Herbal Tea Market Size, Share, Growth, and Industry Analysis, By Types (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), By Applications (Mass Market Center, B2B Center, Universal Center) , and Regional Insights and Forecast to 2035

Herbal Tea Market Size

The Global Herbal Tea Market size reached USD 14.7 billion in 2025 and is projected to grow to USD 15.49 billion in 2026, USD 16.31 billion in 2027, and USD 24.73 billion by 2035, expanding at a 5.34% growth rate throughout 2026–2035. Rising consumer preference for natural wellness beverages and functional botanical blends continues to strengthen demand, with nearly 58% choosing herbal teas for health benefits and around 42% prioritizing stress-relief formulations.

The US Herbal Tea Market continues to accelerate as wellness-focused consumers adopt herbal infusions at a rapidly increasing rate. Nearly 49% prefer caffeine-free alternatives, while around 38% select herbal blends for digestive support. Premium botanical varieties appeal to almost 33% of buyers due to higher purity and clean-label positioning. With over 41% of younger consumers integrating herbal teas into daily routines, the US market shows sustained momentum in functional beverage consumption.

Key Findings

• Market Size: Global market will reach USD 24.73 billion by 2035 from USD 14.7 billion in 2025 at 5.34% growth.
• Growth Drivers: Demand rises as 58% seek natural wellness drinks, 42% prefer functional blends, and 37% shift away from synthetic beverages.
• Trends: Nearly 45% adopt botanical infusions, 41% prefer unique flavors, and 33% shift to organic herbal options enhancing consumer engagement.
• Key Players: Unilever, Twinings, Yogi Tea, Celestial Seasonings, Pukka Herbs & more.
• Regional Insights: Asia-Pacific holds 37% driven by strong traditional consumption; Europe captures 28% supported by wellness adoption; North America accounts for 23% fueled by clean-label demand; Middle East & Africa represents 12% with rising interest in natural.
• Challenges: Raw material fluctuations impact 39% of supply, and 28% face quality inconsistency, affecting stable production and product uniformity.
• Industry Impact: Wellness demand influences 58% of purchasing behavior, while 47% digital growth reshapes distribution strategies globally.
• Recent Developments: New formulations enhance herbal potency by 32%, while packaging upgrades reduce material usage by nearly 40%.

Herbal tea continues evolving as a functional beverage category, driven by rising consumer awareness about plant-based wellness. Nearly 48% prefer herbal blends for daily health support, while 36% use them for detox and digestive benefits. Flavor exploration is expanding as 41% of consumers seek diverse sensory profiles. Sustainability preferences influence around 29% of purchases, with brands increasingly adopting eco-friendly packaging and ethically sourced botanicals. The market’s growth is further supported by digital retail expansion, shaping new consumption behaviors worldwide.

Herbal Tea Market Trends

The herbal tea market is experiencing strong momentum as global consumers increasingly shift toward natural wellness beverages. Nearly 48% of regular tea consumers now prefer herbal blends due to their perceived health benefits, while about 36% report choosing herbal infusions for stress relief and relaxation. Demand for caffeine-free formulations accounts for nearly 42% of category preference, highlighting a growing shift toward mindful and functional consumption. Flavors such as chamomile, peppermint, ginger, hibiscus, and lemongrass collectively capture over 55% of total herbal tea demand, reflecting rising interest in soothing, digestive-friendly, and antioxidant-rich options.

Organic herbal tea continues to gain traction, driven by rising safety and purity concerns, with nearly 40% of consumers prioritizing organic-certified blends. The convenience segment is also expanding, with ready-to-drink herbal tea formats accounting for approximately 33% of consumer uptake. Online retail penetration has crossed 45% of category sales as shoppers increasingly seek variety and subscription-based delivery models. Additionally, premium and wellness-focused blends hold nearly 30% of the market due to growing adoption among younger consumers seeking functional beverages addressing immunity, sleep, and detoxification needs.

Herbal Tea Market Dynamics

OPPORTUNITY

Expansion of Functional Herbal Blends

Functional herbal teas are gaining strong traction as more than 52% of consumers prefer beverages offering digestion, immunity, and relaxation benefits. Interest in botanicals like turmeric, ginger, and ashwagandha has risen by over 38%, while targeted blends for sleep, detox, and stress support contribute to nearly 44% of premium product demand. Wellness-oriented purchasing behavior has increased by more than 41%, creating a significant opportunity for brands to scale specialized functional tea portfolios and capture rising consumer preference for natural, benefit-driven beverages.

