Yerba Mate Market With Tariff Impact Analysis | CAGR of 4.9%

Overview

New York, NY – May 15, 2025 – The global Yerba Mate Market is growing fast, driven by rising demand for natural energy drinks and healthier alternatives to coffee and soda. In 2024, the market was valued at USD 2.1 billion, and it is expected to reach USD 3.4 billion by 2034, growing at a steady 4.9% CAGR.

Loose leaf yerba mate leads the product form segment, commanding a 56.3% market share in 2024. Its popularity stems from traditional brewing practices that deliver authentic, robust flavors. Unflavored yerba mate dominates the category segment with a 68.1% share in 2024.

Its strong position reflects a preference for the authentic, earthy taste cherished by traditional consumers and cultural purists. Residential consumption drives the yerba mate market, accounting for 74.9% of usage in 2024. This large share underscores the mate’s role in daily home routines, particularly in regions where it’s a cultural staple. Supermarkets and hypermarkets hold a 38.6% share of yerba mate distribution in 2024, leading the channel segment.

US Tariff Impact on Yerba Mate Market

The U.S. Tea industry is facing significant challenges due to recent trade developments. Since February, President Trump’s administration has implemented tariffs on imports, prompting close attention from tea market stakeholders.

The tariff situation is complex and rapidly evolving, with updates sometimes occurring hourly. As of now, a 10% universal tariff applies to imports from all countries, and on April 9, a 90-day pause was enacted on additional “reciprocal” tariffs to facilitate negotiations with other nations.

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China, a key tea supplier to the U.S., faces a different reality. On April 9, after a rapid escalation of tit-for-tat tariffs, the Trump Administration imposed a 145% reciprocal tariff on Chinese imports. Unlike other countries, China’s tariffs are not subject to the 90-day pause and remain in effect. World Tea News consulted various tea industry stakeholders to understand the implications of these tariffs and how businesses are navigating this shifting economic landscape.

Key Takeaways

• Global Yerba Mate Market is expected to be worth around USD 3.4 billion by 2034, up from USD 2.1 billion in 2024, and grow at a CAGR of 4.9% from 2025 to 2034.
• Loose leaf yerba mate dominates with 56.3%, preferred for its authentic brewing and traditional preparation experience.
• Unflavoured yerba mate leads at 68.1%, reflecting growing preference for natural, unaltered herbal beverage profiles.
• Residential end-use accounts for 74.9%, showing strong household consumption driven by daily wellness routines.
• Supermarkets and hypermarkets lead distribution with 38.6%, offering wide accessibility and variety for everyday shoppers.
• The Yerba Mate Market in Asia-Pacific reached USD 0.9 billion in 2024.

Report Scope

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Key Market Segments

By Product Form Analysis

• Loose leaf yerba mate leads the product form segment, commanding a 56.3% market share in 2024. Its popularity stems from traditional brewing practices that deliver authentic, robust flavors. Favored in countries like Argentina and Uruguay, loose leaf appeals to global consumers for its natural quality and cultural ties to health and social rituals. Health-conscious and eco-friendly users value its minimal processing and reduced packaging, while younger demographics embrace the mindful brewing experience, giving loose leaf an edge over tea bags or ready-to-drink options.

By Category Analysis

• Unflavored yerba mate dominates the category segment with a 68.1% share in 2024. Its strong position reflects a preference for the authentic, earthy taste cherished by traditional consumers and cultural purists. Unflavored mate’s natural bitterness and health benefits attract those seeking clean-label beverages free of artificial additives. Its dominance over flavored variants highlights a focus on purity, with users often customizing their drinks using natural herbs or citrus at home.

By End-Use Analysis

• Residential consumption drives the yerba mate market, accounting for 74.9% of usage in 2024. This large share underscores the mate’s role in daily home routines, particularly in regions where it’s a cultural staple. Families and individuals enjoy brewing loose-leaf mate with traditional gourds and bombillas, while health-focused consumers adopt it as a coffee alternative. Easy access through retail and e-commerce supports at-home use, emphasizing personal brewing preferences and rituals.

