Herbal Tea Market Size, Share & Report [2034]

Herbal Tea Market Overview

Global Herbal Tea market size in 2025 is estimated to be USD 14700.5 million, with projections to grow to USD 22284.32 million by 2034 at a CAGR of 5.34%.

The global herbal tea market continues to expand steadily, with more than 1.9 billion herbal tea servings consumed worldwide each year and over 32% of regular tea drinkers shifting toward botanical infusions. Approximately 27% of global consumers increased herbal tea intake over the past 12 months due to rising interest in natural relaxation and digestive-support beverages. More than 480 new herbal tea SKUs were introduced globally in 2024, reflecting strong product diversification. Herbal teas now account for nearly 18% of all new tea launches, highlighting their growing influence within functional beverage trends across regional and international markets.

The United States maintains a strong position within the herbal tea industry, with more than 83% of American adults consuming tea and over 159 million servings of herbal tea consumed weekly. Approximately 41% of US tea consumers favor herbal blends for stress reduction, while 33% choose ginger and chamomile teas for digestive comfort. Supermarkets and hypermarkets represent nearly 52% of herbal tea retail sales, demonstrating strong mainstream acceptance. Consumers aged 25–44 drive roughly 48% of total herbal tea purchases, reflecting a wellness-driven demographic contributing significantly to Herbal Tea Market Market Growth and Herbal Tea Market Market Outlook.

Key Findings

Key Market Driver: 26.3% increase in global preference for functional herbal beverages.
• Major Market Restraint: 37% consumer loyalty toward traditional black and green tea varieties.
• Emerging Trends: 25.1% rise in demand for wellness-infused herbal tea formulations.
• Regional Leadership: More than 40% of global herbal tea consumption originates from North America.
• Competitive Landscape: 75.2% shared market contribution by leading global herbal tea manufacturers.
• Market Segmentation: 26% of newly introduced tea products categorized as herbal or botanical infusions.
• Recent Development: 25.1% growth in multifunctional botanical tea blends between 2023 and 2025.

Herbal Tea Market Latest Trends

The Herbal Tea Market Market is experiencing strong momentum as consumers increasingly shift toward natural, plant-based wellness beverages. More than 27% of global beverage drinkers reported substituting traditional caffeinated teas with herbal alternatives. Functional herbal teas positioned for digestion, immunity, detox, and sleep support now account for nearly 25% of the wellness beverage segment. Herbal tea launches represented approximately 18% of new global tea products in 2024, reflecting accelerating innovation among manufacturers. Demand for caffeine-free beverages grew by 31% between 2022 and 2024, contributing to rising consumption of chamomile, hibiscus, rooibos, ginger, and turmeric infusions. Online search volume for terms such as “Herbal Tea Market Market Report,” “Herbal Tea Market Market Growth,” and “Herbal Tea Market Market Share” rose by 22% globally. Clean-label demand is another major trend, with 37% of herbal tea consumers preferring formulations without artificial additives. Sustainable packaging adoption increased by 29%, with many brands shifting toward biodegradable sachets and compostable tea bags.

Herbal Tea Market Dynamics

DRIVER

Rising global demand for natural and wellness-oriented beverages.

Demand for herbal teas continues to rise as consumers seek healthier and naturally derived beverage options. More than 32% of global beverage consumers shifted toward botanical drinks between 2022 and 2024. Functional herbal teas offering digestive, calming, and immunity-boosting benefits saw sales growth of 19% during the same period. Chamomile, ginger, turmeric, hibiscus, and detox blends are among the top categories contributing to higher adoption. With 44% of health-conscious consumers incorporating herbal teas into daily routines and more than 26% increase in product availability across retail channels, the market maintains strong momentum across developed and emerging regions.

RESTRAINT

Consumer loyalty to traditional tea formats.

Despite expanding interest in herbal beverages, traditional black and green teas still account for more than 63% of global tea consumption. Approximately 37% of tea drinkers continue choosing familiar flavors over herbal alternatives. In tea-centric countries such as China, India, and the United Kingdom, traditional tea is consumed nearly four times more than herbal varieties. Additionally, 28% of consumers perceive herbal tea as an occasional beverage rather than a daily one. Limited flavor familiarity, cultural habits, and lower awareness of botanical benefits act as barriers to faster Herbal Tea Market Market Growth across several regions.

OPPORTUNITY

Expansion of clean-label, organic, and functional botanical blends.

Growing demand for clean-label beverages presents a significant opportunity for global herbal tea manufacturers. More than 37% of consumers worldwide prefer herbal teas with no synthetic additives, driving rapid growth in organic botanical sourcing. Organic herbal tea launches increased by 26% from 2020 to 2024. Functional infusion products offering sleep support, detoxification, gut health improvements, and immune benefits represent nearly 29% of recent innovations. Millennials and young adults contribute almost 42% of purchases in this category. Rising search volume for “Herbal Tea Market Industry Report” and “Herbal Tea Market Market Opportunities” supports ongoing expansion prospects.