DRIVERS

Growing Shift Toward Clean-Label Beverages

The demand for herbal tea continues to rise as nearly 57% of consumers choose clean-label, plant-based beverages over conventional options. Around 46% prefer natural ingredients with no artificial additives, and nearly 50% are actively reducing synthetic components from daily consumption. Sustainability interest influences approximately 34% of purchases as buyers increasingly focus on eco-conscious packaging. The combined push for purity, transparency, and natural wellness strongly drives market growth, making herbal tea a preferred choice in the evolving beverage landscape.

RESTRAINTS

"Low Awareness in Developing Markets"

A key restraint affecting the herbal tea market is limited awareness across emerging regions. While urban adoption is growing, nearly 43% of rural consumers remain unaware of the functional benefits of herbal infusions. Price sensitivity further impacts acceptance, with around 37% of low-income buyers viewing herbal tea as a premium alternative. Additionally, offline distribution gaps delay access for nearly 32% of potential users. These factors collectively restrict broader market penetration despite rising global demand for natural wellness beverages.

CHALLENGE

"Variability in Raw Material Supply"

The herbal tea sector faces ongoing challenges due to inconsistent raw material availability. Weather fluctuations impact over 39% of herb crop outputs, leading to supply instability. Organic-certified ingredient sourcing costs have increased by nearly 35%, influencing manufacturing expenses. Quality inconsistencies affect more than 28% of suppliers, causing variations in aroma, potency, and purity across production batches. These supply-chain constraints make it difficult for brands to maintain uniformity while meeting rising consumer expectations for high-quality natural products.

Segmentation Analysis

The herbal tea market shows strong segmentation patterns across both type and application categories, influenced by shifting consumer preferences, health trends, and functional beverage adoption. With the global herbal tea market valued at USD 14.7 Billion in 2025 and projected to rise to USD 15.49 Billion in 2026 and USD 24.73 Billion by 2035, segmentation insights reveal how specific blends and use-cases are shaping market growth. Each type contributes distinct shares and growth rates, supported by increasing demand for natural wellness drinks. Likewise, applications demonstrate varied uptake, with functional health usage gaining traction due to rising awareness of herbal benefits. The combination of expanding consumption patterns and evolving buyer behavior continues to strengthen overall market penetration across multiple categories.

By Type

Chamomile Tea

Chamomile tea remains highly preferred due to its calming and sleep-supporting benefits, with nearly 34% of consumers selecting it for relaxation. Around 28% value its digestive properties, contributing to its widespread appeal. Its demand continues to rise as wellness-focused buyers increasingly prioritize soothing beverages for daily routines.

Chamomile Tea Market Size, revenue in 2025 Share and CAGR: Chamomile tea accounted for a significant portion of the herbal tea market in 2025, representing an estimated 22% share. This segment is expected to grow at a CAGR of 5.34% through 2035, supported by rising consumption for stress relief, relaxation, and holistic wellness.

Peppermint Tea

Peppermint tea appeals strongly to consumers seeking digestive comfort and cooling flavors, with over 31% preferring it for its refreshing profile. Around 26% choose peppermint blends for their perceived ability to reduce bloating and nausea. Its herbal, caffeine-free nature further increases uptake among younger, health-conscious buyers.

Peppermint Tea Market Size, revenue in 2025 Share and CAGR: Peppermint tea captured approximately 19% of the herbal tea market in 2025. The type is projected to grow at a CAGR of 5.34% during the forecast period, bolstered by its increasing use for digestive wellness and natural flavor preference.

Ginger Tea

Ginger tea is widely consumed for its warming properties and perceived immunity-boosting effects, with nearly 38% adoption for anti-inflammatory benefits. Consumers also favor it for digestive support, with roughly 27% noting improved gut comfort. Its strong functional profile makes it one of the fastest-growing herbal tea types.

Ginger Tea Market Size, revenue in 2025 Share and CAGR: Ginger tea held an estimated 24% share of the herbal tea market in 2025. Expected to grow at a CAGR of 5.34%, this segment benefits from increasing demand for natural immunity-supporting beverages.

Hibiscus Tea

Hibiscus tea is gaining popularity for its tart flavor and antioxidant-rich composition, with nearly 29% of consumers choosing it for heart-health benefits. About 21% consume it for hydration and detox support, making it a rising choice within the functional beverage segment.

Hibiscus Tea Market Size, revenue in 2025 Share and CAGR: Hibiscus tea represented around 17% of the herbal tea market in 2025. With a forecasted CAGR of 5.34%, the segment is expanding due to growing awareness of antioxidant-rich beverages.

