Report Overview

Rising consumer inclination toward health and wellness products and increasing awareness among consumers of the potential health benefits associated with herbal teas are expected to drive the growth of the Japan Herbal Tea market during the forecast period between 2024 and 2030.

Japan Herbal Tea Market – Industry Trends & Forecast Report, 2030

The Japan Herbal Tea Market size was estimated at USD 1.24 billion in 2023. During the forecast period between 2024 and 2030, the Japan Herbal Tea Market size is projected to grow at a CAGR of 8.76% reaching a value of USD 2.98 billion by 2030. The Japan herbal tea market is currently undergoing significant growth, driven by a growing consumer inclination towards health and wellness products. According to a report from the Global Wellness Institute, Japan is a country where wellness is an integral part of the culture, which can be observed through nature-based travel and a mindful approach to fresh food and drinks. There has been a significant increase in awareness regarding the potential health benefits of herbal teas due to their antioxidant and calming properties, resulting in a surge in demand. Moreover, a cultural appreciation for traditional herbal remedies and a shift away from sugary beverages have further propelled the market. Companies are responding to evolving consumer preferences by innovating with diverse herbal blends, contributing to the ongoing expansion of the herbal tea market in Japan.

Herbal Tea – Overview

Herbal tea, also known as herbal infusion or tisane, is a beverage created by steeping herbs, spices, or other plant elements in hot water. It does not come from the Camellia sinensis plant, which is used to make real teas such as black, green, white, and oolong tea. Instead, herbal tea is an infusion or blend of diverse leaves, fruits, bark, roots, or flowers from nearly any edible, non-tea plant. Herbal teas, brewed from fresh or dried flowers, fruit, leaves, seeds, or roots, are popular for their colorful flavors and varied mental, emotional, and physical health benefits. Most herbal teas are naturally caffeine-free, making them an appealing option for individuals who are sensitive to caffeine or want to limit their use. Emotional and physical health benefits. Herbal teas are widely available in Japan and are sold in specialty tea shops, supermarkets, and online. They are consumed for their taste and for the health benefits that they are believed to provide, such as improved digestion, reduced stress, and increased energy.

Japan Herbal Tea Market

Growth Drivers

Growing health consciousness

The herbal tea market in Japan is expanding rapidly as consumers become more health-conscious and want healthier, rich in nutrients products. This burgeoning trend reflects a broader societal shift towards healthier lifestyle choices, with consumers actively seeking out alternatives to traditional beverages that offer both refreshing taste and potential health benefits. The Japanese population's increasing awareness of the link between diet and well-being has fueled a preference for herbal teas, which are perceived as natural, plant-based remedies with potential health-promoting properties. As consumers become more discerning about the ingredients in their beverages, herbal teas have gained traction for their perceived medicinal and wellness attributes. This expanding market is not only witnessing a surge in the variety of herbal tea blends available but also an influx of innovative products that cater to diverse preferences. As the herbal tea market continues to flourish, it highlights a broader shift towards a more health-conscious and nutrition-focused lifestyle among Japanese consumers.

Challenges

Competition from other beverages

The Japan herbal tea market is currently facing a formidable challenge with the surge in competition from other beverage alternatives. While herbal tea has long been a traditional and favored choice among Japanese consumers for its perceived health benefits and cultural significance, the evolving preferences and dynamic beverage landscape pose a threat to its growth. The market is witnessing a notable shift as consumers explore an array of alternatives, including ready-to-drink beverages, functional beverages, and innovative flavor profiles, which divert attention away from herbal tea. With the entry of new and trendy options, consumers are increasingly shifting towards beverages that offer convenience, unique taste experiences, and functional attributes, challenging the established position of herbal tea in the Japanese market. As a result, the herbal tea market in Japan is compelled to adapt and innovate to not only retain its existing consumer base but also to capture the attention of a broader audience amidst the ever-expanding choices in the beverage sector.