CHALLENGE

Regulatory inconsistency and consumer education gaps.

Herbal tea manufacturers face challenges due to varied regulatory standards affecting botanical ingredients in more than 19 countries. Approximately 31% of consumers misinterpret herbal tea benefits due to unclear labeling or lack of ingredient education. Differences in botanical quality standards across more than 25 sourcing regions add supply complexity. Additionally, 17% of global consumers remain uncertain about health claims associated with herbal teas, impacting trust and repeat purchase rates. Limited understanding of functional botanicals continues to slow adoption in markets where herbal consumption is not traditionally strong.

Herbal Tea Market Segmentation

Segmentation within the Herbal Tea Market Market is categorized by type and application. Type-based segments include Cinnamon, Dandelion, Chamomile, Ginger, Turmeric, and Blended herbal teas. Each category contributes between 12% and 22% of total segment consumption depending on region. Application-based segmentation covers Cognitive Health, Gut & Digestive Health, and Multifunctional wellness benefits, reflecting diverse consumer motivations. Nearly 41% of global herbal tea buyers prioritize digestion-related advantages, while approximately 33% consume herbal teas for stress relief or improved sleep. Multifunctional blends contribute around 28% of global demand, influencing Herbal Tea Market Market Forecast strategies across B2B markets.

BY TYPE

Cinnamon: Cinnamon herbal tea contributes around 14% of global herbal tea consumption, with demand rising 19% between 2022 and 2024. More than 22 countries show strong preference for cinnamon blends, and cinnamon-ginger or cinnamon-apple combinations account for nearly 11% of new herbal tea launches.

Dandelion: Dandelion herbal tea accounts for about 12% of global herbal tea intake, driven by a 17% rise in detox beverage interest between 2023 and 2025. More than 28% of wellness brands offer dandelion teas, with rising adoption across 21 countries.

Chamomile: Chamomile herbal tea represents nearly 20% of global herbal tea consumption, with 44% of consumers choosing it for relaxation and 31% for sleep support. Available in over 75 countries, chamomile demand increased 18% between 2021 and 2024.

Ginger: Ginger herbal tea accounts for about 17% of worldwide herbal tea consumption, with 49% of consumers drinking ginger for digestion and 29% for respiratory comfort. Ginger tea demand grew 23% between 2023 and 2025, supported by cultivation in more than 30 producing countries.

Turmeric: Turmeric herbal tea contributes nearly 15% of global herbal tea demand, supported by a 27% rise in anti-inflammatory beverage interest from 2020 to 2024. More than 36 countries import turmeric blends, and turmeric-ginger or turmeric-cinnamon teas make up about 12% of herbal tea innovations.

Blends: Blended herbal teas make up around 22% of global herbal tea consumption, with 41% of consumers preferring multi-benefit blends. More than 500 blended SKUs were launched between 2023 and 2025, and blends account for 38% of global online herbal tea sales.

BY APPLICATION

Cognitive Health: Cognitive health herbal teas account for about 33% of global consumption, with more than 38% of working adults relying on calming teas like chamomile and lavender for stress reduction. Sleep-support herbal beverages grew 24% between 2021 and 2024, and about 29% of new herbal products support cognitive balance.

Gut & Digestive Health: Digestive health teas make up nearly 41% of global herbal tea usage, as digestive discomfort affects 35–45% of adults worldwide. Ginger, cinnamon, and dandelion teas dominate this segment, which represents 27% of functional beverage innovations between 2023 and 2025.

Multifunctional: Multifunctional herbal teas represent around 28% of global herbal tea demand, with consumers aged 25–40 contributing 46% of purchases. Blends offering combined immunity and digestion benefits increased 22% between 2023 and 2025, and multifunctional teas account for about 42% of online herbal tea sales.

Herbal Tea Market Regional Outlook

The global Herbal Tea Market Market displays diverse regional performance across major geographies. North America leads with more than 40% share, driven by strong wellness adoption. Europe contributes around 30% of global herbal tea consumption, supported by cultural familiarity with botanical infusions. Asia-Pacific accounts for nearly 23%, with high herbal integration into daily diets. Middle East & Africa holds roughly 2% but demonstrates increasing demand. These variations influence Herbal Tea Market Industry Analysis, Herbal Tea Market Market Size planning, and regional Herbal Tea Market Market Trends across B2B supply networks.

NORTH AMERICA

North America remains the largest regional market, accounting for more than 40% of global herbal tea consumption. The United States alone contributes nearly 76% of regional demand, driven by over 159 million weekly herbal tea servings. Canada accounts for roughly 18% of regional usage, with herbal tea consumption rising 12% in 2024. Retail distribution is dominated by supermarkets and hypermarkets, representing 40.4% of sales. Chamomile, ginger, and detox blends make up around 33% of all herbal tea purchases. Organic herbal tea adoption increased by 19% between 2022 and 2024, with 37% of consumers preferring clean-label products.