By Distribution Channel Analysis

• Supermarkets and hypermarkets hold a 38.6% share of yerba mate distribution in 2024, leading the channel segment. These stores are the go-to choice for consumers who prefer in-person shopping to assess product quality and variety. Offering loose leaf and unflavored options in organic aisles, they provide visibility and competitive pricing through promotions. Their widespread presence and reliable supply chains ensure consistent availability, fostering consumer trust and loyalty.

Regional Analysis

• The Asia-Pacific region led the yerba mate market in 2024, capturing a 45.9% global share with a market value of USD 0.9 billion. This dominance stems from the growing popularity of herbal and functional drinks in countries like China, Japan, and Australia. Rising awareness of natural caffeine and antioxidant-rich beverages has made yerba mate a favored alternative to teas and energy drinks.
• North America and Europe are seeing increased demand among health-focused consumers, with wider availability in organic stores, but their market shares trail behind Asia-Pacific. Latin America maintains a steady, culturally rooted demand, though its growth is more localized than global. The Middle East & Africa lag as emerging markets with low awareness and penetration.

Top Use Cases

• Traditional Beverage: Yerba mate is widely consumed as a hot or cold herbal tea, especially in South America. Its caffeine content offers a gentle energy boost, making it a popular daily drink. People enjoy it socially, sipping from a gourd with a metal straw, fostering cultural connections and replacing coffee or tea.
• Energy Drinks: Yerba mate is used in ready-to-drink energy beverages, appealing to health-conscious consumers. Its natural caffeine and antioxidants provide sustained energy without jitters. Brands blend it with fruit flavors, targeting young adults seeking convenient, natural alternatives to sugary energy drinks.
• Dietary Supplements: Yerba mate is sold as capsules or powders for health benefits like weight management and mental focus. Its antioxidants and metabolism-boosting properties attract fitness enthusiasts. These supplements are marketed as natural aids for energy and digestion, often found in health food stores.
• Cosmetics and Personal Care: Yerba mate’s antioxidants are used in skincare and haircare products like shampoos, soaps, and creams. It helps protect skin from aging and promotes hair health. Natural cosmetic brands leverage their appeal to eco-conscious consumers looking for organic, sustainable ingredients.
• Functional Foods: Yerba mate is added to snacks, smoothies, and wellness bars for its energy-boosting and nutritional benefits. Its earthy flavor enhances health-focused products, appealing to those seeking functional foods. This use case targets busy professionals and millennials wanting convenient, nutrient-rich options.

Recent Developments

1. Honest Tea (The Coca-Cola Company)

• Honest Tea, a subsidiary of Coca-Cola, has been focusing on sustainability and organic beverages. While they don’t currently offer a Yerba Mate product, Coca-Cola has shown interest in expanding its functional drink portfolio, including teas and botanicals. Recent moves suggest potential future innovations in the Yerba Mate space as demand grows.

2. ECOTEAS

• ECOTEAS specializes in organic, fair-trade Yerba Mate and recently launched new flavored varieties, including mango and mint. The company emphasizes sustainable farming and ethical sourcing. They’ve also expanded distribution to major retailers like Whole Foods and Amazon.

3. Yerba Crew

• Yerba Crew, a premium Australian brand, introduced a new cold brew Yerba Mate line, catering to health-conscious consumers. They’ve also partnered with fitness influencers to promote energy and focus benefits. Their products are now available in select U.S. and European markets.

4. Tata Consumer Products (Tata Tea)

• Tata has been expanding its herbal and functional tea offerings. While not yet a major player in Yerba Mate, Tata’s recent acquisitions in the health beverage space suggest potential future entry into the market.

5. Aguantadora

• Aguantadora, a U.S.-based Yerba Mate brand, recently rebranded with new packaging and added sparkling Yerba Mate cans. They focus on modernizing traditional Mate for younger audiences, emphasizing energy and mental clarity.

Conclusion

The Yerba Mate Market is set for steady growth through 2025, driven by rising consumer interest in natural, health-focused beverages. With its unique blend of energy-boosting caffeine, antioxidants, and cultural appeal, yerba mate is gaining traction globally, especially in North America and Europe. Despite these challenges, innovations like ready-to-drink options and flavored blends are attracting new customers. Brands that prioritize sustainability and convenience will likely thrive, but businesses must navigate tariff-related hurdles and supply chain issues to capitalize on this growing demand.

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