Raphael Nyarkotey Obu’s thoughts … Herbal teas & 1D1F: a niche market to invest, expected to reach US$4.2bn by 2025


I have never regreted taking the bold steps to study holistic medicine as my profession. Do you know that about GH¢5,000 worth of herbal raw materials for a single herbal product could generate GH¢500,000 cool profit for you?  Interesting, Chinese and foreign natural medicinal products have infiltrated our market .

Market overview

According to the market research future, 2020   report, the Global Herbal Tea Market is expected to register a CAGR (Compound annual growth rate) of 4.94 percent to reach US$4.2 billion by 2025. Herbal teas or tisanes are caffeine-free and do not use the leaves of the Camellia sinensis plant. Tisanes are made using a mixture of dried leaves, seeds, grasses, nuts, barks, fruits, flowers, or other botanical elements that provide taste and various health benefits.

The global herbal tea market has been largely benefited by the high demand for functional beverages and the launch of new and innovative flavors. Several tea producers are entering the food & beverage industry, which is contributing to the growth of the herbal tea market across the globe. Furthermore, the market players are expected to witness growth opportunities due to the rising demand for organic products due to health concerns caused by chemical additives present in conventional products.

The changing lifestyles of the people are gradually amplifying the importance of herbal tea, and a large part of the population now prefers herbal tea over caffeinated forms of tea. This is a vital standpoint for the market growth and is expected to ensure a regular customer base for the market in the coming years.

Herbal tea is considered to be one of the most natural beverages due to the usage of rose, lavender, hibiscus, and chamomile. A number of tisanes such as leaf tisanes, spice tisanes, and fruit tisanes are used for making herbal tea leaves. The significance of herbal tea has gained momentum due to the seal of approval from health practitioners. It is expected that the market would grow hand-in-hand with the steep inclinations of the people towards healthier and natural consumption of food and beverages.

Several varieties of herbal teas have surfaced in recent times, and better research initiatives are excepted to introduce more products in the market. The market could be segmented based on raw materials, product type, packaging type, flavor type, and geography. The segments within each category play an important role in deciding the course of the market.

The report has been elucidated with key insights from the global herbal tea market to give a holistic purview of the market. Moreover, the various elements that could augment the progress of the market are also included in the report. Market players can gauge the opportunities floating in the market and make use of them to gain a higher market share. As a matter of caution to the stakeholders, the report has also given an account of the various restraints that are projected to surface in the market.

Market dynamics

The consumption of herbal tea is increasing across the globe, owing to its pleasant flavor, mildly stimulating effects, and medicinal properties. The growth of the global herbal tea market is driven by the high demand for functional beverages and the availability of several flavor variants. The increasing demand for organic products in developed economies is expected to offer lucrative opportunities to market players in the coming years.

However, the high costs of herbal tea as compared to its regular counterpart and limited product awareness in underdeveloped nations are expected to hamper the growth of the herbal tea market at the global level during the forecast period.


The blends segment accounted for the major share in 2018 and is expected to expand at a substantial CAGR and reach US$1.41billion by the end of 2025. The demand for blends of herbal tea is fueled by the multiple health benefits offered by the combination of two or more herbs. Moreover, increasing product launches of herbal tea in blends is projected to boost the sales of this segment during the forecast period.

Regional Analysis

Asia-Pacific accounted for the largest market share of 36.47% of the global herbal tea market in 2018. Tea is traditionally a preferred beverage in Asia, with the highest production derived from the region. China is the largest producer and consumer of herbal tea in the world. The rising demand for functional beverages in Europe is fueling the growth of the European herbal tea market. The demand for organic herbal tea is exceptionally high in the region due to increasing consumer inclination toward organic food & beverages.

The US is a major market for tea in North America, followed by Canada. Owing to the high prevalence of obesity in the region, the demand for herbal tea is rising as it assists in weight loss. Increasing consumption of herbal tea with health-promoting claims is driving the growth of the herbal tea market in South America with Brazil, Argentina, and Peru being the major country-level markets.

Key players

The prominent players operating in the global herbal tea market include Tata Global Beverages Limited (India), Unilever PLC (UK), Organic India Pvt. Ltd. (India), The Hain Celestial Group, Inc. (US), Associated British Foods PLC (UK), Barry’s Tea (Ireland), Apeejay Surrendra Group (India), Dilmah Ceylon Tea Company PLC (Sri Lanka), Harney & Sons (US), and Adagio Teas (US). The players operating in the global herbal tea market are focusing on product launches, acquisitions, and strengthening their footprints across the globe.