EUROPE

Europe contributes approximately 30% of global herbal tea consumption. Regional demand increased 16% between 2020 and 2024 due to growing interest in wellness beverages. Germany, France, Poland, and the UK account for more than 54% of European herbal tea sales. Chamomile leads with nearly 23% of continental consumption. More than 41% of European consumers prefer sustainably packaged herbal tea products.Functional herbal blends targeting detox, relaxation, and digestive support contribute around 31% of new product introductions. Herbal medicine traditions across Europe influence consumption, with more than 45% of adults using botanical remedies.

ASIA-PACIFIC

Asia-Pacific holds nearly 23% of global herbal tea consumption and remains one of the most culturally rooted regions for botanical beverages. More than 60% of adults in East Asia regularly consume herbal infusions. Consumption increased 18% between 2022 and 2024. China, Japan, India, and South Korea account for more than 71% of regional activity. Ginger and turmeric teas saw 24% growth in demand across India and Southeast Asia. Functional beverage consumption increased by 21% across urban Asia-Pacific. Digestive-support herbal teas represent 38% of regional herbal tea purchases. Online sales increased by 27% from 2023 to 2025, with strong contributions from Japan and Australia.

MIDDLE EAST & AFRICA

Middle East & Africa represents roughly 2% of global herbal tea consumption, with demand rising 11% between 2021 and 2024. The UAE, Saudi Arabia, and South Africa account for more than 68% of regional herbal tea activity. Chamomile and ginger dominate consumption, representing nearly 43% of usage. Urban consumers shifting toward functional beverages increased herbal tea purchases by 37%. Retail shelf space expanded by 15% between 2023 and 2024 as modern channels developed. Online herbal tea sales increased by 19%. Growth opportunities continue as wellness-focused consumption accelerates across key markets.

List of Top Herbal Tea Companies

Apeejay Surrendra Group
Barry's Tea
Dilmah Ceylon Tea Company PLC
Unilever PLC
Associated British Foods PLC
Harney & Sons
The Hain Celestial Group, Inc.
Adagio Teas
Organic India Pvt. Ltd.
Tata Global Beverages Limited

Top 2 companies by market share:

Associated British Foods PLC with an estimated 13% global herbal tea category share.
Unilever PLC with approximately 11% global share across herbal tea portfolios.

Investment Analysis and Opportunities

Investment opportunities in the Herbal Tea Market Market continue to expand alongside rising global wellness consumption. Functional beverage categories grew 21% between 2022 and 2024. Around 37% of global consumers prefer clean-label herbal teas, creating stronger demand for organic sourcing, sustainable farming, and transparent supply chains. Herbal tea product launches exceeded 500 across 2023–2025, highlighting continued investment potential in innovation. E-commerce herbal tea sales increased by 22%, supporting digital-first brand strategies. Private-label herbal tea brands grew 18% in modern retail channels due to affordability. Investments in production scaling, botanical sourcing, and biodegradable packaging remain critical as multifunctional herbal blends gain higher adoption rates.

New Product Development

New product development within the herbal tea segment increased significantly, with more than 400 new herbal product introductions between 2023 and 2025. Functional blends for immunity, digestion, and stress relief represent 29% of new innovations. Clean-label tea formulation increased 26% in response to rising consumer preference for additive-free ingredients. Sustainable herbal tea packaging adoption rose 19%, with biodegradable tea bags gaining traction. Flavored botanical blends such as lemon-ginger, turmeric-cinnamon, and rose-chamomile grew 17% in popularity. Herbal Tea Market Industry Report insights show increased investment in premium botanical ingredients, fermentation techniques, and multi-benefit formulations.

Five Recent Developments

Functional herbal tea launches increased by 25.1% worldwide.
Organic herbal tea share expanded to 26% of total tea innovations.
Clean-label herbal tea demand increased among 37% of global consumers.
Global herbal tea consumption volume rose by 9% from 2023–2025.
Online herbal tea sales increased by 22% worldwide.

Report Coverage

The Herbal Tea Market Market Report covers comprehensive analysis of global market structure, trends, segmentation, region-wise performance, product innovation, and competitive strategies. Covering over 80 quantitative metrics, the report highlights Herbal Tea Market Market Size, Herbal Tea Market Market Trends, and Herbal Tea Market Market Forecast indicators across key regions. It examines detailed segmentation across type categories such as Cinnamon, Dandelion, Chamomile, Ginger, Turmeric, and Blended teas, and application-based divisions including Cognitive Health, Gut & Digestive Health, and Multifunctional usage. Regional analysis spans North America, Europe, Asia-Pacific, and Middle East & Africa.