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Herbal Tea Market Size to Exceed USD 5.36 Billion by 2034 | Towards FnB

According to Towards FnB, the global herbal tea market size is calculated at USD 4 billion in 2025 and is expected to surpass USD 5.36 billion by 2034, expanding at a CAGR of 3.3% during the forecast period from 2025 to 2034. The market is gaining traction as health-conscious consumers increasingly shift toward natural, caffeine-free, and functional beverage alternatives.

Ottawa, Sept. 24, 2025 (GLOBE NEWSWIRE) -- The global herbal tea market size stood at USD 3.87 billion in 2024 and is anticipated to grow from USD 4 billion in 2025 to reach nearly USD 5.36 billion by 2034, at a CAGR of 3.3% from 2025 to 2034, according to study published by Towards FnB, a sister firm of Precedence Research.

The market has been experiencing growth in recent periods due to high demand for caffeine-free, organic, and natural beverage options that are beneficial for the body. Consumers today, with a strong focus on healthy food and beverage options, are contributing to the market's growth by choosing various types of organic and herbal tea options.

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Key Highlights of the Herbal Tea Market

  • By region, Asia Pacific dominated the herbal tea market in 2024, whereas North America is expected to grow in the foreseeable period due to the rising population of health-conscious consumers in the region.
  • By type, chamomile segment led the herbal tea market in 2024, whereas the peppermint segment is expected to grow in the foreseeable period.
  • By packaging, the tea bag segment dominated the herbal tea market, whereas the paperboard segment is expected to grow in the forecast period.
  • By distribution channel, the supermarket and hypermarket segment led the herbal tea market in 2024, whereas the specialty store segment is expected to grow in the expected timeframe.

"Consumers are treating the tea aisle as part of their wellness routine, said Vidyesh Swar, Principal Consultant at Towards FnB. Segments like chamomile and peppermint are seeing renewed interest for their traditional calming and digestive benefits, while sustainable packaging and e-commerce access are reshaping how herbal teas reach global households."

Multiple Health Benefits leading to High Demand for Herbal Tea  

The growing population of health-conscious consumers is leading to high demand for healthy food and beverages today. The connection between health and diet is further fueling the market as well. Herbal teas are anti-inflammatory, antibacterial, and full of antioxidants. They are the concoction of green tea along with different types of herbs and spices to heal the body from within. They help soothe the immune system, allowing one to improve their gut health and digestive system.

Herbal teas are also one of the best alternatives to traditional and milk tea, helpful for people with digestive and bloating issues. They are also ideal for people who are trying to lose weight and for those with different types of health and digestive issues. Hence, today, multiple types of herbal teas are available in the market with organic ingredients like chamomile, peppermint, hibiscus, and many other organic spices as well. They are ideal to calm the inflammation and allow one to relax and feel stress-free as well. Hence, consumers with mental and stress issues are also advised to consume organic and herbal teas for enhanced improvement.

How Has AI Impacted the Herbal Tea Market?

Artificial intelligence (AI) has significantly impacted the herbal tea market by enabling innovation, personalization, and efficiency across the value chain. In product development, AI-powered algorithms analyze vast datasets on consumer health trends, traditional medicine, and ingredient interactions to create herbal tea blends that target specific wellness needs such as stress relief, digestion, immunity, or sleep improvement. Machine learning also helps predict flavor compatibility and optimize formulations, ensuring that new blends balance functionality with taste.

In manufacturing, AI-driven predictive analytics optimize extraction and blending processes, enhancing consistency, minimizing waste, and reducing production costs. Quality control has advanced through AI-enabled sensors and computer vision systems that detect impurities, ensure accurate labeling, and verify ingredient authenticity, which is critical in a market driven by trust and transparency. On the consumer side, AI is fueling personalized wellness solutions, with e-commerce platforms and apps recommending herbal teas tailored to individual health goals, dietary preferences, or purchase history. Sentiment analysis of online reviews and social media trends also provides valuable insights into emerging demands, such as caffeine-free, organic, or adaptogenic teas.

