Herbal Tea Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Flavor Type (Chamomile, Peppermint, Lemongrass, Ginger, Hibiscus, Fruits), By Packaging (Loose Tea, Paper Pouches, Tea Bags, Plastic Containers, Aluminum Tins), By Distribution Channel (Online and Offline), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.01 Billion
CAGR (2026-2031)	4.53%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 5.23 Billion

Market Overview

The Global Herbal Tea Market will grow from USD 4.01 Billion in 2025 to USD 5.23 Billion by 2031 at a 4.53% CAGR. Herbal tea, technically referred to as tisane, is a caffeine-free beverage brewed from the infusion of dried herbs, spices, flowers, or fruits rather than the Camellia sinensis plant. The sector’s expansion is fundamentally driven by rising global health consciousness and a demand for functional beverages that offer specific benefits such as stress relief and improved digestion. This growth is further supported by a consumer shift toward premium, experiential products. According to the UK Tea & Infusions Association, in 2024, 28% of adults aged 18 to 29 reported predominantly choosing loose-leaf varieties for their herbal infusions, reflecting this movement toward higher-quality consumption habits.

However, a significant challenge impeding broader market scalability is the volatility of the raw material supply chain. Unlike traditional tea monocultures, herbal blends rely on a fragmented sourcing network of diverse botanicals that are highly susceptible to climate change and seasonal inconsistency. This variability in ingredient availability and quality complicates procurement strategies and stabilizes costs, making it difficult for manufacturers to guarantee the consistent product standards necessary for mass-market expansion.

Key Market Drivers

The surge in demand for functional and immunity-boosting blends is a primary catalyst reshaping the Global Herbal Tea Market, as consumers increasingly view these beverages as essential tools for preventative healthcare rather than simple refreshments. This trend is characterized by the aggressive proliferation of formulations infused with adaptogens, probiotics, and ayurvedic ingredients targeting specific concerns such as sleep latency, digestion, and stress management. Manufacturers are rapidly diversifying portfolios to capitalize on this shift, transitioning herbal tea from a niche grocery item to a functional supplement. Highlighting this strategic pivot, according to Tata Consumer Products, June 2024, in the 'Integrated Annual Report 2023-24', the company recorded a 2.40 times increase in health and wellness-focused new product launches compared to the fiscal year 2020-21. This innovation cycle validates the market’s trajectory toward value-added blends that command premium pricing and drive category expansion.

Simultaneously, the increasing popularity of organic and clean-label products is influencing purchasing decisions, with a distinct consumer preference for transparency and ethical sourcing. This movement compels brands to secure rigorous certifications, as shoppers actively select products free from artificial additives and microplastics. The commercial impact of this ethical consumption is evident in the performance of purpose-led brands; according to The Grocer, September 2024, in the 'Hot beverage trends 2024: How the wellness mega-trend hit UK cuppas' report, the organic and fair-trade brand Clipper saw its value sales for fruit and herbal infusions rise by 55% over the previous year. This significantly outperforms the broader sector, proving that sustainability is now a core driver of volume. Reflecting this overall momentum in consumption habits, according to the Tea and Herbal Association of Canada, in 2024, one-third of herbal tea drinkers reported increasing the amount they drink compared to the prior year, underscoring the robust and growing engagement with the category.

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Key Market Challenges

The volatility of the raw material supply chain functions as a primary obstacle restricting the scalability of the global herbal tea industry. Because the sector relies on a fragmented network of diverse botanical sources rather than a standardized monoculture, it is uniquely vulnerable to climate-induced disruptions and harvest inconsistencies. This unpredictability creates severe inventory risks, making it difficult for manufacturers to commit to the large-scale volume agreements required by major retail chains. Without a reliable flow of ingredients, brands cannot maintain the consistent shelf presence essential for transitioning from niche health stores to mainstream mass markets.

Moreover, these sourcing complexities directly impact product integrity and cost stability. As manufacturers scramble to secure ingredients during periods of shortage or poor harvest, the industry faces heightened risks regarding ingredient purity and standard verification. According to the American Botanical Council, in 2024, industry analysis indicated that supply pressures and high demand contributed to significant quality control challenges, with adulteration rates in certain high-value botanical supply chains reaching as high as 53%. This variance compels companies to incur higher costs for verification processes to avoid reputational damage, thereby eroding margins and stalling broader market expansion.

Key Market Trends

The Integration of Herbal Teas into Alcohol-Free Mocktail Formulations is creating a new consumption occasion, driven by the global "sober curious" movement and a desire for complex, adult-oriented beverages without alcohol. Consumers are increasingly utilizing herbal infusions as sophisticated bases for mocktails, leveraging their tannins and botanical profiles to replicate the mouthfeel and depth of spirits. This trend has expanded the category beyond traditional hot consumption, positioning herbal tea as a premium ingredient in social and evening settings. Highlighting this shift, according to Beverage Daily, August 2025, in the 'Sober summer: UK supermarket Waitrose sees significant surge in low/no alcohol sales' report, sales of low and no-alcohol beverages at Waitrose increased by 32% compared to the previous summer, a growth trajectory heavily supported by the rising popularity of botanical and tea-based non-alcoholic options.

