The Yerba Mate market is projected to grow by USD 333 Million from 2024-2028, driven by rising consumer awareness of its health benefits and AI redefining the market landscape – Technavio

NEW YORK, Oct. 23, 2024 /PRNewswire/ — Report with market evolution powered by AI – The Global Yerba Mate Market  size is estimated to grow by USD 333 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.5%  during the forecast period. Growing consumer awareness about health benefits of yerba mate is driving market growth, with a trend towards increasing on-premise sales of yerba mate beverages in North America. However, impact of overconsumption  poses a challenge – Key market players include 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.

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Key Market Trends Fueling Growth

Yerba mate drinks have gained significant traction as exotic, premium beverages in cafes and coffee shops, particularly in the US and Western European markets. The rise of ambiance-focused cafes and coffee shops as social hangouts has led to an expansion of their beverage offerings, with Portenas Mate Bar (US) and El Almacen (Canada) among those introducing yerba mate. Consumers’ health concerns over milk-based and sugar-sweetened beverages, coupled with the desire for alternative caffeine sources, fuel this trend. South American-themed cafes promote cultural immersion through cuisine, contributing to the growing on-trade sales of yerba mate in the US and Canada. This trend is projected to continue driving the global yerba mate market’s growth during the forecast period. 

Yerba Mate, the popular South American beverage, is making waves in the market with its trending forms like herbal extracts and powdered versions. Convenience is key as consumers seek out ready-to-drink options and easy-to-prepare powders. Culinary applications in food and beverages are on the rise, with social media influencers promoting its clean label appeal. Novel formulations in the beauty industry include skincare, vitamins, and minerals for wellness. Yerba mate powder offers nutritional benefits, including antioxidants, and a unique flavor profile. Functional food and nutritional products are in demand, making Yerba Mate a go-to choice for health-conscious consumers. Product innovation continues with eco-friendly packaging and artisanal blends. However, potential health risks, such as cancer, require careful consideration. Brands are addressing these concerns with functional variants, targeting aging, inflammation, and collagen protection. The social connection of the traditional mate circle remains a key selling point, making Yerba Mate a must-watch trend in the world of wellness. 

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Market Challenges

•         Yerba mate, a popular beverage in South America, provides numerous health advantages due to its phytochemical, vitamin, and mineral content. However, excessive consumption poses risks. The high caffeine content may lead to anxiety disorders, increased heart rate and blood pressure, IBS, glaucoma, diarrhea, complications in diabetes management, and low blood sugar control. Overindulgence may also increase the risk of mouth, throat, esophageal, and liver cancers. These health concerns could potentially hinder the growth of the yerba mate market during the forecast period.

•         The Yerba Mate market presents various opportunities and challenges for businesses in the cosmetics, personal care, and therapeutic agent sectors. Premature aging and chronic diseases like diabetes and cardiovascular diseases are significant concerns, driving demand for natural ingredients like Yerba Mate’s polyphenols, saponins, and caffeoyl derivatives. In the food supplements segment, unique flavors and organic beverages are popular trends, making Yerba Mate an attractive option. Climate change and agroecosystems pose challenges, but innovations in crop diseases management and plant-based products offer solutions. The B2B segment seeks functional beverages for energy levels, cognitive function, and cardiovascular health. Ethnic cuisines and preventive healthcare also present opportunities. Yerba Mate’s potential as an astringent, athletic supplement, and natural energy boost further expands its market reach. Product innovations in flavors, weight loss, metabolism, mental alertness, and cancer prevention continue to drive growth.

