As per MRFR analysis, the US Herbal Tea Market Size was estimated at 850.98 (USD Billion) in 2023. The US Herbal Tea Industry is expected to grow from 911.65(USD Billion) in 2024 to 1,881.91 (USD Billion) by 2035. The US Herbal Tea Market CAGR (growth rate) is expected to be around 6.811% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Herbal Tea Market has been experiencing significant trends driven by the growing consumer preference for health-conscious beverages. One key market driver is the increasing awareness of the health benefits associated with herbal teas. Consumers are leaning toward products that offer functional benefits such as improved digestion, stress relief, and enhanced immunity. This move towards healthier choices is partly influenced by a larger shift in the food and beverage industry, where natural and organic products are becoming more sought after. Additionally, the rise of herbal teas infused with adaptogenic herbs and superfoods reflects a trend towards functional beverages that promote mental and physical well-being.
Moreover, opportunities exist in the growing market for ready-to-drink herbal tea products. Busy lifestyles have prompted consumers to seek convenient options without sacrificing health benefits. This trend provides companies with the chance to innovate and expand their product portfolios to include ready-to-drink formats or herbal tea blends tailored to specific consumer needs. Eco-friendly packaging is another area of opportunity, attracting environmentally conscious consumers who value sustainability in their purchasing decisions. Recent times have also seen a trend towards unique flavor combinations and artisanal blends that cater to diverse taste preferences.
The growing popularity of herbal tea in younger demographics, particularly millennials and Gen Z, has encouraged brands to experiment with flavors and marketing strategies that resonate with this audience. As the interest in herbal tea continues to grow, especially through online shopping and social media platforms, brands that adapt to these preferences will likely capture significant market share in the evolving landscape of the US Herbal Tea Market.
In recent years, there has been a significant increase in health consciousness among consumers in the United States. The US Herbal Tea Market Industry is witnessing this shift as more individuals turn to herbal tea as a healthier alternative to traditional beverages. According to a survey conducted by the Dietary Guidelines for Americans, approximately 41.7% of US adults reported increasing their consumption of herbal teas due to health benefits such as improved digestion and immune function.Major organizations like the American Heart Association have also noted the potential cardiovascular benefits of herbal teas, further fueling consumer interest. As the trend of healthy living continues to grow, this market is expected to benefit substantially from the changing consumer preferences towards natural and functional beverages.
The natural and organic product segment is growing rapidly within the US Herbal Tea Market Industry, driven by an increase in consumer preference for clean-label products. The United States Department of Agriculture (USDA) reported an annual growth of approximately 10% in the organic food sales sector, with herbal teas being a significant contributor. This trend reflects a shift in consumer behavior, where more people are seeking out products that align with their values of sustainability and health.As more brands focus on organic and natural tea offerings, the market is expected to expand, catering to the rising demand for organic herbal teas.
Significant investments are being made in Research and Development (R&D) within the US Herbal Tea Market Industry to innovate and enhance product offerings. Notable companies such as Celestial Seasonings and Teavana are investing heavily in product development focused on unique herbal blends that cater to specific health needs. According to industry reports, R&D investments have increased by roughly 5% annually in the herbal beverage sector. This commitment to innovation is vital as consumers seek out novel experiences and health benefits through their tea choices, ensuring that the market remains dynamic and responsive to consumer demands.
The Type segment of the US Herbal Tea Market showcases a diverse array of options, with Cinnamon, Dandelion, Chamomile, Ginger, Turmeric, Blends, and Others forming the primary categories. Each of these types contributes uniquely to the market dynamics, catering to evolving consumer preferences and growing health consciousness. Cinnamon herbal tea, for example, is valued not only for its aromatic flavor but also for its potential health benefits, including anti-inflammatory properties and blood sugar regulation, appealing to health-focused consumers.Dandelion tea serves as a popular alternative due to its detoxifying properties, which have gained traction among wellness enthusiasts looking for natural remedies. Chamomile, often recognized for its calming effects, is frequently consumed for stress relief and improved sleep quality, thus occupying a significant share within the market aimed at comforting herbal blends.
Ginger tea is revered for its digestive benefits and its ability to boost immunity, making it a favorite during cold and flu seasons, hence it is pivotal in driving the market forward.Turmeric, on the other hand, has surged in popularity due to its anti-inflammatory characteristics and is often blended with other herbs to enhance both taste and health benefits, positioning it as a critical player in market growth. Blends represent a flexible and creative approach, allowing for innovative combinations of flavors and health benefits, which appeal to adventurous consumers seeking diversity in their tea choices. Other herbal teas encompass various lesser-known ingredients that cater to niche markets, providing options for those seeking specific health benefits.