View Full Market Intelligence@ https://www.towardsfnb.com/insights/herbal-tea-market

New Trends in the Herbal Tea Market

  • The growing population of health-conscious consumers, further enhancing the demand for organic and caffeine-free alternatives, is one of the major factors for the growth of the herbal tea market.
  • Sustainability, further leading to high demand for eco-friendly tea bags and packaging, is also fueling the growth of the market.
  • Product innovation leading to the availability of different and unique herbal tea flavors is also helping the growth of the market on a huge scale.
  • High demand for herbal teas with detoxification and gut healing properties is another major factor for the growth of the herbal tea market.
  • Availability of different types of herbal teas in different flavor options on e-commerce platforms is also a major factor for the growth of the market in recent times.
  • Technological advancements in the form of AI and ML, helping herbal tea manufacturers to improve their product innovation, market sales, and understand consumer behavior and demands, are also aiding the growth of the herbal tea market.

Recent Developments in the Herbal Tea Market

  • In September 2025, Traditional Medicinals, a leading botanical wellness company, announced the launch of its two new organic teas, Rosy Mood and Stress Ease, to commemorate the brand’s 50 years of botanical innovation. (Source- https://www.morningstar.com)
  • In July 2025, Lipton launched its tea concentrates in the US, available in three varieties: Black Tea with Lemon, Green Tea with Lemonade, and Southern Sweet Black Tea. The brand aims to target tea consumers in the region for enhanced sales of innovative products. (Source- https://www.foodbev.com)

Top Products in the Herbal Tea Market

Product Type Key Features / Composition Health & Wellness Benefits Common Applications
Chamomile Tea Dried chamomile flowers; mild floral flavor Promotes relaxation, sleep support, and digestive aid Bedtime tea, stress-relief blends
Peppermint Tea Made from peppermint leaves; cooling, minty taste Helps digestion, relieves bloating, refreshing effect After-meal tea, digestive blends
Ginger Tea Fresh or dried ginger root infusion Anti-inflammatory, supports immunity, relieves nausea Morning energizer, cold remedies
Hibiscus Tea Dried hibiscus petals; tart, cranberry-like flavor Rich in antioxidants, supports heart health, and may lower blood pressure Iced herbal tea, detox blends
Lemongrass Tea Stalks of lemongrass, citrusy aroma Antimicrobial, digestive aid, calming effect Hot/cold teas, detox drinks
Rooibos Tea (Red Bush) South African herbal tea, naturally caffeine-free High in antioxidants, supports heart health Caffeine-free alternatives, flavored blends
Lavender Tea Dried lavender buds; floral, soothing aroma Stress relief, relaxation, sleep enhancer Evening teas, calming blends
Turmeric Tea (Golden Tea) Turmeric root infusion, often with black pepper Anti-inflammatory, immunity-boosting, joint support Wellness blends, functional teas
Cinnamon Tea Infusion of cinnamon bark Helps regulate blood sugar, warming, and aromatic Winter blends, spiced teas
Mixed Herbal Blends Combination of multiple herbs (detox, slimming, immunity, relaxation blends) Functional wellness benefits depend on the blend Detox teas, slimming teas, stress-relief infusions
Fruit-based Herbal Teas Infusions of dried fruits with herbs (berries, citrus, apple, etc.) Naturally sweet, rich in antioxidants, caffeine-free Iced herbal teas, flavored blends for kids/adults


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Market Dynamics

What are the Growth Drivers of the Herbal Tea Market?

A growing population of health-conscious consumers, multiple health benefits, gut healing properties, and mental healing and clarity properties are some of the major growth factors of the herbal tea market. High demand for caffeine-free and organic tea alternatives is also a major factor driving the market's growth. Herbal teas are a concoction of different types of herbs and spices, along with a base of green tea, which is helpful for soothing and healing the body internally, aiding the growth of the herbal tea market. Technological advancements, such as AI and ML, which are beneficial for tea manufacturers in balancing their sales and product innovation, are also contributing to the market's growth in recent periods.

How are High Production and Raw Cost Material Obstructing the Market’s Growth?

