PUBLISHER: Allied Market Research | PRODUCT CODE: 1414940
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414940
According to a new report published by Allied Market Research, titled, "Herbal Tea Market," The herbal tea market was valued at $2.5 billion in 2022, and is estimated to reach $4.3 billion by 2032, growing at a CAGR of 5.6% from 2023 to 2032.
Herbal teas have been a prevailing beverage choice throughout human history. The earliest known reference to herbal teas dates to 2737 BC in China, and written records from the third century AD further document their consumption. This cultural tradition has crossed geographical boundaries, with herbal teas making their journey from China to Egypt, Japan, Europe, and beyond, highlighting their enduring and widespread significance in health benefits.
The herbal tea market has experienced rapid growth owing to the shift of consumers towards natural and organic tea beverages in recent times. Herbal teas, derived from dried herbs, flowers, fruits, and spices, offer a natural, plant-based beverage for health-conscious consumers. The absence of artificial flavors and preservatives caters to the preference for natural ingredients, attracting individuals seeking unprocessed beverage options. Many herbal teas, including those from popular brands such as Yogi Tea, Celestial Seasonings, Traditional Medicinals, Teeccino, Pukka Herbs, among others, are available in organic varieties. These teas feature ingredients cultivated without synthetic pesticides, herbicides, or genetically modified organisms (GMOs). The organic certification of herbal tea products serves well to consumers prioritizing products with minimal exposure to chemicals and environmentally sustainable practices.
Moreover, the natural and organic trend is closely linked to a demand for transparency in the food and beverage industry. Thus, herbal tea products that emphasize the traceability of ingredients, sourcing practices, and production methods are expected to gain the trust of consumers who value knowing the origins and manufacturing processes of their products. In addition, herbal teas, with minimal processing and transparent labeling, align with the clean label movement, appealing to those consumers who prioritize straightforward and honest product formulations. As a result, the utilization of various herbs, flower, and fruits in herbal teas contributes significantly to the growth of market as more individuals prefer these natural beverages into their daily health routines.
Another noteworthy trend in the herbal tea industry is globalization, which crosses regional boundaries. International brands are expanding into emerging markets, which helps the sector grow. The global supply chain involves several nations in the procurement of ingredients, production, and packaging processes, promoting product variety and accessibility to consumers around the world. The regulatory environment, which varies by nation and region, is essential to the herbal tea market. These regulations affect product development and marketing as they address product safety, labeling specifications, and ingredient limitations. Increased customer demand for ingredient disclosure and stronger regulations are driving the emergence of clean and natural herbal tea products.
The herbal tea industry has experienced a significant move toward online sales channels and direct-to-consumer (DTC) models owing to the digital revolution. While DTC models enable brands to forge direct connections with consumers, online platforms provide convenience, a wide range of products, and personalized shopping experiences. Consumer engagement and sales are mostly driven by digital marketing, including influencer partnerships and online try-on services. Sustainability and ethical concerns, such as using eco-friendly packaging and sourcing ingredients ethically, have become more important. The increasing demand for organic and genetically modified organism (GMO) free products among consumers is changing how products are developed and tested.
The herbal tea market is analyzed on the basis of category, gender, distribution channel, and region. By type, the market is divided into chamomile, peppermint, hibiscus, lemongrass, ginger, fruits, blends, and others. By packaging, the market is segmented into loose tea, paperboards, aluminum tins, and tea bags. Depending on distribution channel, it is classified into supermarket-hypermarket, specialty stores, convenience stores, online sales channel, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Singapore, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Turkey, Saudi Arabia, Egypt, and the rest of LAMEA).
The major players operating in the global herbal tea market are Tata Consumer Products Limited, The Hain Celestial Group, Inc., Dilmah Ceylon Tea Company PLC, Bigelow Tea, Tielka, Mountain Rose Herbs, Terra Teas Organic, Indigo Herbs Ltd, The Indian Chai, Organic India Pvt. Ltd.
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