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Segment Overview 

This yerba mate market report extensively covers market segmentation by

1. Distribution Channel

• 1.1 Offline
• 1.2 Online

Geography 

• 2.1 South America
• 2.2 Middle East and Africa
• 2.3 North America
• 2.4 APAC
• 2.5 Europe

1.1 Offline-  The offline distribution channels, including specialty health food stores, hypermarkets, supermarkets, grocery stores, convenience stores, and traditional brick-and-mortar retail outlets, remain the primary distribution channels in the global yerba mate market. The growth of these channels can be attributed to the increasing investments in traditional commerce due to globalization and the subsequent rise in the number of retail outlets for food and beverage products. In the US alone, retail trade sales increased by 8% from USD6.52 trillion in 2021 to USD7 trillion in 2022, as per the US Census Bureau. The awareness about the health benefits of yerba mate and the consumer willingness to spend on organic, plant-based healthy beverages have fueled the demand for yerba mate through offline channels. Additionally, the popularity of ambiance-based hangouts like cafes and coffee shops has led to an increase in on-premise demand for yerba mate-based beverages. These beverages are increasingly being positioned as exotic, high-end options in themed restaurants and cafes, particularly in the US and Western European countries. The evolution of cafes and coffee shop chains into casual eateries and work hangout destinations has further boosted on-premise sales of yerba mate-based beverages. Key players in the market, such as Porteñas Mate Bar (US) and Casa Argentina (UK), are expanding their beverage portfolios to gain a competitive edge. Moreover, health concerns related to milk-based and sugar-sweetened beverages and the growing acceptance of yerba mate-based beverages as a healthy alternative to coffee-based and tea-based drinks are expected to continue driving on-premise sales during the forecast period. Overall, the offline segment is poised for significant growth in market revenue.

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Research Analysis

Yerba Mate, derived from the Ilex paraguariensis plant, is a popular beverage in South America, known for its unique flavor profile and numerous health benefits. This natural drink undergoes careful processing to preserve its nutrients and antioxidants. Yerba Mate is rich in vitamins, minerals, and caffeine, making it an excellent choice for boosting immunity, cardiovascular health, mental alertness, and energy levels. The antioxidants in Yerba Mate help protect against heart disease and promote digestion. Functional beverages and natural drinks, including Yerba Mate, are gaining popularity in the wellness industry for their nutritional benefits. Yerba Mate powder is also used in skincare products due to its rich vitamin and mineral content. This herbal tea is also known to aid in weight management by boosting metabolism. With its numerous health benefits, Yerba Mate is more than just a beverage; it’s a social connection that promotes overall wellness. Enjoy Yerba Mate for its delicious flavor and the many ways it enhances your life.

Market Research Overview

Yerba Mate, derived from the Ilex paraguariensis plant, is a popular beverage in South America, known for its unique taste and numerous health benefits. This caffeine-containing infusion is rich in antioxidants, nutrients, and polyphenols, including saponins and caffeoyl derivatives. Consumers are increasingly drawn to this beverage for its potential to boost immunity, improve heart health, aid digestion, and manage blood sugar levels. Beverage processing companies are innovating with new flavors, including non-alcoholic drinks and organic beverages, to cater to health-conscious consumers. Yerba mate is also finding applications in cosmetics, personal care, and therapeutic agents, thanks to its astringent properties and potential anti-aging effects. Functional food and beverage companies are incorporating yerba mate into food supplements, energy drinks, and functional beverages for weight management, mental alertness, and cardiovascular health. The B2B segment is also exploring the use of yerba mate extracts in dietary supplements, athletic supplements, and cognitive function enhancers. Social media influencers are promoting yerba mate for its unique flavor profile and potential health benefits, making it a popular choice among health-conscious consumers. The beverage is also gaining popularity in ethnic cuisines and novel formulations, such as ready-to-drink and powdered yerba mate. As climate change and agroecosystems pose challenges to yerba mate production, companies are focusing on sustainable farming practices and innovative production methods to ensure a steady supply. The beverage industry is also exploring the use of botanical extracts and herbal teas to create unique flavors and functional beverages. In summary, yerba mate is a versatile and nutrient-rich beverage that offers numerous health benefits, from boosting immunity and energy levels to aiding digestion and managing chronic diseases. Its unique flavor profile and potential applications in various industries make it a popular choice among consumers and businesses alike.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Distribution Channel
• Offline
• Online
• Geography
• South America
• Middle East And Africa
• North America
• APAC
• Europe

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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