The US Herbal Tea Market segmentation is characterized by its dynamic nature, with each type reflecting broad consumer trends toward health, wellness, and flavor exploration, significantly influencing market growth. The increasing popularity of herbal tea over traditional caffeinated options is reshaping consumer habits, indicating high potential for sustained growth within this segment. Overall, the Type segment of the US Herbal Tea Market illustrates a robust landscape driven by diverse consumer demands and an increasing emphasis on health and wellness products.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Function segment of the US Herbal Tea Market presents an intriguing landscape characterized by diverse and growing consumer needs. This segment encompasses key areas such as Cognitive Health, Gut and Digestive Health, and Multifunctional herbal teas, which are witnessing a notable rise in popularity among health-conscious consumers. Cognitive Health teas are critical for individuals seeking natural ways to enhance concentration and memory, tapping into the increasing awareness of mental wellness within the US population. Similarly, Gut and Digestive Health teas have gained traction as more consumers prioritize digestive wellness, influenced by rising health trends and an emphasis on gut microbiome health.
Multifunctional herbal teas cater to consumers looking for comprehensive health benefits, combining various functionalities that appeal to a broad audience. Additionally, the Others category includes innovative herbal blends that attract niche segments and foster market diversity. The overall shift towards natural and holistic health solutions is driving market growth, revealing opportunities for new product development, and reflecting the increasing consumer preference for herbal remedies that enhance wellness. As this sector evolves, it signifies a robust part of the US Herbal Tea Market segmentation, underlining the importance of targeted health benefits in consumer purchasing decisions.
The US Herbal Tea Market is witnessing notable growth, driven by increasing consumer awareness of health and wellness benefits associated with herbal teas. Within the Form segment, products such as Tea Bags and Loose Leaf are gaining attention due to their convenience and versatility. Tea Bags offer ease of use, appealing to busy consumers seeking quick and accessible options, while Loose Leaf caters to a niche audience valuing freshness and quality. This segment's dynamics are influenced by a shift towards natural and organic products, as well as rising demand for specialty blends that support specific health needs.The market is characterized by a diverse range of herbal ingredients, with a focus on functional benefits like relaxation and digestion enhancement. Furthermore, online retail channels are becoming increasingly popular, making it easier for consumers to access a variety of herbal tea options. The commitment to sustainable practices in packaging and sourcing is also contributing to the segment's attractiveness. Overall, the Form segment stands as a vital component of the broader US Herbal Tea Market, reflecting evolving consumer preferences and lifestyle trends.
The US Herbal Tea Market has a diverse range of Distribution Channels that play a crucial role in reaching consumers effectively. The market is primarily divided into Store-Based and Non-Store-Based channels. Store-Based distribution often includes traditional retail settings like supermarkets, health food stores, and specialty tea shops, which provide customers with the opportunity to physically browse products, enhancing their purchase experience. This channel is significant as it allows for impulse buying and immediate product access. In contrast, Non-Store-Based distribution encompasses online platforms and direct delivery services, catering to the growing trend of e-commerce and changing consumer preferences for convenience.
This segment has been gaining traction, particularly among younger demographics who prioritize digital shopping experiences. Together, these channels facilitate the availability of diverse herbal tea options, allowing for strategic marketing and efficient supply chain management. The US Herbal Tea Market revenue reflects a strong inclination towards health-conscious choices, driven by consumer awareness of the benefits of herbal teas. As market dynamics evolve, the balance between these distribution methods continues to shape consumer engagement and accessibility in the herbal tea segment.
The US Herbal Tea Market is characterized by a thriving landscape that continually adapts to changing consumer preferences and health trends. With increasing demand for natural and wellness-oriented products, manufacturers are focusing on innovation and quality. The competitive environment is bolstered by the presence of established brands as well as emerging players, all vying for market share in this growing segment. The emphasis on organic and ethically sourced ingredients has significantly influenced consumer purchasing decisions, prompting brands to enhance their sustainability practices and storytelling. Moreover, the rise of e-commerce and digital marketing strategies has reshaped how companies engage with their consumers, making customer experience and brand loyalty more critical than ever.
