Market Share of the Global Yerba Mate Market is expected to Rise due to Growing Health Consciousness and Increasing Product Innovations
The yerba mate market is estimated to be valued at USD 1.99 Billion in 2024, exhibiting a CAGR of 5.1% over the forecast period (2024-2031). Furthermore, the market is driven by rising awareness about the health benefits of yerba mate and growing preference for herbal drinks.
The growth of the global yerba mate market is driven by two key factors - increasing health consciousness and ongoing product innovation. As awareness about the benefits of natural sources of caffeine grows, consumers are shifting from carbonated drinks and coffee to yerba mate teas for their perceived health advantages. Yerba mate contains antioxidants, vitamins, and minerals that provide energy boost without unwanted side effects. Moreover, yerba mate products are being introduced in novel formats like cold brews, shots, and powders to cater to changing consumer preferences for convenience. Leading companies are expanding their product portfolio through the addition of natural flavors and additional healthy ingredients to attract new customers and increase loyalty among existing users. Advancements in processing and packaging have also improved the shelf life of yerba mate, supporting its distribution through modern trade channels. The rising demand and ongoing research & development activities indicate strong growth prospects for the global yerba mate market over the forecast period.
Increasing Health Consciousness is Driving the Global Yerba Mate Market Growth
Consumer awareness about the health benefits of yerba mate is significantly increasing globally. Yerba mate is known to provide various health benefits such as enhanced energy levels, improved mental alertness, weight management support, and antioxidant properties. The increasing consumption of healthy beverages is driving the demand for yerba mate products. Various studies have shown that yerba mate contains antioxidants, vitamins, minerals, and other nutrients that can boost health and well-being. The rising health consciousness among people is a major factor propelling the growth of the yerba mate market.
Growing Demand for Natural Energy Drinks is Fueling Market Expansion
The demand for natural energy drinks without artificial stimulants and additives is steadily rising. Yerba mate is emerging as a popular alternative to caffeinated drinks as it provides a natural source of sustained energy. Various yerba mate infused energy drinks launched in the market are gaining traction due to their clean label and organic credentials. The changing consumer preference for natural products over chemically synthesized supplements is benefiting the yerba mate industry. Manufacturers are innovating new product varieties in the food and beverage sector to capitalize on the growing demand for plant-based energy boosters without adverse side effects. This rising demand is acting as a key driver for the yerba mate industry.
Price Fluctuations of Raw Materials Pose Significant Challenge
Yerba mate is experiencing significant price fluctuations due to changes in climatic conditions and availability of raw materials. Being an agricultural crop, yerba mate plantation, harvest and yields are dependent on favorable weather. Adverse climate changes can negatively impact production volumes, leading to high supply uncertainties. Similarly, international trade policies and export duties levied on raw materials also contribute to inconsistent supply and prices. Frequently changing raw material costs add pressures on profit margins of yerba mate producers. The unstable pricing nature of agricultural commodities acts as a key restraint in market expansion.
Stringent Regulations Delay New Product development
Different countries have set stringent rules and regulations regarding the marketing and sales of plant-based functional foods and beverages. Developing new yerba mate infused products meeting international regulatory standards requires extensive research and testing. The complex product approval procedures and compliance requirements defers the market entry of innovative yerba mate offerings. Additionally, policies regarding the usage of certain health claims in labeling and promotion further limits product innovations. Such regulatory challenges place constraints on the fast-paced development of new varieties, restricting the market growth pace.
Growing Trend of Herbal Wellness Provides Huge Market Opportunities
The global trend of embracing natural herbal remedies and plant-based wellness solutions works in favor of yerba mate market. The demand for organic and herbal supplements is surging as consumers are shifting from synthetic medications to gentle herbal alternatives. Yerba mate with its antioxidant-rich biochemical profile fits well into this growing consumer preference. Food and beverage companies can leverage this opportunity by introducing a wide range of herbal formulations containing yerba mate. The wide availability of yerba mate infused products through e-commerce and wellness stores also augments market accessibility. Moreover, the increasing exports from Latin American producer countries open new geographical opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/yerba-mate-market-2744
Key Developments
- In November 2023, the yerba mate tea energy drink company underwent a significant rebranding effort, introducing a fresh aesthetic and flavor profile to its products.
- In March 2023, Guayakí launched Peach Revival, a new caffeinated beverage that combines the taste of peaches with a boost of energy.
- In 2022, Steaz, a leading brand in the beverage industry, expanded its yerba mate lineup with the launch of Steaz Antioxidant Brew Unsweetened.
- In 2021, Honest Tea, a well-known brand in the beverage industry, expanded its portfolio of great-tasting bottled beverages with the launch of Honest Yerba Mate, a new caffeinated ready-to-drink beverage.
Key Players
Pure Leaf Naturals, Ecoteas, Yuyo Drinks Ltd, Mate Factor, Kraus, Wisdom Natural Brands, LA Virginia S.A., Guayaki Sustainable Rainforest Products, Inc., Ohio Tea Company, Orleans Coffee, and New Mexico Tea Company
