Report Overview

India Herbal Tea Market – Industry Trends & Forecast Report, 2030

India Herbal Tea Market size by value was estimated at USD 8.09 billion in 2023. During the forecast period between 2024 and 2030, the India Herbal Tea Market size is projected to grow at a CAGR of 5.74% reaching a value of USD 15.36 billion by 2030. Prominent drivers of the market are the rising lifestyle-related ailments, including diabetes and cardiovascular diseases and increasing awareness of the health advantages associated with herbal tea, particularly in addressing conditions like cancers and obesity. Polyphenols present in the tea have demonstrated substantial inhibitory effects on tumor cell growth and the induction of apoptosis or cell death. Given the global rise in the prevalence of these health issues, with heart diseases and cancer ranking as the leading causes of annual mortality, there is a projected increase in demand for herbal tea. Also, the skincare sector is experiencing increased demand for herbal tea products due to their rich content of antioxidants and minerals, acknowledged for their ability to decelerate skin aging and rejuvenate skin damaged by the sun. Notably, various cosmetic brands have introduced facial scrubs and kits incorporating Green Tea, targeting the treatment of acne, blackheads, and other skin-related concerns. This expansion of herbal tea into a novel industry is expected to stimulate market demand.

By volume, the India Herbal Tea Market size was estimated at 542.87 million kg in 2023. During the forecast period between 2024 and 2030, the India Herbal Tea Market size is projected to grow at a CAGR of 5.21% reaching the volume of 788.53 million kg by 2030. A recent data indicates a noteworthy 12.06% surge in India's overall tea production, reaching 182.84 million kg in October 2023 compared to 163.15 million kg in the same period last year. Key contributors to this increase include West Bengal, Assam, and small tea growers, with the CTC variety dominating production at 167.72 million kg. Green tea production accounted for 2.14 million kg.

Herbal Tea – Overview

Herbal tea, a non-caffeinated beverage, is crafted by infusing leaves, fruits, flowers, and roots from edible plants, excluding the Camellia sinensis plant used in traditional tea. It can be enjoyed in diverse ways, whether hot or cold, and serves as a versatile ingredient in various recipes, ranging from beverages and desserts to sauces. The preparation involves steeping the desired plant parts in boiling water, followed by straining and optional sweetening. Common herbal tea varieties, such as chamomile, peppermint, ginger, hibiscus, and rooibos, offer health benefits like aiding digestion, inducing relaxation, and boosting the immune system. This adaptable beverage can be enjoyed through loose herbs or convenient pre-packaged tea bags, making it a versatile choice for creating iced teas, smoothies, cocktails, and baked goods.

India Herbal Tea Market

Growth Drivers

Rising Health Consciousness among Consumers

The growing awareness among consumers regarding the health advantages associated with herbal tea is a major catalyst for market expansion. Herbal tea offers various benefits, such as reducing inflammation, enhancing immune system function, and lowering the risk of cancer. Polyphenols found in tea, as indicated by the National Cancer Institute, may mitigate the risk of tumor growth. Regular consumption of herbal tea is also linked to reduced risks of diabetes, high cholesterol, kidney disease, Parkinson’s disease, and osteoporosis. Prepared by steeping herbs, fruits, seeds, or roots in hot water, herbal teas have lower antioxidant concentrations compared to green, white, black, and oolong teas. Despite this, they remain rich in vitamins, minerals, and antioxidants, delivering both short and long-term health benefits. Consequently, there is a growing demand for herbal tea in India.

Challenges

Potential Health Concerns

The surge in health concerns is notably impacting growth of India Herbal Tea Market, as the consumption of this beverage has been linked to various side effects in certain individuals. These effects include headaches, heartburn, skin flushing, mouth soreness, vomiting, nausea, dizziness, and hormonal imbalances. Additionally, for individuals allergic to any components within the tea, there is a risk of experiencing severe reactions, such as anaphylactic shock. These potential health issues present a significant challenge to the growth trajectory of the Herbal Tea Market. It underscores the imperative for careful consideration and awareness of potential side effects associated with herbal tea consumption amidst the rising concerns about health impacts.