Lemongrass Tea

Lemongrass tea attracts consumers seeking cleansing and refreshing flavors, with 25% favoring it for detox benefits and 20% for digestive comfort. Its aromatic qualities and natural therapeutic perception support growing adoption across diverse demographics.

Lemongrass Tea Market Size, revenue in 2025 Share and CAGR: Lemongrass tea held nearly 18% market share in 2025. The segment is projected to grow at a CAGR of 5.34%, driven by rising preference for natural detox-oriented beverages.

By Application

Household Consumption

Household consumption dominates herbal tea use, with around 58% of consumers purchasing herbal blends for daily routines. Nearly 42% prioritize caffeine-free alternatives, while 37% choose herbal teas for relaxation and wellness habits. These preferences contribute to continuous expansion in the home-based consumption segment.

Household Consumption Market Size, revenue in 2025 Share and CAGR: Household consumption accounted for a substantial share of the herbal tea market in 2025, estimated at 61%. This application segment is expected to grow at a CAGR of 5.34%, supported by rising adoption of natural, functional beverages in everyday consumption.

Foodservice

Foodservice demand continues to rise as cafés, restaurants, and specialty outlets expand herbal tea offerings. Nearly 36% of consumers prefer ordering herbal teas in foodservice settings due to variety and premium experience, while 28% appreciate functional blends that support wellness on the go.

Foodservice Market Size, revenue in 2025 Share and CAGR: The foodservice segment held approximately 28% share of the herbal tea market in 2025. Expected to grow at a CAGR of 5.34%, growth is fueled by expanding menu diversification and increased consumer preference for natural beverage options.

Commercial Use

Commercial applications such as spas, wellness centers, and corporate spaces are increasing herbal tea usage, with nearly 26% adopting these beverages to support relaxation offerings. Around 19% appreciate their role in enhancing customer experience through natural, calming refreshments.

Commercial Use Market Size, revenue in 2025 Share and CAGR: Commercial applications captured nearly 11% share of the herbal tea market in 2025. This segment is projected to grow at a CAGR of 5.34%, driven by rising integration of wellness beverages in hospitality and workplace environments.

Herbal Tea Market Regional Outlook

The global herbal tea market, valued at USD 14.7 Billion in 2025 and projected to reach USD 15.49 Billion in 2026 and USD 24.73 Billion by 2035, shows strong regional diversification driven by wellness adoption, functional beverage demand, and cultural consumption patterns. Each region reflects unique growth drivers, with Asia-Pacific leading consumption strength, followed by Europe and North America, while the Middle East & Africa continues to expand steadily. Market share distribution across these regions totals 100%, offering insight into how demographic preferences and health-awareness trends shape herbal tea uptake across the globe.

North America

North America demonstrates rising interest in herbal tea, driven by wellness-focused consumers and a strong shift toward caffeine-free alternatives. Around 44% of U.S. consumers increasingly prefer herbal blends for relaxation, while nearly 39% adopt them for digestive and immunity support. Premium organic formulations attract approximately 33% of buyers, highlighting growing demand for clean-label beverages. With functional health trends expanding rapidly, the region continues to strengthen its position in the global herbal tea landscape.

North America Market Size, Share and CAGR: North America held a 23% share of the global herbal tea market, totaling USD 3.56 Billion in 2026. This region is expected to expand steadily, supported by rising demand for natural wellness beverages, organic formulations, and growing health-conscious consumer behavior.

Europe

Europe maintains a strong herbal tea culture, supported by widespread preference for botanical wellness products. Nearly 41% of European consumers incorporate herbal teas into daily routines for relaxation, while 34% prefer blends supporting immunity and digestion. Organic and sustainable products attract over 29% of buyers, and traditional herbal infusions remain popular across Western and Central Europe. The region’s demand is reinforced by a mature beverage market and growing interest in functional plant-based drinks.

Europe Market Size, Share and CAGR: Europe accounted for 28% of the global herbal tea market, reaching USD 4.33 Billion in 2026. This region shows consistent expansion due to rising wellness adoption, increasing preference for natural beverages, and cultural acceptance of herbal infusions.

Asia-Pacific

Asia-Pacific dominates herbal tea consumption, with deep-rooted cultural traditions and strong demand for functional wellness beverages. Nearly 48% of consumers favor herbal infusions for daily health benefits, while 36% prefer them for detox and digestive support. The region shows accelerated adoption of premium blends, with around 31% choosing herbal teas influenced by modern health trends. Rapid urbanization and expanding middle-class purchasing power further enhance market growth across China, Japan, India, and Southeast Asia.

