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The yerba mate market size is forecast to increase by USD 333 million at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth, driven by increasing consumer awareness regarding the health benefits associated with this traditional South American beverage. Rich in antioxidants, vitamins, and minerals, yerba mate is gaining popularity as a healthier alternative to coffee and tea. The market is growing as consumers increasingly seek natural supplements that support bone health and may help in managing osteoporosis through their rich nutrient profiles. Another growth factor is the increasing on-premise sales of yerba mate beverages in North America, particularly in urban areas with large Latin American populations. However, the market faces challenges, including the potential health risks of overconsumption due to its high caffeine content. Producers and retailers must address these concerns by promoting responsible consumption and offering a range of decaffeinated options. Overall, the market is poised for continued growth, fueled by consumer demand for healthier, authentic, and culturally diverse beverage options.
Yerba Mate, derived from the leaves of Ilex paraguariensis, is a popular beverage in South America, known for its unique flavor profile and numerous health benefits. The traditional method of preparing Yerba Mate involves steeping the dried leaves in hot water and drinking it through a straw. The beverage processing of Yerba Mate involves careful harvesting and drying of the leaves to preserve the nutrients, antioxidants, and caffeine content. Yerba Mate is rich in vitamins, minerals, and nutrients, making it a popular choice for functional beverages and natural drinks. It is known to boost immunity, improve heart health, aid digestion, and enhance energy levels and cognitive function. The beverage is also used in the beauty industry for its antioxidant properties, which help in skincare. The nutritional benefits of Yerba Mate extend to weight management and metabolism, making it a popular ingredient in functional beverages. Its natural caffeine content provides mental alertness, making it a preferred choice for those seeking a healthy alternative to coffee. Yerba Mate powder is also used in herbal tea blends and as a dietary supplement. The social connection associated with the traditional preparation and sharing of Yerba Mate adds to its appeal, making it a staple in the wellness community. The unique flavor profile of Yerba Mate, with hints of honey, fruit, and chocolate, makes it a delicious and healthy addition to any diet.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The offline segment will account for a major share of the market's expansion during the forecast period. The market encompasses functional beverages, herbal teas, and dietary supplements, offering numerous health benefits such as cognitive function enhancement, energy levels boost, chronic disease management, and cardiovascular health improvement. Yerba mate's natural drinks, including powdered forms, have gained popularity as athletic supplements and weight management aids due to their metabolism-boosting properties.
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The offline segment was valued at USD 950.50 million in 2018. Offline distribution channels, including specialty health food stores, hypermarkets and supermarkets, grocery stores, and convenience stores, remain the primary sales channels for yerba mate products. The rise of clean label and novel formulations in the functional food and beverage industry has fueled innovation, with yerba mate powder finding applications in skincare and vitamin-mineral supplements. The growing wellness trend, social media influencer endorsements, and increasing consumer interest in preventive healthcare have led to a wave in demand for yerba mate. The beverage's mental alertness and cognitive function benefits have also attracted the beauty industry, positioning yerba mate as a functional food and a natural energy boost. Retail stores continue to be a significant distribution channel, with globalization driving investments in traditional commerce and increasing the number of outlets. In the US, retail trade sales grew by 8% from USD 6.52 trillion in 2021 to USD 7 trillion in 2022, presenting ample opportunities for market growth.
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South America is estimated to contribute 81% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Yerba mate, derived from the leaves of Ilex paraguariensis, is a popular beverage in South America, renowned for its numerous health benefits. The beverage processing involves steeping the leaves in hot water, releasing essential nutrients, antioxidants, and caffeine. Yerba mate is rich in polyphenols, saponins, and caffeoyl derivatives, making it an excellent immunity booster and potential therapeutic agent against heart disease, diabetes, and cardiovascular diseases. Health-conscious consumers are increasingly drawn to this plant-based beverage due to its potential stress reduction, digestion, and blood sugar level regulation properties. Botanical extracts from Yerba mate are also used in cosmetics and personal care products for their astringent properties and unique flavors. Innovative flavors and nonalcoholic drink options continue to attract a broader audience, including the B2B segment.
Further, organic beverages made from this traditional South American drink are gaining popularity in health food stores and as dietary supplements. The market is expanding as consumers look for healthier alternatives to tobacco, with many seeking the natural benefits and stimulating effects of yerba mate as a substitute. The unique flavors of Yerba mate complement ethnic cuisines and offer a refreshing alternative to traditional beverages. However, consumers in this region started adopting alternative sources of natural and nutritional health drinks owing to the increase in awareness about health and the rise in preference for lactose-free/vegan/plant-based F&B product. The agroecosystems that grow Ilex paraguariensis face challenges from climate change and crop diseases, making sustainable farming practices crucial for the industry's growth. Yerba mate's potential health benefits and unique taste make it a valuable commodity in the beverage industry, offering opportunities for further research and development.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing consumer awareness about health benefits of yerba mate is notably driving market growth. Yerba mate, an herbal tea originating from South America, has gained significant attention in the global market due to its numerous health benefits. This natural drink is rich in polyphenols, xanthines, and saponins, making it an excellent source of antioxidants. Additionally, yerba mate contains essential minerals like zinc, potassium, copper, aluminum, and manganese, as well as vitamins B1, B2, and C. As consumers increasingly prioritize preventive healthcare and seek functional beverages for cognitive ability, energy levels, and metabolism support, yerba mate has emerged as a popular choice. Its health benefits extend to cardiovascular health, diabetes control, and cancer prevention.
