Herbal Tea Market - Global Industry Analysis 2025

Herbal tea is made by steeping or boiling herbs, which is an infusion made from plants except Camellia sinensis. Flower tisanes, for example, rose, hibiscus, lavender and chamomile are generally used for making herbal teas. Leaf tisanes, for example, lemon balm, French verbena, lemongrass and mint are also used in preparing herbal teas. In addition, root tisanes, spice tisanes, seed tisanes and fruit tisanes are used to make herbal teas. These teas do not contain caffeine. Herbal teas can be consumed both hot and cold.

The global market for herbal teas is segmented on the basis of raw materials, flavor type, product type and packaging type. Based on raw material, the global market for herbal teas is segregated into green tea, black tea and yellow tea. Green herbal tea held the majority market share in 2016. This is attributed to its nutritional benefits and its recognition as a healthy tea option. This segment is also anticipated to witness the fasted growth rate during the forecast period. This is attributed to growing demand among health conscious consumers due to its antioxidant and fat burning properties. Based on flavor type, the global herbal teas market is segregated into chamomile, ginger, hibiscus, fruit, peppermint and lemongrass.

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Lemongrass held the majority market share in 2016 and is anticipated to witness a steady growth rate during the forecast period of 2017-2025. Peppermint herbal tea is forecast to witness the fastest growth rate during the forecast period. This is attributed to its property of relieving muscle spasms. Based on product type, the global herbal teas market is segregated into syrups, instant premix, powdered ready to drink (RTD) tea and liquid ready to drink (RTD) tea. Instant premix held the majority market share in 2016 and is anticipated to witness a substantial growth rate during the forecast period. This is attributed to its convenience of usage and consumption.

Powdered ready to drink tea is anticipated to witness the most rapid growth rate during the forecast period of 2017-2025 owing to its favorability of consumption in every season and ease of carrying to places. Based on packaging type, the global market for herbal tea is segregated into loose tea, paper pouches, tea bags, carton packs and can packaging. Tea bags held the largest market share in 2016 owing to its huge application in both homes and commercial eateries. This segment is also expected to witness the fastest growth rate during the forecast period of 2017-2025.

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Major drivers driving the global herbal tea market includes growing health awareness among consumers and increasing wellness trends. Rising fitness consciousness among consumers is also a major driver triggering market growth. Herbal teas contain some herbs that are toxic in nature and can cause major health hazards such as liver problems. This is a major restraint to the global herbal tea market. However, numerous medicinal benefits of herbal tea is opening great opportunities to the global market for herbal teas.

Geographically, the global market for herbal tea is segregated into North America, Europe, Asia Pacific, Middle East & Africa and Latin America. Asia Pacific held the largest market share in 2016 and is forecast to witness a substantial growth rate during the forecast period. North America followed Asia Pacific accounting for the second largest market in 2016. Europe is forecast to witness the most rapid growth rate during the forecast period of 2017-2025 owing to increased demand of herbal teas by health conscious consumers.

Major players of the global herbal tea market include Tata Global Beverages (India), Martin Bauer Group (Spain), Nestle (U.S.), Unilever (U.K.), Buddha’s Herbs (U.S.), Green Earth Products Pvt. Ltd (India), Mothers Parkers Tea (U.S.), Coffee Inc. (U.K.), Global Herbitech (India), Adagio Teas (U.S.), and Typhoo (India) among others.

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