Herbal Tea Market Growth Forecast to Hit $5.36B by 2034

The global herbal tea market size is evaluated to expand from USD 4 billion in 2025 to USD 5.36 billion by 2034, growing at a CAGR of 3.3% during the forecast period from 2025 to 2034.

Herbal Tea Market Overview

Herbal tea, derived from a blend of herbs, flowers, fruits, and spices, has gained popularity worldwide as a caffeine-free, wellness-oriented beverage. Unlike traditional teas derived from the Camellia sinensis plant, herbal teas are often consumed for their therapeutic properties ranging from stress relief to digestion enhancement. As the global demand for healthier lifestyle options continues to rise, herbal tea is carving out a substantial niche in the global beverage industry.

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Herbal Tea Market Growth

The global herbal tea market is forecasted to expand from USD 4 billion in 2025 to USD 5.36 billion by 2034, growing at a CAGR of 3.3% during the forecast period. This steady growth is driven by increasing consumer awareness of the health benefits of herbal teas, as well as the rising demand for organic and natural products. Shifts in consumer preferences particularly among younger populations toward beverages that support wellness, detoxification, and relaxation are contributing to higher consumption rates globally.

Furthermore, rapid urbanization and the influence of global wellness trends have led to a proliferation of new product offerings in the herbal tea space. Major tea producers are launching herbal blends featuring ingredients like chamomile, hibiscus, ginger, turmeric, and mint, often emphasizing stress relief, immunity, or digestion support. This innovation cycle, combined with strong e-commerce penetration, is enhancing accessibility and visibility for herbal tea products.

Herbal Tea Market Trends

• Functional Blends Gaining Traction: Brands are offering teas tailored for specific needs,sleep enhancement, immunity boost, digestive aid, attracting health-conscious consumers seeking personalized wellness.
• Organic and Clean Label Preferences: Consumers are gravitating toward herbal teas that are organic, non-GMO, and free from artificial additives, driving the demand for clean-label products.
• Innovative Packaging and Formats: Companies are introducing ready-to-drink herbal teas, pyramid tea bags, and biodegradable packaging to appeal to eco-conscious and convenience-seeking buyers.
• Regional and Cultural Ingredients on the Rise: Herbs like ashwagandha, moringa, rooibos, and yerba mate are becoming mainstream due to their traditional wellness benefits and growing popularity in global fusion teas.

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What Is Herbal Tea and Why It’s Popular

Herbal tea isn’t technically “tea” in the traditional sense, as it’s not made from the Camellia sinensis plant (used for black, green, and oolong tea). Instead, it’s a caffeine-free infusion made from dried herbs, flowers, fruits, spices, or even roots. Common ingredients include chamomile, peppermint, hibiscus, ginger, and lemongrass.

Its growing popularity stems from more than just flavor. People are turning to herbal tea for its natural health benefits, such as stress relief, digestion support, immune boosting, and better sleep. It’s seen not only as a soothing beverage but as a wellness ritual that aligns with healthy living and self-care.

How Big Is the Herbal Tea Market?

The global herbal tea market is expected to grow from USD 4 billion in 2025 to USD 5.36 billion by 2034, at a CAGR of 3.3%. This growth is fueled by rising health awareness, demand for clean-label products, and a global shift toward plant-based, functional beverages.

Herbal tea is no longer just a niche health drink—it’s now a mainstream lifestyle product, available in supermarkets, online stores, cafes, spas, and wellness retreats. As more people explore natural ways to stay healthy, the market is likely to expand even further.

Types of Herbal Tea in the Market

Herbal teas are made from a wide range of botanicals, each offering distinct flavors, aromas, and health properties. Whether you’re seeking stress relief, digestive support, or a simple energy boost, there’s an herbal tea for almost every need. Here’s a closer look at some of the most popular and beneficial types:

• Chamomile Tea: Chamomile is one of the most well-known herbal teas, made from the dried flowers of the chamomile plant.
  Benefits: Known for its calming effects, chamomile helps promote restful sleep, reduce anxiety, and soothe upset stomachs. It’s often consumed at night as a natural sleep aid.
  Flavor Profile: Light, floral, with apple-like notes.
• Peppermint Tea: Made from dried peppermint leaves, this tea is a refreshing and invigorating option.
  Benefits: Commonly used to relieve headaches, bloating, nausea, and indigestion. Its natural menthol content gives it a soothing and cooling effect.
  Flavor Profile: Crisp, minty, and slightly sweet.
• Ginger Tea: Brewed from fresh or dried ginger root, ginger tea has been used in traditional medicine for centuries.
  Benefits: Helps reduce inflammation, combat nausea, and improve circulation. It’s also a favorite during cold and flu season for its warming and detoxifying properties.
  Flavor Profile: Spicy, warm, and slightly peppery.
• Hibiscus Tea: Made from dried petals of the hibiscus flower, this vibrant red tea is rich in antioxidants.
  Benefits: Known to help lower blood pressure, improve heart health, and support liver function. It’s often consumed iced for a refreshing summer drink.
  Flavor Profile: Tart and fruity, similar to cranberry.
• Tulsi (Holy Basil) Tea: A sacred plant in Indian Ayurveda, Tulsi tea is made from the leaves of the holy basil plant.
  Benefits: Acts as an adaptogen, helping the body cope with stress and promoting mental clarity and immune support.
  Flavor Profile: Earthy, slightly spicy, with clove and pepper undertones.

