The Growing Vietnam Herbal Tea Market

The Vietnam herbal tea market is a vibrant and expanding segment that has garnered significant attention in recent years. With a market size of over USD 16.45 million in 2025, projections suggest it could reach USD 26.46 million by 2034. This remarkable growth, estimated at a compound annual growth rate (CAGR) of 5.42%, is driven by pivotal trends surrounding health awareness, digital commerce expansion, and sustainable practices.

Health Awareness as a Driving Force

One of the primary catalysts for the growth of the herbal tea market in Vietnam is the increasing awareness of health and wellness among consumers. An emerging consciousness about well-being is prompting a shift toward natural remedies and functional beverages. As Vietnamese consumers, particularly young and middle-class households, prioritize nutritious options, herbal tea has emerged as a favored alternative to conventional sugary beverages.

This paradigm shift is influenced by rising instances of lifestyle-related diseases. Many individuals now view herbal teas as affordable, convenient options that promote health. The blending of traditional Vietnamese medicinal herbs into modern consumer-friendly formats enhances their appeal, particularly among the youth. Supported by health education and social media, this trend is fostering an environment conducive to market growth.

The Digital Commerce Revolution

In the age of technology, the expansion of digital commerce platforms is transforming how consumers access herbal tea products. Online marketplaces such as Shopee, Lazada, and Tiki are eliminating geographical barriers, allowing consumers from diverse backgrounds—both urban and rural—to purchase herbal teas easily.

These platforms are not just enhancing product accessibility; they are revolutionizing marketing strategies for producers. By offering direct engagement with consumers and access to valuable data insights, digital retail channels are financially advantageous and provide invaluable avenues for brand storytelling and transparency. As the digital ecosystem continues to grow, tech-savvy Vietnamese consumers are increasingly attracted to the authenticity and traceability associated with wellness products.

Sustainability and Organic Practices

As environmental concerns take center stage in consumer decision-making, the Vietnam herbal tea market is witnessing a significant shift toward sustainable and organic production practices. Producers are increasingly adopting sustainable farming methodologies that minimize chemical inputs and pursue applicable organic certifications.

These initiatives not only improve the quality of products but also contribute positively to biodiversity and the socio-economic conditions of smallholder farmers. The combination of government initiatives and research institutions working to foster knowledge in sustainable agriculture further uplifts the market. Brands focusing on sustainability can often command premium prices while fostering loyalty among environmentally conscious consumers.

Market Segmentation Insights

The Vietnam herbal tea market showcases a wide range of segmentation based on type, packaging, and distribution channels:

Type Insights

• Mixed Blend: This includes various herbal combinations such as herbs and flowers, or herbs and fruits.
• Single Blend: These are simpler products, often featuring herbs, fruits, or flowers in isolation.

Pack Type Insights

• Pouches: Flexible and popular among consumers for various product types.
• Jars/Cans: These provide premium packaging and preservation.
• Tea Bags: Offering convenience, tea bags remain a favorite for quick brewing.

Pack Size Insights

• Upto 120 grams: Ideal for trial or personal use.
• 250 grams: A common size catering to regular users.
• Others: Various pack sizes addressing diverse consumer preferences.

Distribution Channel Insights

• Supermarket and Hypermarket: Organized retail outlets that enhance accessibility.
• Online Store: Digital platforms facilitating modern buying convenience.
• Convenience Store: Offering swift purchasing options for on-the-go consumers.
• Specialty Store: Dedicated stores for niche or premium herbal tea products.

Regional Market Dynamics

The herbal tea landscape in Vietnam is characterized by its geographical diversity. The market is segmented into three key regions: Northern Vietnam, Central Vietnam, and Southern Vietnam. Each area contributes uniquely to the market’s overall dynamics, reflecting varied consumer preferences across the nation.

Competitive Landscape

The competitive landscape of the Vietnam herbal tea market showcases a variety of key players actively innovating and adapting to meet consumer needs. As businesses navigate this growing marketplace, collaboration and customization remain essential for success.

With rising demand for herbal tea, thorough market assessments and strategic positioning will be vital for those looking to establish or expand their foothold in this sector.

About IMARC Group

IMARC Group is a global management consulting firm that assists in creating significant impacts for change-makers worldwide. Their offerings include comprehensive market assessments, feasibility studies, regulatory approvals, and strategies that support businesses in navigating the evolving landscape.

From understanding market dynamics to facilitating the journey toward sustainable growth, IMARC Group remains committed to being a valuable partner for ventures in the herbal tea market.