Herbal Beverage Market By Product Type (Loose leaf teas, Tea bags, Ready-to-drink (RTD) beverages, Powdered mixes, Herbal concentrates/syrups), By Packaging (Bottles, Sachets, Tetra Packs), By Form (Liquid, Powder, Ready-to-Drink), By Application (Digestive Health, Energy and Immunity Boosting, Detoxification, Stress Management), and By End-user (Individual consumers, Food-service, Institutional), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Herbal Beverage Market accounted for USD 1.94 Billion in 2024 and is expected to reach USD 4.0 Billion by 2035, growing at a CAGR of around 6.8% between 2025 and 2035. The Herbal Beverage Market consumption expanded, due to shifting consumer tastes for healthier products. These are used in all classes of people and raising awareness of the benefits of herbal substances such as immune boosters, digestive properties, and stress relievers has boosted this facet.

It is also driven by trends associated with organic, caffeine-free, and functional drinks targeting health- and environment-oriented consumers. India, which possesses a robust traditional medical system of Ayurveda and mainly depends on an herbal base, has a major contribution to export and consumption. For the retail channel of e-commerce and RTD beverages, it has been found that it is penetrating the global markets, particularly in the younger population base. 

Report Scope:

Market Dynamics

Increasing preference for chemical-free, sustainable herbal beverages

The transition from chemical-laden and unsustainable commercial beverages to natural, organic herbal products can be attributed to the new age consciousness of users on their health and the well-being of the earth. Today’s customers are aware of the negative health impacts resulting from synthetic additives and chemicals and therefore prefer to get products with natural, organically grown, and least processed ingredients. The increasing concern about the consequences of regular farming methods and non-recyclable packages has also enhanced the purchase of environmentally friendly products.

Organic herbal beverages typically focus on communicating clarion sourcing, post-consumer recycled green packaging, and certified fair trade to a corresponding, loyal demographic. This trend is further driven by factors such as an increase in the uptake of plant-based diets/meatless diets alongside clean labeling, where the origin of each ingredient and the processing methods used are fully labeled. Since customers are shifting to healthier and environmentally friendly products, chemical-free herbal beverages are also predicted to maintain a high growth rate, with brands continually striving towards diversifying the products that they offer and how they develop them.

The popularity of Ayurveda and herbal practices, especially in India and Asia-Pacific

Interest in Ayurveda and the general use of herbs, especially in the Asia-Pacific region, is thus grounded on the backdrop of the use of age-old traditional and natural approaches to health. The ancient Indian science of healing, Ayurveda, has global popularity and has identified itself with herbal products that help people achieve balance and provide preventive healthcare remedies. Since the global population shift has paid more attention to the natural source of medicine than synthetic products, the uptake of herbal drinks containing Ayurvedic materials such as turmeric, ashwagandha, and Tulsi has received stronger consumer interest.

In India, the cultural value of Ayurveda acts as a consumer pull, but exports of herbal teas and wellness drinks as extensions of Ayurveda reach out to the global audience. Another strength of the Asia-Pacific region is that its flora and fauna density is relatively high, expressing a great deal of experience in producing herbal formulations. A steady increase in health consciousness among the population and favorable government policies towards the Ayurvedic system and other herbal products have led to the growth. Further, the infusion of Ayurveda in new-age products like ready-to-drink beverages is in line with the young and liberal international market eager to adopt Ayurveda solutions.

The higher cost of herbal beverages due to organic and specialty ingredients limits affordability

Most herbal beverages are relatively expensive because they are prepared from organic and specialty ingredients that may be more costly to produce than common ingredients. Market organic farming standards include strict measures such as no use of pesticides and sustainable farming, which are expensive. The other factor that enhances the price is caused by the acquisition of specialty herbs and botanicals, which are fewer but qualify for superior pricing. Also compounding the operating cost is the cost of certifications such as organic or fair-trade products. What’s more, only scaled-down production by specialized brands leads to restricting economies of scale that make prices higher.

Supplements like biodegradable or eco-friendly packaging materials form other expenses. For consumers, these aspects may put herbal beverages out of reach, especially in sensitive markets regarding value for money. The affordability challenge is even worse for conventional beverages in developing regions where they are cheaper. As a response to this, quality must be maintained while keeping production costs affordable and analyzing affordable products that do not harm health.

