Authored By: Sarah
15 Jul 2024

 Functional Tea Market Size to grow by USD 3348.54 million between 2023-2027

According to a research report “ Functional Tea Market” by Distribution Channel (Offline, Online ) Type (Herbal tea, Fruit tea, Flower tea, Others ) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 3348.54 million, at a CAGR of  6.4% during the forecast period. In the dynamic functional tea market, consumers are increasingly seeking tea products enriched with health-promoting ingredients. Functional teas, such as those infused with herbs and medicinal plant extracts, offer various health benefits. For instance, Yerba Mate tea, abundant in antioxidants and essential nutrients, enhances energy and immunity, improves mental focus, and aids in weight loss and physical performance. Additionally, it has been linked to reducing the risk of heart diseases and lowering blood sugar levels. Hibiscus tea, rich in vitamin C and flavonoids, is another popular functional tea. It is known to lower blood sugar levels, reduce blood pressure, aid digestion, alleviate menstrual cramps, and support liver health. These are just a few examples of the numerous functional tea options available, each offering unique health benefits.

Browse market data tables, figures, and in-depth TOC on “Functional Tea Market” by Distribution Channel (Offline, Online ) Type (Herbal tea, Fruit tea, Flower tea, Others ) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample


By Distribution Channel, the Offline segment is projected to dominate the market size in 2024

Functional herbal tea represents a burgeoning segment within the tea market, characterized by the use of medicinal plants and herbs to deliver health benefits. These beverages, prepared from leaves, tree bark, roots, seeds, and spices, exhibit a higher antioxidant content than traditional teas, making them a preferred choice for health-conscious consumers. The functional properties of herbal tea ingredients, such as linden leaf, holy basil, peppermint, and fennel, are well-documented in improving overall wellness and addressing specific health concerns. This demand stems from the ability of these herbs to cure various body ailments, thereby fueling growth in the functional herbal tea market.

By Type, Herbal tea  segment is expected to hold the largest market size for the year 2024

The offline functional tea market segment refers to the traditional distribution and sale of functional tea products through physical retail channels. This includes brick-and-mortar stores, supermarkets, specialty tea shops, and health food stores. Consumers visit these establishments to personally select and purchase functional teas, as opposed to online platforms. Offline distribution channels offer tangible benefits, such as the ability to examine products physically, engage in personalized customer interactions, and receive expert advice from knowledgeable staff. These channels contribute significantly to the functional tea market's growth by catering to consumers' sensory and informational needs.

North America is forecasted to hold the largest market size by region in 2024

The functional tea market in North America is experiencing robust growth due to the rising consumer preference for specialized tea varieties, including fruit tea, herbal tea, and instant functional tea. Key contributors to this expansion are the United States, Canada, and Mexico. The increasing health consciousness among consumers is fueling the demand for functional tea in the region. In 2020, functional tea, including herbal and fruit tea, accounted for a substantial portion of the total tea consumption in North America. Moreover, the adoption of functional tea in tea bag format is further propelling the market's expansion in the region.

The Functional Tea Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Arteasans Beverages LLC
  • Associated British Foods Plc
  • Barrys Tea
  • ekaterra
  • Godrej and Boyce Manufacturing Co. Ltd.
  • Harney and Sons Fine Teas
  • Herbaty Szlachetne Sp. z o. o
  • MJF Exports Pvt. Ltd.
  • Numi Inc.
  • Tata Sons Pvt. Ltd.
  • The Hain Celestial Group Inc.
  • The Organic Merchants
  • The Republic of Tea Inc.
  • Tiesta Tea Co.

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Research Analysis Overview

The functional tea market is experiencing significant growth due to increasing consumer awareness about the health benefits of tea. With a growing focus on wellness and natural remedies, the demand for tea, particularly functional tea types, is on the rise. The tea plantation acreage is expanding to meet this demand, with an emphasis on organic farming practices and quality assurance stamps. Digital innovations, including e-commerce platforms, are making it easier for consumers to access a wide range of functional tea types, such as Lavender Dream, Golden Jasmine, Petite Bouquet, Ceremonial Matcha, and Citrus Matcha, from brands like Numi. Functional teas are known for their high polyphenol content, which includes catechins and antioxidant properties, making them effective in managing weight, boosting metabolism, and promoting heart health. Functional teas are also used in the treatment of various diseases, including osteoporosis, cardiovascular diseases, and arthritis. The green tea segment is particularly popular due to its high antioxidant properties, which help prevent cell damage and reduce inflammation. Premiumization of functional teas is a growing trend, with consumers willing to pay a premium for high-quality, organic ingredients. Overall, the functional tea market is poised for continued growth as more consumers turn to these natural beverages for their health benefits.

Market Research Overview

The functional tea market is experiencing significant growth as consumers seek out natural remedies for various health conditions, from osteoporosis and cardiovascular diseases to arthritis and stress. The tea plantation acreage, primarily Camellia sinensis, is expanding to meet the demand for nutrient-enriched beverages with antioxidant properties. Digital innovations, such as e-commerce platforms, have made it easier for consumers to access these teas, even from small-scale producers. Functional teas come in various types, including green, oolong, white, and herbal blends, each with unique health benefits. Antioxidants, catechins, and polyphenol content are key components of functional teas, providing energy boost, relaxation, stress reduction, and detoxification. Functional teas are also used for preventive healthcare and weight management. Functional tea functions range from immune-boosting properties in the immunity segment to diabetes, cancer, and chronic illnesses. Tea blends and botanical infusions offer flavors that cater to diverse consumer preferences, while convenience and portability are essential factors in the bags segment. Premiumization and health benefits have led to the popularity of organic ingredients, such as Sunset Oolong, Dragon Lily, Lavender Dream, Golden Jasmine, Petite Bouquet, and Ceremonial Matcha. Retailers and ingredient suppliers are innovating to meet consumer demands, with convenience stores, specialty stores, and non-store-based options available. Industry innovations and lifestyle changes continue to shape the functional tea market, making it an essential part of the wellness industry.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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