Global herbal tea market: key trends and opportunities

High caffeine levels in the body are expected to cause prolonged ailments because of which a number of medical practitioners are condemning its widespread usage. Since, herbal tea is free of caffeine, the market is experiencing heavy demand consumers in the current times. As customers become increasingly wary of their health, herbal products have become the watchword of the people. This has given a boost to the market for herbal tea and has created growth spaces for competitors.

Furthermore, the autoxidizing properties of herbal tea have also led to their usage amongst a large part of the population. Owing to the fat-burning properties of this tea, the rise of the health industry has underhandedly contributed to the growth of the market.

Certain herbs contained in herbal tea are considered to be extremely toxic, thus, causing numerous ailments within the body. Due to this reason, a number of customers and health practitioners are showing reluctance towards the usage of herbal tea. Nevertheless, the benefits of herbal tea outdo the tentative adversities caused by it.

Global herbal tea market: regional outlook

The global herbal tea market could be segmented into Europe, North America, the Middle East and Africa, Latin America, and Asia Pacific. Asia Pacific is expected to witness the highest growth rate over the coming years. This owes to the acceptance of the people towards herbal foods and beverages, and a history of tea consumption. It is followed by North America where herbal tea’s popularity is swiftly taking swing.  Europe is also expected to register a high growth rate in the coming years on account of the awakening regarding the usage of natural and herbal products.

Global herbal tea market: competitive landscape

The market players are expected to introduce novelty products in order to gain a competitive edge in the market. The growing demand from regions such as North America and Europe can also be utilized by market players to outdo competitors. The major players in the market include Nestle (U.S.), Unilever (U.K.), Mothers Parkers Tea (U.S.), Global Herbitech (India), Typhoo (India),

Coffee Inc. (U.K.), Green Earth Products Pvt. Ltd (India), Martin Bauer Group (Spain), Tata Global Beverages (India), Adagio Teas (U.S.), and Buddha’s Herbs (U.S.).

Global Herbal Tea Market: by raw materials

  • Green Tea
  • Black Tea
  • Yellow Tea

Global Herbal Tea Market: by flavor type

  • Chamomile
  • Ginger
  • Hibiscus
  • Fruit
  • Lemongrass
  • Peppermint

Global Herbal Tea Market: by product type

  • Syrups
  • Premixes
  • Powdered ready to drink
  • Liquid ready to drink

Global Herbal Tea Market: by packaging type

  • Loose tea
  • Paper pouches
  • Tea bags
  • Carton packs
  • Can packaging

Africa tea market – growth, trends, and forecasts (2020 – 2025)

The Africa Tea Market is segmented by Form into Leaf Tea and CTC Tea, Product Type into Black Tea, Green Tea, and other types, distribution channel into supermarkets/hypermarkets, specialist retailers, convenience stores, online retailers, and other channels, and geography.

Market Overview

The African tea market is projected to reach a CAGR of 4.3% during the forecast period, 2020-2025.

  • Tea, which is a hot aromatic and flavored beverage, is prepared from the leaves of a shrub, Camellia sinensis. It is one of the most common beverages, containing antioxidants (polyphenols), phytochemicals, and flavonoids, all of which have various health benefits.
  • Health and wellness factors are the major factors that are boosting the demand for smaller specialty teas in Africa, including fruit/herbal tea and green tea, both of which recorded strong retail volume growth in 2019, despite their higher than average unit prices.

Scope of the report

The African tea market is segmented by form, product type, distribution channel, and geography. On the basis of form, the market is segmented into leaf tea and CTC tea (crushed, teared, and curled tea). On the basis of product type, the market is segmented into black tea, green tea, and other types (white and oolong). On the basis of distribution channel, the market is segmented into supermarkets/hypermarkets, specialist retailers, convenience stores, online retailers, and other channels. Additionally, on the basis of geography, the report covers South Africa, Egypt, and Rest of the Africa.

Key market trends

Increasing tea production in African countries

The different varieties of tea, based on their production and processing, are CTC, orthodox, herbal/flavored, and leafy (including black, green, oolong, and decaf). Black tea continues to hold the largest share in the South African tea market. Additionally, specialty tea continues to gain popularity. Herbal and fruit teas with functional benefits, such as aiding digestion, are becoming increasingly popular among the health-conscious consumers.

