According to analysts at Vantage Market Research, the Herbal Beverages Market is expected to reach USD 2.45 billion by 2028, growing at a CAGR of 5.1% between 2021 and 2028. Herbal Beverages fight against diseases like infections, cold & cough, insomnia, stomach issues, and more. In addition, the rise in demand for organic products is fuelling market growth.
- Herbal Tea is projected to expand over 6.84% CAGR over the forecast period; the segment held a dominant position in 2020. Herbal tea has various health benefits like it boosts the immune system also helps in reducing pain. Additionally, herbal tea is the most preferred medium for consuming herbal beverages.
- The Normal Drinking segment held a market share of around 40% in 2020. Normal drinking has various benefits like it enhances memory, preventing the brain from the early aging process are some factors fuelling the market growth.
- Asia Pacific is expected to expand at a CAGR of over 3.2% from 2021 to 2028. This growth in the region is driven by the rising demand for organic products and awareness regarding their health benefits in countries like China, India, and Japan.
Some of the key players in the Herbal Beverages Market are Coca-Cola, Asahi Soft Drinks, Suntory, Jiaduobao Group, Ting Hsin International Group, Dr. Pepper Snapple, Danone, Kirin, Unilever Group, Nongfu Spring, Red Bull, Hangzhou Wahaha Group, among others. The market has a high degree of competition as big players are adopting various strategies such as product innovation, promotion, positioning of products,s and more for gaining higher market share.
Herbal Beverage makes the tissues of the body stronger with rich in anti-oxidant properties; with this, it protects against cell damage which is caused by pollution or the effect of radicals. On the other hand, there are some side effects of herbal beverages such as headache, soreness in the mouth, flushing of the skin, heartburn, antihiatic shock, dermatitis, vomiting, nausea, hormonal imbalance, and dizziness, are restraining the market growth.
North America is poised to record a substantial CAGR, driven by the introduction of new flavors coming up in the market and expanding the product line for different companies operating in herbal beverages. The demand for such flavors is high in countries like U.S., Canada which is evident by the increased disposable income and higher living standards.