Where Herbal Tea Is Used

Herbal tea has evolved beyond a home comfort drink its versatility and health appeal have made it a staple in various industries and environments. From hospitality to healthcare, herbal tea is now an essential part of wellness, lifestyle, and even business experiences.

• Health & Wellness Centers: Spas, yoga studios, naturopathy clinics, and wellness retreats often include herbal teas in their service offerings. These infusions are used to enhance relaxation, aid in detox, and support practices like meditation or massage therapy. Teas like chamomile, tulsi, and lavender are offered before or after sessions to help clients unwind.
•  Hotels, Cafés & Restaurants: Premium herbal teas have become a must-have on beverage menus, especially in boutique hotels, upscale restaurants, and specialty cafés. Herbal blends tailored for digestive support after meals or evening relaxation are now commonly offered to guests as a healthy, caffeine-free option. This adds value to the customer experience and caters to wellness-conscious clientele.
• Healthcare & Functional Foods: In clinical and therapeutic settings, certain herbal teas are used as part of functional nutrition plans. For example, peppermint and ginger teas may be recommended for digestive issues, while licorice root or fennel teas may support hormonal balance or respiratory health. Some teas are also sold as nutraceuticals or dietary supplements, making them part of medical nutrition therapy (MNT).
• Corporate Wellness Programs: Businesses are increasingly incorporating herbal teas into employee wellness initiatives. Offering caffeine-free, functional herbal teas in office pantries helps reduce stress, support hydration, and encourage mindful breaks during the workday. Herbal tea bars at corporate events and mindfulness workshops are also gaining traction.
• Retail & Lifestyle Stores: Herbal tea is frequently marketed in natural food stores, supermarkets, and online wellness platforms. It is often placed in sections dedicated to self-care, immune support, or stress relief, making it part of a broader lifestyle ecosystem. Some retailers even offer in-store tastings and health coaching related to tea use.
• Airlines & Travel Lounges: In the travel and hospitality industry, airlines and VIP lounges are introducing herbal tea options as part of their in-flight or lounge offerings to promote relaxation and ease jet lag. Teas like chamomile or lemon balm are ideal for long-haul travelers.
• Beauty & Skincare Brands: Some wellness and skincare brands are incorporating herbal teas into their holistic beauty offerings. These teas may support inner detox, hydration, or skin clarity and are marketed alongside topical products to promote beauty from within.

Herbal Tea Market Dynamics

Drivers

The herbal tea market is primarily driven by growing consumer awareness regarding the health risks associated with synthetic beverages and caffeinated drinks. As lifestyle diseases such as obesity, hypertension, diabetes, and insomnia become more prevalent, consumers are shifting towards natural, plant-based solutions. Herbal teas, known for their detoxifying, calming, and digestive benefits, are emerging as a popular alternative.

The surge in plant-based lifestyles, clean-label preferences, and holistic wellness trends—especially those rooted in Ayurveda and Traditional Chinese Medicine (TCM)—has also fueled the demand for herbal tea. Social media influencers, wellness blogs, and digital health platforms are amplifying these trends and encouraging consumers to adopt herbal infusions as part of their daily routines.

Opportunities

The market holds substantial opportunities for product innovation and brand diversification. Consumers are increasingly looking for functional benefits in beverages, leading to demand for herbal tea blends that target specific concerns, such as sleep, focus, weight loss, immunity, and gut health. Brands can leverage this by developing customized or condition-specific infusions using ingredients like ashwagandha, valerian root, hibiscus, moringa, and turmeric.

Ready-to-drink (RTD) herbal teas and cold-brewed formats present high growth potential among busy, on-the-go consumers who prefer convenience without compromising on health. Sustainable packaging, biodegradable tea bags, and organic certifications further appeal to eco-conscious buyers and differentiate products in a saturated market.

There is also untapped potential in corporate wellness programs, spas, yoga centers, and hospitality sectors, where herbal tea can be positioned as a premium wellness offering. Emerging economies, particularly in Asia-Pacific, the Middle East, and Latin America, are expected to see robust growth as disposable incomes rise and health awareness improves.

Challenges

Despite its benefits, the herbal tea market faces barriers to widespread adoption. One of the major challenges is low consumer awareness and misinformation about certain herbal ingredients—many consumers are unfamiliar with the taste profiles, benefits, or usage of herbs like nettle, fennel, or yarrow.

