Global Organic Chamomile Tea Market Size (2023 – 2030)

The Global Organic Chamomile Tea Market was valued at USD 157.2 million and is projected to reach a market size of USD 370.1 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 11.3%. 

Chamomile is an herbaceous flowering plant that resembles miniature daisies and emits a gentle floral fragrance reminiscent of apples. The plucked flowers and buds are selected for tea-making purposes. They are harvested during their bloom and subsequently dried to prolong their shelf life. Its cultivation spans the globe, sought after for its health advantages and contributions to herbal infusions and aromatherapy.

The expanding significance of food and beverages rich in flavonoids, renowned for their antioxidant attributes, is anticipated to augment the market's reach in the coming years. Additionally, increasing concerns regarding the detrimental impacts of cadmium on human health are predicted to supplement the domain of nutritional products derived from organically cultivated crops. Organic chamomile tea presents an array of advantages. A compilation of research reveals its potential in enhancing digestive well-being and fostering the activity of beneficial gut microorganisms, thereby defending gastrointestinal health. The alleviation of heightened anxiety levels is another attribute. It not only promotes relaxation by mitigating lethargy and moderating heart rate but also facilitates improved sleep quality. Furthermore, it also showcases anti-cancer and anti-aging properties rendering it a more health-conscious choice.

In the past five years, it has emerged as one of the top-selling tea varieties. These offerings play a crucial role in enhancing both physical and mental stress management. This evolution has elevated functional teas to a new dimension, aligning seamlessly with the demands of modern-day lifestyles. Consequently, the desire for organic chamomile tea is projected to experience a substantial upsurge among urban working professionals, the elderly demographic, and individuals engaged in athletic performance.

Key Market Insights:

The rising demand for low-caffeine products has been a significant driver of market growth. This trend has had a pronounced impact, particularly with the surge in popularity of decaffeinated organic tea. These particular products contain caffeine levels of less than 2.5%, making them advantageous for individuals dealing with sleep problems and disruptions. In recent years, there has been a noticeable uptick in the number of manufacturers offering decaffeinated versions of organic chamomile tea.

The market for organic chamomile tea is expanding in response to the increasing consumer preference for organic and natural products, driven by concerns regarding the presence of pesticides and chemicals in conventional options.

Having been utilized for generations across different cultures, chamomile tea enjoys global recognition and acceptance as a traditional herbal remedy. The demand for easily accessible and ready-to-consume chamomile tea products has surged in response to urbanization and increasingly hectic lifestyles.

Global Organic Chamomile Tea Market Drivers:

A shift in the preference of consumers towards a healthier beverage that is produced from a sustainable agricultural practice is propelling the Global Organic Chamomile Tea Market.

Market growth is significantly propelled by the increasing consumer inclination towards safe, chemical-free, and health-conscious consumables. Additionally, the cultivation of chamomile herbal tea adheres to ecological practices, biodiversity, and locally tailored cycles, fostering soil fertility and plant diversity. These aspects, coupled with government initiatives across several nations aimed at promoting sustainable agricultural practices through incentives and subsidies, are collectively fostering market expansion.

A prevalent shift in the lifestyle of consumers is driving the market for Global Organic Chamomile Tea Market.

The expanding working population, heightened demand for readily available products, the continuous expansion of retail markets, and increasing recognition of chamomile as a natural ingredient in personal care items are anticipated to further boost the market. Chamomile is renowned for its various benefits, including promoting relaxation, improving sleep, and regulating blood sugar, among others, making it a popular choice among health-conscious individuals. Additionally, the rising incidence of stress and lifestyle-related disorders worldwide is compelling people to seek natural methods for relaxation and well-being, with chamomile's stress-reducing properties being particularly appealing. Factors such as increasing disposable incomes, higher spending on food and beverages, and a growing awareness of healthy lifestyles are also expected to be driving forces behind the growth of the chamomile herbal tea market.

