July 19, 2024
Yerba Mate Market

Expanding Functional Benefits Of Yerba Mate Consumption To Drive The Growth Of Yerba Mate Market

The global Yerba Mate Market is estimated to be valued at US$ 2,311.45 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Yerba mate is an herbal tea sourced from the leaves and twigs of holly species Ilex paraguariensis. It is native to South America and traditionally consumed as a caffeinated tea in countries like Argentina, Uruguay, southern Brazil and Paraguay. Yerba mate provides benefits like increased energy, improved concentration and mood, weight management and reduced risk of various chronic diseases. It contains antioxidants such as polyphenols and caffeoyl derivatives which are responsible for its medicinal properties. The rising demand for organic and natural products for health and wellness has boosted the consumption of yerba mate globally in recent years.

Market key trends:

One of the key trends in the yerba mate market is expanding consumer awareness about its functional benefits beyond being just an energy drink. Research studies have demonstrated yerba mate’s positive effects on metabolism, mental alertness, cardiovascular health and weight management. It contains more antioxidant polyphenols than green tea. The high antioxidant and xanthine alkaloid content of yerba mate provides cognitive as well as mood enhancing effects. This has widened its consumer base to health conscious individuals looking for plant-based alternatives for coffee and tea. Also, growing availability of yerba mate in innovative ready-to-drink formats such as cold brews and tonics has made it more accessible globally, especially among millennials and generation Z population.

Porter’s Analysis:

  • Threat of new entrants: Low due to the established supply chain and distribution channels of existing players in the yerba mate market. The market also requires investment in plantations that take 3-4 years before production begins.
  • Bargaining power of buyers: Moderate as buyers have limited options for substitutes. However, larger buyers can negotiate lower prices with suppliers.
  • Bargaining power of suppliers: Moderate to high as a few dominating suppliers control a major share of the market. Buyers depend on consistent supply from a limited number of suppliers.
  • Threat of new substitutes: Low as yerba mate has a strong consumer base and few direct substitutes for its functionality as a stimulant and potential health benefits. Coffee, green tea are only substitutable for functionality but not the unique taste of yerba mate.
  • Competitive rivalry: High due to the presence of numerous established small and private label brands supplying yerba mate internationally. Players compete based on quality, taste, price and distribution.

Key Takeaways:

The Global Yerba Mate Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing popularity as a functional beverage among health-conscious consumers. The market size for 2023 is estimated at US$ $2,311.45 Mn.

Regional analysis: South America leads the global yerba mate market with the largest cultivated area and exports. Argentina and Paraguay account for over 70% of global production. North America follows South America with growing domestic consumption in the US driven by increasing health food trends.

Key players operating in the yerba mate market are Guayakí, Amanda, Las Marías, and Kraus. Guayaki is the leading brand with organic production and wide international distribution in over 45 countries. Local players like Amanda and Las Marias have strong domestic presence in Argentina and Paraguay. Kraus is expanding internationally through partnerships.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it