Japan Herbal Tea Market to Grow with a CAGR of 7.8% through 2030

The Japan’s herbal tea market is witnessing a rapid growth due to a blend of cultural appreciation, health-driven consumer preferences, and innovation in product offerings. The market is expected to continue evolving, with convenience-focused ready-to-drink options leading the way, and both traditional retail and online channels playing key roles in its growth.

According to TechSci Research report, “Japan Herbal Tea Market – By Region, Competition Forecast & Opportunities, 2030F”, Japan Herbal Tea Market was valued at USD 1.29 Billion in 2024 and is expected to reach USD 2.03 Billion by 2030 with a CAGR of 7.8% during the forecast period. The Japanese herbal tea market is evolving rapidly, driven by multiple factors that are reshaping consumer behaviour and product offerings.

A significant driver of the market is the increasing awareness of the importance of mental and physical well-being among Japanese consumers. As more people focus on maintaining a balanced lifestyle, herbal teas, known for their calming and healing properties, are gaining popularity. These beverages offer natural remedies for various health concerns, such as stress, digestive issues, and immunity boosting, which align well with the growing demand for functional beverages. The impact of the COVID-19 pandemic has heightened interest in health-conscious products. With more consumers staying at home and being more aware of their health, there has been an increase in the consumption of natural, plant-based alternatives to traditional beverages. As people seek ways to enhance their immunity and overall health, herbal teas with functional benefits have become increasingly attractive, especially as immunity-boosting ingredients like ginger and turmeric gain traction. The evolution of modern retail and e-commerce is also a major driver of growth. The convenience of online shopping and the availability of herbal tea products through various digital platforms have made it easier for consumers to explore a wide range of herbal teas. This expansion in online channels has made herbal teas more accessible to a broader consumer base, allowing brands to reach customers in urban and rural areas alike.

Despite the growth trajectory, the market faces several challenges. One major hurdle is the lack of consumer education about the different types of herbal teas and their benefits. While there is an increasing interest in functional beverages, many consumers remain unaware of the wide variety of herbal teas available and how they can contribute to health improvement. Addressing this knowledge gap will be crucial for the market to reach its full potential. Additionally, the high competition in the herbal tea segment, both from established local brands and international players, makes it difficult for new entrants to stand out. Companies need to innovate and create unique value propositions to differentiate themselves in this crowded market. Lastly, fluctuations in the availability and cost of raw materials can impact product pricing and supply consistency. The reliance on imported herbs and botanicals means that disruptions in the global supply chain can affect production timelines and costs, potentially leading to price volatility in the market.

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Japan Herbal Tea market is segmented into product type, raw material, sales channel, region and companies.

Based on Sales Channel, The online sales channel is the fastest-growing segment in the Japanese herbal tea market, driven by a combination of changing consumer behaviours, increased internet penetration, and the convenience of e-commerce. Japanese consumers are increasingly turning to online platforms to purchase herbal teas due to the ease and flexibility offered by digital shopping. The growing reliance on online shopping, particularly among younger, tech-savvy consumers, is contributing significantly to the expansion of the online channel. Several factors are propelling the growth of online sales in the herbal tea market. First, the convenience of shopping from home allows consumers to browse a wide range of products, compare prices, and access specialty or niche herbal tea brands that may not be readily available in traditional brick-and-mortar stores. This is particularly important in Japan, where busy urban lifestyles make convenience a top priority.

Based on region, The Kansai region, which includes Osaka, Kyoto, and Kobe, is emerging as the fastest-growing region. Kansai is experiencing rapid expansion in demand for herbal teas, driven by shifting consumer preferences, increasing health awareness, and an evolving retail landscape. In Kansai, there is a growing interest in wellness-focused beverages as consumers become more conscious of their health and lifestyle. Herbal teas, known for their natural ingredients and functional benefits, are becoming an attractive alternative to sugary beverages and caffeinated drinks. This trend is particularly strong in urban areas like Osaka, where the population is increasingly open to trying new, health-conscious products.

Major companies operating in Japan Herbal Tea market are:

• Senbird Tea LLC
• Sazen Tea Co.Ltd
• The Tea Company LLC
• Ekaterra
• The Hain Celestial Group, Inc 
• Kyoto Obubu Tea Farms
• Nodoka
• HOJICHA TRADING CO. LTD.
• Japanese Green Tea Hibiki-an
• Jade Leaf LLC

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“In recent years with busy lifestyles becoming more common in Japan, there is a rising trend toward convenience-focused formats in the herbal tea market. Consumers are seeking products that fit seamlessly into their fast-paced daily routines. This demand for convenience is being met by the growing availability of ready-to-drink (RTD) herbal teas and easy-to-use formats such as powdered and liquid concentrate teas. RTD herbal teas, which are pre-brewed and packaged for immediate consumption, are gaining popularity due to their convenience and portability. These products are particularly attractive to busy office workers, students, and young professionals who want a quick, healthy alternative to sugary drinks or coffee. RTD herbal teas are often available in single-serving bottles, making them easy to carry and consume on the go. In addition to RTD teas, powdered and premixed herbal tea products are becoming more popular. These products allow consumers to prepare their favorite herbal teas with minimal effort, as they only require the addition of hot water. Powdered teas are favored for their compact packaging and long shelf life, making them an attractive option for those who want to store herbal teas for extended periods without worrying about spoilage“. Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Japan Herbal Tea Market, By Product Type (Syrups, Premixes, Powdered Ready to Drink, Liquid Ready to Drink), By Raw Material (Black Tea, Green Tea, Yellow Tea), By Sales Channel (Offline, Online), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Japan Herbal Tea market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Japan Herbal Tea market.

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