North America Herbal Tea Market Research Report: By Type (Cinnamon, Dandelion, Chamomile, Ginger, Turmeric, Blends, Others), By Function (Cognitive Health, GutDigestive Health, Multifunctional, Others), By Form (Tea Bags, Loose Leaf) andBy Distribution Channel (Store-Based, Non-Store-Based)- Forecast to 2035

North America Herbal Tea Market Overview

North America Herbal Tea Market Size was estimated at 1,215.69 (USD Billion) in 2023.The North America Herbal Tea Market Industry is expected to grow from 1,300(USD Billion) in 2024 to 2,700 (USD Billion) by 2035. The North America Herbal Tea Market CAGR (growth rate) is expected to be around 6.87% during the forecast period (2025 - 2035).

Key North America Herbal Tea Market Trends Highlighted

The North America market of Herbal Tea has witnessed remarkable growth due to various factors. One of the most prominent drivers is the increase in health awareness, as people look for natural products to support their health. The shift away from sugar-sweetened beverages towards more organic and natural products has made herbal tea a popular option. Furthermore, the herbal teas’ popularity and availability throughout social media and the internet have given consumers the motivation to try out different flavors and benefits of herbal teas, which is something in which they are actively interested. There exists an abundant level of potential waiting to be tapped into in the North America market.

Marketers perceive an opportunity gap for herbal tea manufacturers due to demand for functional beverages providing health benefits like improved digestion, better sleep, or enhanced immune reactions. Moreover, there is room for crafting innovative herbal tea blends that cater to niche markets due to the increasing enthusiasm toward specialty and artisanal products. Increased brand accessibility through e-commerce aids in building customer relations, creating other avenues for customer interaction. Emerging trends within the North America Herbal Tea Market include greater availability of distinct herbal blends due to the changing tastes and experiences consumers seek. Eco-friendly sustainably sourced ingredients are gaining popularity, as companies strive to show greater responsibility towards the environment and their corporate actions.

Consumer interest in self-care products, including herbal teas, has surged recently due to the pandemic, and alongside these shifts, the North American herbal tea market is expected to grow in response to consumer health focus changes.

North America Herbal Tea Market Drivers

Growing Health Consciousness Among Consumers

The North America Herbal Tea Market Industry is witnessing significant growth driven by increasing health consciousness among consumers. According to the United States Centers for Disease Control and Prevention (CDC), approximately 40% of U.S. adults were considered obese in 2017-2018, highlighting a critical need for healthier lifestyle choices. Herbal teas are viewed as a beneficial alternative to sugary beverages and caffeinated drinks, contributing to weight management and wellness.Established organizations such as the Tea Association of the USA support and advocate for the consumption of herbal teas, which are perceived to offer various health benefits, including aiding digestion and reducing stress. This rising demand for healthier beverage options is expected to propel the North America Herbal Tea Market Industry forward and create new opportunities for growth.

Increase in Natural Ingredients Demand

The preference for natural ingredients is a prominent driver in the North America Herbal Tea Market Industry, especially as consumers become more aware of the potential health risks associated with artificial additives and preservatives. A report from the United States Department of Agriculture (USDA) indicates that organic food sales in the U.S. reached approximately $56 billion in 2020, a clear reflection of consumer preferences shifting towards natural products.Major companies like Bigelow Tea Company have expanded their product lines to incorporate more herbal tea options that use solely natural ingredients. This trend towards natural and organic options is likely to enhance the appeal of herbal teas within the North America Herbal Tea Market Industry.

Rising Popularity of Alternative Beverages

As consumer preferences shift towards alternative beverages, the North America Herbal Tea Market Industry is positioned for substantial growth. The Organic Trade Association reported that sales of organic beverages grew by 20% between 2018 and 2020, with herbal teas being a significant segment. Evolution Fresh, a beverage company, has noted an increased interest in innovative herbal tea blends that focus on wellness and purity. This shift towards alternative beverages encapsulates a lifestyle change among North American consumers, who are increasingly seeking refreshing and health-oriented options, thereby driving the expansion of the herbal tea category.