Surging Demand for Imported Tea in the Region

The African tea market is thriving, with tea production expanding in East and Central Africa and increasing tea consumption in North and West Africa. Currently, producers in various tea-growing countries are focusing on expanding their profiles and boosting the new markets. Tea imports into North and West African countries increased by 25% and represent 20% of the global tea imports, with Egypt and Morocco ranking fourth and fifth on the scale, respectively.

Competitive Landscape

The African tea market is fragmented, with intense competition between multinational, regional, and local players. Introduction of new products and flavors, mergers, and acquisitions are the major competitive strategies followed by the key players in the market. Some of the major players in the African tea market are Tata Tea, Dilmah, DavidsTea, Twinings, and Van Rees, among others.

Major Players

  1. Tata Tea
  2. Dilmah
  3. Hain Celestial
  4. Van Rees

Hibiscus flower powder market size worth US$160.2m by 2025

The Grand View Research, 2019 further reported that ,the global hibiscus flower powder market size is anticipated to reach USD 160.2 million by 2025. Hibiscus is also known as Sobolo in Ghana. The market is projected to expand at a CAGR of 6.1% from 2019 to 2025.

In 2018, Grand View Research, the global hibiscus flower powder market size was valued at USD 106.1 million. Wide product application scope in industries, such as food & beverage, cosmetics, and pharmaceutical, is expected to be among the key factors driving the market growth. Rising awareness about the benefits of hibiscus flower powder is another key growth-driving factor for the global market. Furthermore, increasing demand for natural and organic cosmetics is likely to accelerate the growth of this market. Developing countries, such as India and China, are some of the largest markets for cosmetics and personal care products, resulting in an increasing demand for organic and natural cosmetics.

Based on applications, the food & beverage segment accounted for the highest market share in 2018. Rising awareness about following a healthy diet will drive product demand in this segment. The product is widely used in foods and beverages as it offers relief from sore throat, helps in the treatment of cancer and heart diseases, and reduces cholesterol levels.

The cosmetics application segment is estimated to register the highest CAGR of 6.4% over the forecasted period due to rising demand for natural and organic cosmetics. Hibiscus extract in cosmetics helps in skin exfoliation and moisturization. Key companies in this market are Asko Appliances; Broan, Inc.; BSH Home Appliances Corp.; Elica S.p.A.; Faber S.p.A.; Falmec S.p.A.; Miele, Inc.; Panasonic Corp.; Samsung Electronics; and Whirlpool Corp.

North America is estimated to be the dominant regional market by 2025 for hibiscus. Europe is estimated to be the second-largest market over the years to come. The growth of these regions can be attributed to the rising demand for organic products.

Moreover, high awareness about the health benefits of hibiscus flower powder will drive the regional markets. Asia Pacific, on the other hand, is anticipated to register the fastest CAGR of 6.7% from 2019 to 2025. Increasing awareness about the product benefits and disposable income levels in developing countries, such as India and China, are projected to propel the market growth in Asia Pacific.

Green tea market

The green tea market size has the potential to grow by US$4.54billion during 2018-2022, and the market’s growth momentum will accelerate during the forecast period because of the steady increase in year-over-year growth according to Technavio, 2018.

In conclusion, the natural medicine market is a multi-billion one; which, I, urged Ghanaians businessmen to exploit in this 1D1F era. Today, the herbal medicine industry in Ghana has seen some brilliant practitioners and researchers. RNG Medicine Research lab, Tema Community 18 is one firm researching into evidence based natural medicines.

Additionally, the Nyarkotey College of Holistic Medicine, Tema Community 7, post office recognized by the Ministry of Health traditional medicine and alternative medicine practice council is training well qualified practitioners in holistic medicine. I therefore urged business men and investors to seize the opportunity in this pre and post COVID-19 healthcare economy to invest in this niche market. Nyarkotey College of Holistic Medicine with our team of experts are more than willing to provide support and partnership to promote this niche market.

>>>The writer is an honorary Professor of Holistic Medicine-Vinnytsia State Pedagogical University, Ukraine and currently, LLB law/MBA Student. He is the formulator of FDA approved Nyarkotey Hibiscus Tea for Cardiovascular Support and wellness, Men’s Formula for Prostate Health and Women’s Formula for wellness. Contact: 0241083423/0541234556

Leave a Reply