Impact of Escalating Geopolitical Tensions on India Herbal Tea Market

Geopolitical tensions can have a multifaceted impact on the India Herbal Tea Market. Heightened geopolitical instability can disrupt the supply chain, affecting the procurement of essential ingredients for herbal tea production. Fluctuating diplomatic relations and trade uncertainties may lead to increased costs, influencing market dynamics and pricing structures. Moreover, geopolitical tensions can influence consumer sentiment, impacting purchasing patterns and market demand. Stakeholders in the India Herbal Tea Market need to navigate these complexities, adapt supply chain strategies, and monitor geopolitical developments closely to mitigate potential disruptions and sustain market stability amid the challenging geopolitical landscape.

India Herbal Tea Market

Segmental Coverage

India Herbal Tea Market – By Type

By type, the India Herbal Tea Market is bifurcated into Mixed Blend and Single Blend segments. The mixed blend segment holds a higher share in the India Herbal Tea Market by type. It is primarily driven by the increasing favor for diverse ingredient combinations. This trend is attributed to the introduction of blends such as chamomile and hibiscus, tea with lemon and ginger, lemongrass, and blue pea tisane flower herbal tea. The appeal of mixed blends lies in their nutritional properties and health functionalities. This preference for varied ingredients and the perceived health benefits contribute to the prominence of mixed blend herbal tea in the market. Also, the mixed blend segment includes herbs & herbs, herbs & flower tea, and herbs & fruits.

India Herbal Tea Market – By Pack Type

Based on pack type, the India Herbal Tea Market is divided into Pouches, Jars/Cans, and Tea Bag segments. The pouches segment holds the highest share in the India Herbal Tea Market by pack type. It can be attributed to features such as zippers, resealing capabilities, and space-efficient storage, making them the favored choice for families. Additionally, the inclusion of hang holes, spouts, and tear notches is expected to contribute to the increased demand for herbal tea in pouches.

India Herbal Tea Market – By Distribution Channel

Based on distribution channel, the India Herbal Tea Market is divided into Supermarkets & Hypermarkets, Online Stores, Convenience Stores, and Specialty Stores segments. The online stores segment holds the highest share in the India Herbal Tea Market by distribution channel. It can be attributed to the convenience and accessibility it offers to consumers. Online platforms provide a wide array of herbal tea options, enabling consumers to explore and purchase products conveniently from the comfort of their homes. The ease of comparing prices, reading reviews, and accessing a diverse range of brands contributes to the popularity of online stores. Furthermore, the growing digitalization, coupled with doorstep delivery services, enhances the overall customer experience. As a result, the online stores segment holds the highest market share, reflecting the evolving consumer preferences and the digital transformation of retail.

India Herbal Tea Market – By Region

Geographically, the India Herbal Tea Market is divided into North India, South India, East India, and West India regions. The North India region holds the highest share in the India Herbal Tea Market. It is primarily due to an increasing health awareness among the population, the convenient accessibility of herbal tea through e-commerce platforms and distribution channels, and the growing trend of urbanization with a simultaneous migration of rural residents to urban areas. The dominance of North India in the herbal tea market can be attributed to the combined impact of health consciousness, digital availability, and urbanization trends, emphasizing the region's significance in shaping the market landscape.

Competitive Landscape

Major players operating in India Herbal Tea Market include Dabur India Limited, Dharmsala Tea Company, Goodwyn Tea, Hain Celestial Group, Hindustan Unilever Ltd, Organic India Pvt Ltd, Tata Consumer Products, Teabox, Typhoo India Tea Limited, and Yogi Tea. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Mixed Blend

