How big is the Herbal Tea Market?
According to 6Wresearch internal database and industry insights, the Global Herbal Tea Market was valued at USD 3.7 Billion in 2024 and is expected to reach USD 5.4 Billion by 2031, growing at a compound annual growth rate of 5.60% during the forecast period (2025-2031).
This growth is driven by increasing consumer awareness of health benefits, rising demand for caffeine-free beverages, and growing popularity of natural ingredients.
Key Growth Drivers of the Herbal Tea Market
- Growing demand for detox and immunity-boosting beverages
- Increase in vegan and organic lifestyle adoption
- Rising stress and digestive disorders boosting herbal infusion use
- Expanding retail availability and online accessibility
- Preference for caffeine-free and functional beverages
Herbal Tea Market Trends
The herbal tea market is witnessing rapid growth as consumers lean towards healthier alternatives to conventional caffeinated drinks. Blends with added functional benefitsâlike chamomile for sleep, ginger for digestion, or Tulsi for immunityâare becoming mainstream. Demand for premium and exotic flavors like hibiscus, rose, and ashwagandha is increasing. Clean-label, sugar-free, and organic options are preferred. Brands are launching ready-to-drink herbal teas and sustainable packaging to attract modern health-conscious buyers.
Emerging Developments in the Herbal Tea Market
The herbal nutraceutical market is experiencing innovation in delivery systems, including gummies, effervescing tablets, sprays and nano-encapsultion to enhance nutrient uptake. Increased efficacy through use of synergistic combination formulation of various herbs is under investigation. Herbal supplements are now personalized using AI and machine learning and fine-tuned in formulas. Concerns with indigenous herbs and the traditional systems of medicine including Ayurveda, Traditional Chinese Medicine (TCM), and African botanical knowledge are gaining interest.
Major Companies in the Herbal Tea Market
- Organic India
- Tata Consumer Products
- Twinings
- Yogi Tea
- Traditional Medicinals
- Celestial Seasonings
- Bigelow Tea
- Unilever (Pukka Herbs)
- The Republic of Tea
- Gaia Herbs
How Big is the Herbal Tea Market: FAQs
The market was valued at USD 3.7 billion in 2024 and is expected to reach USD 5.4 billion by 2031.
The market is projected to grow at a CAGR of 5.60% between 2025 and 2031.
Asia-Pacific dominates due to strong traditional tea culture, followed by Europe and North America.
Chamomile, peppermint, Tulsi, ginger, hibiscus, rooibos, and lemon balm are commonly consumed.
Supply chain constraints for herbs, price fluctuations, and consumer taste preferences pose challenges.
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