Herbal Tea Market size to grow by USD 885.1 million from 2022 to 2027; Wide availability of substitutes is a key market driver - Technavio

NEW YORK, June 21, 2023 /PRNewswire/ -- The herbal tea market size to grow by USD 885.1 million from 2022 to 2027, at a CAGR of 4.94%, according to the latest research report from Technavio. Discover herbal tea market potential and make informed business decisions based on qualitative and quantitative evidence highlighted in Technavio reports. View Sample Report!

The herbal tea market covers the following areas:

• Herbal Tea Market Sizing
• Herbal Tea Market Forecast
• Herbal Tea Market Analysis

Vendor Landscape

The global herbal tea market is fragmented with the presence of several global and regional vendors. Vendors in the market compete based on different parameters, such as quality. Moderate competition and declining profit margins are some of the significant risk factors for vendors. Therefore, to survive and succeed in such a competitive environment, it is imperative for the vendors to distinguish their product offerings through clear and unique value propositions.

Vendor Offerings

• ABF - The company offers herbal infusion tea under its brand called Twinings.
• Barrysteashop - The company offers fruit and herbal infusion tea such as Project, Focus, Night time, lemon and ginger, turmeric, organic peppermint, and organic camomile.
• Bigelowtea - The company offers herbal teas such as lemon ginger tea, chamomile tea, mint herbal tea, lavender chamomile tea, and peppermint tea.

For market's vendor landscape highlights with a comprehensive list of vendors and their offerings - View Sample in minutes

Key Market Segmentation

This herbal tea market report extensively covers market segmentation by type (green, black, and yellow), distribution channel (offline and online), and geography (APAC, Europe, North America, South America, and Middle East and Africa). 

• The market share growth by the green tea segment is significant for the growth of the global herbal tea market. In recent years, the consumption of functional teas and herbal teas has gained momentum as young consumers choose health products such as herbal teas. Market vendors are focused on offering innovative products with new ingredients. For example, Indian FMCG giant Dabur Ltd entered the herbal green tea market in September 2022 with the launch of Vedic tea. Increased availability of various flavors and increased consumer awareness of the health benefits associated with the product have increased the demand for herbal green tea. For example, green tea contains antioxidants and polyphenols that help scavenge free radicals in the body. 

View Sample Report in minutes of this report for more highlights into the market segments.

Regional Market Outlook

APAC is estimated to account for 39% of the global herbal tea market growth during the forecast period. In 2022, APAC dominated the global herbal tea market with a high market share. APAC consumers are conscious of their health and well-being, which drives demand for herbal teas. Due to the increasing disposable income of consumers in this region, there is a strong trend toward premium products. Global and regional herbal tea suppliers are expanding their customer base in APAC by expanding their e-commerce presence, especially through online third-party suppliers such as Amazon.

For more key highlights on the regional market share of most of the above-mentioned countries.- View Sample Report

Herbal Tea Market  – Market Dynamics

Driver

Wide availability of substitutes is driving the market

The demand for herbal teas is increasing due to the increase in health-conscious consumers. Herbal tea improves blood pressure and circulation, increases good cholesterol and lowers bad cholesterol. Herbal teas are often marketed for their health benefits as it helps in reducing stress, improving sleep, and boosting immunity. Herbal tea makers emphasize these benefits to attract health-conscious consumers. Consumers are looking for more convenient ways to consume herbal teas, including ready-to-drink formats and single-use tea bags. Herbal tea makers are experimenting with new flavor combinations and ingredients to create unique and varied blends that cater to the diverse and changing tastes of consumers. In addition, consumers have become more aware of the environmental impact of the products they use or consume, resulting in a range of herbal teas that are sustainably sourced and made without the use of harmful chemicals. All these factors are increasing the demand for herbal teas which, in turn, will drive the growth of the global herbal tea market during the forecast period. 

Rising demand for products with health benefits is a key market trend

Shifting consumer preference towards online sales channels has a positive impact on the growth of the global herbal tea market. The growing penetration of online distribution channels in Tier 2 cities in emerging markets such as India and China presents opportunities for market suppliers to expand their product range. Many vendors in the global herbal tea market partner with online distributors to reach consumers. Demand for herbal teas is expected to increase further as consumers become more health conscious. Online channels offer consumers a wide range of products at discounted prices. 

