Pandan Tea Market Size, Share & Demand Report By Product Type (Loose Leaf, Tea Bags, Ready-to-Drink), By End-Use (Household, Foodservice), By Distribution Channel (Offline Retail, Online Retail), By Region & Segment Forecasts, 2025–2033
USD 4500
Market Overview
The global Pandan Tea Market was valued at approximately USD 1.64 billion in 2024 and is projected to reach around USD 2.87 billion by 2033, expanding at a CAGR of 6.41% during the forecast period from 2025 to 2033. Pandan tea, derived from pandan leaves and traditionally consumed across Southeast Asia, has gained wider acceptance due to its herbal positioning, aromatic profile, and perceived functional benefits. The market size expanded steadily in 2024 as consumers increasingly shifted toward caffeine-free and plant-based beverages.
One major global factor supporting the growth of the Pandan Tea Market has been the rising preference for natural and clean-label beverages. Consumers across developed and emerging economies have shown growing awareness of ingredient transparency, driving demand for herbal infusions with minimal processing. Pandan tea aligns well with this shift, as it is often marketed as free from artificial additives and compatible with wellness-focused lifestyles. Additionally, the growth of specialty tea retailing and online distribution channels has improved product accessibility beyond traditional consumption regions.
Key Highlights:
• Asia Pacific accounted for approximately 48.2% of the global market share in 2024, while North America is expected to record the fastest growth at a CAGR of 9.4% through 2033.
• Loose leaf pandan tea dominated the type segment with a 41.6% share in 2024, while ready-to-drink pandan tea is forecast to grow at a CAGR of 10.1%.
• The foodservice end-use segment held the largest share in 2024, whereas household consumption is projected to expand at a CAGR of 9.2%.
• Indonesia remained the dominant country market, valued at USD 96 million in 2024 and estimated at USD 104 million in 2025.
Market Trends
Expansion of Herbal and Functional Beverage Portfolios – The Pandan Tea Market has benefited from the broader expansion of herbal and functional beverage portfolios. Tea manufacturers have increasingly incorporated pandan-based offerings into their product lines to cater to consumers seeking relaxation-oriented and digestive-friendly beverages. This trend has supported market growth by positioning pandan tea alongside other established herbal teas rather than as a niche ethnic product.
Premiumization and Artisanal Packaging – Another notable trend shaping the market has been the premiumization of pandan tea products. Brands have introduced artisanal packaging, origin-specific labeling, and small-batch processing narratives. This trend has improved perceived product value and supported higher price realization, particularly in urban retail and e-commerce channels.
Market Drivers
Rising Demand for Caffeine-Free Alternatives – A key driver of the Pandan Tea Market has been the rising demand for caffeine-free beverage options. Consumers sensitive to caffeine have increasingly opted for herbal infusions, supporting consistent demand across age groups.
Growth of Online and Specialty Tea Retail – The expansion of online retail platforms and specialty tea stores has significantly improved product visibility. This driver has enabled smaller producers to reach international consumers, contributing to overall market growth.
Market Restraints
Limited Awareness Outside Core Consumption Regions – One major restraint affecting the Pandan Tea Market has been limited consumer awareness outside Southeast Asia. In several regions, pandan is still primarily associated with culinary use rather than tea consumption, which has slowed adoption despite increasing interest in herbal beverages.
Market Opportunities
Product Innovation Through Blended Formulations – An emerging opportunity lies in blending pandan tea with other herbs such as lemongrass, ginger, or chamomile. These blended formulations can enhance flavor diversity and attract new consumer segments.
Growth Potential in Wellness and Hospitality Channels – The wellness tourism and hospitality sectors present another opportunity. Pandan tea is increasingly included in spa menus and wellness retreats, creating new avenues for market expansion.
Segmental Analysis
By Product Type
Loose leaf pandan tea dominated the product type segment with a 41.6% share in 2024, supported by traditional brewing preferences and premium positioning.
Ready-to-drink pandan tea is expected to be the fastest-growing subsegment, expanding at a projected CAGR of 10.1% due to convenience-driven consumption.
By End-Use
The foodservice segment accounted for the largest share in 2024, driven by café and restaurant adoption.
Household consumption is forecast to grow at a CAGR of 9.2%, supported by increased at-home tea preparation.
By Distribution Channel
Offline retail dominated in 2024 with a 58.4% share, supported by specialty tea stores.
Online distribution is projected to grow at a CAGR of 10.5%, driven by wider product accessibility.
| Product Type | End-Use | Distribution Channel |
|---|---|---|
|
|
|
Regional Analysis
North America
North America accounted for nearly 16.5% of the global Pandan Tea Market share in 2025 and is expected to grow at a CAGR of 9.4% from 2025 to 2033. The region’s growth was supported by rising herbal tea consumption and strong penetration of e-commerce platforms.
The United States dominated the regional market due to growing consumer interest in Asian-inspired wellness beverages. Increased experimentation with herbal teas in urban centers supported consistent demand growth.
Europe
Europe held approximately 18.2% of the global market share in 2025 and is projected to expand at a CAGR of 8.1% over the forecast period. Demand growth was driven by organic and specialty tea consumption trends.
The United Kingdom emerged as the dominant country, supported by a mature tea-drinking culture and rising interest in novel herbal infusions.
Asia Pacific
Asia Pacific represented around 48.7% of the Pandan Tea Market share in 2025 and is anticipated to grow at a CAGR of 7.9% through 2033. The region benefited from strong cultural familiarity and established supply chains.
Indonesia remained the dominant country market due to abundant raw material availability and widespread traditional consumption.
Middle East & Africa
The Middle East & Africa region accounted for nearly 9.1% of the market share in 2025 and is forecast to grow at a CAGR of 8.4%. Growth was supported by rising herbal beverage adoption.
The United Arab Emirates led regional demand due to premium tea retailing and hospitality sector demand.
Latin America
Latin America captured approximately 7.5% of the global market share in 2025 and is expected to grow at a CAGR of 8.7%. Increasing exposure to Asian food and beverage trends supported market development.
Brazil dominated the region owing to a growing herbal tea consumer base and expanding specialty retail formats.
| North America | Europe | APAC | Middle East and Africa | LATAM |
|---|---|---|---|---|
|
|
|
|
|
Competitive Landscape
The Pandan Tea Market is moderately fragmented, with a mix of regional producers and international herbal tea companies. One market participant has focused on expanding export-oriented production and introducing standardized quality controls in 2024. Other companies have emphasized branding, packaging innovation, and digital sales strategies to strengthen market presence.
Key Players List
Recent Developments
In 2024, several manufacturers expanded their pandan tea portfolios through new blended formulations and improved packaging sustainability. Companies also increased investments in online retail infrastructure to support international market penetration. These developments are expected to positively influence the Pandan Tea Market outlook over the forecast period.
