What would be the CAGR of the herbal tea market during the forecast period?
The herbal tea market is expected to grow at a CAGR of 4.98%, reaching USD 4880.80 million during the forecast period
According to the analysis by Market Research Future (MRFR), the global herbal tea market is expected to acquire a substantial market valuation at a significant CAGR over the evaluation period.
One of the significant reasons for the massive adoption and growth of herbal tea is the medicinal benefits. Also, the augmented cardiovascular diseases and obesity cases are anticipated to fuel the sales of the herbal tea through the forecast period. The antioxidant property of herbal tea assists the blocking the oxidation of low-density lipoprotein, and the lowers the cholesterol levels in the blood. Apart from that, herbal tea aids in fat reduction, which consequently accelerates the demand for herbal tea during the evaluation period.
Additionally, the rising health-conscious people in developed economies is anticipated to boost the sales of herbal tea during the forecast period. Also, the improvement of livelihood among consumers in developing economies is also a substantial factor for the growth of the herbal tea market over the forecast period.
Some of the key players identified in the global herbal tea manufactures market Associated British Foods Plc. (U.K), Barry's Tea Ltd. (Ireland), Celestial Seasonings, Inc. (U.S.), Dilmah Ceylon Tea Company Plc. (Sri Lanka), Harney & Sons Tea Corp. (U.S.), ITO EN (North America) Inc. (U.S.), Mighty Leaf Tea Company (U.S.), R.C. Bigelow, Inc. (U.S.), Tata Global Beverages Ltd. (India), and The Unilever Group (U.K).
The global herbal tea products market is segmented into ingredient, function, packaging, and distribution channel.
The multiple ingredients available in the herbal tea industry type are chamomile, cinnamon, dandelion, ginger, lemongrass, turmeric, and others. Among all these ingredients, the cinnamon segment accounts for the significant market share followed by the dandelion segment. The main reason for the growth of these ingredients is their widespread usage for herbal tea formulation.
Based on the function, the market is segmented into cognitive health, general wellness, gut & digestive health, and others. Among all these functions, the cognitive health segment is likely to lead the market over the review period. Growing consumption of herbal tea for stress management is chiefly driving the growth of this segment over the forecast period. However, the use of herbal tea for the gut & digestive health is also likely to witness demand and popularity among consumers.
Several forms of packaging used in the global herbal tea market value are loose leaf, powder, tea bags, and others. Among all these packaging types, the tea bags segment is leading the market substantially, followed by the loose leaf segment, owing to the ease of usage and handling.
Based on the distribution channel, the market has been segmented in store based, and non-store based. Among these, the store-based distribution channel is leading the market owing to the consumer preference of the one-stop shopping experience.
The global market for herbal tea is segmented into North America, Asia Pacific, Europe, and the rest of the world (RoW).
the Asia Pacific region accounts for the largest region in the global herbal tea analysis and is expected to retain its dominance throughout the forecast period. This is attributed to the growing per capita disposable income of consumers along with the rising awareness of health benefits offered by herbal tea among consumers in developing economies like China, India, and Indonesia. Furthermore, in the Asia Pacific region, China and India offer a profitable opportunity for herbal tea manufacturers.
North America is projected to witness a gradual growth over the review period, owing to the mature market in the U.S. Though, Latin American region is probable to observe a high potential in the herbal tea market due to the rising disposable income, and consumer preference for herbal tea in this region.
Europe is a significant region for the global herbal tea market, owing to the massive popularity of tea in this region. The majority of the population of the UK has a massive consumption of tea. Hence the demand from this region for herbal tea is constant and steady.
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