Global Herbal Tea Market Outlook, 2029

The Herbal tea industry embodies a diverse and vibrant sector within the broader tea market, characterized by its focus on natural ingredients, health benefits, and cultural significance. Herbal teas, also known as herbal infusions or tisanes, are beverages made from the infusion or decoction of herbs, spices, flowers, or other plant materials, excluding traditional tea leaves from the Camellia sinensis plant. Unlike true teas, which derive from the tea plant and undergo oxidation, herbal teas are celebrated for their aromatic flavours, therapeutic properties, and absence of caffeine, making them a popular choice among health-conscious consumers worldwide. Herbal teas have a millennium-long history that is based on traditional therapeutic practices from many different civilizations. Traditionally, herbal infusions have been used to treat a variety of diseases, from digestive problems to sleep difficulties and stress alleviation. Herbal medicine traditions still exist today were established by ancient civilizations in China, Egypt, Greece, and India, who recorded the usage of herbs and botanicals in teas for their medicinal properties. Herbal teas are very important to cultures all over the world, and they are frequently included into social mores and daily routines. In China, the preparation and ingestion of teas with health-promoting characteristics, such as chrysanthemum or goji berry, are guided by the principles of traditional herbal medicine. Herbal infusions with calming properties, such as chamomile and peppermint, are highly valued in Europe.

According to the research report, “Global Herbal Tea Market Outlook, 2029” published by Bonafide Research, the market is expected to grow with 7.43% CAGR by 2024-29. Apart from the market’s cultural richness, consumers are increasingly looking to natural alternatives in the modern herbal tea market to boost their well-being. With a host of potential health advantages, including relaxing chamomile, stimulating ginger, and immune-boosting echinacea, herbal teas provide a caffeine-free alternative. This variety of tastes and features meets the needs of a wide range of customers, who may be looking for overall vitality, stress relief, digestive support, or relaxation. Global governments oversee herbal tea products to guarantee their efficacy, safety, and quality. Standards range widely and include things like botanical identification, substances that are acceptable, pesticide limitations, and standards for product labels that tell consumers about the contents and health claims of the product. In line with rising customer expectations for ethical corporate operations, certification programs like USDA Organic and Fair Trade offer further guarantees of sustainable farming methods, ethical sourcing, and transparency in production processes. Advancements in research and technology continue to drive innovation within the herbal tea sector. Producers are exploring novel botanical combinations, refining extraction techniques, and leveraging scientific studies to substantiate health claims. Digital platforms enable direct-to-consumer engagement, allowing brands to educate and connect with tea enthusiasts, share stories of craftsmanship, and foster a community around wellness and herbal wisdom.

Market Dynamics

Market Drivers

•Growing Health Consciousness: Consumers are becoming more interested in natural and herbal items, such as herbal teas, as there is a greater emphasis on health and wellbeing on a global scale. Herbal teas are thought to help with a number of health issues, such as detoxification, immune system support, digestion, and relaxation. Herbal teas provide a natural, caffeine-free alternative with possible therapeutic benefits as consumers become increasingly health-conscious and look for healthier alternatives to sugary beverages. Growing worries about lifestyle-related health problems and a desire for goods seen as healthy and advantageous are supporting this trend.
•Growing Need for Functional Drinks: Herbal teas are being perceived more and more as functional drinks that offer health benefits beyond simple hydration. Herbal teas are appealing to consumers who are looking for holistic approaches to maintaining and improving their health since they contain ingredients that are recognized for their medical qualities, such as peppermint for digestion and chamomile for relaxation. Herbal tea formulations are being innovatively offered in the market; these blends include ones that are aimed at particular health needs, such as immune system support, stress relief, or improved sleep. This diversity meets the needs of a wide range of customers, from those looking for conventional herbal medicines to those who are curious about cutting-edge herbal blends that are in line with contemporary health trends.

Market Challenges



•Quality Control and Standardization: It can be difficult to guarantee uniform safety and quality requirements for a large range of herbal teas. A variety of botanical ingredients with differing potencies and potential interactions are often blended to create herbal teas. Upholding quality control throughout the procurement, processing, and packaging phases is essential to ensuring the effectiveness of the product and the safety of the end user. There are difficulties in finding premium herbs, making sure that suitable cultivation methods are used, and complying with regionally-specific regulatory regulations. In the absence of rigorous quality assurance protocols, there exists a potential for fluctuations in the efficacy and safety of products, thereby compromising consumer confidence and damaging brand image.
•Regulatory Compliance and Labeling: Different regulatory frameworks controlling herbal ingredients, health claims, and labeling requirements are applied to the herbal tea market in different nations and regions. Foreign marketing of herbal teas is a difficulty for producers and distributors who must navigate these rules, which can be intricate and vary greatly. Rules may address things like maximum concentrations of active substances that can be used, acceptable herbal ingredients, therapeutic benefit health claims, and required ingredient, allergen, and nutritional labeling information. Resources must be allocated for testing, documentation, and maybe product reformulation to satisfy particular market demands in order to ensure compliance with these standards. Product recalls, fines from the law, and entrance obstacles are examples of non-compliance hazards that impede the growth and expansion potential of the worldwide herbal tea market.