Rapid growth of e-commerce is a key challenge hindering market growth

Vendors in the global herbal tea market may face challenges due to the availability of several major herbal tea alternatives such as regular milk/tea, fruit-infused water, energy drinks, juices and other health beverages. These alternatives are readily available in the market at affordable prices in a variety of forms. Despite the growing popularity of herbal teas, consumer awareness of the potential health benefits and uses of the various herbs used in such teas remains limited. To drive demand, manufacturers should educate consumers about the benefits of herbal teas and the different blends available. Moreover, millennials and baby boomers are expected to be the major customer base for the herbal tea market as they make up the majority of the current workforce. The global herbal tea market also lacks standardization in terms of quality, purity and potency of the herbal ingredients used. This can lead to fluctuations in herbal tea quality and affect consumer confidence in the product. Herbal teas also face stiff competition from other beverage categories such as coffee, energy drinks and flavored waters. Manufacturers must find ways to differentiate their products and appeal to health-conscious consumers. Therefore, the availability of numerous substitutes will hamper the growth of the global herbal tea market during the forecast period. 

What's New?

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession 
• Global competitiveness and key competitor positions 
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial  - buy the report!

Companies Mentioned

• Associated British Foods Plc
• Bigelow Tea
• FAVA TEA CO.
• Full Leaf Tea Co. LLC
• Green Earth Products Pvt. Ltd.
• Harney and Sons Fine Teas
• Lake Missoula Tea Co.
• MB Holding GmbH and Co. KG
• Mother Parkers Tea and Coffee Inc.
• Mysooru Tea Co.
• Nestle SA
• Organic India
• Tata Consumer Products Ltd.
• The Boulder Tea Co.
• The Hain Celestial Group Inc.

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Related Reports:

The functional tea market size is expected to increase to USD 3.13 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.27%. This report extensively covers functional tea market segmentation by type (herbal tea, fruit tea, flower tea, and others) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The health benefits of functional tea is notably driving the functional tea market growth, although factors such as the availability of counterfeit functional tea products may impede the market growth.

The organic tea market size in the US is expected to increase to USD 70.91 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.53%. This report extensively covers organic tea market segmentation in US by product (organic herbal tea, organic green tea, and organic black tea) and distribution channel (supermarket and hypermarket, health food stores, independent retailers, and others). The increasing health benefits of organic tea are notably driving the organic tea market growth in the US, although factors such as the impact of overconsumption of tea may impede the market growth. 

Key Topics Covered:

1 Executive Summary

• 1.1 Market overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Type
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Distribution Channel
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition 
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022 

• 3.4 Market outlook: Forecast for 2022-2027
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global herbal tea Market 2017 - 2021
• Exhibit 18: Historic Market Size – Data Table on global herbal tea Market 2017 - 2021 ($ million)

• 4.2 Type Segment Analysis 2017 - 2021 
• Exhibit 19: Historic Market Size – Type Segment 2017 - 2021 ($ million)

• 4.3 Distribution channel Segment Analysis 2017 - 2021
• Exhibit 20: Historic Market Size – Distribution channel Segment 2017 - 2021 ($ million)

• 4.4 Geography Segment Analysis 2017 - 2021
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ million)

• 4.5 Country Segment Analysis 2017 - 2021
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ million)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Type

• 6.1 Market segments 
• Exhibit 30: Chart on Type - Market share 2022-2027 (%)
• Exhibit 31: Data Table on Type - Market share 2022-2027 (%)

• 6.2 Comparison by Type 
• Exhibit 32: Chart on Comparison by Type
• Exhibit 33: Data Table on Comparison by Type

• 6.3 Green - Market size and forecast 2022-2027
• Exhibit 34: Chart on Green - Market size and forecast 2022-2027 ($ million)
• Exhibit 35: Data Table on Green - Market size and forecast 2022-2027 ($ million)
• Exhibit 36: Chart on Green - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Green - Year-over-year growth 2022-2027 (%)

• 6.4 Black - Market size and forecast 2022-2027
• Exhibit 38: Chart on Black - Market size and forecast 2022-2027 ($ million)
• Exhibit 39: Data Table on Black - Market size and forecast 2022-2027 ($ million)
• Exhibit 40: Chart on Black - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Black - Year-over-year growth 2022-2027 (%)

• 6.5 Yellow - Market size and forecast 2022-2027
• Exhibit 42: Chart on Yellow - Market size and forecast 2022-2027 ($ million)
• Exhibit 43: Data Table on Yellow - Market size and forecast 2022-2027 ($ million)
• Exhibit 44: Chart on Yellow - Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Yellow - Year-over-year growth 2022-2027 (%)

