Japan’s herbal tea market continues to grow

Key summary

The herbal tea market in Japan has a long history, starting with green tea and hojicha. In the late Edo period, chamomile was introduced by the Dutch, and in 1969, the German company Pompadour began importing herbal teas. The market has evolved through three distinct phases: the "Potpourri Boom" of the 1980s, which emphasized fragrance and Western lifestyles; the "Health and Organic" era of the 2000s, which transformed herbal teas into beverages for wellness and relaxation; and the "Caffeine Management" era since the 2020s, focusing on controlling caffeine intake. Herbal teas have become a popular alternative. The market is valued at approximately 1.34 billion US dollars in 2024 and is projected to grow to 2.87 billion US dollars in 2033, with an average annual growth rate of 8.76%. Key drivers include increasing health consciousness and the demand for natural, caffeine-free products. Market development includes interest in organic foods, sustainable packaging, and convenient product formats such as sachets, powders, and bottles, as well as cold-brew teas. The variety of teas is expanding with new types such as butterfly pea flower, roselle, and marshmallow root. Labeling requirements include the product name, ingredients listed by weight, country of origin of the main ingredients, net quantity, best-before date, storage instructions, and the distributor. Nutritional information is not required unless claims are made, such as "low calorie." Claims of medicinal properties or disease treatment are prohibited, and allergens must be declared. Products must not contain prohibited ingredients such as black cohosh.