to the growth of the herbal tea market in the Asia Pacific.
Strategic Insights
Market Segmentation Analysis
The Asia Pacific herbal tea market can be segmented based on type, form, category, and distribution channel.
- By Type: The market is divided into several categories, including chamomile, peppermint, ginger, hibiscus, blends, and others. Notably, the blends segment accounted for the largest market share in 2024.
- By Form: The market is categorized into loose tea and tea bags, with the tea bag segment holding a larger share in 2024.
- By Category: The herbal tea market is further divided into organic and conventional categories, where the conventional segment dominated in 2024.
- By Distribution Channel: The market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others, with supermarkets and hypermarkets capturing the largest share in 2024.
The organized retail sector has undergone significant changes recently, particularly with the rise of e-commerce, which has transformed consumer shopping behaviors. Factors such as increased smartphone penetration, higher purchasing power, and the convenience of online shopping have bolstered the growth of e-commerce globally.
The growing trend of e-commerce is prompting herbal tea manufacturers to enhance their online presence by selling products through major platforms like Amazon, Walmart, and Tesco. Additionally, many manufacturers are adopting a direct-to-consumer (D-to-C) strategy by launching their own online retail sites, which allows them to bypass traditional marketing and distribution costs. This shift towards online shopping is expected to create lucrative opportunities for the herbal tea market in the coming years.
Moreover, the rise of quick commerce (Q-commerce) is reshaping consumer expectations, with an increasing demand for fast, on-demand delivery of essential products. Apps like Flink, Zapp, and Getir are leading players in this sector, and as consumers prioritize convenience, Q-commerce is likely to expand, further driving the demand for herbal tea through online platforms.
Country Insights
The Asia Pacific herbal tea market encompasses several countries, including Australia, China, India, Japan, South Korea, and others. In 2024, the Rest of Asia Pacific held the largest market share.
China, in particular, represents a vast and rapidly growing herbal tea market, deeply rooted in its rich tea culture. As the world's largest tea producer and consumer, China has a long history of using herbal teas as part of traditional medicine. The country's diverse geography and climate contribute to a wide variety of herbal teas, such as Guangxi Tian Cha and Shi Ya Cha, which are native to the region. The increasing popularity of herbal tea in China is largely attributed to its health benefits, particularly its antioxidant properties.
Company Profiles
Key players in the Asia Pacific herbal tea market include Associated British Foods Plc, Bell Industries LLC, Bigelow Tea, Bird & Blend Tea Co., East West Tea Company, Harney & Sons Fine Teas, and Tata Consumer Products Ltd, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative products to consumers.
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