Herbal Beverages Market Set to Reach USD 3.82 Billion by 2034, Driven by Health Trends | Towards FnB
According to Towards FnB, the global herbal beverages market size is calculated at USD 2.10 billion in 2025 and is forecasted to hit around USD 3.82 billion by 2034, advancing at a CAGR of 6.9% during the forecast period 2025 to 2034. This growth is fueled by increasing demand for healthier, natural alternatives to sugary drinks and growing consumer interest in functional beverages.
Ottawa, Sept. 26, 2025 (GLOBE NEWSWIRE) -- The global herbal beverages market size stood at USD 1.96 billion in 2024 and is anticipated to increase from USD 2.10 billion in 2025 to reach nearly USD 3.82 billion by 2034, at a CAGR of 6.9% from 2025 to 2034, according to study published by Towards FnB, a sister firm of Precedence Research.
The market has been experiencing significant growth in recent years, driven by the increasing number of health-conscious consumers worldwide, which in turn has heightened demand for herbal and functional drinks. Such drinks are beneficial for the gut and digestive system, thereby driving global market growth.
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Key Highlights of the Herbal Beverages Market
- By region, North America led the herbal beverages market in 2024, while the Asia Pacific is expected to grow significantly during the forecast period.
- By product type, the loose leaf teas segment led the herbal beverages market in 2024, whereas the ready-to-eat beverages segment is observed to grow at a notable rate in the forecast period.
- By packaging, the sachets segment dominated the herbal beverages market, whereas the tetra pack segment is expected to grow in the expected timeframe.
- By form, the liquid segment led the herbal beverages market in 2024, whereas the ready-to-drink segment is expected to grow with the highest CAGR in the foreseen period.
- By application, the energy and immunity segment led the herbal beverages market in 2024, whereas the detoxification segment is expected to grow in the foreseeable period due to the rising population of the health and wellness community.
- By end use, the individual consumers segment dominated the herbal beverages market, whereas the food services segment is expected to grow in the foreseeable period.
Rising Health-Conscious Attitude leading to High demand for Herbal Beverages
The herbal beverages market is experiencing growth due to a rising health-conscious population, which further enhances the demand for herbal, organic, and fresh produce. The market signifies the manufacturing of herbal beverages from multiple ingredients, including fresh and dried flowers, fruits, seeds, and nuts. They are also made from different types of functional ingredients, and the market also deals with botanical fusion, herbal fusion, and tisane. Herbal beverages, when consumed as part of a balanced and nutritious diet, work wonders for the human body. Hence, such factors further fuel the growth of the herbal beverages market.
The market is also rapidly expanding globally due to factors such as a shift in consumer preferences towards a healthy lifestyle, technological advancements driving market growth, product innovation, and high demand for natural and herbal beverage options. One of the key factors driving market growth is the health benefits of herbal beverages for immune support. Such organic and herbal beverages help to strengthen and enhance immunity, further aiding the market’s growth.
How has AI Impacted the Herbal Beverages Market?
Artificial intelligence (AI) has significantly impacted the herbal beverages market by accelerating product innovation, enhancing quality control, and fostering stronger consumer engagement. In research and development, AI-powered algorithms analyze large datasets from nutrition science, traditional medicine, and consumer behavior to create herbal beverage formulations that address specific health concerns such as stress relief, immunity, digestion, and sleep. Machine learning also predicts flavor compatibility and ingredient interactions, helping manufacturers design beverages that balance functional benefits with appealing taste profiles.
In manufacturing, AI-driven predictive analytics optimize extraction, blending, and packaging processes, ensuring consistency, reducing production costs, and minimizing waste. Quality assurance has also advanced, with AI-enabled sensors and computer vision systems detecting impurities, ensuring accurate labeling, and verifying the authenticity of ingredients. AI is powering personalized wellness solutions, with e-commerce platforms and mobile apps recommending herbal beverages tailored to individual health goals, preferences, and lifestyles. Sentiment analysis of social media and online reviews further provides real-time insights into consumer trends, such as demand for organic, caffeine-free, or adaptogenic drinks.
New Trends in the Herbal Beverages Market
- High shift of consumers towards healthy, organic, and functional products is one of the major factors for the growth of the herbal beverages market.
