The herbal tea market size is projected to reach US$ 6.18 billion by 2031 from US$ 4.15 billion in 2024. The market is expected to register a CAGR of 6.1% during 2025-2031.

The demand for herbal tea is increasing globally due to a growing awareness of health and wellness among consumers. As people seek natural alternatives to traditional beverages, herbal teas, known for their potential health benefits such as improved digestion, relaxation, and immune support, have gained popularity. Additionally, the rising trend towards organic and plant-based products, combined with the desire for stress reduction and better overall well-being, has fueled interest in herbal teas. Moreover, the increasing availability of various blends and flavors, along with their perceived therapeutic properties, has contributed to their expanding market appeal.

The organized retail sector has undergone a massive transformation recently. The emergence of e-commerce has resulted in significant changes in the way consumers shop. A rise in penetration of smartphones and the Internet, an upsurge in purchasing power, the ease of accessing emerging technologies, a Mercado Livre, and the convenience provided by online retail platforms from anywhere at any time are a few of the major factors bolstering the growth of e-commerce across the globe. For instance, according to the International Trade Administration, the B2C e-commerce industry in the US is expected to register a CAGR of 11.2% between 2023 and 2027.

The growing penetration of e-commerce worldwide is encouraging the manufacturers of herbal tea to enhance their online presence by selling products through Amazon, Walmart, Kroger, Tesco, Thrive Market, Sainsbury's, Target, Mercado Livre, and other well-established e-commerce platforms. Additionally, with the increasing penetration of online shopping, manufacturers are selling products directly-to-customer (D-to-C) by launching online retail sites, eliminating the need to invest in expensive marketing and distribution infrastructure. Thus, the consumers' increasing dependency on e-commerce services and the adoption of the D-to-C strategy by manufacturers are expected to open lucrative opportunities for the herbal tea market during the forecast period.

The rising demand for organic and clean-label herbal teas is largely driven by increasing consumer awareness about health and wellness. As people become more conscious of their dietary choices, there is a growing preference for natural, chemical-free, and sustainably sourced products. Organic herbal teas, which are made from plants grown without synthetic pesticides or fertilizers, align with the trend of eco-conscious and healthy living. With the increasing demand for organic and clean-label products, various manufacturers, such as Celestial Seasonings, R. Twining and Company Limited, and Universal Tea Company, Inc., offer herbal tea with organic claims. Organic products offer a significant competitive advantage to herbal tea manufacturers, enhancing their brand awareness and profitability. Thus, the rising demand for organic and clean-label products is expected to create a new trend in the herbal tea market during the forecast period.

Herbal tea is becoming increasingly popular worldwide; however, the risks of contamination by microorganisms and other external matter may diminish its appeal among consumers. Herbal tea poses potential contamination risks due to improper hygiene practices and inadequate storage. Supply chain issues, including transportation and packaging, can contribute to contamination risks. Residue build-up in equipment and processing facilities is also a significant source of contamination. Spore-forming species might reside in machinery, thereby adversely impacting the final product's quality.

Based on type, the market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. The chamomile segment expected to register the highest CAGR in the forecast period. Chamomile tea is one of the most popular herbal teas worldwide, known for its calming and relaxing properties. It is made from the dried flowers of the Matricaria chamomilla plant, commonly consumed to help with insomnia, stress, and anxiety. Chamomile is also consumed for its potential digestive benefits, as it may reduce bloating and aid in digestion. It has a mild, floral flavor. The demand for chamomile tea continues to grow due to increasing awareness of its health benefits and the rising demand for natural and caffeine-free alternatives. Consumers prefer chamomile tea for its soothing effects, often incorporating it into their nighttime routines. Additionally, chamomile is frequently included in wellness blends, adding to its versatility in the herbal tea market.

Based on category, the market is segmented into organic and conventional. The conventional segment held the largest share in the herbal tea market in 2024. The demand for conventional herbal tea is driven by its widespread availability, cost-effectiveness, and familiarity among consumers. Conventional herbal teas are derived from tea plants grown using standard agricultural practices, which might involve the use of synthetic pesticides, fertilizers, and other chemicals to enhance crop yield and protect against pests. The affordability and ease of production make them a go-to choice for consumers looking to prioritize flavor, functionality, and cost over organic or premium attributes. The conventional segment remains dominant due to its established supply chains and broad market acceptance. Despite growing interest in organic herbal tea, conventional herbal tea continues to appeal to a large demographic that values a balance of quality and affordability. However, the robust growth of the organic herbal tea segment can limit the demand for conventional alternatives. Organic herbal tea appeals to consumers who are concerned about the impact of conventional farming practices on their health and the environment and who seek products that are certified organic and free from chemical residues. The appeal of organic herbal teas extends beyond their health benefits to their natural flavor profiles, often considered superior to those of conventionally grown tea

The report includes the segmentation of the global herbal tea market as follows:

The herbal tea market is segmented on the basis of type, form, category, distribution channel, and geography. Based on type, the market is segmented into chamomile, peppermint, ginger, hibiscus, blends, and others. Based on form, the market is bifurcated into loose tea and tea bags. Based on category, the market is divided into organic and conventional. Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others

The geographic scope of the herbal tea market report focuses on North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The market in North America is further segmented into the US, Canada, and Mexico. The market in Europe is subsegmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific market is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The herbal tea market in the Middle East & Africa is subsegmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The market in South & Central America is further subsegmented into Brazil, Argentina, and the Rest of South & Central America.

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