Market Overview

According to recent reports, the size of the herbal tea market is estimated to show a CAGR of 4.94% to reach USD 4,226.9 Million by the end of 2025.

Market Dynamics

Increased demand for functional flavored beverages, as well as the introduction of new and modern flavors, have boosted the herbal tea industry in India and throughout the world. Many tea manufacturers across the world are venturing into the food and beverage sector, which is a major driver in the global herbal tea market’s expansion. Not only that, but industry participants are forecasting new growth prospects as a result of rising demand for organic and natural products as a result of health concerns raised by chemical additives found in major conventional products. Herbal tea is becoming increasingly popular across the world because it has a nice flavor, minimal stimulating effects, and several therapeutic benefits. The rising demand for healthy drinks and taste variations has aided the growth of the global herbal tea market. In the next years, the growing demand for herbal goods in industrialized countries is likely to provide attractive possibilities for larger businesses.

However, when compared to its conventional counterpart, herbal tea cultivation expenses are higher, and less product awareness in impoverished countries are contributing factors that would limit the expansion of the herbal tea market share on a worldwide scale during the projection period. Because of obligatory closures of herbs markets and cultivation around the globe as a result of the COVID-19 epidemic, the organic herbal tea market’s growth has been severely slowed, and the profit share has fallen apart. COVID19 has thrown the whole supply chain into disarray. The farmers’ morale suffered as a result of the continuous lockdown. Despite high demand in some places across the world, big merchants such as supermarkets and hypermarkets that specialize in selling organic herbal tea are experiencing severe shortages.

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Segmental Analysis

Type, Function, Form, Distribution Channel, and Region have all been used to segment the global herbal tea market.

Cinnamon, dandelion, chamomile, ginger, turmeric, mixes, and others make up the market by kind. In 2018, the mixes segment had the greatest market share, and it is expected to grow at the fastest rate over the forecast period.

The market has been divided into cognitive health, gut & digestive health, multifunctional, and others based on function. The multifunctional segment had the most market share and is expected to expand at the quickest rate throughout the projected period.

The herbal tea market has been divided into two types: tea bags and loose-leaf tea. In 2018, the tea bags segment had the largest market share, and it is expected to continue to do so during the projection period. Herbal tea is steeped in teabags, which are little porous bags.

The market has been divided into store-based and non-store-based segments depending on the distribution channel. Store-based channels are preferred by customers because they give a one-stop purchasing experience. During the review period, however, the non-store-based category is expected to increase at a faster rate.

Regional Overview

The Asia-Pacific region dominated the worldwide herbal tea market in 2018, and the area is anticipated to continue to do so throughout the study period. Tea is a popular beverage in this region, and an increase in the number of health-conscious people is contributing to an increase in herbal tea sales. China is the world’s largest user of herbal tea.

In 2018, the European herbal tea market accounted for a substantial portion of the worldwide herbal tea industry. Herbal tea is preferred by health-conscious customers in the region because of its numerous advantages. Furthermore, the development of new herbal tea tastes is expected to boost the market’s growth in Europe.      

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Competitive Dynamics

Market Research Future recognizes Tata Global Beverages Limited (India), Unilever PLC (UK), Organic India Pvt. Ltd. (India), The Hain Celestial Group, Inc. (US), Associated British Foods PLC (UK), Barry’s Tea (Ireland), Apeejay Surrendra Group (India), Dilmah Ceylon Tea Company PLC (Sri Lanka), Harney & Sons (US), and Adagio Teas (US) as the Key Players in the Global Herbal Tea Market.

NOTE: Our Team of Researchers are Studying Covid19 and its Impact on Various Industry Verticals and wherever required we will be considering Covid19 Footprints for Better Analysis of Market and Industries. Cordially get in Touch for More Details.

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