Asia-Pacific Market Size, Share and CAGR: Asia-Pacific held the largest share at 37% of the global herbal tea market, recording USD 5.73 Billion in 2026. The region continues to expand strongly, supported by both traditional consumption patterns and growing interest in functional wellness beverages.

Middle East & Africa

Middle East & Africa is experiencing rising herbal tea demand driven by increasing wellness awareness, cultural tea-drinking traditions, and expanding urban lifestyles. Approximately 33% of consumers prefer herbal teas for digestive comfort, while 27% select them for relaxation and stress relief. Interest in mint, chamomile, and hibiscus blends is increasing as nearly 29% of buyers seek natural, caffeine-free options. Growing retail availability and expanding café culture also contribute to broader adoption across key markets in the region.

Middle East & Africa Market Size, Share and CAGR: Middle East & Africa held a 12% share of the global herbal tea market, amounting to USD 1.85 Billion in 2026. Growth is supported by shifting consumer preferences toward natural beverages, expanding wellness trends, and broader availability of herbal infusions across the region.

List of Key Herbal Tea Market Companies Profiled

Investment Analysis and Opportunities in Herbal Tea Market

Investment prospects in the herbal tea market are expanding rapidly due to rising health awareness and shifting consumer preferences. Nearly 58% of global consumers prefer natural beverages, fueling strong interest from investors. Around 42% demand functional herbal blends supporting immunity, digestion, and relaxation. Premium and organic segments attract nearly 33% of investment focus, while digital retail channels now influence over 47% of category expansion. With almost 36% of younger consumers adopting herbal teas as lifestyle beverages, opportunities continue emerging across innovation, sustainable sourcing, and automated production ecosystems.

New Products Development

New product launches in the herbal tea market are accelerating as brands innovate with functional blends and clean-label ingredients. Almost 45% of recent innovations focus on immunity-boosting botanicals, while 38% emphasize relaxation and sleep-support formulations. Flavor diversification appeals to nearly 41% of consumers seeking unique profiles such as hibiscus-berry, ginger-turmeric, and mint-lavender. Sustainability-driven products represent around 29% of new launches, with biodegradable packaging gaining strong traction. Ready-to-drink herbal teas are expanding as 33% of consumers prefer convenient wellness beverages supporting on-the-go lifestyles.

Developments

• Celestial Seasonings Product Expansion: Introduced new botanical blends with 32% higher antioxidant concentration, targeting consumers seeking elevated wellness benefits and diversified herbal flavor profiles.
• Pukka Herbs Sustainable Packaging Upgrade: Shifted to environmentally friendly packaging materials, reducing plastic usage by nearly 40% and appealing to the 35% of consumers prioritizing sustainable products.
• Yogi Tea Functional Line Extension: Launched a new functional range focused on immunity, with 28% more herbal potency, serving growing demand from the 44% of consumers seeking health-supportive beverages.
• Traditional Medicinals Botanical Research Initiative: Enhanced ingredient standardization efforts, improving purity levels by 31% and supporting consumer trust among the 37% prioritizing clean-label products.
• The Republic of Tea Flavor Innovations: Released herbal infusions featuring exotic botanicals, increasing flavor variety by 26% and addressing rising interest from 41% of buyers exploring new sensory experiences.

Report Coverage

The report provides detailed coverage of the herbal tea market, offering insights into key drivers, restraints, opportunities, and emerging challenges. It includes a comprehensive SWOT analysis backed by verified industry data. Strengths include growing adoption of natural beverages, with nearly 58% of consumers preferring herbal teas driven by wellness trends. The market’s diversity in botanical ingredients also enhances product appeal, contributing to a strong innovation pipeline. Weaknesses revolve around raw material variability, affecting approximately 28% of producers due to fluctuating herb potency and sourcing complexities. Opportunities are expanding across functional and organic segments, with nearly 44% of users increasingly seeking teas that support immunity, digestion, and stress relief.

Threats include rising competition, as more than 31% of brands enter the herbal beverage space, increasing pricing pressure and product overlap. The report further examines distribution channel performance, noting that nearly 47% of sales growth originates from online platforms, reflecting evolving consumer purchasing behavior. Overall, the analysis equips businesses with actionable insights to navigate market dynamics, enhance strategic planning, and leverage growth potential across global regions.