Another issue lies in regulatory inconsistencies across global markets. Herbal products often lack uniform quality control, standard dosage, or certified health claims, which can undermine consumer confidence. Moreover, supply chain complexities, such as sourcing high-quality organic herbs and ensuring traceability, can pose logistical and cost-related challenges for manufacturers.

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Applications in the Market

Herbal tea is used not only as a beverage for relaxation and refreshment but also in functional food and health-related applications. It is increasingly being adopted in wellness centers, spas, and detox programs. Additionally, some herbal teas are incorporated into skincare and nutraceutical formulations due to their antioxidant and anti-inflammatory properties.

Case Study Traditional Medicinals

Traditional Medicinals, a U.S.-based herbal tea company, has successfully blended ancient herbal wisdom with modern science. The brand offers a wide range of functional herbal teas such as “Organic Throat Coat” and “Organic Nighty Night.” Their commitment to sustainability, certified organic sourcing, and product transparency has earned them a loyal consumer base across North America. Their success highlights the impact of brand trust, targeted wellness solutions, and ethical sourcing in growing market share.

Read More: https://www.foodbeveragestrategies.com/vegan-food-market/

Herbal Tea Market Top Kay Players

• 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)

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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

Regional Analysis

The global herbal tea market is influenced by regional health trends, traditional consumption habits, product availability, and evolving retail landscapes. While some regions are mature and innovation-driven, others are in the early stages of rapid adoption due to rising awareness and urbanization.

North America

North America holds a dominant share of the herbal tea market, driven by the region’s strong focus on wellness, clean eating, and functional beverages. Consumers are increasingly seeking natural alternatives to sugary drinks and coffee, fueling the popularity of herbal infusions.

The U.S. leads the way with a surge in premium organic tea brands, direct-to-consumer models, and wellness subscriptions offering customized herbal blends. Canada is also witnessing growing demand, particularly in urban centers where consumers are more health-focused and environmentally conscious.

Key drivers include:

• • Widespread adoption of plant-based diets
  • Popularity of detox and mindfulness lifestyles
  • Strong e-commerce and retail distribution networks

Europe

Europe represents a mature and highly competitive market for herbal tea, especially in countries like Germany, France, the UK, and the Nordic nations. The region has a deep-rooted appreciation for herbal infusions, many of which are used in naturopathy and holistic therapies.

The European consumer prefers certified organic, sustainably packaged, and fair-trade products, creating opportunities for premium and ethically sourced tea brands. Herbal teas are also widely available in pharmacies, wellness shops, and supermarkets, reinforcing their role in daily routines.

Key trends in Europe:

• Strong demand for organic and biodynamic teas
• High popularity of wellness teas for digestion, sleep, and immunity
• Presence of traditional herb-based cultures such as herbal liqueurs and tonics

Asia-Pacific

Asia-Pacific is poised to be the fastest-growing region in the herbal tea market. Countries like China, India, Japan, South Korea, and Vietnam have long-standing traditions of using herbal infusions for medicinal and spiritual purposes. This cultural foundation, combined with rising incomes and changing lifestyles, is accelerating the shift toward ready-to-drink and functional herbal teas.

India is seeing strong domestic growth fueled by Ayurveda-based products and government support for traditional medicine. In China and Japan, the fusion of ancient tea traditions with modern wellness products is driving new product development.

Regional growth factors:

• Centuries-old tea cultures and traditional medicine
• Rising interest in functional health beverages
• Rapid expansion of urban retail and e-commerce

Latin America
Latin America is an emerging market where herbal tea consumption is influenced by local ingredients and traditional remedies. Countries like Brazil, Argentina, and Mexico are gradually increasing their herbal tea intake, especially among younger consumers seeking alternatives to soft drinks.

Local herbs like yerba mate, guayusa, and moringa are being adapted into new tea blends that resonate with both domestic and global markets. Growth is also being supported by improved retail access, lifestyle shifts, and social media awareness.

Market highlights:

• Use of native plants in modern infusions
• Increasing role of online wellness influencers
• Expanding middle class and urban health awareness

 Middle East & Africa
This region holds untapped potential due to its rich herbal traditions and growing health consciousness. In North Africa, traditional teas like mint tea and hibiscus (karkade) are widely consumed, while the Gulf countries are seeing increased demand for premium and wellness-focused beverages.

As consumers become more aware of diet-related health issues, herbal teas are being embraced as natural, non-caffeinated alternatives. Additionally, global tea brands are entering local markets, offering blends that cater to both cultural preferences and modern health trends.

Future Outlook

The herbal tea market is poised for consistent growth, bolstered by the rising demand for health-oriented beverages and an increased emphasis on preventive health care. Technological advancements in herb extraction and infusion processes will continue to refine product quality and flavor. As consumers increasingly seek authenticity and functional benefits in their food and drink choices, the market is expected to see a surge in customized and cross-cultural blends.

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