Increasing awareness about the health benefits of herbal beverages among consumers

The global Herbal Beverage Market has also grown due to higher knowledge concerning the healthy value of those products. They are wising up to the dangers faced in consuming foods prepared with artificial additives and are going for healthy, natural foods. Recently, herbal beverages popular for their ability to strengthen the immune system, purify the body, and help relieve stress are becoming a part of a healthy diet. Many people now prefer to take herbal teas such as chamomile, ginger, and mint whenever they want to correct their digestive system or when they need to relax or get a good night’s rest.

The consumption of rooibos and hibiscus tea, which are caffeine-free, is also receiving a push as the trend towards healthier beverages doubles for those containing caffeine. Also, with the emergence of new chronic diseases, diseases such as obesity and stress call for functional beverages. The turn to plant and organic food is also a global one and boosts this awareness further. Therefore, brands are coming up with new and unique herbal mixtures, which address many other health complications. By this, it can be concluded that social media and wellness influencers have been especially influential in raising awareness of consumers to the positive qualities of these beverages. This hard focus on personal and community well-being should ensure the sustainability of demand for herbal beers in the long run.

Expansion of beverages catering to immunity, detoxification, and stress relief

The diversification of herbal beverages based on immunity boosters, detoxification, and stress relievers is emerging as the latest global trend. As consumer awareness of their general well-being is rising, the demand for beverages with not only curative and hygienic purposes is skyrocketing. There are different varieties of herbal teas on the market, those derived from ginger, turmeric, and echinacea, to mention but a few, and they are due to their immunity-boosting qualities. A range of detox drinks are prepared from natural herbs such as dandelion and mint that promise a healthy digestive system and help the body get rid of toxins. On the same note, effervescent soft drinks infused with herbs like lavender, chamomile, and ashwagandha help individuals handle stress and accomplish better quality sleep. Such a trend corresponds to the growing need for products that are beneficial for the body and soul.

Brands respond by formulating new formulations that contain different health-benefiting properties, all in one bottle, to suit the one-stop-shop consumer. Further adding to their spread is the ease of consumption in ready-to-drink forms, which is also boosting this category. Furthermore, due to the growth of Internet markets, such functional drinks can be available to a vast number of individuals. With the emphasis on preventive medicative care, the use of herbs to develop immunization drinks, detoxifying juice, and stress-reducing drinks will continue to grow.

Industry Experts Opinion

"Consumers today are increasingly turning to products that offer not only great taste but also health benefits. At Unilever, we are committed to providing consumers with more plant-based, sustainable, and nutritious products. Our acquisition of Pukka Herbs strengthens our position in the Herbal Beverage Market, allowing us to deliver organic, wellness-focused drinks that cater to the growing demand for health-conscious options."

• Paul Polman, CEO of Unilever

“We recognize the evolving consumer preferences for healthier beverages, and our Teavana Wellness Teas are designed to meet this demand by offering functional, natural options. Our commitment to innovation, quality, and sustainability is helping us lead the charge in the Herbal Beverage Market, as we continue to expand our product range and deliver on the growing trend for wellness-focused solutions.”

• Amit S. Mehta, CEO of Tata Consumer Products

Segment Analysis

Based on the Product Type, the Herbal Beverage Market is classified into loose herbal teas and herbal tea bags, ready-to-drink herbal beverages, powdered herbal beverages, and herbal tea concentrates. Loose-leaf teas continue to provide a quality experience for customers, especially for people with a passion for traditional tea drinking, and tea bags enjoy themselves as the most popular on the market. There is a gradual market take-up of RTD beverages because they readily fit into the lifestyle of busy individuals in their rush for other activities in their lives in search of convenience. Convenience and differentiation are derived from the powdered mix, which contains superfoods or functional foods. Syrups or extracts of herbs are a type of product, that interests people, who appreciate highly concentrated tastes and effects. Following these trends, brands, manufacturers, and producers are coming up with new packaging and new formulations of products with convenience, health, and eco-friendly appeals for all categories of products.