Global Organic Chamomile Tea Market Restraints and Challenges:

The chamomile market faces significant constraints that warrant consideration. Firstly, the market contends with a surge in coffee consumption, which poses a challenge to the growth of chamomile tea products. Additionally, the market is susceptible to raw material price fluctuations due to unpredictable climatic conditions, creating uncertainties for manufacturers. Moreover, prominent industry players have adopted a pricing strategy characterized by marginal increments, potentially impeding the overall market expansion. Another obstacle is the limited awareness surrounding the manifold benefits of chamomile and the availability of chamomile-infused products in the market. Furthermore, the prevalence of prescription medications and alternative relaxants may deter individuals from exploring natural remedies for stress reduction. Nevertheless, as consumer awareness steadily rises, these challenges may not severely hinder the chamomile market's progress.

Global Organic Chamomile Tea Market Opportunities:

In a bid to mitigate their environmental impact, numerous manufacturers are actively working on creating tea bags enclosed in compostable and biodegradable outer packaging. Simultaneously, they are expanding their product range by introducing ready-to-drink options, thereby bolstering their overall sales figures. Furthermore, investments in innovative marketing tactics and celebrity endorsements are part of their strategic endeavors. These actions align with the optimistic outlook for the organic chamomile tea market, driven by trends in health and wellness, the expanding e-commerce landscape, diversified product offerings, collaborative initiatives, educational campaigns, and expansion into emerging markets. Leveraging these prospects has the potential to propel continuous growth and market expansion in the foreseeable future.

GLOBAL ORGANIC CHAMOMILE TEA MARKET REPORT COVERAGE:

Global Organic Chamomile Tea Market Segmentation: By Flower

• German Chamomile

• Roman Chamomile

• Egyptian Chamomile

German Chamomile is the dominant type of flower in this segment with the highest revenue share in the market and is projected to hold the dominance during the forecast period due to its calming properties, aiding digestion, reducing stress, and enhancing sleep quality and its longstanding reputation as natural remedy making it an attractive choice for the people who want to holistic approach for their well-being positioning German Chamomile as the most sought after choice for chamomile tea raw products over other flower types. The organic German chamomile tea market is thriving due to the surging interest in organic products, the tea's well-documented health benefits, the convenience of online shopping, and the modern focus on holistic well-being. These factors together paint a promising picture for the continued growth of this market segment.

Roman Chamomile is the fastest-growing flower type in the segment owing to its medicinal and therapeutic properties which are increasing its popularity in the market. Roman Chamomile is estimated to hold a substantial market share in the coming years.

Global Organic Chamomile Tea Market Segmentation: By Product Form Type

• Syrups

• Leaf & Powder

• Tea Bags

In 2022, leaf and powder variants have secured the largest market share, exceeding 45.0%. This dominance can be attributed to their early entry into the market, providing them with a competitive edge. Moreover, these options grant consumers the freedom to tailor the flavor of their tea, whether they prefer it robust or mild. Given their cost-effectiveness and affordability, buyers are inclined to choose these variants.

The tea bag segment is projected to experience the most rapid growth during the forecast period. These formats are gaining popularity due to their convenience, as they can be used practically anywhere. Consumers who are familiar with their tea preferences can easily carry these products and prepare their tea according to their preferences, without the need to worry about ingredient availability or the correct brewing method.

Global Organic Chamomile Tea Market Segmentation: By Taste

• Flavoured

• Unflavoured

In 2022, flavored organic products dominated the market, accounting for a substantial share of over 80.0%. These products achieve their unique flavors through the utilization of both inclusions and extracts. Inclusions involve the direct addition of elements like blossoms, dried fruit pieces, herbs, or spices to the tea leaves, enhancing both the visual and sensory aspects of the tea.

Similarly, various extracts and essential oils extracted from leaves, fruits, blossoms, roots, or other plant components are employed to impart distinct scents and flavors. The extraction process for these extracts can be intricate; for instance, creating vanilla flavor necessitates precise soaking of vanilla beans in alcohol. Conversely, some flavors are easier to obtain, such as lemon, where the simple pressing of lemon peel yields oil.

The unflavored segment is experiencing the most rapid growth. This is due to a segment of the market seeking pure, unadulterated chamomile tea without any additional flavor additives. These consumers value the true, unaltered aroma and taste of chamomile tea, driving the popularity of the unflavored segment.

Global Organic Chamomile Tea Market Segmentation: By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Online

• Others

In 2022, hypermarkets and supermarkets commanded the largest market share, exceeding 35.0%. With a vast array of products available in the market, locating a specific product that aligns with one's preferences can be a daunting task. Consequently, supermarkets and hypermarkets, which provide a wide range of alternatives, are considered the most convenient destinations for purchasing these products, thereby fueling the channel's growth.

