The yerba mate global market at a glance
- Yerba mate demand is rising fast, with the global market expected to grow from $2.03bn in 2025 to $3.46bn by 2035 due to consumer interest in natural energy beverages
- RTD formats are driving growth, increasing 65% year‑on‑year, alongside rapid expansion in organic and functional product launches
- Syria and the US lead import markets, while Europe and Asia‑Pacific show strong momentum, with APAC recording 50% import growth
- Producers are scaling capacity, expanding processing by 30% and adopting organic certification across 70% of major brands to meet export standards and rising global demand
Relatively unknown beyond its South America heartland, the caffein-rich leaf known as yerba mate is energising new markets globally.
Syria imported $63m of Argentine yerba mate in 2024, rivalling the United States ($61.4m) as a top export destination, according to UN Comtrade data. Yerba mate’s early success in these markets signals broader momentum for the category: the global market is projected to reach $3.46bn by 2035, up from $2.03bn in 2025, an annual growth rate of 5.48%.
Major beverage manufacturers including PepsiCo’s Yachak brand in the US have positioned yerba mate as a natural alternative to synthetic energy drinks.
And it’s little wonder major brands like PepsiCo are stretching into yerba, considering its predicted trajectory. This growth is being driven by consumer demand for natural energy alternatives.
Yerba mate is positioned as a functional ingredient that delivers sustained alertness without the crash associated with synthetic caffeine sources. Health-conscious purchasing decisions are reshaping the category, as younger demographics seek out beverages with perceived health benefits.
Within energy, beverages account for 60% of the market, according to Research and Markets. But the ready-to-drink (RTD) segment is where the real momentum sits. RTD yerba mate products have grown 65% [Market Research Future] as convenience-focused consumers adopt the format, competing directly with traditional energy drinks and premium coffee offerings.
Alongside multinationals, a wave of wellness‑centric brands are shaping the category. Guayaki and EcoTeas have established premium positioning in the US market through organic certification and ethical sourcing claims, while newer entrants including Yerba Madre, Yerbaé and CleanCause are differentiating through functional benefits and lifestyle branding.
These brands are also commanding higher price points by attracting loyal followings amongst health-conscious millennials and Gen Z consumers.
Product innovation has since accelerated. Flavoured variants now account for 40% of new investment, with citrus (25%), berry (20%) and mint (15%) leading launches. Functional additions – collagen, vitamins and adaptogens – appear in 55% of new products, while carbonated RTDs have grown by 35% [Market Research Futures].
How big is the global yerba mate market
These innovations are also reshaping format choice. Loose‑leaf remains dominant in traditional markets, but tea bags are the fastest‑growing segment globally, offering accessibility for new consumers. Meanwhile, RTDs continue to gain retail shelf space, competing head‑to‑head with established energy drink brands.
But where is it sold?
E‑commerce has become a major accelerator for the category, with online sales rising 45–60% year‑on‑year [Market Research Futures]. Subscription services and direct‑to‑consumer models are allowing smaller producers to bypass traditional retail structures.
Even so, supermarkets and hypermarkets still account for around 50% of global sales, providing critical visibility for mainstream adoption. Online channels have been especially important for geographic expansion, helping brands enter markets that were previously difficult to reach.
What is yerba mate?
Yerba mate has been a staple of beverage consumption in South America since pre-Columbian times. It is a caffeinated beverage made of the leaves of Ilex paraguariensis, a member of the holly family of plants native to South America’s subtropical region. Today, the beverage is consumed across Argentina, Brazil, Uruguay, and Paraguay, where it functions as both daily staple and social ritual.
Traditional preparation involves steeped leaves in a hollow gourd (also called a mate), consumed through a hollow straw known as a bombilla. It can be served either hot or cold (with the cold brew version called tereré in Paraguay and Brazil). Modern consumption includes loose-leaf preparation, as well as tea bags, powdered extracts, and ready-to-drink formulations.
Yerba mate contains caffeine (approximately 85mg per 8oz serving), polyphenol antioxidants, and vitamins B1, B2, and C. Latin America accounts for 80% of global production, with Argentina representing 55% of supply. In Argentina, yerba mate consumption reaches near-universal adoption, with the average Argentine consuming approximately 100l annually.
The ingredient’s functional properties (sustained energy without the crash associated with coffee, combined with antioxidant content) have made it a contender in the growing functional beverage category in international markets.
Brands winning in international markets are focusing on both antioxidant content and steady‑energy benefits, positioning yerba mate as a functional, plant‑based upgrade to traditional caffeinated beverages.
“As consumers begin to pay closer attention to how beverages make them feel over time, and not just when they consume them, yerba mate is viewed as providing a steadier feeling,” says Dr Kezia Joy, registered dietitian nutritionist and medical advisor at health brand Welzo. “This fits perfectly with today’s desire for moderation and balance.”
Meanwhile, Syria may be Argentina’s largest importer, but the wider Middle East is now a strong growth zone, increasingly rivalling the US. Across North America, the US remains the dominant market, accounting for 70% of regional demand. Imports have grown 40% over the past five years, fuelled by wellness culture, fitness consumption, and the search for natural energy alternatives.
Europe represents a high‑potential market, expanding 35% over the last five years. Germany and France together account for half of European yerba mate sales, while the UK has seen imports climb 40% [Market Research Future]. The region’s strong preference for organic certification (60% of consumers prioritise it) makes it particularly promising for premium and ethical-positioned brands.
Where is yerba mate grown?
But the fastest growth by far is in the Asia‑Pacific region, where imports have risen 50% [Market Research Futures]. Japan and Australia lead adoption, and China – even with its entrenched tea culture – is showing early signs of potential. APAC remains relatively underdeveloped but is poised for rapid expansion as functional beverages gain traction.
But can production keep up with rising demand?
On the supply side, production capacity has risen in step with global demand. Traditional barbacuá smoke‑drying is still preferred in domestic markets, but export‑oriented producers increasingly rely on industrial drying to meet international specifications. Aging periods vary from six to 24 months, with premium varieties fetching higher prices.
Major manufacturers including Las Marías and CBSe have increased processing capacity by roughly 30% since 2023, enabling them to scale both conventional and organic production streams. Today, 70% of leading brands carry organic certification, which has shifted from premium differentiator to market requirement in many export regions.
Argentina remains the global powerhouse: Las Marías holds 30% market share and CBSe 20% [Market Research Futures], supported by strong domestic distribution and growing international reach.
The role of smaller producers – overseen by Argentina’s National Institute of Yerba Mate (INYM) – remains contentious. INYM’s 2022 protections for smallholders faced criticism for restricting market access and enabling competitors like Paraguay and Brazil to gain share.
Regulations have since loosened, and post‑Covid-19 supply has surged, with the Argentine government now pursuing a modernisation agenda to strengthen global competitiveness.
With the global yerba mate market on track to surpass $3bn by 2035, the category’s momentum shows no sign of slowing. Consumer interest, brand investment and production capacity are aligning, and RTD innovation will be central to capturing younger consumers seeking natural, functional energy solutions.