North America Herbal Tea Market Segment Insights:

Herbal Tea Market Type Insights

The North America Herbal Tea Market has shown considerable growth, with various types defining its landscape. Within the Type segment, numerous options cater to diverse consumer preferences, contributing significantly to the overall North America Herbal Tea Market revenue. Cinnamon has gained popularity for its antioxidant properties and appealing taste, making it a preferred choice amongst health-conscious consumers. Dandelion is recognized for its digestive benefits and is increasingly being explored by those seeking healthier lifestyles. Chamomile, well-known for its calming effects, continues to attract individuals looking for natural approaches to stress relief and enhanced sleep quality.Ginger is often chosen for its warm flavor profile and potential health advantages, particularly in alleviating nausea and boosting immunity, thereby aligning with current wellness trends. Turmeric has found its place in the market due to its anti-inflammatory benefits, appealing to consumers focused on health and wellness. Moreover, blended options are flourishing as they offer unique flavor combinations and health benefits, allowing brands to cater to the ever-evolving tastes of consumers. Lastly, the category of Others includes diverse herbal types, such as hibiscus and peppermint, which further enriches the North America Herbal Tea Market segmentation.The shifting consumer interests toward natural remedies and the growing awareness of the health benefits associated with herbal teas continues to drive the market growth, presenting opportunities for innovation and product development in the sector. These trends underline the importance of Type in the North America Herbal Tea Market, as preferences in this segment shape not only consumer behavior but also industry dynamics, making it a vital consideration for stakeholders aiming to tap into this thriving market.

Herbal Tea Market Function Insights

The Function segment of the North America Herbal Tea Market reflects a growing consumer awareness towards health and wellness, driving diverse preferences in herbal tea consumption. Cognitive Health is gaining traction as individuals seek natural alternatives to enhance mental clarity and focus, particularly amid rising stress levels and work demands. Robust interest in Gut and Digestive Health has emerged prominently as consumers gravitate towards products that promote gut flora and aid digestion, aligning with a broader trend of preventive health management.Multifunctional herbal teas, which combine benefits from various ingredients, are also becoming more popular as they offer consumers a holistic approach to wellness, catering to multiple health needs in a single product. While Other options in this market contribute to niche segments, they still play an essential role in fostering innovation and diversity in product offerings. Together, these segments reveal significant opportunities for growth and product development, aligning well with the increasing demand for natural, functional beverages among North American consumers.

Herbal Tea Market Form Insights

The North America Herbal Tea Market, particularly in the Form segment, is experiencing notable growth, driven by evolving consumer preferences towards healthier beverages. Tea Bags and Loose Leaf are the primary formats within this segment, both being embraced for their convenience and quality. Tea Bags are favored for their ease of use and quick preparation, making them appealing to a busy consumer base, while Loose Leaf tea offers a richer experience and superior flavor, attracting tea enthusiasts. The increasing health consciousness among consumers fuels the demand for herbal teas, which are often seen as beneficial for wellness and relaxation.Factors such as the rising trend of wellness-oriented beverages and the availability of diverse flavors are significantly shaping the North America Herbal Tea Market data. Additionally, the segmentation highlights opportunities for innovative blends and organic products, catering to a growing audience that values sustainability and natural ingredients. As the market continues to expand, brand differentiation and packaging will play crucial roles in addressing consumer preferences within this competitive landscape. The North America Herbal Tea Market statistics further underscore the importance of adaptability among producers in meeting the shifting demand dynamics in this region.

Herbal Tea Market Distribution Channel Insights

The North America Herbal Tea Market is poised for significant growth, driven largely by the Distribution Channel segment, which includes both Store-Based and Non-Store-Based channels. Store-Based channels play a crucial role in offering customers the sensory experience of browsing and sampling herbal teas, which appeals to many consumers seeking quality and variety. Meanwhile, Non-Store-Based channels, encompassing online platforms, have gained considerable traction owing to the convenience they provide, especially for younger demographics accustomed to digital shopping.The rise in e-commerce and digital marketing strategies is facilitating consumer access to a diverse range of herbal tea products, contributing to overall market growth. Trends such as health and wellness awareness further support this segment’s expansion as consumers lean towards natural beverages. The dynamic interplay between Store-Based and Non-Store-Based channels reflects the evolving consumer preferences and shopping habits in North America, making this segment a focal point for market participants looking to tap into the increasing demand for herbal tea options.

North America Herbal Tea Market Key Players and Competitive Insights:

