During the second half of 2025, the price of Herbal Infusion Tea experienced a noticeable upward trend. In India, tea-growing regions like Assam and Darjeeling faced drier weather and irregular rainfall, which shrank harvests and reduced the availability of fresh leaves.
Many plantations had to adopt irrigation methods that were rarely used before, increasing production costs. At the same time, pests became more frequent due to erratic rains, leaving leaves damaged and further limiting quality output. With India being the second-largest tea producer globally, these disruptions caused domestic supply to tighten, which contributed to higher market prices.
Globally, other tea-producing countries such as Kenya and Sri Lanka also reported stagnating output. Combined with rising domestic consumption in India, exports slowed, creating tighter supply in international markets. In countries importing Indian tea, tariffs and trade restrictions added pressure, especially for small businesses that relied on consistent supplies of high-quality Assam or specialty teas. Retailers and specialty brands faced rising costs, which were passed on to consumers, further contributing to price increases. In the UK and U.S., food price inflation also affected tea, as tighter global supply of staples pushed shop prices higher. Overall, the market saw a combination of climatic challenges, supply chain issues, and trade barriers that steadily pushed Herbal Infusion Tea prices up during this period.
Analyst Insight
According to Procurement Resource, Herbal Infusion Tea prices may remain high if weather disruptions continue and trade barriers persist, though moderate growth in supply could ease pressures slightly in the next year.
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In the first half of 2025, the price of herbal infusion tea showed a rising trend influenced by several global and regional factors. Key among these was the growing cost pressure in the broader tea industry, especially in Kenya, a major tea exporter.
The Kenyan government's move to halt Rainforest Alliance certification due to high costs signaled deeper financial stress on smallholders, indirectly affecting the supply chain and raising concerns about the sustainability and ethical sourcing of all tea types, including herbal variants.
Meanwhile, import patterns also played a role. India’s sharp increase in tea imports from Kenya caused alarm among local producers, indicating price instability in traditional markets. This situation likely encouraged a shift in demand towards herbal and specialty teas, perceived as cleaner or more premium. Additionally, with Assam and West Bengal suffering production drops and early harvest closures, supply disruptions pushed up prices across tea categories, including herbal blends.
Bangladesh, another significant producer, reported reduced output due to erratic weather and a focus on quality over quantity. Though herbal teas are not a primary export for Bangladesh, the overall reduced tea availability contributed to higher costs in alternative categories, including herbal infusions. Compounded by the global inflationary environment and tariff pressures in markets like the U.S., costs increased for both producers and consumers.
Herbal infusions are a simple way of consuming essential oils and flavors from herbs. The infusions are prepared by soaking the herbs in water until the water absorbs the oils and flavor, then drinking the water for its taste or medicinal purposes. Herbal tea is infused for a short duration of time. It is usually a mix of roots, shoots, leaves, and flowers, and many herbal infusion teas are available in the market, depending on the raw material used. Herbal tea boosts the body's overall energy levels and promotes a good night's sleep due to its caffeine-free compounds.
Medical Purposes, Food and Beverage, Cosmetics/Remedies
Tea Herbal tea, Herbal Infusions, Tisanes
Adagio Teas, Associated British Foods (ABF), Dilmah Tea, Tata Global Beverages (TGB), Unilever
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
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These elements are collected and dried and then packed according to different ratios forming several types of herbal teas, each having its characteristic aromas and flavors.
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