- The growing popularity of Ayurveda globally is another factor contributing to the market's growth. Such factors enable consumers to incorporate ancient Indian traditional practices into their daily products and activities, including yoga and asanas.
- Herbal beverages are a boon for a healthy digestive system. Hence, such factors significantly influence the growth of the herbal beverages market globally, attracting a large number of consumers to these products as well.
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Recent Developments in the Herbal Beverages Market
- In July 2025, Multiple Manipur entrepreneurs are introducing herbal teas as a healthy alternative to caffeinated drinks. These herbal beverages are crafted from Sumac berries, gooseberries, banana peels, and a variety of other organic ingredients. (Source- https://timesofindia.indiatimes.com)
- In May 2025, Erha, the world’s first functional beverage brand infusing super herbs and powerful nutraceuticals, announced the launch of its first-to-market line of powerful wellness drinks packed with scientifically-backed ingredients to support top consumer needs, including digestion, stress, and allergy relief. (Source- https://www.fb101.com)
The Wellness Drink Spectrum: Applications & Benefits of Herbal Beverages
| Product Type | Key Features / Ingredients | Health & Wellness Benefits | Common Applications |
| Herbal Teas & Infusions | Infusions made from herbs, flowers, fruits (chamomile, hibiscus, peppermint, rooibos, tulsi, etc.) | Promotes relaxation, digestion, immunity, and antioxidant support | Hot/cold herbal teas, functional blends |
| Functional Herbal Drinks | Ready-to-drink beverages with herbs (ginseng, ashwagandha, turmeric, ginger, etc.) | Energy boost, stress relief, improved focus, adaptogenic benefits | Wellness tonics, RTD herbal shots, energy boosters |
| Herbal Juices & Extract-based Drinks | Juices fortified with herbal extracts (aloe vera, moringa, amla, wheatgrass, etc.) | Detoxification, skin health, digestive aid, nutritional supplementation | Packaged herbal juices, smoothies, detox beverages |
| Herbal Coffee Alternatives | Coffee-like beverages made with chicory, dandelion root, maca, or herbal blends | Caffeine-free, gut-friendly, supports energy without jitters | Herbal coffee powders, instant mixes, café alternatives |
| Herbal Energy & Sports Drinks | Beverages infused with guarana, yerba mate, ginseng, and green tea extracts | Natural energy, improved endurance, reduced fatigue | Herbal energy shots, sports drinks, functional hydration |
| Herbal Dairy & Plant-based Beverages | Milk or plant-based drinks infused with herbs (golden milk with turmeric, spiced almond/oat milk) | Anti-inflammatory, immunity-boosting, calming | Flavored functional milks, latte blends, RTD plant-based herbal beverages |
| Herbal Kombucha & Fermented Drinks | Fermented teas infused with herbs, spices, or botanicals | Probiotic benefits, gut health, detox support | Bottled kombucha, herbal-fermented tonics |
| Ayurvedic & Traditional Herbal Drinks | Based on traditional medicine systems, includes kadha, herbal tonics, and Ayurvedic infusions. | Supports immunity, longevity, and holistic wellness | Ayurvedic teas, health tonics, cultural beverages |
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Herbal Beverages Market Dynamics
What are the growth drivers of the Herbal Beverages Market?
The rising shift of consumers towards opting for healthy, functional, and organic products is a major factor driving the growth of the herbal beverages market. Herbal beverages offer a range of health benefits, including improved digestion, enhanced gut health, reduced oxidative stress, and support for maintaining healthy sugar and cholesterol levels. Hence, such factors also contribute to the market's growth. Product innovation and rising technology are enhancing product quality, which in turn is helping the market grow by attracting more consumers each day. The high demand for functional and organic products among consumers with a conscious attitude also supports the market’s growth.
Challenge
Why are the High Costs of Herbal Products Obstructing the Market?
The rising exploitation of labor on plantations and high costs of raw materials for the preparation of herbal beverages are among the major restraints to the growth of the herbal beverages market. Specialty and functional ingredients are required for the preparation of herbal beverages, which are expensive.
Hence, it also affects the price of the final product. Hence, such issues also hinder the market's growth. Lack of awareness in different countries, maintaining standards according to sustainable farming requirements, avoiding the use of chemicals and pesticides, and following organic farming methods are other major issues restraining the market's growth.