Online stores are poised to experience the most rapid growth during the forecast period. Online platforms offer a unique opportunity for both established and niche tea brewers to directly reach consumers. Some specialty tea manufacturers prefer offering freshly brewed tea products, making online platforms ideal as the product undergoes preparation only upon receiving an order. As a result, the swift expansion of this channel within the market is virtually inevitable.

Global Organic Chamomile Tea Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

In 2022, Asia Pacific claimed the largest share of the Organic Chamomile Tea market, surpassing 35.0%. Tea holds significant cultural and social importance in many Asian countries, with its consumption deeply rooted in the region's recorded history. People in Asia enjoy tea throughout the day, from morning breakfast to mid-day breaks, and during social gatherings with friends and family. Organic Chamomile tea, with its added benefits of anti-aging and detoxification properties, is gaining popularity among people of all ages and genders in the region. Furthermore, the increasing number of tea retail outlets is expected to contribute to the growth of this market. Various forms of tea are savored across Asia, including in China, Japan, India, Myanmar, South Korea, and Taiwan. Notably, besides being the largest consumer, the region is also renowned as the largest producer of organic chamomile tea and its product variants.

The North American market is poised as the fastest-growing market, primarily propelled by an upsurge in the demand and consumption of green tea. Additionally, the region's higher per capita tea consumption is anticipated to be a significant driving force behind the increased adoption of organic chamomile tea in North America.

COVID-19 Impact on the Global Organic Chamomile Market:

The pandemic triggered disruptions in production and supply chains, resulting in a decline in product manufacturing. Particularly in the early months of 2020, these disruptions had a substantial impact on manufacturing units. The supply rate struggled to meet the soaring demand due to the enforced lockdowns. However, it's noteworthy that the COVID-19 pandemic paradoxically contributed to an upswing in the chamomile herbal tea market. As lockdowns began to ease, and production gradually resumed, there was a notable surge in the demand for chamomile tea. People preferred non-store-based channels for home delivery due to the prevailing caution against leaving their homes, aligning with government guidelines. During the pandemic's peak, the store-based distribution channel experienced reduced preference. Despite the challenges posed by COVID-19, the market and its key players exhibited resilience and performed well throughout the lockdown phase. In the post-pandemic era, once the situation stabilized, the store-based distribution channel regained its sales momentum. Moreover, the pandemic-induced focus on health and well-being has prompted consumers to opt for healthier beverage choices, further driving the future demand for organic chamomile tea.

Latest Developments/ Trends:

Consumer preferences are shifting towards organic and natural products due to increasing concerns about health and the environment. This change in consumer behavior is a key driver of the growing demand for organic chamomile tea. Furthermore, there is a heightened emphasis on health and wellness, leading to a surge in the popularity of herbal and wellness teas, including chamomile tea. Consumers are actively seeking beverages that offer perceived health advantages.

To cater to diverse consumer tastes, tea manufacturers are introducing a range of new flavor variants for chamomile tea. These innovations often involve blending chamomile with other herbs, fruits, and spices to create unique flavor profiles. Additionally, chamomile is frequently combined with other herbs and botanicals that are renowned for their health-enhancing properties. These functional blends are gaining traction among consumers who are specifically seeking wellness benefits from their tea.

The health benefits of chamomile, such as its ability to promote relaxation and aid digestion, are becoming more widely recognized, and private companies are actively promoting the benefits of the products to consumers. This increased awareness is further contributing to the popularity of chamomile tea.

Key Players:

1. Sariwangi

2. Numi Organic Tea

3. Stash Tea

4. Wagh Bakri Tea Group

5. Harney and Sons

6. Yogi Tea

7. Celestial Seasonings

8. Vadham

9. Ajinomoto General Foods Inc.

10. Tata Consumer Product Limited

In September 2022, Bira 91, the premium beer company, collaborated with the global wellness brand VAHDAM India to introduce a unique tea-infused beer known as the Chamomile Tea Lager.

In June 2019, Sariwangi, an Indonesian tea brand under the ownership of Unilever, unveiled its latest offering, the 3-in-1 Chamomile tea products. This new product line features two delightful powdered milk tea flavors: caramel and Teh Tari.