• 6.6 Market opportunity by Type 
• Exhibit 46: Market opportunity by Type ($ million)
• Exhibit 47: Data Table on Market opportunity by Type ($ million)

7 Market Segmentation by Distribution Channel

• 7.1 Market segments 
• Exhibit 48: Chart on Distribution Channel - Market share 2022-2027 (%)
• Exhibit 49: Data Table on Distribution Channel - Market share 2022-2027 (%)

• 7.2 Comparison by Distribution Channel 
• Exhibit 50: Chart on Comparison by Distribution Channel
• Exhibit 51: Data Table on Comparison by Distribution Channel

• 7.3 Offline - Market size and forecast 2022-2027
• Exhibit 52: Chart on Offline - Market size and forecast 2022-2027 ($ million)
• Exhibit 53: Data Table on Offline - Market size and forecast 2022-2027 ($ million)
• Exhibit 54: Chart on Offline - Year-over-year growth 2022-2027 (%)
• Exhibit 55: Data Table on Offline - Year-over-year growth 2022-2027 (%)

• 7.4 Online - Market size and forecast 2022-2027
• Exhibit 56: Chart on Online - Market size and forecast 2022-2027 ($ million)
• Exhibit 57: Data Table on Online - Market size and forecast 2022-2027 ($ million)
• Exhibit 58: Chart on Online - Year-over-year growth 2022-2027 (%)
• Exhibit 59: Data Table on Online - Year-over-year growth 2022-2027 (%)

• 7.5 Market opportunity by Distribution Channel
• Exhibit 60: Market opportunity by Distribution Channel ($ million)
• Exhibit 61: Data Table on Market opportunity by Distribution Channel ($ million)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 62: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 63: Chart on Market share by geography 2022-2027 (%)
• Exhibit 64: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 65: Chart on Geographic comparison
• Exhibit 66: Data Table on Geographic comparison

• 9.3 APAC - Market size and forecast 2022-2027
• Exhibit 67: Chart on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 68: Data Table on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 69: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 70: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.4 Europe - Market size and forecast 2022-2027
• Exhibit 71: Chart on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 72: Data Table on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 73: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 74: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.5 North America - Market size and forecast 2022-2027
• Exhibit 75: Chart on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 76: Data Table on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 77: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 78: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.6 South America - Market size and forecast 2022-2027
• Exhibit 79: Chart on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 80: Data Table on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 81: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 82: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.7 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 83: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 84: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 85: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 86: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.8 US - Market size and forecast 2022-2027
• Exhibit 87: Chart on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 88: Data Table on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 89: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 90: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.9 China - Market size and forecast 2022-2027
• Exhibit 91: Chart on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 92: Data Table on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 93: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 94: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.10 India - Market size and forecast 2022-2027
• Exhibit 95: Chart on India - Market size and forecast 2022-2027 ($ million)
• Exhibit 96: Data Table on India - Market size and forecast 2022-2027 ($ million)
• Exhibit 97: Chart on India - Year-over-year growth 2022-2027 (%)
• Exhibit 98: Data Table on India - Year-over-year growth 2022-2027 (%)

• 9.11 UK - Market size and forecast 2022-2027
• Exhibit 99: Chart on UK - Market size and forecast 2022-2027 ($ million)
• Exhibit 100: Data Table on UK - Market size and forecast 2022-2027 ($ million)
• Exhibit 101: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 102: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.12 Germany - Market size and forecast 2022-2027
• Exhibit 103: Chart on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 104: Data Table on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 105: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 106: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 107: Market opportunity by geography ($ million)
• Exhibit 108: Data Tables on Market opportunity by geography ($ million)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers 

• 10.2 Market challenges 

• 10.3 Impact of drivers and challenges 
• Exhibit 109: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends 

11 Vendor Landscape

• 11.1 Overview 

• 11.2 Vendor landscape 
• Exhibit 110: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption 
• Exhibit 111: Overview on factors of disruption

• 11.4 Industry risks 
• Exhibit 112: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered 
• Exhibit 113: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 114: Matrix on vendor position and classification

• 12.3 Associated British Foods Plc 
• Exhibit 115: Associated British Foods Plc - Overview
• Exhibit 116: Associated British Foods Plc - Business segments
• Exhibit 117: Associated British Foods Plc - Key offerings
• Exhibit 118: Associated British Foods Plc - Segment focus