Opportunity
How is Product Innovation Helping the Growth of the Market in the Foreseeable Future?
Experimentation and innovation with different types of herbal beverage flavors are driving the growth of the herbal beverages market. Such techniques are helping brands to attract more consumers globally. Different flavor combinations with novel tastes are a major factor driving the market's growth. Along with flavor innovation, the availability of exciting offers and discounts by the brands is another major factor for the growth of the herbal beverages market. Such schemes and innovations enable consumers to remain loyal to a brand, thereby further fueling the market's growth.
Herbal Beverages Market Regional Analysis
North America led the Herbal Beverages Market in 2024
A growing health-conscious crowd, sustainability, product innovation, and an understanding of the link between health and nutrition are some of the major factors driving the growth of the herbal beverages market in North America. The growing food and beverage industry in the region is a major factor driving the market's growth. A growing population with a conscious attitude, influenced by the marketing of healthy brands and products, is also a vital factor driving the market's growth in the region. The US plays a significant role in driving the market’s growth in North America.
Asia Pacific is expected to grow in the forecast period
The Asia Pacific is expected to grow in the foreseeable future, contributing to the growth of the herbal beverages market. The region is rich in the availability of various traditional herbal beverages, driving the market's growth. The region is also filled with various herbal beverage flavors and concoctions, including peppermint, ginger, hibiscus, chamomile, jasmine, and many more.
Hence, such factors highly influence the growth of the herbal beverages market in the foreseen period. Countries like India, China, Japan, and South Korea have made a significant contribution to the growth of the market in the region, largely due to the high number of consumers adopting the use of herbal and organic beverages on a large scale.
Herbal Beverages Market Report Scope
| Report Attribute | Key Statistics |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Growth Rate from 2025 to 2034 | CAGR of 6.9% |
| Market Size in 2025 | USD 2.10 Billion |
| Market Size in 2026 | USD 2.24 Billion |
| Market Size by 2034 | USD 3.82 Billion |
| Dominated Region | North America |
| Fastest Growing Region | Asia Pacific |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
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Herbal Beverages Market Segmental Analysis
Product Analysis
The loose-leaf teas segment led the herbal beverages market in 2024, driven by high demand in certain countries. Such teas help manage various health issues related to a hectic lifestyle, including diabetes, obesity, high cholesterol, and high blood pressure. Hence, the segment led the growth of the herbal beverages market in 2024.
The ready-to-eat segment is expected to grow in the foreseeable period, as it aids consumers with hectic schedules. They are easy to prepare and can be consumed directly, allowing consumers to save time, which further fuels the market's growth. The growth of e-commerce platforms and the increasing availability of various products online further fuel the market’s growth in the foreseeable future.
Packaging Analysis
The sachet segment led the herbal beverages market in 2024 due to its ease of use and maintenance, allowing consumers to stay at ease. Sachets are easy to use and carry, allowing the segment to contribute to the market's growth. They can also be carried while traveling, allowing consumers to maintain their nutritional intake even when outdoors. They are mess-free and hygienic to use, further fueling the market’s growth. They have a specific standard taste and nutritional content, further helping the market’s growth.
The tetra pack segment is expected to grow in the foreseeable period due to its convenience, allowing consumers to access different types of liquid products with ease. Such tetra packs are available in various sizes, making it easy for consumers to carry, which further supports the market's growth. They are available in a square shape, allowing consumers to carry them easily outdoors, which will further help the market grow in the foreseeable future.
Form Analysis
The liquid segment dominated the herbal beverages market in 2024 due to high demand for this form, as it is easy to consume and can be used for other purposes. The liquid form is rich in various types of nutrient factors, including polyacetylenes, alkaloids, coumarins, flavonoids, phenolic acids, and carotenoids. They are helpful to enhance the nutritional quotient of a beverage, further fueling the market’s growth. The form also aids in weight management, further enhancing its usefulness for market growth.
