Yerba Mate Tea Market

Market Overview

The Global Yerba Mate Tea Market Size will significantly grow at a CAGR of 3.1% by forecast period 2023-2031.

Yerba mate alludes to a home grown tea produced using a plant known as Ilex paraguariensis. In order to make herbal tea, the twigs and leaves of the yerba mate plant are typically dried over a fire before being dissolved in hot water. This tea is good either hot or cold. This beverage, also known as mate, is extremely popular in Brazil, Argentina, Paraguay, Uruguay, and several other nations in Latin America. Caffeine is in yerba mate, which has a stimulant effect. Grapefruit, pomegranate, and other flavours can be added to this beverage as well. It is a popular choice for many customers due to its variety of flavours.

Market Dynamics

Global Yerba Mate Tea Market Drivers

• Increasing Awareness of Yerba Mate's Health Benefits

Customers today are looking for new teas and beverages to satisfy their palates and their health requirements. Tea consumption is still very important to a lot of different consumer groups. Yerba mate has many health benefits, including high levels of minerals and antioxidants, increased energy, improved mental focus, decreased belly fat, improved immune function, and lower blood sugar levels. According to data from "China's General Administration of Customs," nearly 100,000 kilograms of yerba were imported into China in 2021, with 89,000 kilograms coming from Argentina. Yerba mate is consumed by thousands of people all over the world due to its numerous consumption options and health benefits. The market is expected to grow during the forecast period because yerba mate can be consumed as an energy drink, wellness beverage, and plant-based beverage.

• Market Developments In Technology

The yerba mate tea market is expanding rapidly all over the world as people become more aware of their health and demand products that are nutritious and healthy. The players in the yerba market are always working toward the introduction of new technologies and products to the market. The development of cutting-edge technology and research makes it easier to cultivate and process yerba mate in order to meet the preferences of various market customers. Product launches, market comprehension, trend analysis, and a host of other beneficial applications aide industry professionals in expanding. Rapid validation of the product and its benefits is an essential component of the launch strategy. The Net Promoter Score (NPS), which is a method for evaluating a customer's overall relationship with an organization, is used to accomplish this. In addition, the Customer Satisfaction Score (CSAT) measures how satisfied customers are with a product or service. As a result, manufacturers consistently develop novel launch strategies, which aids in the expansion of the business. In recent years, a lot of research has been done on yerba mate, which will ultimately help the market grow.

• New Flavour

As consumers seek a variety of beverages, yerba mate manufacturers are increasingly incorporating novel and exotic flavours into their offerings. Drinks that are more experimental are preferred by the younger generation. Products like ready-to-drink (RTD) tea, coffee, and energy drinks that are healthy, convenient, and do not contain alcohol are a growing market for many businesses. These quick developments prompted an expansion in the non-cocktails market. Purchasers are turning out to be more disposed toward new blends, expanding the interest for yerba mate drinks. Customers are looking for flavours that are one of a kind, regional variations on ethnic tastes, or mixing with flavours they are used to that could give them a flavourful and multisensory experience. The market for energy drinks and sports drinks is growing. Organic drinks, on the other hand, are becoming increasingly popular among consumers due to their increased nutritional value and health benefits.

Global Yerba Mate Tea Market Restraints

• The Difficulty of Growing Yerba Mate

The South American subtropical region is home to yerba mate plants. They like hot, humid climates with a lot of rain. The plant probably won't survive if the humidity in the area is less than 50%. Through changes in the natural and human components of agroecosystems, climate change is affecting the sustainability of the food system by influencing farmer livelihoods, consumer choices, and food security. The frequency of annual and heavy rainfall events is increasing, particularly in the spring. An excessive amount of rain in the spring delays crop establishment, prevents planting, raises the prevalence of a number of fungal and bacterial crop diseases, and may lead to labor issues as field operations are delayed. The quantity and quality of yerba mate produced, as well as the scheduling of important farm operations and the financial effects of pests, weeds, and diseases, are directly affected by temperature and precipitation variations. The transportation and supply chain of yerba mate are also hampered by adverse weather. In addition, from seed to drink, the production of yerba mate may take at least five years. It has to be tested, controlled, and done with a lot of skill and precision. From cultivation to processing and packaging, Yerba mate requires specific conditions that are difficult to meet at each step. As a result, difficulties in cultivation pose challenges to farmers and cause fluctuations in raw materials for businesses, which ultimately impede market expansion.

