The yerba mate market has been gaining popularity globally due to the various health benefits associated with its consumption. Yerba mate is derived from dried leaves and twigs of the yerba mate plant native to subtropical South America. It has antioxidant and stimulant properties and is commonly consumed as tea. Yerba mate provides numerous health advantages like promoting weight loss, reducing fatigue, and boosting energy levels. It also improves mental alertness, controls appetite and benefits the cardiovascular system. The rising awareness about these health benefits of yerba mate products is expected to drive the highest pace of growth for this market.
The global yerba mate market is estimated to be valued at US$ 2662.8 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2030.
Yerba mate finds widespread applications as a nutritional supplement, functional food and herbal infusion. It is available in various forms including liquid concentrates, powder, and capsules. The growing demand for organic, natural stimulants with numerous wellness advantages is boosting the sales of yerba mate products globally.
Key Takeaways
Key players operating in the yerba mate market are 3M, Invoclar Vivadent, Ultradent Products Inc., Mectron s.p.a., Kerr Corporation, Gnatus Medical-Dental Equipments, Tecno-Gaz S.p.A, ACTEON GROUP, Dentsply Sirona, Den-Mat Holdings, LLC, DENTMATE, Flight Dental System, Medit Corp, COLTENE Group, Kulzer GmbH, VOCO GmbH, and B.A. International Ltd. Several key players are launching new product lines containing yerba mate extracts to cater to the rising consumer demand.
The Yerba Mate Market Demand is witnessing tremendous growth due to expanding application scope and uses. The consumption of yerba mate is increasing among health-conscious consumers as a natural energy booster and weight management aid. Manufacturers are innovating new product formats like caffeinated gum, coffee blends, and flavored capsules to further boost the growing demand for yerba mate goods.
Technological advancements are playing a major role in the yerba mate industry. New extraction technologies allow manufacturers to offer yerba mate in varied concentrations and delivery forms like powder, liquid shots and ready-to-drink beverages. Novel functionalized ingredients containing yerba mate extracts satisfying specific wellness needs of consumers are gaining traction.
Market Trends
Organic yerba mate products - The demand for organic yerba mate is growing at a significant pace owing to clean label trend. Users prefer organic yerba mate grown without pesticides and chemicals.
Innovation in product formats - Manufacturers are focusing on new product formats like yerba mate shots, energy drinks and coffee blends to enhance consumer convenience and experience. Flavored varieties are also being introduced.
Personalization - Customizations allowing users to control caffeine content and choose from varied yerba mate cultivars as per individual requirements and palates are growing in popularity.
Market Opportunities
Cross-brand collaborations - Collaborations of yerba mate brands with cafes, gyms and lifestyle brands can help expand the customer base.
E-commerce sales - Aggressive online marketing and sales through e-commerce platforms offer large opportunities in untapped regional markets.
New applications - Exploring applicability of yerba mate extracts in functional foods, dietary supplements and cosmetics presents lucrative opportunities.
Impact of COVID-19 on Yerba mate market growth
The COVID-19 pandemic has impacted the yerba mate market growth globally. During the initial phase of lockdowns imposed across various countries, demand from cafes, restaurants and bars declined significantly as these establishments were forced to shut down temporarily. Supply chain disruptions also affected the availability of raw materials. This led to reduced production volumes for major yerba mate producers in South American countries like Argentina, Brazil and Paraguay.
However, with more people working from home, demand from retail channels grew as people stocked up on yerba mate beverages and supplements at supermarkets and online retailers. New health awareness about boosting immunity during the pandemic also supported consumption of yerba mate supplements perceived to have medicinal properties. Producers responded by shifting focus to retail pack sizes and online sales channels.
As restrictions ease with falling COVID cases globally, cafe and food service businesses are recovering while remote working culture is expected to continue supporting retail demand. Producers are focusing on innovations like ready-to-drink beverages and new flavors to attract younger consumers. The pandemic has accelerated e-commerce adoption which is likely to remain an important sales channel even post pandemic. While supply chain issues persist, producers are diversifying sources and investing in automation to cope with future disruptions. The yerba mate market is forecast to see steady growth in coming years factoring in post COVID trends.
The South American region such as Argentina, Brazil and Paraguay account for maximum value share in the global yerba mate market currently led by high domestic consumption in these countries. Argentina is the largest producer as well as consumer of yerba mate globally. However, the European region has emerged as the fastest growing regional market for yerba mate pre-COVID and the trend is likely to continue even post pandemic. The rising health and wellness trends as well as growing popularity of Latin American beverages and foods have boosted yerba mate consumption across countries in Western Europe region like Germany, UK, France and Italy. Meanwhile North American region is also witnessing steady growth with the US estimated to be one of the top importers of yerba mate globally. With increasing health awareness, Asia Pacific region is forecast to provide new opportunities for yerba mate market players over the coming years.
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