Market Trends

•Growing Market for Products with a Wellness and Functional Focus: Consumer interest for herbal teas with particular health advantages and functional qualities is rising. The natural components of herbal teas are becoming more and more popular since they are thought to provide a number of health advantages, including stress reduction, immune system support, relaxation, and assistance with digestion. Certain ingredients, like turmeric, chamomile, ginger, and peppermint, are especially well-liked because of their alleged therapeutic qualities and all-around health advantages. As a result of this trend, producers of herbal tea are producing novel blends and formulations to target particular health issues and appeal to a consumer base that is health-conscious.
•Growth of Specialty and Artisanal Herbal Teas: Specialty and artisanal herbal teas, which prioritize authenticity, quality, and distinctive flavor profiles, are becoming more and more popular. Customers are becoming more curious about trying out different kinds of herbal tea that are made with traditional ways or that come from particular areas. Rare botanicals, organic components, and mixtures influenced by many countries' traditional herbal medical methods can all be found in specialty herbal teas. This development is indicative of a rising interest in discovering the cultural and sensory dimensions of herbal teas in addition to their obvious health benefits, as well as a growing appreciation for fine tea experiences. In response, producers are telling the story of sustainability, ethical sourcing, and artisanal skill in the herbal tea market by emphasizing the origins and workmanship of their teas."

Segmentational Analysis

Based on the report, the Raw Material segment is segmented Black Herbal Tea, Green Herbal Tea, and Yellow Herbal Tea. Green Herbal Tea segment is leading in the Herbal Tea Market based on consumer preference for its perceived health benefits and antioxidant properties.

Because of its adaptability in blending with other botanicals and claimed health benefits, the Green Herbal Tea sub segment leads the Herbal Tea industry. Compared to oxidized teas, green herbal teas maintain higher quantities of antioxidants like catechist and polyphenols since they are usually brewed from unoxidized leaves and buds. Customers looking for natural solutions to enhance their well-being who are health-conscious will find this antioxidant-rich profile appealing. Furthermore, a variety of therapeutic herbs and plants, including peppermint, lemongrass, and chamomile, are frequently added to green herbal teas. In addition to improving flavor, these chemicals may have positive effects on the immune system, relieve stress, and assist the digestive system. A drink that is both herbal infusions and a green tea base is produced refreshing and functional, appealing to a broad demographic looking for alternatives to caffeinated beverages or sugary drinks. The green herbal tea sub segment continues to lead the herbal tea market with novel blends and formulations that satisfy a wide range of health and taste preferences, as consumers place a greater emphasis on natural and functional beverages.

Based on the report, the Tea Distribution segment is segmented into Store Based, Non Store Based. The Non Store Based segment is estimated to grow at a higher growth rate in the Herbal Tea Market due to the convenience and wide accessibility offered by online platforms and direct-to-consumer models.

Due in large part to the way that digitalization has changed consumer purchasing behaviors; the Non-Store Based Distribution segment is driving the Herbal Tea Market. Due to the ease and accessibility of online buying, non-store based channels like e-commerce platforms, direct-to-consumer websites, and subscription services have become more and more popular. These channels make it simpler for customers to explore and buy specialty blends and distinctive formulas from anywhere at any time. They also provide a large selection of herbal tea items that suit a variety of tastes and health preferences. Furthering the dominance of non-store based distribution channels in the herbal tea business, the COVID-19 pandemic also drove the adoption of internet buying. Online platforms offer herbal tea brands the freedom to reach a worldwide audience, offer comprehensive product details, and create customized shopping experiences that appeal to consumers who are health-conscious and looking for natural and wellness-focused beverages. This pattern emphasizes how important digital innovation is to changing the distribution structure and propelling the herbal tea sector's expansion.

Regional Analysis

APAC region has the largest market share in Herbal Tea Market due to its rich cultural heritage of herbal medicine, extensive tea-growing regions, and rising consumer demand for natural health products.

The Herbal Tea Market is dominated by Asia-Pacific (APAC) for a number of important reasons. First off, a strong consumer desire for herbal teas recognized for their health advantages and traditional healing characteristics has been encouraged by the region's rich cultural past of using herbal medicine and natural cures. Herbal teas are widely consumed due to the extensive use of herbs and botanicals in ancient medical systems like Ayurveda and ancient Chinese Medicine (TCM) in nations like China and India. Second, APAC has a wide variety of plant species and climates that are ideal for growing herbs, which guarantees a consistent and varied supply of raw materials for the manufacturing of herbal tea. Thirdly, the demand for natural and organic products, including herbal teas, has increased in APAC countries due to fast urbanization, rising disposable incomes, and growing health consciousness among consumers. Lastly, encouraging government regulations that highlight herbal goods as a component of wellness and healthcare programs encourage commercial expansion and innovation in the area. When taken as a whole, these elements place Asia at the forefront of the world market for herbal tea, with strong development potential fueled by consumer preferences, natural resources, cultural legacy, and regulatory frameworks.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Herbal Tea Market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Raw Material
• Black Herbal Tea
• Green Herbal Tea
• Yellow Herbal Tea

By Product Type
• Herbal Tea Instant Premixes
• Liquid Herbal Tea
• Powdered Rtd Herbal Tea
• Others

By Tea Distribution
• Store Based
• Non Store Base

By Tea Form
• Tea Bags
• Loose Leaf

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Herbal Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.