• Health Issues

The market for yerba mate tea will face a significant obstacle from overconsumption. Several negative side effects can result from excessive consumption of yerba mate tea. Although yerba mate has been shown to have a number of anti-cancer properties, excessive consumption increases the risk of upper intestinal cancer, particularly in the mouth, throat, and esophagus.

Global Yerba Mate Tea Market Opportunities

• New Flavours Being Introduced

As consumers seek a variety of beverages, yerba mate tea manufacturers are increasingly incorporating novel and exotic flavours into their offerings. The younger generation wants drinks that are more experimental. Products like ready-to-drink (RTD) tea, coffee, and energy drinks that are healthy, convenient, and do not contain alcohol are a growing market for many businesses. These quick developments prompted an expansion in the non-cocktails market. Purchasers are turning out to be more disposed toward new blends, expanding the interest for yerba mate drinks. Customers are looking for flavours that are one of a kind, regional variations on ethnic tastes, or mixing with flavours they are used to that could give them a flavourful and multisensory experience. The market for energy drinks and sports drinks is growing. Organic drinks, on the other hand, are becoming increasingly popular among consumers due to their increased nutritional value and health benefits.

There is a growing interest in health and wellness and flavour. The global yerba mate market has a huge opportunity because of the convergence of these trends, which has supported the exponential growth of non-alcoholic beverages in influential bars, restaurants, supermarkets, and other retail spaces.

Market Scope

Segmental Analysis

Segment By Type

• Powder

This segment includes Yerba Mate Tea that is available in powder form. It is a convenient option for those who want to quickly prepare the tea by mixing it in hot or cold water.

• Liquid Concentrate

This segment includes Yerba Mate Tea that is available in liquid concentrate form. It is a convenient option for those who want to quickly prepare the tea by adding a few drops of concentrate to hot or cold water.

• Leaves

This segment includes Yerba Mate Tea that is available in the traditional loose-leaf form. It is the most authentic and traditional way of consuming the tea, but it requires some preparation time.

Segment By Application

• Food & Beverage

This segment includes Yerba Mate Tea that is used as an ingredient in food and beverage products. It can be used in various food products such as baked goods, snacks, and confectionery items.

• Functional Foods

This segment includes Yerba Mate Tea that is used in functional food products. These products are designed to provide health benefits beyond basic nutrition, such as boosting energy or improving mental focus.

• Cosmetics & Personal Care

This segment includes Yerba Mate Tea that is used in cosmetic and personal care products. It can be used in skincare products, hair care products, and bath products.

• Dietary Supplements

This segment includes Yerba Mate Tea that is sold as a dietary supplement. It is a convenient way for consumers to consume the tea and its associated health benefits in a concentrated form.

Regional Analysis

The Global Yerba Mate Tea Market is segmented by region as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

North America

North America is a growing market for Yerba Mate Tea, primarily driven by the increasing demand for healthy and natural beverages. The United States is the major consumer of Yerba Mate Tea in the region, and the demand is expected to grow due to the increasing health-conscious population and the rising trend of herbal tea consumption.

Asia Pacific

Asia-Pacific is an emerging market for Yerba Mate Tea, primarily driven by the increasing demand for healthy and natural beverages. Japan, South Korea, and China are the major consumers of Yerba Mate Tea in the region. The demand for Yerba Mate Tea in Asia-Pacific is expected to grow due to the rising trend of herbal tea consumption and the increasing awareness of the health benefits of Yerba Mate Tea.

Europe

Europe is a significant market for Yerba Mate Tea, primarily driven by the increasing demand for healthy and natural beverages. Germany, Spain, and France are the major consumers of Yerba Mate Tea in the region. The demand for Yerba Mate Tea in Europe is expected to grow due to the rising trend of herbal tea consumption and the increasing awareness of the health benefits of Yerba Mate Tea.

South America

South America is the largest market for Yerba Mate Tea, as it is the region where the beverage originated from. Argentina, Uruguay, and Paraguay are the major producers of Yerba Mate Tea in the region. The demand for Yerba Mate Tea in South America is expected to grow due to the increasing health-conscious population and the rising trend of herbal tea consumption.

Key Players

1. Pure Leaf Naturals
2. Guayaki
3. Yuyo Drinks Ltd.
4. ECOTEAS
5. Mate Factor
6. Establecimiento Las Maras
7. Kraus