Impact of Escalating Geopolitical Tensions on Japan Herbal Tea Market

The escalating geopolitical tensions in the global landscape have impacted various industries, including the herbal tea market in Japan. The Japan herbal tea market, known for its traditional blends and health-conscious consumer base, now finds itself navigating the challenges posed by geopolitical uncertainties. The heightened tensions may impact the sourcing and supply chain of key herbal ingredients, potentially leading to disruptions in production and distribution. The increased volatility in international relations can also influence exchange rates and trade policies, affecting the overall cost structure of the herbal tea market in Japan. Additionally, consumer sentiments may be affected as uncertainties in the geopolitical sphere often contribute to economic instability, potentially leading to changes in purchasing behavior and preferences. Collaborations and partnerships within the herbal tea industry, both domestically and internationally, may face challenges as diplomatic relations undergo strain. Moreover, the geopolitical landscape may prompt shifts in global trade dynamics, impacting the accessibility of certain herbal ingredients and the competitiveness of Japan herbal tea in the international market. As stakeholders in the herbal tea market in Japan closely monitor geopolitical developments, proactive strategies, and adaptive measures become crucial to navigate the evolving landscape and sustain the growth of this traditionally esteemed beverage industry in the face of geopolitical uncertainty.

Japan Herbal Tea Market

Segmental Coverage

Japan Herbal Tea Market – By Type

Based on raw material, Japan herbal tea market is divided into black tea, green tea, and yellow tea segments. The black tea segment is expected to cover a significant share of the Japanese herbal tea market during the forecast period. A survey conducted by the organizing committee of a national summit dedicated to Japanese black tea producers and enthusiasts revealed a noteworthy surge in the number of tea producers, reaching 897 as of October 2022—an impressive increase of 500 since 2012. Fueled by heightened health consciousness and a growing penchant for Western influences, the younger demographic in both China and Japan is increasingly favoring black tea. This preference is driven by the recognized health benefits of black tea, enriched with polyphenols that act as antioxidants, offering protection against DNA damage induced by factors such as cigarettes and other hazardous chemicals. The thriving expansion of the Japanese black tea market highlights a fascinating fusion of cultural traditions and contemporary lifestyle choices.                                                            

Japan Herbal Tea Market – By Type

Based on type, Japan herbal tea market is segmented into cinnamon, dandelion, chamomile, ginger, turmeric, and blends categories. Chamomile tea is expected to cover a substantial market share due to the growing recognition of its therapeutic qualities. Renowned for its calming effects and potential to alleviate stress, and anxiety, and promote better sleep, chamomile tea has gained popularity among health-conscious consumers in Japan. The market's inclination towards chamomile tea is further propelled by its reputed digestive benefits and anti-inflammatory properties. As wellness trends continue to shape consumer preferences, the demand for herbal teas like chamomile is expected to surge, creating a significant presence within Japan's vibrant herbal tea market.

Japan Herbal Tea Market – By Product Type

Based on product type, Japan herbal tea market is divided into syrups, premixes, powdered ready-to-drink, and liquid ready-to-drink. The powdered ready-to-drink segment is expected to hold a significant share in the Japan herbal tea market. Powdered ready-to-drink are commonly utilized since they are compact and suitable for all seasons. The liquid herbal tea segment holds second place, as it is widely consumed as a refreshing drink, contributing to the herbal tea market's rapid expansion. The syrup segment is also anticipated to witness growth in the coming years, uniquely combining sugar and herbal tea extracts. Particularly appealing to the younger generation, the syrup segment is positioned to bolster its market share, reflecting the diverse preferences and evolving trends within the thriving herbal tea market in Japan.

Competitive Landscape

Major players operating in the Japan Herbal Tea Market include Senbird Tea LLC, Sazen Tea Company, The Tea Company, Ekaterra, Celestial Seasonings, Kyoto Obubu Tea Farms, Nodoka, HOJICHA TRADING CO. LTD., Japanese Green tea Hibiki-an, Jade Leaf Matcha, Takezawa Seich, Japanese Green Tea Co. LLC, and d: matcha Kyoto and Other Prominent Players. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Raw Material

• Black Tea

• Green Tea

• Yellow Tea

By Type

• Cinnamon

• Dandelion

• Chamomile

• Ginger

• Turmeric

• Blends

By Product Type

• Syrups

• Premixes

• Powdered Ready to Drink

• Liquid Ready to Drink

By Packaging Type

• Loose Tea

• Paper Pouches

• Tea Bags

• Carton Packs

• Can Packaging

By Function

• Cognitive Health

• Gut & Digestive Health

• Multifunctional

By Distributional Channel

• Store Based

• Non-Store Based