Herbal Tea Market Size, Share, Trends and Industry Outlook

Herbal Tea Market Size, Share, Overview & Strategic Insights

The global herbal tea market size was valued at USD 3.87 billion in 2024 and is expected to grow steadily from USD 4 billion in 2025 to reach nearly USD 5.36 billion by 2034, with a CAGR of 3.3% during the forecast period from 2025 to 2034. The rapid growth in the market is seen due to a shift towards natural and organic tea beverages and a change in preference of the consumers towards healthy alternatives.

Key Highlights

• By region, Asia Pacific dominated the herbal tea market in 2024.
• By region, North America is expected to grow at the fastest rate in the market during the forecast period.
• By type, the chamomile segment led the herbal tea market in 2024.
• By type, the peppermint segment is expected to grow at the fastest rate in the market during the forecast period.
• By packaging, the tea bag segment contributed with the largest market share in 2024.
• By packaging, the paperboard segment is anticipated to grow in the forecasted period.
• By distribution channel, the hypermarket and supermarket segment dominated the market in 2024.
• By distribution channel, the specialty store segment is expected to grow at the fastest rate in the market during the forecast period.

Industry Coverage

Growing Popularity and Health Benefits

The herbal tea market has been growing at a significant rate recently due to its health benefits and a very good alternative to traditional tea, like functional tea, detox tea, and many more which have antibacterial, antioxidant, and anti-inflammatory properties. The herbal tea is prepared from the decoction or infusion of various types of herbs, flowers, and spices, which offers numerous health benefits. Herbal teas are consumed hot or cold, the natural and health benefits associated with it help the market to grow and attract consumers.

The adoption of healthy habits in terms of consumption of food is a crucial factor in fuelling the growth of the herbal tea market. The growing cases of chronic diseases such as diabetes, obesity, viral diseases, and cardiovascular diseases increase the demand for herbal tea in the market. The use of herbal tea as an alternative to traditional tea has been beneficial to patients with a special diet. Herbal teas are rich in nutritional properties and help in overcoming health conditions like insomnia, and digestion. Hence, the market will see significant growth in the forecasted period.

• In February 2024, organic India a trusted Indian brand in the field of organic herbal wellness products, has been awarded the Regenerative Organic Certified status across multiple teas and supplements. They provide organic products to over 40 countries

Herbal Tea Market Trends

• Growing demand for organic and wellness trends has increased the demand for organic and caffeine-free herbal tea.
• The Sustainable and eco-friendly packaging of the herbal tea bags reduces harmful waste generation.
• The flavor innovation has drawn consumers towards the consumption of herbal tea and help grow, with innovation and unique taste.
• Introduction of functional properties like vitamins, probiotics, and other nutritional components that have health benefits like helping treat digestion or detoxification have helped the market to grow.
• The growth of e-commerce has increased the availability of products through online platforms easily and efficiently.
• Health and Wellness: The increased health consciousness among consumers has driven their prioritization of natural and organic products. The growing awareness of herbal teas and their therapeutic properties is driving consumers' shift toward herbal tea consumption.
• Social Media Influence: Consumers globally are being highly influenced by social media. He platform to build brand awareness and demonstrate unique and organic products. Social media engages consumers through various activities. To stay up with the latest trends, numerous consumers are seeking herbal teas.
• Growing Companies: Focus on AI and Digitization Several herbal tea companies are focusing on adopting AI and other digitalization tools to enhance product efficiency, reduce cost burden, and offer superior consumer experiences. The strong focus on digital marketing, emphasis on sustainability, and provision of personalized herbal solutions and experiences are contributing to this trend. 

Market Opportunity

The Innovative Technology and Innovation in the Production of Herbal Tea will Help the Market to Grow Significantly.

The herbal tea is produced by the traditional decoction method but the introduction of a new and advanced method in the production of herbal tea during packaging of the raw material in the packages will help preserve the aroma and taste of the tea for longer duration and this also improves the consumer experience and attracts consumers to buy the product and increase the demand for production of more goods. The flavor innovation also attracts consumers, the customization of flavor according to consumer preference also helps the market to grow and change the perspective towards traditional herbal tea. The use of eco-friendly packaging material and the adoption of single-use packaging helps the consumer adopt the use of herbal tea in the busy lifestyle due to convenient usage.

Market Challenge

The High Cost of Raw Materials and Production Costs 

The high cost of herbal tea compared to that of traditional tea is a challenging aspect that hinders the growth of the herbal tea market. Consumers look for cost-effective options as the growing middle-class population has budget constraints and the availability of cost-effective options reduces the purchase of premium and organic herbal tea and restricts the growth of the market. The high price of raw materials increases the price of production and ultimately increases the cost of the product. However, the rise in the demand for herbal tea will increase production which will help reduce the overall cost.

Regional Insights

Asia Pacific Dominated the Herbal Tea Market in 2024. 

The market has a significant place in traditional Chinese medicine as it possesses therapeutic properties, and due to changing lifestyles and shifts toward healthy diets drive this market to grow. The rapid urbanization and rising disposable income have helped the market to grow in the region. The demand for premium and organic herbal tea fuels the demand.

