Global Yerba Mate Market – Insights
Yerba mate is a species of the Holly genus with botanical name IIex paraguariensis. It is a plant used to make beverage known as mate and is also used for medication purposes. In addition to this, it is also used to relieve physical and mental fatigue along with chronic fatigue syndrome (CFS). It is often consumed orally and helps in improving mood, reduce symptoms of depression, and strengthening bones. It is also effective against high cholesterol, diabetes, and urinary tract infections (UTIs), and kidney stones. Yerba mate is traditionally consumed in southern and central regions of South America such as Argentina, Paraguay, southern Chile, and central-western Brazil.
The market for yerba mate is expected to record substantial growth over the forecast period (2019-2027), attributing to increasing demand for yerba mate due to its health benefits and new product launches.
For instance, in 2018, Danone-owned STok Coffee launched a new range of cold beverages including protein cold brew coffee and yerba mate cold brew tea in multi-serve and single serve formats. The product, yerba mate cold brew tea offers 75% more caffeine with less sugar and is available in two flavors including slightly sweet and peach.
However, side effects related with consumption of yerba mate are expected to act as major restraining factor for growth of the yerba mate market. Yerba mate is beneficial for health when consumed occasionally. However, consuming large quantities of yerba mate for longer duration may led to adverse health effects.
The global yerba mate market was valued at US$ 1,251.0 Mn in 2018, and is expected to register a CAGR of 3.1%, in terms of revenue over the forecast period (2019 to 2027), to reach US$ 1,641.0 Mn by 2027.
Latin America accounted for the largest revenue share of 82.2% in the global yerba mate market in 2018, and is expected to maintain its dominance over the forecast period. According to the Institution of Yerba Mate, Argentina, Argentina is the leading producer and exporter of yerba mate in the world. Moreover, Latin America is headquarter for major yerba mate players such as Kraus, and La Virginia S.A. High presence of market players in the region is further expected to boost the revenue for yerba mate market during the forecast period.
Figure 1. Global Yerba Mate Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Yerba mate finds applications in food & beverages, dietary supplements, cosmetics & personal care, and functional food products. The consumption of yerba mate as a part of diet supplement is increasing, owing to growing health awareness among the populace. Major companies in the market are focused on launching yerba mate as a dietary supplement. For instance, Matebros, a California-based beverage company, offers yerba mate energy drinks with no artificial sweeteners & sugars.
Based on application, in 2018, the food & beverages segment accounted for the largest market revenue share of 69.9% in the global yerba mate market. Yerba mate is largely consumed as a hot or cold beverage.
Key companies such as Yerbae, New Age Beverage Corporation, and Rebble offer yerba mate as a cold sparkling drink with different flavors. It is also available in the form of tea bags and is consumed as hot tea. Increasing demand for yerba mate is backed by its health benefits, which in turn is expected to contribute to growth of the food & beverages segment in the yerba mate market.
Figure 2. Global Yerba Mate Market Share (%), By Application, 2018
Source: Coherent Market Insights, 2018-19
Major players operating in the global yerba mate market include, Pure Leaf Naturals, Ecoteas, Yuyo Drinks Ltd, Mate Factor, Kraus, Wisdom Natural Brands, LA Virginia S.A., and Guayaki Sustainable Rainforest Products, Inc.
Key industry players are focused on adopting strategies such as mergers & acquisitions and marketing through campaigns & social media platforms in order to expand their market share. For instance, in March 2017, Yuyo Drinks launched Yerba Mate campaign in the U.K. The company, through various social media platforms, shared videos and tweeted the information about the campaign. Moreover, the company arranged testing session of Yuyo drinks that are manufactured using yerba mate.