High manufacturing costs and high costs of raw materials are one of the major obstacles to the growth of the market. Such issues also affect the prices of the final product. Hence, middle-class and price-conscious consumers are unable to buy organic and exotic herbal teas. Hence, consumers are drawn to budget-friendly herbal teas, which hinders the growth of the herbal tea market.

How Are Technological Advancements Helping the Sales in the Market for Herbal Teas?

Technological advancements that are helpful for product and packaging innovation will support the growth of the herbal tea market in the foreseeable future. Availability of customized herbal tea flavors is one of the major opportunities for the growth of the market. Flavor innovations, combined with enhanced aroma and taste through new production techniques, will help the market attract more consumers, further fueling the growth of the herbal tea market. Innovative and sustainable packaging is another major driver of market growth in the foreseeable future.

Herbal Tea Market Regional Analysis

Asia Pacific dominated the Herbal Tea Market in 2024   

Asia Pacific led the herbal tea market in 2024 due to the high availability and demand of Chinese herbal tea in the region. Countries such as India, China, and Japan have made significant contributions to the growth of the market in the region. Concepts such as Ayurveda and traditional Chinese tea are major factors fueling the growth of the herbal tea market in the Asia Pacific. Rising disposable income, a growing health-conscious population, and the prevalence of various health issues, including stress, diabetes, obesity, and other health-related concerns, are also major factors driving the adoption of herbal teas in the region.

India remains one of the world’s leading tea exporters, with a well-established global presence rooted in both bulk and specialty tea segments. According to our expert analysis, while traditional markets such as Russia, the UAE, and the UK continue to import significant volumes of Indian tea, there is a noticeable shift toward value-added and branded exports targeting premium segments in Europe, Japan, and the U.S. Regions like Assam and Darjeeling continue to enjoy global brand equity, especially among connoisseurs and specialty tea retailers.

North America is expected to grow in the forecast period.

North America is expected to grow in the foreseeable period due to the growing number of health-conscious consumers in the region. It further leads to higher demand for caffeine-free alternatives, organic and functional beverages, further aiding the growth of the market. The rising prevalence of lifestyle-related issues such as obesity, diabetes, and blood-pressure problems is one of the major factors for the growth of the market in the foreseeable period. Rising shift towards a healthy lifestyle and healthy changes are also vital factors influencing the growth of the market.

Herbal Tea Market Report Scope

Report Attribute Key Statistics
Base Year 2024
Forecast Period 2025 to 2034
Growth Rate from 2025 to 2034 CAGR of 3.3%
Market Size in 2024 USD 3.87 Billion
Market Size in 2025 USD 4 Billion
Market Size by 2034 USD 5.36 Billion
Dominated Region Asia Pacific
Fastest Growing Region North America
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


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Herbal Tea Market Segmental Analysis

Type Analysis

The Chamomile Segment led the Herbal Tea Market in 2024

The chamomile segment led the herbal tea market in 2024 due to its multiple health benefits. It helps lower inflammation and bacterial infections, and is rich in antioxidants. Chamomile herbal tea also helps to soothe the internal system and is calming for the digestive system. Hence, consumers with digestive and mental health issues are recommended to consume chamomile tea for its internal healing properties. Consumers also prefer to drink tea before bedtime to help them have a peaceful sleep.

The Peppermint Segment is observed to grow in the Foreseen Period.  

Multiple health benefits of peppermint tea are helping the growth of the market in the foreseeable period. The herbal tea is helpful for digestive and gut issues. The tea also deals with other issues, such as inflammation, internal bacterial problems, and lowering stress as well. The tea also helps in muscle relaxation and lowering stress, helping the market’s growth. Headaches, muscle cramps, stress, and anxiety can be healed with the help of the consumption of peppermint tea. Hence, the segment aids in the growth of the market in the foreseen period.

Packaging Analysis

The Tea Bag Segment led the Herbal Tea Market in 2024

The tea bag segment led the herbal tea market in 2024 due to its ease of use and convenience, allowing consumers to use and carry the product easily while outdoors, which is helping the growth of the market. The market is also observing growth due to multiple other benefits of tea bags, such as hygiene, convenience of carrying it outdoors, and availability of different types of flavor options in an easy-to-use product, helpful to save time and maintain health criteria even while traveling and being outdoors.

