Europe 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, Conventional)
Description
The European herbal tea market is projected to grow significantly, reaching an estimated value of approximately US$ 1,245.34 million by 2031, up from US$ 836.37 million in 2024. This growth represents a compound annual growth rate (CAGR) of 6.0% from 2025 to 2031.
Executive Summary and Market Analysis
The expansion of the herbal tea market in Europe can be attributed to several key factors, including a growing consumer preference for convenient and healthy food and beverage options, a robust retail infrastructure, and a diverse array of products available from various brands across multiple distribution channels. Additionally, the increasing number of consumers with high disposable incomes is driving the demand for health-oriented products, such as herbal teas. Consumers are increasingly looking for nutritional benefits in their food and drink choices, leading to a notable rise in the demand for clean and organic herbal teas.
According to the Tea and Coffee Trade Journal, the popularity of botanical and herbal teas in Europe is on the rise, driven by their perceived health benefits and the growing trend towards a healthier lifestyle among consumers. This surge in demand has prompted many herbal tea producers and suppliers to expand their product offerings and increase production capacity. For example, in April 2024, Typhoo, a well-known UK tea brand, launched a new herbal tea line called Herbalistas, which is available on platforms like Amazon and Ocado, as well as through the company's direct-to-consumer website.
The shift towards wellness and self-care practices has also contributed to the increasing popularity of herbal teas. Many European consumers are seeking natural remedies for common health issues such as anxiety, insomnia, and digestive problems, leading them to replace caffeinated and sugary beverages with calming herbal alternatives. Furthermore, sustainability and ethical consumption are becoming increasingly important to consumers, who are more inclined to choose organic, plant-based, and eco-friendly products. Herbal teas, with their natural ingredients and lower environmental impact compared to other beverages, align well with these consumer preferences, further driving market growth.
Strategic Insights
Market Segmentation Analysis
The European herbal tea market can be segmented based on type, form, category, and distribution channel.
Manufacturers in the herbal tea sector are making strategic investments in product innovation, expansion, mergers and acquisitions, and partnerships to enhance their customer base and meet evolving consumer demands. They are focusing on developing herbal teas infused with new flavors, improved nutritional profiles, and products that are gluten-free, caffeine-free, and non-GMO to cater to diverse consumer preferences. For instance, in August 2025, Wanglaoji, a leading Chinese herbal drink company, launched its global brand WALOVI in Shanghai, introducing four new canned herbal drink formats designed with modern aesthetics. Similarly, Ulutox has launched its flagship product, Lulutox Detox Tea, aimed at health-conscious consumers in various international markets.
In 2024, Unilever introduced its herbal infusion brand, Pukka, to the Indian market, supported by a campaign promoting relaxation and self-care. Additionally, NutraTea expanded its herbal tea range for women's health with new blends targeting specific health concerns. These examples illustrate the ongoing trend of product innovation and market expansion within the herbal tea sector.
Country Insights
The European herbal tea market includes key countries such as Germany, France, Italy, the UK, Russia, and others. Italy held the largest market share in 2024. In the rest of Europe, countries like Russia, New Zealand, the Netherlands, Sweden, Poland, and Hungary are also significant players in the herbal tea market. Consumers in these regions are increasingly moving away from sugary soft drinks in favor of beverages that offer functional health benefits, such as improved digestion, enhanced immunity, and relaxation. This trend is complemented by a growing preference for natural and organic products, which are perceived as healthier and more sustainable options.
Company Profiles
Key players in the European herbal tea market include Associated British Foods Plc, Bell Industries LLC, Bigelow Tea, Bird & Blend Tea Co., Donna McCafferty & Co LLC, East West Tea Company, LLC, Harney & Sons Fine Teas, JADE LEAF, LLC, LIPTON Teas and Infusions, Rishi Tea & Botanicals, Star Spangled Tea, Tata Consumer Products Ltd, The Hain Celestial Group Inc, Traditional Medicinals, and Universal Tea Company, Inc. These companies are actively pursuing strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
Executive Summary and Market Analysis
The expansion of the herbal tea market in Europe can be attributed to several key factors, including a growing consumer preference for convenient and healthy food and beverage options, a robust retail infrastructure, and a diverse array of products available from various brands across multiple distribution channels. Additionally, the increasing number of consumers with high disposable incomes is driving the demand for health-oriented products, such as herbal teas. Consumers are increasingly looking for nutritional benefits in their food and drink choices, leading to a notable rise in the demand for clean and organic herbal teas.
According to the Tea and Coffee Trade Journal, the popularity of botanical and herbal teas in Europe is on the rise, driven by their perceived health benefits and the growing trend towards a healthier lifestyle among consumers. This surge in demand has prompted many herbal tea producers and suppliers to expand their product offerings and increase production capacity. For example, in April 2024, Typhoo, a well-known UK tea brand, launched a new herbal tea line called Herbalistas, which is available on platforms like Amazon and Ocado, as well as through the company's direct-to-consumer website.
The shift towards wellness and self-care practices has also contributed to the increasing popularity of herbal teas. Many European consumers are seeking natural remedies for common health issues such as anxiety, insomnia, and digestive problems, leading them to replace caffeinated and sugary beverages with calming herbal alternatives. Furthermore, sustainability and ethical consumption are becoming increasingly important to consumers, who are more inclined to choose organic, plant-based, and eco-friendly products. Herbal teas, with their natural ingredients and lower environmental impact compared to other beverages, align well with these consumer preferences, further driving market growth.
Strategic Insights
Market Segmentation Analysis
The European 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. 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 market is further divided into organic and conventional herbal teas, with the conventional segment dominating 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.
Manufacturers in the herbal tea sector are making strategic investments in product innovation, expansion, mergers and acquisitions, and partnerships to enhance their customer base and meet evolving consumer demands. They are focusing on developing herbal teas infused with new flavors, improved nutritional profiles, and products that are gluten-free, caffeine-free, and non-GMO to cater to diverse consumer preferences. For instance, in August 2025, Wanglaoji, a leading Chinese herbal drink company, launched its global brand WALOVI in Shanghai, introducing four new canned herbal drink formats designed with modern aesthetics. Similarly, Ulutox has launched its flagship product, Lulutox Detox Tea, aimed at health-conscious consumers in various international markets.
In 2024, Unilever introduced its herbal infusion brand, Pukka, to the Indian market, supported by a campaign promoting relaxation and self-care. Additionally, NutraTea expanded its herbal tea range for women's health with new blends targeting specific health concerns. These examples illustrate the ongoing trend of product innovation and market expansion within the herbal tea sector.
Country Insights
The European herbal tea market includes key countries such as Germany, France, Italy, the UK, Russia, and others. Italy held the largest market share in 2024. In the rest of Europe, countries like Russia, New Zealand, the Netherlands, Sweden, Poland, and Hungary are also significant players in the herbal tea market. Consumers in these regions are increasingly moving away from sugary soft drinks in favor of beverages that offer functional health benefits, such as improved digestion, enhanced immunity, and relaxation. This trend is complemented by a growing preference for natural and organic products, which are perceived as healthier and more sustainable options.
Company Profiles
Key players in the European herbal tea market include Associated British Foods Plc, Bell Industries LLC, Bigelow Tea, Bird & Blend Tea Co., Donna McCafferty & Co LLC, East West Tea Company, LLC, Harney & Sons Fine Teas, JADE LEAF, LLC, LIPTON Teas and Infusions, Rishi Tea & Botanicals, Star Spangled Tea, Tata Consumer Products Ltd, The Hain Celestial Group Inc, Traditional Medicinals, and Universal Tea Company, Inc. These companies are actively pursuing strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
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