Japan Herbal Tea Market Size Set Expands at Significant CAGR of 22.15% During 2024-2030 to Reach USD 2.98 Billion by 2030
Japan Herbal Tea Market is flourishing owing to increasing demand for natural and functional beverages. Increasing value for traditional remedies and a shift towards cleaner, plant-based lifestyles are further contributing to the dynamic expansion of the Indian drone market.
Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated the Japan Herbal Tea Market size at USD 1.24 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects the Japan Herbal Tea Market size to expand at a CAGR of 22.15% reaching a value of USD 2.98 billion by 2030. The Japan Herbal Tea market is experiencing significant growth, owing to increasing demand for natural and functional beverages. Consumers are increasingly inclined towards healthier beverage options, and herbal tea, with its integral health benefits, has emerged as a popular choice. The market is witnessing a notable surge due to the growing recognition and appreciation for traditional remedies, as herbal teas are often associated with various health-promoting properties. Additionally, there is a noticeable shift in consumer preferences towards cleaner and plant-based lifestyles, with herbal tea aligning perfectly with this trend. As awareness regarding the importance of holistic well-being continues to rise, the Japan herbal tea market is poised for sustained growth, catering to the evolving preferences of health-conscious consumers who seek both taste and wellness in their beverage choices.
Opportunity: Expanding online sales
Expanding online sales will likely create ample opportunities for the growth of the Japan herbal tea market. According to the International Trade Administration, the annual eCommerce Market Survey released by Japan's Ministry of Economy, Trade, and Industry (METI) in 2022 unveiled encouraging statistics. The report highlighted a significant 8.6% increase in Business-to-Consumer (B2C) e-commerce sales of goods in 2021 compared to the previous year, reaching an estimated total market value of USD 188.1 billion. Remarkably, when compared to the pre-COVID year 2019, B2C sales of goods demonstrated an impressive growth rate of 32.2%. This surge in online commerce signals a thriving market environment and presents ample opportunities for the herbal tea sector to capitalize on the growing consumer base. As more consumers embrace the convenience and accessibility of online shopping, businesses in the herbal tea industry can strategically position themselves to tap into this expanding market in Japan.
Impact of Geopolitical Tensions on Japan Herbal Tea Market

Geopolitical tension can have a multifaceted impact on the herbal tea market in Japan, influencing various aspects of production, distribution, and consumer behavior. Firstly, disruptions in the global supply chain due to geopolitical uncertainties may lead to challenges in sourcing key herbal tea ingredients, affecting the overall availability and pricing of herbal teas in the Japanese market. Trade restrictions and tariff increases may further complicate import processes, potentially limiting the variety of herbal teas accessible to Japanese consumers. Additionally, geopolitical tension can impact consumer confidence and purchasing behavior, with individuals potentially opting for more familiar and locally-produced alternatives in times of uncertainty. The economic consequences of geopolitical instability may also influence disposable incomes, leading consumers to reconsider their spending on non-essential products such as specialty herbal teas. Moreover, marketing and promotional strategies within the herbal tea industry may need to be adapted to address changing consumer sentiments influenced by geopolitical events. Overall, the herbal tea market in Japan may experience fluctuations in supply chains, consumer preferences, and economic dynamics as a result of geopolitical tension, necessitating adaptability and strategic planning within the industry to navigate these challenges.



Japan Herbal Tea Market
Segmental Information
Japan Herbal Tea Market - By Packaging Type
Based on packaging type, Japan herbal tea market is segregated into loose tea, paper pouches, tea bags, carton packs, and can packaging segments. The tea bags segment is expected to hold a significant share of the Japan herbal tea market owing to its convenience and popularity among consumers. With an increasing preference for hassle-free brewing and on-the-go consumption, tea bags offer a convenient solution for individuals seeking the health benefits and diverse flavors of herbal teas. The ease of preparation, along with the ability to experiment with various herbal blends in a convenient format, makes tea bags the favored choice among Japanese consumers. This trend is further supported by the rising awareness of the wellness benefits associated with herbal infusions, driving the demand for tea bags within the Japanese herbal tea market.
Japan Herbal Tea Market - By Function
Based on function, Japan herbal tea market is segmented into cognitive health, gut & digestive health, and multifunctional categories. The cognitive health segment of herbal tea is expected to see growth in Japan in the coming years due to growing consumer emphasis on well-being. Increasing awareness of the potential cognitive benefits associated with herbal ingredients is driving this trend, with ingredients like ginkgo biloba, matcha, and adaptogens gaining popularity. As Japanese consumers prioritize mental wellness alongside physical health, the demand for herbal teas positioned for cognitive health is expected to surge, making it a key driver in shaping the market landscape. Manufacturers and marketers are likely to focus on innovative formulations and marketing strategies that highlight the cognitive-enhancing properties of herbal teas to capitalize on this emerging trend.
Japan Herbal Tea Market - By Distribution Channel
Based on distribution channel, Japan herbal tea market is bifurcated into store-based and non-store-based segments. The store-based segment of the herbal tea market is expected to grow in Japan in the coming years owing to the cultural significance of traditional tea consumption and the established presence of tea specialty stores in Japan. The widespread presence of specialty tea shops, supermarkets, and convenience stores across the country offers consumers easy access to a diverse range of herbal tea products. Japanese consumers often value the tactile and sensory experience of physically browsing through stores, sampling different blends, and seeking personalized recommendations from knowledgeable staff. Additionally, the store-based segment fosters a sense of trust, contributing to its dominance in the Japanese herbal tea market.

Competitive Landscape

The Japan Herbal Tea Market is fragmented, with numerous players serving the market. The key players dominating 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. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the Japan Herbal Tea Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Japan Herbal Tea Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the market's growth drivers, challenges, and competitive dynamics.