Furthermore, Yerba mate's versatility extends beyond beverages, with product innovations including dietary supplements, herbal extracts, and powdered yerba mate for convenience and culinary applications. The clean label trend has also influenced the market, with an emphasis on natural ingredients and novel formulations. In the wellness industry, yerba mate is used for mental alertness, weight management, and even skincare. Social media influencers have played a role in promoting yerba mate's nutritional benefits and flavor profile. The ready-to-drink yerba mate market is growing, and functional food applications are also on the rise in retail stores. Overall, yerba mate offers a natural energy boost and social connection, making it a valuable addition to the food and beverage landscape. Thus, such factors are driving the growth of the market during the forecast period.
Increasing on-premise sales of yerba mate beverages in North America is the key trend in the market. Yerba mate, an herbal tea originating from South America, is gaining traction in the global market as a functional beverage with numerous health benefits. This natural drink is increasingly being used as an alternative to athletic supplement and energy drinks due to its ability to enhance cognitive function, boost energy levels, and support cardiovascular health. Yerba mate is rich in vitamins, minerals, and antioxidants, making it an excellent addition to preventive healthcare regimens for managing chronic diseases such as diabetes and cancer. Product innovations in the form of novel formulations, ready-to-drink options, and convenient powdered yerba mate have made it accessible to a wider audience.
Furthermore, the beverage's clean label and natural energy boost appeal to consumers seeking functional foods and drinks with minimal processing. The beauty industry has also taken notice, with yerba mate powder being used in skincare products for its antioxidant properties. Social media influencers and cafes have played a significant role in popularizing yerba mate as a trendy and exotic beverage. Its unique flavor profile and culinary applications in food and beverages have added to its allure. As consumers continue to prioritize wellness and social connection, the demand for yerba mate is expected to grow further. With its numerous nutritional benefits, yerba mate is poised to become a staple in the functional food and beverage industry. Thus, such trends will shape the growth of the market during the forecast period.
The impact of overconsumption is the major challenge that affects the growth of the market. Yerba mate, a popular herbal tea originating from South America, has gained significant attention in the functional beverages market due to its numerous health benefits. As a natural drink, it is rich in phytochemicals, vitamins, and minerals, making it an attractive option for those seeking to improve their cognitive function, energy levels, and cardiovascular health. Moreover, it has been linked to chronic disease prevention, including diabetes control and cancer. However, it is essential to note that excessive consumption of yerba mate can lead to adverse effects. The high caffeine content, similar to energy drinks, can cause anxiety disorders, increased heart rate and blood pressure, irritable bowel syndrome, glaucoma, diarrhea, and complications related to diabetes and low blood sugar.
Additionally, the risk of developing cancer in the upper intestinal tract, such as the mouth, throat, and esophagus, increases with overconsumption. Despite these risks, yerba mate continues to be a popular choice for athletes and those seeking natural energy boosts. Product innovations, such as powdered yerba mate and ready-to-drink functional foods, offer convenience and versatility for consumers. The beverage's clean label, natural energy boost, and nutritional benefits have also attracted the attention of the beauty industry, with applications in skincare and vitamin supplements. As a culinary application, yerba mate's unique flavor profile adds depth to various food and beverage offerings. Social media influencers and wellness enthusiasts continue to promote its health benefits, emphasizing its role in preventive healthcare and social connection. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ArtfulTea - The company offers yerba mate as loose leaf tea that is carefully blended and packaged by hand in a reusable tin or a resealable kraft bag.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Yerba Mate, derived from the leaves of Ilex paraguariensis, is a popular beverage in South America, known for its unique taste and numerous health benefits. The beverage processing of Yerba Mate involves steeping the leaves in hot water, releasing essential nutrients, antioxidants, caffeine, and other beneficial compounds. Health-conscious consumers are increasingly drawn to Yerba Mate due to its rich nutritional profile. It contains polyphenols, saponins, and caffeoyl derivatives, which act as antioxidants, boosting immunity and reducing the risk of chronic diseases such as heart disease, diabetes, and cardiovascular diseases. Yerba Mate is also known for its stress reduction properties, aiding in mental fatigue and obesity. The beverage's astringent properties help in digestion and premature aging. Botanical extracts from Yerba Mate are used in cosmetics and personal care products as therapeutic agents. Innovative flavors and unique tastes are driving the demand for Yerba Mate in nonalcoholic drinks and organic beverages.
Furthermore, the market for Yerba Mate is expanding, with an increasing focus on plant-based products and ethnic cuisines. Climate change and agroecosystems pose challenges to the production of Yerba Mate, but advancements in crop disease management are helping to mitigate these issues. The B2B segment is a significant market for Yerba Mate, with applications in food supplements and dietary supplements. The demand for Yerba Mate is expected to pour in in the coming years due to its health benefits and unique flavors. In conclusion, Yerba Mate is a versatile beverage with numerous health benefits and a rich cultural history. Its unique nutritional profile and growing popularity among health-conscious consumers are driving the demand for Yerba Mate in various industries, including beverages, cosmetics, and food supplements.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market Growth 2024-2028 |
USD 333 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
South America, Middle East and Africa, North America, APAC, and Europe |
Performing market contribution |
South America at 81% |
Key countries |
Argentina, Syria, Chile, US, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A. Holliday and Co. Inc., Aguantadora, ArtfulTea, Coco Tea Co., Fusion Teas, GEMYNO SAS, Guayaki, HRENUK SA, Kraus SA, Las Marias Establishment, Liebig Colony Agricultural Cooperative, Monte Carlo Mixed Agricultural Cooperative Ltd., PepsiCo Inc., RDV Products, Tango Foods SA, The Coca Cola Co., Triunfo do Brasil Ltda., and Wisdom Natural Brands |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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