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Herbal tea market is on the rise and not showing any signs of slowing down. Healthy trends are influencing such growth, with majority of population in developed countries beginning to prefer herbal teas over caffeinated black. This major shift is going to ensure the stable market for years to come.

Herbal tea has been known and loved for thousands of years and it’s great that this natural beverage is finally making a serious comeback. Flavors or rose, lavender, hibiscus, and chamomile infuse leaf, spice, and fruit tisanes, used for herbal tea making.

Holistic health practitioners are turning back to herbal tea and emphasizing its healing and calming qualities. As more and more people are turning back to nature and natural medicine, the tea is destined for some great things.

Herbal tea is becoming more complex and new flavors are introduced constantly. Better research and innovation in food industry will bring even more new products to the market. The market is becoming segmented and separated by raw materials, tea type, packaging choices, flavors, and location of harvest. All those different segments and their versatility determine the future of herbal teas and the direction of the market.

Major market players and tea producers are in charge of opportunities and the development of the market growth even further. In addition to great new possibilities, there are a few constraints that can limit, if only temporarily, the new outreach of herbal tea industry.

Key Trends and Opportunities

Medical science is in agreement that intensive caffeine consumption and high caffeine levels in the body can cause serious ailments and thus should be eliminated or at least limited. Herbal tea is caffeine-free and serves as a perfect healthy replacement of caffeine-heavy drinks, like coffee or black tea. People are more aware of the effects of traditional drinks and are turning towards natural and harmless substitutes. Herbal tea market is on the rise because of that with space for new beverages still. Herbal tea possesses autoxidizing properties and appeals to part of population that cares about that. Wellness and fitness propagators are encouraging people to give herbal tea a try and see that wonderful results can be reached.

There are some ingredients that can be toxic and harmful, so careless consumption of herbal teas can sometimes cause sickness. This can happen with teas that are not mass-produced, but hand-picked and carelessly used. The chance of that is very low and should not stop anyone from enjoying the benefits of herbal teas.

Regional trends

The major segments of global tea market are Europe, Asia Pacific, North America, and the Middle East and Africa. Asia Pacific is destined to see the highest growth for herbal tea market. This region has always been known for teas and innovative blends, but now herbal tea is taking over there too. The history of tea culture in Asia and changing food industry trends are influencing the growth of herbal tea popularity.

North America is following Asia Pacific closely behind, with Europe also expected to pick up pace with herbal tea consumption.

Competitive landscape

Market senior members and newcomers will need to introduce new concepts and flavors to gain customers and stay competitive. The increasing demand for herbal tea from North America and Europe should fuel the supply and encourage healthy competition.

The current main market players are Unilever (UK), Nestle (US), Mothers Parkers Tea (US), Global Herbitech (India), and Typhoo (India).