Based on the Packaging, the Herbal Beverage Market is classified into glass bottles, PET bottles, tetra packs, and sachets, with glass and eco-type packaging materials becoming popular as a result of the current trends toward sustainability. Sipped RTD herbal beverages are readily available in individual, single-serving bottles for portability to suit consumers’ busy lifestyles. The trend towards stronger but environmentally friendly packs, including reusable, recycled, and biodegradable substances, corresponds with increasing ecological awareness. Also, improvements in packaging style, including multi-ply and resealable pack bags and sachets, enable easy-to-use and extended preservation of the product. Yet, one has to acknowledge that the diversified and increasing need for luxury increases the difficulty of the packaging process, as customers now prefer to choose premium packaging that would fit expensive products.

Regional Analysis

Currently, the Asia-Pacific region is most prominent in the Herbal Beverage Market, as is revealed by the fact that those regions are culturally and traditionally steeped in herbal remedies. China and India take the lead as the major markets since the populations of both nations favor herbal teas and Ayurveda beverages. There has also been increased consumer awareness of certain health qualities of herbal drinks which has increased demand. Also, there is enough raw material, and the cost of production is minimal hence boosting the competitiveness of the region. Another factor that continues to support this market leadership is disposed income and enhanced buying preference for functional beverages.

Herbal Beverage Market is expanding rapidly in the North American region because of growing awareness regarding a healthy lifestyle. There is an influx of people making more conscious decisions about the products they consume, especially those that contain herbs giving herbal beverages a push. Creativity also responds to the need for detox and immunity-boosting demands that have been common after the pandemic. A conducive environment has also been provided by growth in more innovative product launches and ample presence of premium brands. Further, appeals to sustainability and clean labels are equally popular amongst North American consumers.

Competitive Landscape

The competitive environment in the Herbal Beverage Market is very intensive with the presence of multinational companies and regional players. Some of the leading players in the market are Unilever, Tata Consumer Products, and Dabur India, among others. These brands enjoy well-developed supply channels. These companies are also interested in the presentation of numerous herbal teas and functional drinks that can meet specific consumer requirements, for example, immunity, detoxification, and stress relief requirements. Some segments, such as organic, sustainability, and Ayurveda-based brands, such as Organic India, VAHDAM India, or Pukka Herbs, have been growing their market share.

E-commerce has democratized the market and allows big and small brands to sell products to consumers from all over the world. Furthermore, packaging design and environmental responsibility stand out as the major trends. Brands are also conducting partnerships with wellness influencers in a bid to develop market positions. Its competition is expected to become stiffer since consumers' need for natural, functional, and premium products, including beverages, also increases continuously. New entrants are also increasing, adding new types of products, new types of blends, and new types of flavors, and increasing the health angle more and more. Thus, companies today are willing to devote their efforts and resources to improving the products, relating to marketing, and building relations with customers.

Herbal Beverage Market, Company Shares Analysis, 2024

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Recent Developments:

• In February 2024, Nestlé introduced new herbal-based wellness drinks expanding its beverage portfolio to cater to the growing demand for functional drinks. These products focus on immunity-boosting and relaxation benefits, responding to the trend of health-conscious consumers seeking beverages with more than just hydration.
• In January 2024, PepsiCo launched a new line of herbal beverages under the Tropicana Essentials brand. These products are designed to support digestion, boost immunity, and reduce stress, aligning with the increasing demand for functional and well-oriented drinks.​

Report Coverage:

By Product Type

• Loose leaf teas
• Tea bags
• Ready-to-drink (RTD) beverages
• Powdered mixes
• Herbal concentrates/syrups

By Packaging

• Bottles

• Sachets

• Tetra Packs

By Form

• Liquid
• Powder
• Ready-to-Drink

By Application

• Digestive Health
• Energy and Immunity Boosting
• Detoxification
• Stress Management

By End User

• Individual consumers
• Foodservice
• Institutional

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Unilever (Lipton)
• The Hain Celestial Group
• Twinings
• Tata Consumer Products
• The Republic of Tea
• Bigelow Tea Company
• Yogi Tea
• Pukka Herbs (Unilever)
• Traditional Medicinals
• Numi Organic Tea
• Teavana (Starbucks)
• Harney & Sons Fine Teas
• DAVIDsTEA
• Rishi Tea & Botanicals
• Herbalife Nutrition

Frequently Asked Questions (FAQs)