• Single Blend

By Pack Type

• Pouches

• Jars/Cans

• Tea Bag

By Distribution Channel

• Supermarkets & Hypermarkets  

• Online Stores

• Convenience Stores

• Specialty Stores

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Herbal Tea Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rise in health consciousness among consumers
         2. Growing awareness of the traditional benefits of herbal ingredients
         3. Rise in disposable income
         4. Expansion of distribution channels
      2. Restraints
         1. Potential health concerns
         2. Allergic reactions
         3. Challenges in maintaining consistent quality and taste due to variations in herbal ingredients
      3. Opportunities
         1. Growing trend towards wellness and holistic health
         2. Collaboration with health and wellness influencers
         3. Innovation in flavors and blends
      4. Challenges
         1. Lack of standardized regulations for herbal tea
         2. Price sensitivity among consumers
         3. Adapting to changing consumer preferences and maintaining relevance in a dynamic market
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Herbal Tea Market, Pricing Analysis
5. India Herbal Tea Market: Marketing Strategies
6. India Herbal Tea Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Mixed Blend
            1. Herbs & Herbs
            2. Herbs & Flower Tea
            3. Herbs & Fruits
            4. Others      
         2. Single Blend
            1. Flower Tea
            2. Herbs
            3. Fruit
      2. By Pack Type
         1. Pouches
         2. Jars/Cans
         3. Tea Bag
      3. By Distribution Channel
         1. Supermarkets & Hypermarkets    
         2. Online Stores
         3. Convenience Stores
         4. Specialty Stores
         5. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Herbal Tea Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Pack Type
      3. By Distribution Channel
8. South India Herbal Tea Market
   1. Market Size & Forecast, 2019–2030
   2. By Value (USD Billion)
   3. Market Share & Forecast
      1. By Type
      2. By Pack Type
      3. By Distribution Channel
9. East India Herbal Tea Market
   1. Market Size & Forecast, 2019–2030
   2. By Value (USD Billion)
   3. Market Share & Forecast
      1. By Type
      2. By Pack Type
      3. By Distribution Channel
10. West India Herbal Tea Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Pack Type
       3. By Distribution Channel
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Herbal Tea Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
12. India Herbal Tea Market: Import & Export
13. India Herbal Tea Market: Consumer Behavior Analysis
14. Impact of Escalating Geopolitical Tensions in India Herbal Tea Market
15. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Dabur India Limited
    2. Dharmsala Tea Company
    3. Goodwyn Tea
    4. Hain Celestial Group
    5. Hindustan Unilever Ltd
    6. Organic India Pvt Ltd
    7. Tata Consumer Products
    8. Teabox
    9. Typhoo India Tea Limited
    10. Yogi Tea
    11. Other Prominent Players
16. Key Strategic Recommendations
17. Research Methodology
    1.       Qualitative Research
       1.   Primary & Secondary Research
    2.       Quantitative Research
    3.       Market Breakdown & Data Triangulation
       1.   Secondary Research
       2.   Primary Research
    4.       Breakdown of Primary Research Respondents, By Region
    5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       India Herbal Tea Segmentation

Figure 2       India Herbal Tea Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 5       India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 6       India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 7       India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Figure 8       India Herbal Tea Market Share, By Region, By Value, 2019–2030

Figure 9       North India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 10     North India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 11     North India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 12     North India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Figure 13     South India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 14     South India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 15     South India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 16     South India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Figure 17     East India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 18     East India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 19     East India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 20     East India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Figure 21     South India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 22     South India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 23     South India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 24     South India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Figure 25     West India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Figure 26     West India Herbal Tea Market Share, By Type, By Value, 2019–2030

Figure 27     West India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Figure 28     West India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

List of Tables

Table 1        India Herbal Tea Segmentation

Table 2        India Herbal Tea Market Value Chain Analysis

Table 3        Company Market Size Analysis, 2023

Table 4        India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 5        India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 6        India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 7        India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 8        India Herbal Tea Market Share, By Region, By Value, 2019–2030

Table 9        North India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 10      North India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 11      North India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 12      North India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 13      South India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 14      South India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 15      South India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 16      South India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 17      East India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 18      East India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 19      East India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 20      East India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 21      South India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 22      South India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 23      South India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 24      South India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 25      West India Herbal Tea Market Size, By Value (USD Billion), 2019–2030

Table 26      West India Herbal Tea Market Share, By Type, By Value, 2019–2030

Table 27      West India Herbal Tea Market Share, By Pack Type, By Value, 2019–2030

Table 28      West India Herbal Tea Market Share, By Distribution Channel, By Value, 2019–2030

Table 29      Dabur India Limited Company Overview

Table 30      Dabur India Limited Financial Overview

Table 31      Dharmsala Tea Company Overview

Table 32      Dharmsala Tea Company Financial Overview

Table 33      Goodwyn Tea Company Overview

Table 34      Goodwyn Tea Financial Overview

Table 35      Hain Celestial Group Company Overview

Table 36      Hain Celestial Group Financial Overview

Table 37      Hindustan Unilever Ltd Company Overview

Table 38      Hindustan Unilever Ltd Financial Overview

Table 39      Organic India Pvt Ltd Company Overview

Table 40      Organic India Pvt Ltd Financial Overview

Table 41      Tata Consumer Products Company Overview

Table 42      Tata Consumer Products Financial Overview

Table 43      Teabox Company Overview

Table 44      Teabox Financial Overview

Table 45      Typhoo India Tea Limited Company Overview

Table 46      Typhoo India Tea Limited Financial Overview

Table 47      Yogi Tea Company Overview

Table 48      Yogi Tea Financial Overview