The North America Herbal Tea Market is a dynamic and evolving sector characterized by a diverse range of offerings and the increasing popularity of health-oriented beverages. As consumers become more health-conscious, there is a growing demand for herbal teas, which are often perceived to provide various health benefits such as improved digestion, relaxation, and enhanced immunity. This competitive landscape features both established brands and emerging players, each striving to capture market share through innovative product formulations, strategic marketing practices, and comprehensive distribution channels. Many companies are focusing on sustainable sourcing practices and high-quality ingredients to meet the shifting preferences and expectations of tea drinkers, thereby fostering a competitive edge in this fast-growing market. The North American herbal tea market showcases a variety of flavors and blends that cater to different consumer tastes, supported by increasing awareness regarding the nutritional benefits associated with herbal teas.Yogi Tea stands out in the North American Herbal Tea Market with its strong commitment to wellness and a product line that emphasizes herbal remedies and holistic health benefits. Yogi Tea has established a reputable presence, known for its extensive range of flavors that often include unique blends designed to support specific health needs. The strengths of Yogi Tea lie in its ability to leverage consumer trends towards organic and natural options, as well as its dedication to sustainable practices that resonate with eco-conscious consumers. The brand’s marketing strategies highlight the emotional and experiential aspects of tea-drinking, promoting a lifestyle that appeals to health-focused individuals. As a result, Yogi Tea continues to enjoy robust consumer loyalty and recognition in the competitive landscape of herbal teas in North America.Suntory Beverage and Food has also carved out a significant share of the North American Herbal Tea Market, bolstered by its innovative approach and a portfolio of products designed to appeal to diverse customer preferences. The company offers a variety of tea products that combine traditional herbal ingredients with contemporary flavor innovations, catering to both health-oriented consumers and those seeking refreshing beverage options. Suntory has made strategic investments in the acquisition of brands that complement its existing portfolio in the herbal tea sector, among which are notable partnerships that enhance its market presence. The strengths of Suntory lie in its extensive distribution networks and marketing capabilities, which amplify brand visibility and accessibility within key retail channels. Mergers and acquisitions have enriched its offerings and allowed for synergy in production and marketing efforts, further solidifying its competitive positioning in the North American herbal tea landscape.

Key Companies in the North America Herbal Tea Market Include:

• Yogi Tea


• Suntory Beverage and Food


• Stash Tea


• Tazo Tea


• Harney and Sons


• Traditional Medicinals


• Republic of Tea


• The CocaCola Company


• Bigelow Tea


• Dilmah


• Nestle


• Celestial Seasonings


• Numi Organic Tea


• Unilever


• PepsiCo

North America Herbal Tea Market Industry Developments

The North America Herbal Tea Market has seen several significant developments recently. In September 2023, Unilever announced a new strategic initiative to expand its portfolio of herbal teas, leveraging consumer trends towards health and wellness. Similarly, in June 2023, Nestlé launched a new range of ready-to-drink herbal teas, addressing the increasing demand for convenient beverages. Mergers and acquisitions have also shaped this competitive landscape; in July 2023, The Coca-Cola Company acquired a minority stake in the herbal tea brand Tazo Tea, aiming to enhance its beverage portfolio and tap into the growing herbal tea segment. Market valuation for companies like Yogi Tea and Traditional Medicinals has been positively impacted by heightened consumer interest in herbal products, with revenue growth reported in early 2023. Major players including Bigelow Tea and Numi Organic Tea have focused on sustainability initiatives to appeal to environmentally conscious consumers, with announcements made regarding eco-friendly packaging redesigns in August 2023. Overall, the North America Herbal Tea Market is experiencing a transformational phase with evolving consumer preferences, product innovations, and strategic business realignments.

• North America Herbal Tea Market Segmentation Insights


• Herbal Tea Market Type Outlook
  
  
  
  • Cinnamon
  
  
  • Dandelion
  
  
  • Chamomile
  
  
  • Ginger
  
  
  • Turmeric
  
  
  • Blends
  
  
  • Others
  
  
  
  


• Herbal Tea Market Function Outlook
  
  
  
  • Cognitive Health
  
  
  • GutDigestive Health
  
  
  • Multifunctional
  
  
  • Others
  
  
  
  


• Herbal Tea Market Form Outlook
  
  
  
  • Tea Bags
  
  
  • Loose Leaf
  
  
  
  


• Herbal Tea Market Distribution Channel Outlook
  
  
  
  • Store-Based
  
  
  • Non-Store-Based
  
  
  
  

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	1215.69(USD Billion)
MARKET SIZE 2024	1300.0(USD Billion)
MARKET SIZE 2035	2700.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.87% (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	Yogi Tea, Suntory Beverage and Food, Stash Tea, Tazo Tea, Harney and Sons, Traditional Medicinals, Republic of Tea, The CocaCola Company, Bigelow Tea, Dilmah, Nestle, Celestial Seasonings, Numi Organic Tea, Unilever, PepsiCo
SEGMENTS COVERED	Type, Function, Form, Distribution Channel
KEY MARKET OPPORTUNITIES	Growing demand for wellness products, Increasing awareness of health benefits, Rising trend of herbal infusions, Expansion of online retail channels, Innovations in unique flavor profiles
KEY MARKET DYNAMICS	Health consciousness among consumers, Growing demand for natural ingredients, Increasing variety of herbal blends, Rise in online retail sales, Shift towards caffeine-free alternatives
COUNTRIES COVERED	US, Canada