Herbal Tea Market Analysis 2017-2023: Key Findings, Regional Analysis, Key Players Profiles and Future Prospects

16/feb/2018 14:18:08 suraj taur Contatta l'autore

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Market Overview:

Herbal tea is exclusively prepared from plant sources such as spices and herbs. Herbal tea has a higher percentage of antioxidants compared to other form of tea which makes it a preferred choice for the health-conscious consumers. The most common ingredients used in herbal tea are cinnamon, dandelion, chamomile, ginger, turmeric, and lemongrass.

Herbal tea has been found to be superior to black tea in terms of health benefits. Herbal tea is made from spices & herbs having medicinal attributes. The demand for herbal tea is increasing significantly for its various health benefits.

One of the significant reasons for increasing growth of herbal tea is the medicinal benefits. Also, the increased cardiovascular diseases and obesity cases are anticipated to fuel the sales of the herbal tea during the forecast period. The antioxidant property of herbal tea aids blocking the oxidation of low-density lipoprotein and the cholesterol. Apart from that, herbal tea minimizes in the fat reduction which in turn accelerates the demand for herbal tea during the review period.

Also, increasing health conscious people in developed economies is anticipated to boost the sales of herbal tea during the forecast period. Also, the enhancement of livelihood among the consumers in developing economies is also a significant factor for the growth of the herbal tea market over the forecast period.

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Major Key Players:

Some of the key players profiled in the global herbal tea market:  Associated British Foods Plc. (U.K), Dilmah Ceylon Tea Company Plc. (Sri Lanka), ITO EN (North America) Inc. (U.S.), Tata Global Beverages Ltd. (India), The Unilever Group (U.K), Barry's Tea Ltd. (Ireland), R.C. Bigelow, Inc. (U.S.), Celestial Seasonings, Inc. (U.S.), Harney & Sons Tea Corp. (U.S.), and Mighty Leaf Tea Company (U.S.)

Key Findings:

Herbal tea has a massive opportunity in the global beverages market

Asia Pacific is the fastest growing region in the herbal tea market. India and China has shown huge potentials for herbal tea market share during the review period, 2017-2023

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The global herbal tea market is segmented into ingredient, function, packaging, and distribution channel.

On the basis of the ingredient, it is segmented into cinnamon, dandelion, chamomile, ginger, turmeric, lemongrass, and others. Among all the ingredients, the cinnamon segment holds the major market share followed by the dandelion segment. The primary reason for the growth of these ingredients is their extensive use for herbal tea formulation.

On the basis of the function, it is segmented into cognitive health, gut & digestive health, general wellness, and others. Among all the functions, the cognitive health segment is dominating the market. Increasing consumption of herbal tea for stress management is majorly driving the growth of this segment. However, use of herbal tea for the gut & digestive health is also showing popularity among the consumers.

On the basis of the packaging, it is segmented into tea bags, loose leaf, powder, and others. Among all the packaging types, the tea bags segment is dominating the market followed by the loose leaf owing to the ease of use and handling.

On the basis of the distribution channel, it is segmented in store based, and non-store based.  Among both, the store-based distribution channel is dominating the market based on the one-stop shopping experience.

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Regional Analysis:

The Global Herbal Tea Market is segmented into North America, Europe, Asia Pacific, and rest of the world (RoW). Among all, Asia Pacific region is expected to retain its dominance throughout the forecast period. This is attributed to the increasing per capita disposable income coupled with the rising awareness of health benefits among the consumers in developing economies like India, China, and Indonesia. Additionally, in the Asia Pacific region, China and India offer a lucrative opportunity for the herbal tea manufacturers. Moreover, Europe is projected to witness a steady growth during the review period.


North America is estimated to show a slow growth owing to the mature market in the U.S. However, Latin American region is projected to show a high potential in the herbal tea market owing to the rising disposable income in this region.

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