South & Central America 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 (Organ
Description
The herbal tea market in South and Central America is projected to grow significantly, with an expected market size of approximately US$ 354.02 million by 2031, up from US$ 256.52 million in 2024. This growth translates to a compound annual growth rate (CAGR) of 4.9% from 2025 to 2031.
Executive Summary and Market Analysis
The increasing demand for herbal tea in South and Central America can be attributed to a rising health consciousness among consumers and evolving cultural trends. As individuals in the region become more aware of the health benefits associated with herbal teas, there is a noticeable shift away from sugary and processed beverages towards healthier options. Herbal teas are recognized for their various health advantages, including improved digestion, enhanced immune support, and stress relief. Popular varieties such as chamomile, peppermint, and yerba mate—a traditional beverage in South America—are particularly favored for their wellness properties. This growing awareness of health benefits has made herbal tea an attractive choice for consumers aiming to adopt healthier lifestyles.
Market expansion is another critical factor driving the demand for herbal teas in the region. The increased availability of these products through supermarkets, health food stores, and online platforms has made it easier for consumers to access a diverse range of herbal tea options. Retailers are also innovating by introducing new flavors and blends to cater to changing consumer preferences, further fueling demand. As tea companies respond to the growing market with enticing new products, the popularity of herbal teas is expected to continue its upward trajectory in South and Central America for the foreseeable future.
Strategic Insights
Market Segmentation Analysis
The South and Central America herbal tea market can be segmented based on type, form, category, and distribution channel.
Outlook
The organized retail sector has experienced a significant transformation in recent years, largely due to the rise of e-commerce. This shift has changed consumer shopping behaviors, with increased smartphone and internet penetration, higher purchasing power, and the convenience of online shopping contributing to the growth of e-commerce. Platforms such as Mercado Livre, Amazon, Walmart, and others have become essential for consumers seeking herbal tea products.
Manufacturers are increasingly enhancing their online presence by selling through established e-commerce platforms and launching direct-to-consumer (D-to-C) websites. This strategy allows them to bypass traditional marketing and distribution costs, making it easier for consumers to access herbal teas. The growing reliance on e-commerce and the D-to-C model is expected to create lucrative opportunities for the herbal tea market in the coming years.
Additionally, the rise of quick commerce (Q-commerce) is reshaping consumer expectations, with a growing demand for fast, on-demand delivery of essential products. Apps like Flink, Zapp, Blinkit, and Getir are leading players in this sector, catering to consumers' desire for convenience. This trend is likely to boost the demand for herbal tea through online shopping platforms, further opening new avenues for growth.
Country Insights
The South and Central America herbal tea market includes key countries such as Brazil, Argentina, and the Rest of South and Central America, with the latter holding the largest market share in 2024. Notable countries in this segment include Chile, Peru, Colombia, and Costa Rica. There is a marked shift towards natural and functional beverages, driven by increased awareness of the health benefits associated with herbal teas, such as their anti-inflammatory and antioxidant properties. The rising health consciousness and demand for premium organic herbal teas are encouraging local producers to innovate and develop new organic offerings.
Company Profiles
Key players in the South and Central America 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 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 increasing demand for herbal tea in South and Central America can be attributed to a rising health consciousness among consumers and evolving cultural trends. As individuals in the region become more aware of the health benefits associated with herbal teas, there is a noticeable shift away from sugary and processed beverages towards healthier options. Herbal teas are recognized for their various health advantages, including improved digestion, enhanced immune support, and stress relief. Popular varieties such as chamomile, peppermint, and yerba mate—a traditional beverage in South America—are particularly favored for their wellness properties. This growing awareness of health benefits has made herbal tea an attractive choice for consumers aiming to adopt healthier lifestyles.
Market expansion is another critical factor driving the demand for herbal teas in the region. The increased availability of these products through supermarkets, health food stores, and online platforms has made it easier for consumers to access a diverse range of herbal tea options. Retailers are also innovating by introducing new flavors and blends to cater to changing consumer preferences, further fueling demand. As tea companies respond to the growing market with enticing new products, the popularity of herbal teas is expected to continue its upward trajectory in South and Central America for the foreseeable future.
Strategic Insights
Market Segmentation Analysis
The South and Central America 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. In 2024, the blends segment accounted for the largest market share.
- 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, with conventional herbal teas dominating the market in 2024.
- By Distribution Channel: The market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. Supermarkets and hypermarkets represented the largest share of the market in 2024.
Outlook
The organized retail sector has experienced a significant transformation in recent years, largely due to the rise of e-commerce. This shift has changed consumer shopping behaviors, with increased smartphone and internet penetration, higher purchasing power, and the convenience of online shopping contributing to the growth of e-commerce. Platforms such as Mercado Livre, Amazon, Walmart, and others have become essential for consumers seeking herbal tea products.
Manufacturers are increasingly enhancing their online presence by selling through established e-commerce platforms and launching direct-to-consumer (D-to-C) websites. This strategy allows them to bypass traditional marketing and distribution costs, making it easier for consumers to access herbal teas. The growing reliance on e-commerce and the D-to-C model is expected to create lucrative opportunities for the herbal tea market in the coming years.
Additionally, the rise of quick commerce (Q-commerce) is reshaping consumer expectations, with a growing demand for fast, on-demand delivery of essential products. Apps like Flink, Zapp, Blinkit, and Getir are leading players in this sector, catering to consumers' desire for convenience. This trend is likely to boost the demand for herbal tea through online shopping platforms, further opening new avenues for growth.
Country Insights
The South and Central America herbal tea market includes key countries such as Brazil, Argentina, and the Rest of South and Central America, with the latter holding the largest market share in 2024. Notable countries in this segment include Chile, Peru, Colombia, and Costa Rica. There is a marked shift towards natural and functional beverages, driven by increased awareness of the health benefits associated with herbal teas, such as their anti-inflammatory and antioxidant properties. The rising health consciousness and demand for premium organic herbal teas are encouraging local producers to innovate and develop new organic offerings.
Company Profiles
Key players in the South and Central America 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 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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