Innovation in Exotic Fruit and Global Botanical Flavor Fusions is simultaneously reshaping the market as consumers move away from standard varieties in favor of adventurous, globally inspired blends. Manufacturers are responding by introducing formulations that combine traditional herbs with novel ingredients like yuzu, hibiscus, and superfruits, catering to a younger demographic seeking novelty and sensory exploration. This diversification is enabling the herbal segment to decouple from the stagnation affecting traditional categories. Illustrating this divergence, according to The Grocer, September 2025, in the 'The next gen tea drinker: trends in hot beverages 2025' report, fruit and herbal tea bag volumes in the UK grew by 1.4%, significantly outperforming the everyday black tea segment, which experienced a 5% volume decline over the same period.

Segmental Insights

The Online segment represents the fastest-growing distribution channel within the Global Herbal Tea Market. This expansion is primarily driven by the increasing consumer demand for convenience and the broad accessibility of diverse international products that physical stores often lack due to shelf space constraints. E-commerce platforms allow consumers to compare prices and review detailed ingredient information, which is essential for health-conscious buyers seeking specific wellness benefits. Furthermore, major market players are strengthening their direct-to-consumer distribution networks to improve market penetration. Consequently, the digital retail landscape continues to capture a significant share of consumer spending in the herbal beverage sector.

Regional Insights

North America maintains a leading position in the Global Herbal Tea Market due to widespread consumer adoption of caffeine-free and functional wellness beverages. The region features a mature retail sector and high disposable income levels that drive demand for diverse herbal blends. Furthermore, the United States Food and Drug Administration enforces rigorous safety and labeling protocols, ensuring product transparency that strengthens consumer confidence. This stable regulatory environment, combined with consistent product innovation by established manufacturers, secures North America’s status as the primary regional market.

Recent Developments

• In October 2025, Lipton Teas & Infusions executed a major strategic move in the UK by reviving its hot tea portfolio with a specific focus on fruit and herbal blends. After a significant absence from this specific segment, the company launched a new five-strong range featuring blends such as "Berry Bliss," "Peach Paradise," and "Lemon Ginger Refresh." This development is aimed at broadening the appeal of herbal teas to a mainstream audience by offering accessible, bold fruit flavors. The launch represents a concerted effort by the company to redefine the category and capture a larger share of the growing demand for non-caffeinated, wellness-oriented hot beverages.
• In August 2025, Twinings introduced a significant innovation in the global herbal tea market with the debut of "Twinings Refreshers," a line of instant herbal tea beverages designed for cold water preparation. To address the increasing consumer preference for convenient and functional hydration options, the company utilized a proprietary drying method that preserves the aroma and texture of real fruit pieces and herbal extracts. The range, launching with flavors like Strawberry Raspberry and Peach Mango, targets younger demographics seeking caffeine-free, cafe-style drinks that can be prepared instantly, thereby expanding the brand's footprint into the ready-to-mix category.
• In June 2024, The Republic of Tea expanded its offerings in the global herbal tea market with the launch of the "Herbs of Origin" collection. Unveiled at the Summer Fancy Food Show, this new line features six single-ingredient, organic premium herbal teas sourced from their native regions to ensure authentic flavor and functionality. The collection includes varietals such as Egyptian Hibiscus, Vietnamese Cinnamon, and South African Green Rooibos, catering to the growing consumer demand for transparency and purity in botanical beverages. This product development highlights the company's focus on sustainable sourcing and high-quality, functional ingredients.
• In May 2024, Pukka Herbs announced the renewal of its long-standing collaboration with the Eden Project, a widely recognized educational charity and visitor attraction. This partnership, which originally began in 2015, was extended to further their shared mission of connecting people with the power of nature and plants. As part of the collaboration in the global herbal tea market, the companies aim to engage millions of visitors through interactive exhibits and the availability of organic herbal tea blends across the venue. The initiative underscores the brand's commitment to sustainability and biodiversity, reinforcing its position as a purpose-led player in the wellness beverage sector.

Key Market Players

• Tielka
• Mountain Rose Herbs
• Tega Organic Teas
• Terra teas
• Aror teas
• Tetley
• Indigo herbs
• The Indian Chai
• Twinings
• Organic India

By Flavor Type	By Packaging	By Distribution Channel	By Region
Chamomile Peppermint Lemongrass Ginger Hibiscus Fruits	Loose Tea Paper Pouches Tea Bags Plastic Containers Aluminum Tins	Online and Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Herbal Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Herbal Tea Market, By Flavor Type:

• Chamomile
• Peppermint
• Lemongrass
• Ginger
• Hibiscus
• Fruits

• Herbal Tea Market, By Packaging:

• Loose Tea
• Paper Pouches
• Tea Bags
• Plastic Containers
• Aluminum Tins

• Herbal Tea Market, By Distribution Channel:

• Online and Offline

• Herbal Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE