Beverages
Caraway Tea Company Scales Up to Meet 2026’s Sleep & Stress Tea Boom
Caraway Tea Company expands Poughkeepsie production for private label sleep and stress herbal teas, including chamomile, valerian, and adaptogen blends.
If 2026 has a defining wellness habit, it might be the “evening ritual”—that intentional wind-down window when people trade late-night scrolling (or a nightcap) for something calmer, warmer, and repeatable. Caraway Tea Company is betting on that behavior in a big way. The Hudson Valley-based, women-owned tea manufacturer and private-label co-packer announced it has expanded production capacity specifically for sleep- and stress-support herbal blends, responding to what it calls one of the fastest-moving consumer wellness categories of the year.
The company, which is SQF Level 2-certified and USDA Organic, has relocated to a larger manufacturing facility in Poughkeepsie, New York. The new setup includes six pyramid tea bag lines, dedicated iced tea bag lines, pyramid envelope lines, and loose tea packing capabilities—giving brands flexibility to launch (or expand) sleep and stress SKUs across multiple retail formats without having to compromise on presentation or scale.
Why “wind-down” tea is having a moment
Caraway points to a broader shift: sleep support isn’t a niche add-on anymore—it’s becoming a primary product driver. Chamomile alone represents roughly 32% of the global herbal ingredient market, making it the most consumed wellness botanical worldwide. And consumer research published earlier this year places sleep-supporting herbal teas among the highest-growth wellness beverage segments, with both retail and DTC brands building full product lines around the wind-down occasion.
In other words: consumers aren’t just buying tea. They’re buying the routine.
“Sleep and stress are no longer a sub-category — they’re driving the conversation,” said Michael Caraway, COO of Caraway Tea Company. He noted that brand requests have evolved quickly—from simple chamomile blends to more complex, multi-ingredient evening formulas featuring botanicals like valerian, passionflower, lemon balm, and lavender, sometimes layered with adaptogens. Those formulas, he added, come with higher expectations: clinical-quality botanicals, traceability, and packaging that supports a ritual—not just a single serving.
The blends brands are building now
Caraway says its expanded facility is designed to support a range of sleep and stress formulations, including:
- Classic relaxation blends built on familiar botanicals like chamomile, lavender, and lemon balm—the traditional foundation of many bedtime teas.
- Deeper sleep formulas incorporating ingredients such as valerian root, passionflower, hops, and skullcap for consumers with more pronounced sleep concerns.
- Stress-and-cortisol-support blends featuring adaptogens like ashwagandha, holy basil (tulsi), and reishi—bridging daytime stress management with nighttime recovery.
- Caffeine-replacement evening rituals aimed at the growing audience swapping evening alcohol or screen time for a structured wind-down practice.
All blends are produced under SQF Level 2 and USDA Organic protocols, with packaging options spanning pyramid sachets, traditional and iced tea bags, pyramid envelopes, and loose-leaf formats for retail and foodservice.
The “rigor problem” in functional sleep teas
Alongside capacity growth, Caraway is also making a standards argument—especially for the sleep category, where consumer expectations are high and the line between marketing and outcomes can get blurry.
“A bedtime tea makes a promise,” said Gina Caraway, CEO and Co-Founder. “Consumers expect it to help them sleep. That promise is earned through sourcing, formulation, and batch testing. You can put ‘sleep’ on a box. You can’t put it in the cup unless the work is real.”
Caraway says it supports partners from concept to finished goods with in-house blending, small-batch flexibility, and full regulatory documentation—positioning itself as a manufacturing partner for both established brands and emerging wellness companies that want to compete in a crowded, fast-moving category.
What’s next
With the expanded Poughkeepsie facility now online, Caraway Tea Company is accepting inquiries for Q3 productionfor sleep and stress-support blends—an indicator that brands are already planning ahead for late-summer and fall wellness demand.
For brands watching the market, the takeaway is simple: the evening ritual is no longer a trend to test—it’s a product lane to build around. And as consumers get more discerning about what “works,” manufacturers that can deliver traceability, testing, and format flexibility may become the quiet force behind the next wave of functional tea growth.
Source and Related Links
- Press release pickup (Morningstar / PR Newswire syndication): Caraway Tea Company Expands Capacity for Sleep & Stress Wellness Teas
- Company overview page: Caraway Tea Company
- Main site (services / private label positioning): Caraway Tea Company – Private Label Tea Manufacturer
- Company press page (helpful for context + additional announcements): Caraway Tea Company Press
- Additional syndication pickup (Yahoo Finance): Caraway Tea Company Expands Capacity for Sleep & Stress Wellness Teas
- Brand social proof / updates (Facebook page): Caraway Tea Company on Facebook
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