India’s herbal tea market is fuelled by increasing consumer health awareness and a preference for natural, nutritious drinks, with consumers shifting from traditional ‘chai’ to Ayurvedic and herbal tea varieties. With a projected size of INR 5,617.1 crore by 2032 at a CAGR of 13.7%, this market is thriving. As health-conscious consumers embrace herbal teas for their myriad health benefits, brands are responding with innovative blends.
This market is characterised by diverse product offerings, ranging from herbal infusions and Ayurvedic creations to functional and artisanal blends, appealing to a broad spectrum of consumers. The shift in preferences from traditional CTC tea to herbal and green varieties marks a significant transformation in drinking habits, enhanced by the rising popularity of e-commerce and sustainable practices. As entrepreneurs and established brands alike tap into this dynamic landscape, the future of the herbal and Ayurvedic tea industry looks promising, poised for continued growth and innovation while embracing the rich cultural heritage of Indian wellness traditions.
Herbal and ayurvedic teas have sparked significant growth and transformation in the tea market. Beyond the traditional chai loved across the country, tea in India is now evolving into a symbol of health, wellness, and lifestyle change.
As health-conscious consumers increasingly seek natural alternatives to processed drinks, the market for these aromatic blends is flourishing, creating exciting opportunities for entrepreneurs and established brands alike.
Rohan Srivastava, Founder & CEO at Tea Leaf and Co, emphasises, “There’s a strong shift in consumer preferences from the traditional CTC tea (caffeine-free) to various types of herbal and green teas. Many people still get confused between herbal and green tea. Green tea comes from the tea plant itself, and you’ll typically find it in regions like Nepal, Darjeeling, and Siliguri. Herbal tea, on the other hand, isn’t technically tea, as it’s made from herbs. We use ingredients like chamomile, hibiscus, ashwagandha, and others. So, while green tea doesn’t contain herbs by default, you can have a blend like green herbal tea.”
From the essence of wellness contained in every cup to the magnetic allure of new blends, the herbal and Ayurvedic tea market is a whirlwind of creativity, flavour, and tradition intertwining to shape the future of health beverages in India. With every sip, consumers seek not just a refreshing drink but a holistic experience, that connects them to their roots and also propels them towards a healthier lifestyle.
Herbal and Ayurvedic teas are more than just beverages; they represent a shift toward healthier, more mindful living. The Indian tea market has transformed, blending tradition with modern wellness trends. These teas offer not only unique flavors but also significant physical and mental benefits, making them essential to the routines of health-conscious consumers. No longer a niche category, herbal and Ayurvedic teas have become a lifestyle choice, symbolizing the blend of age-old Ayurvedic wisdom and contemporary lifestyle preferences.
With a projected market size soaring from INR 1,697.6 crore (US$ 201.67 million)in 2023 to an astounding INR 5,617.1 crore (US$ 668.04 million) by 2032, driven by a CAGR of 13.7%, the numbers clearly indicate that India is now increasingly opting for herbal and ayurvedic tea varieties.
Snigdha Manchanda, Founder of Tea Trunk, is India’s first certified tea sommelier. Snigdha’s love for tea began from her father’s vintage trunk; later, she started Tea Trunk in 2013 so that more people enjoy good-quality tea., directly sourced from farmers. She states, “I see an increasing interest in people drinking herbal tea throughout the day. Consumers are becoming more aware of the health and wellness benefits of herbal teas, enjoying them in the morning, afternoon, evening, and even before sleeping. A lot of ingredients, such as turmeric, ginger, and ashwagandha herbs, have been used in Ayurveda since ancient times, providing numerous health benefits. These products can help boost health and immunity. Overall, the growth of this sector is driven by the health and wellness trend.”
| Segmentation criteria | Category | Description |
|---|---|---|
| Demographics | Age | Primarily consumed by adults over 50 |
| Millennials and Gen Z are emerging key consumers | ||
| Gender | Higher consumption among females compared to males | |
| Income | Tea consumption increases with rising income and educational levels | |
| Psychographics | Lifestyle | Younger consumers prefer trendy, flavored herbal teas |
| Older consumers prioritize convenience and traditional flavors | ||
| Values | Health-conscious individuals seek organic and herbal options | |
| Interests | Sustainability influences younger consumers significantly | |
| Behavioral Factors | Usage | Distinction between social use (gifting) and self-use occasions |
| Loyalty | Brand loyalty is influenced by quality, health benefits, and taste | |
| Purchase Occasion | Seasonal preferences for blends (e.g., iced herbal teas in summer) |
The herbal and Ayurvedic tea sector has expanded significantly, offering consumers a wide range of options that cater to diverse tastes and wellness goals. Varieties such as calming chamomile, invigorating ginger, detoxifying tulsi, and rejuvenating ashwagandha have become popular choices. This growing assortment reflects the sector’s commitment to combining authentic Ayurvedic principles with modern consumer preferences.
The availability of these unique blends enhances the appeal of herbal teas, positioning them as more than just drinks—key components of a health-focused lifestyle. This variety fuels consumer interest and drives market growth, appealing to those seeking both flavor and wellness in their daily routines.
Some of the popular variants available in the market are:
The sheer diversity of the market ignites a sense of exploration and passion among tea lovers, inviting them to embark on a sensory journey with each cup they brew.
The explosion of interest in herbal and Ayurvedic teas is no mere coincidence. A confluence of compelling factors is steering this industry to unprecedented heights. The following growth drivers highlight the underlying forces shaping this colourful market.
The future holds enormous promise for the herbal and Ayurvedic tea market, with endless opportunities for growth and evolution. With a growing consumer curiosity, brands are exploring unique, limited-edition flavours to engage audiences seeking new experiences. Authenticity also holds immense appeal, as consumers increasingly value brands rooted in heritage and sustainability, fostering deep loyalty.
Rohan Srivastava adds, “The shift towards herbal and green teas gained momentum after COVID, as people worldwide became more health-conscious. Over the past 10 years, especially with multinational brands entering the market, it’s been expanding at an estimated 14-15% CAGR each year. It’s undoubtedly a strong market to enter.”
The integration of wellness aligns tea with health benefits, propelling brands to educate consumers on its holistic potential. Collaborative efforts, including partnerships with health experts and influencers, are enhancing visibility and market reach. Additionally, Indian herbal teas are tapping into a global market, with a promising export outlook and rising international demand.
The Indian herbal and Ayurvedic tea market stands at an exhilarating juncture, poised for a vibrant future. This industry is more than just a collection of products; it represents a lifestyle revolution that harmonises health, joy, and innovation. Businesses have the opportunity to immerse themselves in a dynamic narrative of consumer transformation and igniting a passion for well-being.
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Indusfood, India’s largest food trade show, provides a vital platform for stakeholders in the herbal and Ayurvedic tea industry to showcase their innovative products to a global audience. As a premier food exhibition, Indusfood enables tea brands to network with potential buyers, distributors, and industry experts, facilitating collaboration and market expansion. By offering exposure at this leading Indian food exhibition, businesses can connect with new partners, enhance visibility, and explore emerging trends, helping them tap into India’s booming herbal tea market and expand their reach both locally and internationally.
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