Rishi Tea has established a notable presence in the US Herbal Tea Market through its commitment to high-quality ingredients and unique blends that cater to health-conscious consumers. The company's strengths lie in its focus on artisanal sourcing methods, allowing it to present a diverse range of herbal offerings that highlight authentic flavors and potent health benefits. Rishi Tea prioritizes transparency in its supply chain and sustainability practices, appealing to consumers who are increasingly making choices based on environmental considerations. Their product range, which includes a variety of herbal infusions and teas that emphasize wellness, continually engages the growing consumer interest in holistic health. This dedication to quality and sustainability has helped Rishi Tea carve out a specific niche in the competitive herbal tea market.
Bigelow Tea has long been a formidable player in the US Herbal Tea Market, known for its commitment to delivering quality products while maintaining a strong family-oriented brand identity. The company offers a broad selection of herbal teas that appeal to diverse consumer tastes, including popular flavors that cater to both traditional and innovative preferences. Bigelow Tea’s strengths include its effective marketing strategies that resonate with a wide audience and a solid distribution network that ensures availability across numerous retail channels. Additionally, Bigelow Tea has expressed sustained growth through mergers and strategic partnerships, allowing it to expand its reach and enhance its product offerings. The brand's emphasis on quality ingredients and its legacy of flavor craftsmanship further solidify its competitive edge, making it a trusted name in households across the United States.
Rishi Tea
Republic of Tea
Twinings
Celestial Seasonings
Tazo
David's Tea
Yogi Tea
Numi Organic Tea
Teavana
Traditional Medicinals
Harney and Sons
Pukka Herbs
Lipton
Stash Tea
US Herbal Tea Market Industry Developments
The US Herbal Tea Market has recently experienced significant growth, fueled by an increasing consumer inclination towards health and wellness products. Major players like Rishi Tea, Bigelow Tea, and Republic of Tea reported improved market valuation amid the burgeoning demand for organic and specialty teas. In September 2023, Tazo announced a new line of herbal blends crafted specifically for mindful drinking, reflecting a shift towards wellness-oriented products. Additionally, David's Tea is expanding its distribution channels within the US, enhancing accessibility. Notable company developments include a merger between Celestial Seasonings and Harney and Sons in August 2023, aiming to consolidate their market position and product offerings. Over the past couple of years, Twinings and Pukka Herbs have also witnessed a surge in popularity among consumers seeking herbal solutions, contributing to a significant rise in sales. This momentum in the herbal segment aligns with a broader trend of health-conscious consumption, which is expected to shape future product innovations and marketing strategies in the US Herbal Tea Market.
US Herbal Tea Market Segmentation Insights
Herbal Tea Market Type Outlook
Cinnamon
Dandelion
Chamomile
Ginger
Turmeric
Blends
Others
Herbal Tea Market Function Outlook
Cognitive Health
Gut & Digestive Health
Multifunctional
Others
Herbal Tea Market Form Outlook
Tea Bags
Loose Leaf
Herbal Tea Market Distribution Channel Outlook
Store-Based
Non-Store-Based
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 850.98(USD Billion) |
| MARKET SIZE 2024 | 911.65(USD Billion) |
| MARKET SIZE 2035 | 1881.91(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.811% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Rishi Tea, Bigelow Tea, Republic of Tea, Twinings, Celestial Seasonings, Tazo, David's Tea, Yogi Tea, Numi Organic Tea, Teavana, Traditional Medicinals, Harney and Sons, Pukka Herbs, Lipton, Stash Tea |
| SEGMENTS COVERED | Type, Function, Form, Distribution Channel |
| KEY MARKET OPPORTUNITIES | Organic product demand surge, Health-conscious consumer growth, Diverse flavor innovations, Sustainability-focused packaging solutions, E-commerce channel expansion |
| KEY MARKET DYNAMICS | Health consciousness trend, Increasing herbal product variety, Rising demand for caffeine alternatives, Growing awareness of herbal benefits, Expanding online retail channels |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Herbal Tea Market is projected to reach a size of 911.65 USD Billion in 2024.
By 2035, the US Herbal Tea Market is expected to be valued at 1881.91 USD Billion.
The expected CAGR for the US Herbal Tea Market is 6.811% from 2025 to 2035.
By 2035, ginger tea is projected to have the highest market value at 450.0 USD Billion.
Cinnamon herbal tea is valued at 150.0 USD Billion in 2024.
Key players include Rishi Tea, Bigelow Tea, Republic of Tea, and Twinings, among others.
Dandelion herbal tea is expected to grow from 120.0 USD Billion in 2024 to 250.0 USD Billion by 2035.
Emerging trends are driving an increase in demand for herbal tea, promoting health and wellness.
Turmeric herbal tea is projected to reach a market value of 481.91 USD Billion in 2035.
Key growth drivers include the increasing health consciousness and rising demand for natural beverages.
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