The Paperboard Segment is expected to grow in the Foreseen Period.

The paperboard segment is expected to grow in the foreseen period due to consumer awareness regarding growing sustainability and maintaining environmental balance. The segment highlights the importance of the usage of paperboard for the packaging of herbal teas, which is helpful to lower the industry’s carbon footprint as well. Sustainable packaging also helps preserve the fresh aroma and taste of the herbal tea. Hence, the segment is expected to grow over the forecast period, contributing to the growth of the herbal tea market.

Distribution Channel Analysis

The Supermarkets and Hypermarkets Segment dominated the Herbal Tea Market in 2024

The supermarkets and hypermarkets segment led the herbal tea market in 2024 due to the easy availability of different types of herbal teas in such stores. Such places offer a variety of herbal teas in different flavors, making it easy for consumers to find their favorites. Such markets are available near residential areas, allowing consumers to shop for their required products, helping the growth of the herbal tea market.

The Specialty Stores Segment is expected to grow in the Foreseen Period.

The specialty stores segment is expected to grow at a notable rate in the expected timeframe due to the availability of different types of herbal teas, organic teas, and functional teas, in different flavors and with different benefits. Such teas are helpful for health and also mental issues, allowing the growth of the consumer base of the market, which is helpful for the growth of the market in the foreseeable period. Such stores also offer customization and personalization options to consumers, further fueling the market's growth.

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  • Beverage Packaging Market: The global beverage packaging market size was valued at USD 165.28 billion in 2024 and is expected to grow steadily from USD 173.71 billion in 2025 to reach nearly USD 271.80 billion by 2034, with a CAGR of 5.1% during the forecast period from 2025 to 2034.
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Key Players in the Herbal Tea Market

  • The Hain Celestial Group, Inc. – U.S.-based natural foods company best known for its Celestial Seasonings brand of herbal and wellness teas.
  • Pukka Herbs Limited – UK company specializing in organic herbal teas and wellness blends made from sustainably sourced botanicals.
  • Tielka Pty Ltd – Australian organic tea company offering premium herbal and loose-leaf teas with a focus on ethical sourcing.
  • Culinary Teas – U.S.-based supplier of specialty loose-leaf teas, including a wide range of herbal blends and infusions.
  • Harney & Sons Fine Teas – American premium tea brand known for high-quality loose-leaf and herbal tea blends.
  • Twining & Company Limited – A historic UK tea company producing traditional teas and an extensive line of herbal infusions.
  • Numi, Inc. – U.S. organic tea brand recognized for fair-trade herbal teas, functional blends, and sustainability initiatives.
  • ORGANIC INDIA USA, LLC – Wellness brand offering organic herbal teas based on Ayurvedic traditions, including tulsi blends.
  • Bigelow – American tea company famous for its herbal tea bags and family-owned approach to wellness and flavored teas.
  • MJF Group (Dilmah) – A Sri Lankan tea company renowned for its premium Ceylon teas, also producing herbal and wellness blends.

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

North America

  • U.S.
  • Canada

Asia Pacific

  • China
  • Japan
  • India
  • South Korea
  • Thailand

Europe

  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway

Latin America

  • Brazil
  • Mexico
  • Argentina

Middle East and Africa (MEA)

  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait

Thank you for exploring our insights. For more targeted information, customized chapter-wise sections and region-specific editions such as North America, Europe, or Asia Pacific—are also available upon request.

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About Us

Towards FnB is a global consulting firm specializing in the food and beverage industry, providing innovative solutions and expert guidance to elevate businesses. With an in-depth understanding of the dynamic F&B sector, we deliver customized market analysis and strategic insights. Our team of seasoned professionals is committed to empowering clients with the knowledge needed to make informed decisions, ensuring they stay ahead of market trends. Partner with us as we redefine success in the rapidly evolving food and beverage landscape, and together, we’ll navigate this transformative journey.

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