The ready-to-drink segment is expected to grow in the foreseeable future, as it supports the hectic schedules of consumers. They are nutritious, easy to consume, and easy to carry outdoors, hence are highly demanded, further fueling the market’s growth in the foreseeable period. The segment also signifies the use of ready-to-drink beverages that are high in both taste and nutrition, allowing consumers to maintain their nutritional intake and contributing to the market's growth. Such beverages also cater to the changing preferences of consumers.
Application Analysis
The energy and immunity-boosting segment dominated the herbal beverages market in 2024, as it highlights the importance of consuming herbal beverages for overall health and immunity. Such beverages are a convenient source of antioxidants that can help strengthen the immune system. They also help protect against various types of fungal, viral, and bacterial attacks, further fueling the growth of the herbal beverages market.
The detoxification segment is expected to grow in the foreseeable period due to the rising importance of detoxification among health-conscious consumers globally. The procedure helps to clear all heavy metals, toxins, and waste substances from the human system, which is further beneficial for market growth. Hence, it also helps to keep a person safe from multiple health issues that may damage the immune system and cause digestive problems.
End Use Analysis
The individual consumer segment dominated the herbal beverages market in 2024, driven by the growing population of health-conscious consumers seeking various types of herbal beverages. Such consumers also help enhance the demand for flavored herbal beverages, organic and functional beverages, further fueling the market's growth. The product category offers multiple health benefits, including easy weight management, toxin and waste removal from the body, and a healthy gut, which is beneficial for enhancing the growth of the herbal beverages market.
The food service segment is expected to grow in the foreseeable period due to the growing culture of café and tea/coffee houses. It allows people to socialize over various types of beverages, including herbal ones. Health-conscious consumers prefer different types of flavored beverages in such cafes, which allows them to gorge on flavored nutrition, further fueling the market’s growth. Hence, the segment is expected to make a significant contribution to the market's growth in the foreseeable future.
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Top Companies in the Herbal Beverages Market
- Coca-Cola – Expanding into herbal and functional beverages through brands like Honest Tea and Ayataka.
- PepsiCo – Offers herbal and functional drinks under brands such as Lipton (with Unilever) and Tropicana Essentials.
- Nestlé – Provides herbal teas, wellness drinks, and fortified beverages through its Nestlé Health Science division.
- Unilever Group – Owns major tea and herbal brands such as Lipton and Pukka Herbs, focusing on health-driven beverages.
- Suntory – Japanese beverage leader offering functional herbal teas and wellness drinks across Asia.
- Apeejay Surrendra Group – Indian conglomerate with the Typhoo brand, producing herbal and specialty teas.
- Arbor Teas – U.S.-based organic tea company specializing in loose-leaf herbal teas.
- Bigelow Tea – American family-owned company known for its herbal tea bags and wellness infusions.
- Celestial Seasonings (The Hain Celestial Group, Inc.) – Pioneer in herbal teas with popular blends like Sleepytime and wellness infusions.
- Dilmah Ceylon Tea Company – Sri Lankan tea company producing premium teas and expanding into herbal infusions.
- Harney & Sons Fine Teas – U.S. specialty tea brand offering premium herbal and botanical blends.
- Indigo Herbs – UK-based natural health company producing herbal teas, powders, and wellness beverages.
- Mountain Rose Herbs – U.S. supplier of organic herbs and herbal teas with a focus on sustainability.
- Numi, Inc. – U.S. brand known for organic, fair-trade herbal teas and functional blends.
- Pukka Herbs Limited – UK-based herbal tea company specializing in organic Ayurvedic wellness blends.
- Tielka Pty Ltd. – Australian organic tea brand offering herbal and loose-leaf blends with ethical sourcing.
-
Twining and Company Limited – Historic UK tea company with a wide range of herbal and fruit infusions.
Segments Covered in the Report
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 Use
- Individual Consumers
- Food service
- Institutional
By Region
North America
- U.S.
- Canada
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait
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Towards FnB is a global consulting firm specializing in the food and beverage industry, providing innovative solutions and expert guidance to elevate businesses. With an in-depth understanding of the dynamic F&B sector, we deliver customized market analysis and strategic insights. Our team of seasoned professionals is committed to empowering clients with the knowledge needed to make informed decisions, ensuring they stay ahead of market trends. Partner with us as we redefine success in the rapidly evolving food and beverage landscape, and together, we’ll navigate this transformative journey.
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