Indusfood - Asia’s Premier F&B Trade Show Brewing tradition and wellness: India’s Herbal Tea Market

Brewing tradition and wellness: India’s herbal and Ayurvedic tea market

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November 11, 2024

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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.

Waking up to healthier teas

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.

India's Herbal Tea Market Potential

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.”

Market Segmentation of India’s Herbal Tea

Segmentation criteriaCategoryDescription
DemographicsAgePrimarily consumed by adults over 50
Millennials and Gen Z are emerging key consumers
GenderHigher consumption among females compared to males
IncomeTea consumption increases with rising income and educational levels
PsychographicsLifestyleYounger consumers prefer trendy, flavored herbal teas
Older consumers prioritize convenience and traditional flavors
ValuesHealth-conscious individuals seek organic and herbal options
InterestsSustainability influences younger consumers significantly
Behavioral FactorsUsageDistinction between social use (gifting) and self-use occasions
LoyaltyBrand loyalty is influenced by quality, health benefits, and taste
Purchase OccasionSeasonal preferences for blends (e.g., iced herbal teas in summer)

Source: Emulent

A melting tea pot of products

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:

  • Herbal Tea Infusions: Combining various herbs and spices, these blends are designed not only to tantalise taste buds but also to provide specific health benefits. Popular favourites like turmeric chai and hibiscus are not just delicious; they are lauded for their immune-boosting and antioxidant properties.
  • Ayurvedic Creations: Crafting teas based on ancient Ayurvedic principles, brands cater to those seeking balance and harmony within their bodies. Detox kahwa and kapha soothing teas are just a few examples of how modern consumers are flocking to products that respect tradition while addressing contemporary wellness needs.
  • Functional Teas: With evolving health trends, there’s a delightful assortment of functional teas that serve specific purposes, from promoting relaxation to enhancing digestion. Picture a refreshing peppermint tea that soothes your stomach after a meal or a beloved adaptogenic blend that helps relieve stress after a long day.
  • Artisanal Blends: Innovative tea entrepreneurs create captivating flavours and blends, integrating local herbs like tulsi and adaptogens such as ashwagandha. These blends not only elevate flavour profiles but also enrich the health narratives that consumers are eager to explore.

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.

Popular herbal Tea brand in India

What Fuels the Craze of India’s herbal tea?

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.

  • Growing Popularity Among Health-Conscious Consumers: As more individuals prioritise health and wellness, herbal teas have become a preferred choice for those seeking natural, low-calorie, and nutritious beverage options.
  • Demand for Functional and Flavourful Beverages: Consumers are increasingly pursuing beverages that offer both health benefits and unique flavour experiences, prompting brands to innovate with functional blends and exotic ingredients.
  • Traditional Medicine Resurgence: A renewed interest in traditional medicinal practices, particularly Ayurveda, has fuelled the popularity of herbal teas that are perceived as beneficial for well-being and holistic health.
  • Diversified Distribution Channels: The expansion of e-commerce and retail platforms has made herbal teas more accessible, allowing consumers to explore and purchase a wider variety of products conveniently.
  • Sustainability Matters: As eco-consciousness influences consumer choices, the mindful sourcing of ingredients and eco-friendly packaging are taking centre stage.
Growth trend for India's herbal tea market

A Bright Horizon for the India’s herbal tea Industry

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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How can Indusfood help the herbal and Ayurvedic tea industry in India?

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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