• 12.4 BARRYS TEA 
• Exhibit 119: BARRYS TEA - Overview
• Exhibit 120: BARRYS TEA - Product / Service
• Exhibit 121: BARRYS TEA - Key offerings

• 12.5 Bigelow Tea 
• Exhibit 122: Bigelow Tea - Overview
• Exhibit 123: Bigelow Tea - Product / Service
• Exhibit 124: Bigelow Tea - Key offerings

• 12.6 Full Leaf Tea Co. LLC 
• Exhibit 125: Full Leaf Tea Co. LLC - Overview
• Exhibit 126: Full Leaf Tea Co. LLC - Product / Service
• Exhibit 127: Full Leaf Tea Co. LLC - Key offerings

• 12.7 Green Earth Products Pvt. Ltd. 
• Exhibit 128: Green Earth Products Pvt. Ltd. - Overview
• Exhibit 129: Green Earth Products Pvt. Ltd. - Product / Service
• Exhibit 130: Green Earth Products Pvt. Ltd. - Key offerings

• 12.8 Harney and Sons Fine Teas 
• Exhibit 131: Harney and Sons Fine Teas - Overview
• Exhibit 132: Harney and Sons Fine Teas - Product / Service
• Exhibit 133: Harney and Sons Fine Teas - Key offerings

• 12.9 MB Holding GmbH and Co. KG 
• Exhibit 134: MB Holding GmbH and Co. KG - Overview
• Exhibit 135: MB Holding GmbH and Co. KG - Product / Service
• Exhibit 136: MB Holding GmbH and Co. KG - Key offerings

• 12.10 Mother Parkers Tea and Coffee Inc.
• Exhibit 137: Mother Parkers Tea and Coffee Inc. - Overview
• Exhibit 138: Mother Parkers Tea and Coffee Inc. - Product / Service
• Exhibit 139: Mother Parkers Tea and Coffee Inc. - Key offerings

• 12.11 Mysooru Tea Co. 
• Exhibit 140: Mysooru Tea Co. - Overview
• Exhibit 141: Mysooru Tea Co. - Product / Service
• Exhibit 142: Mysooru Tea Co. - Key offerings

• 12.12 Nestle SA 
• Exhibit 143: Nestle SA - Overview
• Exhibit 144: Nestle SA - Business segments
• Exhibit 145: Nestle SA - Key news
• Exhibit 146: Nestle SA - Key offerings
• Exhibit 147: Nestle SA - Segment focus

• 12.13 Organic India 
• Exhibit 148: Organic India - Overview
• Exhibit 149: Organic India - Product / Service
• Exhibit 150: Organic India - Key offerings

• 12.14 Tata Consumer Products Ltd. 
• Exhibit 151: Tata Consumer Products Ltd. - Overview
• Exhibit 152: Tata Consumer Products Ltd. - Product / Service
• Exhibit 153: Tata Consumer Products Ltd. - Key news
• Exhibit 154: Tata Consumer Products Ltd. - Key offerings

• 12.15 The Hain Celestial Group Inc. 
• Exhibit 155: The Hain Celestial Group Inc. - Overview
• Exhibit 156: The Hain Celestial Group Inc. - Business segments
• Exhibit 157: The Hain Celestial Group Inc. - Key news
• Exhibit 158: The Hain Celestial Group Inc. - Key offerings
• Exhibit 159: The Hain Celestial Group Inc. - Segment focus

• 12.16 Veda Tea Co. 
• Exhibit 160: Veda Tea Co. - Overview
• Exhibit 161: Veda Tea Co. - Product / Service
• Exhibit 162: Veda Tea Co. - Key offerings

• 12.17 Yunnancraft 
• Exhibit 163: Yunnancraft - Overview
• Exhibit 164: Yunnancraft - Product / Service
• Exhibit 165: Yunnancraft - Key offerings

13 Appendix

• 13.1 Scope of the report 

• 13.2 Inclusions and exclusions checklist
• Exhibit 166: Inclusions checklist
• Exhibit 167: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 168: Currency conversion rates for US$

• 13.4 Research methodology 
• Exhibit 169: Research methodology
• Exhibit 170: Validation techniques employed for market sizing
• Exhibit 171: Information sources

• 13.5 List of abbreviations 
• Exhibit 172: List of abbreviations

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