In China, India, and Japan the consumption of herbal tea a very high, due to the traditional and cultural beliefs associated with it, traditional Chinese medicine and Ayurveda both have medical advances and use of herbal tea in their culture. And the herbal tea's health benefits fuel the herbal tea market to grow significantly. 

Chull Wali Chai, India’s most unapologetically bold herbal tea brand, launched its latest line of herbal teas, including calm code- ChamoMint Tea, clarity charge- Blue Voltage Tea, and ageless aura- Flirtatious Hibiscus Tea

• in July 2025, along with the launch of quick and eye-popping packaging. (Source: Sangri Times) 

North American Expects Significant Growth in the Market During the Forecast Period.  

The growth is seen due to the increasing number of health-conscious individuals in the region. A strong demand for natural, organic, caffeine-free, and functional herbal tea. The change in consumer preferences and shift towards healthy lifestyles helps drive this market to grow significantly. 

The USA has an increasing demand for chamomile, peppermint, and detox herbal tea due to their health benefits. Strong demand for natural and organic beverages in the region due to the growth of wellness trends and the rising influence of functional drinks in the fitness and wellness industry has fuelled the growth of the herbal tea market.

• In May 2025, Wellness entrepreneur and tea futurist, Jeremy Krause, launched a bold new ritual with the Air Tea Company, the world’s first herbal tea vaporization platform. The ritual launched on Kickstarter, where Air Tea is extracted with warm air and provides calming and aromatic experiences, and beneficial herbs are directly delivered to the nervous system. (Source: PR Newswire)

Segmental Insights

Type Insights

The Peppermint Segment Dominated the Herbal Tea Marketin 2024. 

The growth of the market is increasing due to its refreshing taste and digestive benefits. The unique and different flavor attracts consumers to the market and increase the demand. The chamomile segment is seen to grow at a significant rate during the predicted period. The active compounds present in the chamomile, the compounds have properties like antioxidants, anti-inflammatory, and anti-bacterial properties driving the growth of the segment. It has potential health benefits over traditional tea and is preferred by most of the health-conscious consumers.

Packaging Insights

The Tea Bag Segment Dominated the Herbal Tea Market in 2024. 

The changing lifestyle of individuals demands options in ready-to-use products such as tea bags. The tea bags are most used due to convenience and ease of preparation. The tea bags also help in maintaining hygiene as it is a single-use tea bag. The paperboard segment is seen to grow at a notable rate during the forecast period.  Due to the shift towards eco-friendly and sustainable packaging and the containers also preserve the fresh aroma and taste.

Distribution Channel Insights

The Supermarket and Hypermarket Segment Dominated the Market in 2024. 

These markets offer consumers a wide and broad variety of options for a particular product and help in comparing other brands in terms of price and other essential parameters the availability of products in these stores increases the probability of getting a product readily and easily. The specialty stores are seen to grow at a notable rate during the predicted timeframe. These stores target the niche market and offer premium and organic products to the consumers.

Recent Developments in the Herbal Tea Market

• In March 2024, FMR a tea brand of Shri Lanka announced a partnership with Shri Lanka’s Elpitiya plantations, which will help to bring in new export opportunities, jobs, and also help the local businesses, and became the distributer of premium Ceylon tea which is a herbal tea offering various health benefits.
• In June 2024, Vedavi Devbhoomi a herbal tea brand from Uttarakhand launched 16 new varieties of tea. They claim that tea helps restore glow and prevents aging by maintaining the health of the liver and heart.
• In July 2025, Traditional Medicinal, an herbal tea maker, announced $47 million in investments for building a 125,000-square-foot manufacturing plant at Franklin County’s Summit View Business Park. The company expected to offer 57 more jobs than three years ago at an average annual pay of about $70 00. (Source: Cardinal News) 
• In July 2025, DKSH Business Unit Consumer Goods, a leading partner for companies to expand their consumer goods business in Asia and beyond, extended its collaboration with Odani Kokufun for distributing instant tea under the Japanese OSK brand in Cambodia. (Source: DKSH)
• In February 2025, Hindustan Unilever Limited (HUL) announced the launch of Pukka Herbal Infusion in India to offer superior health and wellness products for consumers. (Source: HUL-Hindustan Unilever Limited) 

Herbal Tea Market Top Leading Companies

• The Hain Celestial Group, Inc.
• Pukka Herbs Limited
• Tielka Pty Ltd
• Culinary Teas
• Harney & Sons Fine Teas
• Twining and Company Limited
• Numi, Inc.
• ORGANIC INDIA USA, LLC
• Bigelow
• MJF Group (Dilmah)

Segments Covered in the Report

By Type 

• Chamomile
• Peppermint
• Hibiscus
• Lemongrass
• Ginger
• Fruits
• Blends
• Others

By Packaging

• Loose Tea
• Paperboards
• Aluminum Tins
• Tea Bags

By Distribution Channel 

• Supermarket-Hypermarket
• Specialty Stores
• Convenience Stores
• Online Sales Channel
• Others

By Region

• Europe
• North America
• Asia Pacific
• Latin America
• Middle East and Africa