In the thriving landscape of wellness beverages, a Dubai startup is positioning yerba maté as a rival to matcha, tapping into the burgeoning market for healthy drinks. Founded by Raji Tarabay in early 2025, Yerba aims to leverage the unique cultural ties between yerba maté and Middle Eastern communities while attracting a broader audience interested in wellness trends. As the global wellness economy continues to soar, with predictions suggesting it could reach nearly $9 trillion by 2028, the rise of yerba maté could soon mirror the success of matcha, highlighting significant opportunities in this rapidly evolving sector.
Raji Tarabay, a senior manager at Publicis Media Group, launched his company, Yerba, after spotting a gap in Dubai’s competitive wellness market for this traditional South American drink, which resonates deeply with local Lebanese and Druze communities.
“We’re looking at a market that doesn’t have any actionable ground or drive to it,” Tarabay informed Arabian Business. “There’s a giant gap in the market with actual yerba maté products that have any branding behind them.”
This venture comes at a significant moment, coinciding with the explosive growth of the global wellness economy, which has reached a record $6.3 trillion in 2023, making up 6.03 percent of global GDP, according to the Global Wellness Institute. This market is projected to approach $9.0 trillion by 2028, with the food, fitness, and mental wellness sectors among the fastest-growing categories.
Yerba maté, a caffeinated herbal tea prepared from the dried leaves of the yerba maté plant, has long been a staple in Argentina, Uruguay, Paraguay, and Brazil. Traditionally enjoyed from a hollow gourd through a metal straw known as a bombilla, yerba maté offers a caffeine kick similar to coffee but is often favored for its smoother effects due to the presence of theobromine, which is also found in chocolate.
Historically, the beverage has primarily attracted South American expatriate communities and limited demographics in the Middle East, mainly Lebanese and Syrian consumers who became acquainted with maté through their ancestors’ migration to South America.
What started as a side project for Tarabay and his business partner, Bassel Malaeb, has quickly evolved into a well-organized operation with seven employees. Initially launching as a direct-to-consumer e-commerce model, the founders plan to diversify their distribution channels soon.
“We’re running the business like a corporation, even though it’s a startup,” Tarabay expressed. “It’s just incredible to see right now. Yerba can scale to operate with 1,000 sales or 20,000 sales, and it would operate the same exact way.”
Market Positioning and Health Benefits
Yerba’s business strategy focuses on branding yerba maté as a high-quality wellness product with prominent health benefits, moving it beyond mere cultural novelty.
“People are out there injecting themselves with all these drugs to suppress their appetite and lose weight,” Tarabay remarked, referring to the popularity of GLP-1 receptor agonists like Ozempic and Wegovy. “Something that they don’t know about is that yerba maté contains aspects of GLP-1. It also has thermogenic and anti-inflammatory properties and can reduce bloating.”
This wellness-centric approach reflects the successful marketing techniques that transformed matcha from a traditional Japanese beverage into a global wellness staple. Dubai has embraced wellness trends like these, even hosting “matcha raves”—sober, daytime events where attendees enjoy matcha-themed drinks while socializing.
Yerba’s strategy resonates with other successful functional beverages such as kombucha, which has seen unprecedented growth in recent years. The global market for this fermented tea drink was valued at $1.67 billion in 2019 and is projected to reach $7.05 billion by 2027, driven by rising consumer interest in gut health and the benefits of probiotics.
The COVID-19 pandemic accelerated these wellness trends, with 41.6 percent of individuals in the Middle East and North Africa reporting increased fruit and vegetable consumption during this time, while 48.8 percent cut back on fast food, indicating a significant shift towards healthier eating patterns.
Wellness tourism is another rapidly expanding sector growing at 16.6 percent annually, valued at $651 billion in 2022 and projected to hit $1.4 trillion by 2027. This reflects a growing desire among consumers to integrate health-oriented experiences into various facets of their lives, including travel and social activities.
Unexpected Market Penetration
Market analyses have unveiled surprising demographics among consumers, according to Tarabay.
“We didn’t expect a certain audience to be very attentive to our product and brand, which was the local community,” he remarked. “We see that local communities are coming back time and time again.”
Remarkably, Yerba has managed its initial growth sans formal marketing campaigns.
“Key influencers are trying out yerba by themselves, through their customer journeys,” he noted, suggesting that planned influencer marketing efforts could amplify growth even further.
Expansion Strategy
The company has ambitious plans to broaden its operations in multiple dimensions.
“We are heading regional. That is the goal,” Tarabay confirmed. “In terms of expansion, we’re going to be growing our product lines very soon. We’re doubling down on awareness and access for Yerba; it’s going to be more accessible in different aggregators and marketplaces.”
While specific platforms remain under wraps until agreements are finalized, this multi-channel approach indicates a transition from a solely direct-to-consumer model to a more varied distribution strategy.
Bolstered by global market trends, Tarabay highlighted a noteworthy development: in January 2024, renowned neuroscientist and Huberman Lab podcast host Dr. Andrew Huberman collaborated with Canadian investment firm Tiny to acquire a majority stake in Mateína, a Canadian yerba maté beverage company. This partnership coincided with Mateína’s U.S. market entry and included the launch of a sugar-free, non-smoked yerba maté drink, signaling an uptick in mainstream interest for this product category.
Yerba’s market positioning blends authenticity with accessibility, honoring the beverage’s South American roots while appealing to Middle Eastern consumers.
“Our branding is about honoring tradition, but with a modern twist,” Tarabay explained. “We do believe that it is a great South American product.”
This nuanced approach seeks to attract wellness-focused consumers in search of authenticity while making yerba maté accessible to those unfamiliar with its cultural significance.
Operational Challenges
Nevertheless, establishing a new product category comes with considerable challenges, notably in consumer education and securing dependable supply chains for premium yerba maté.
“Even as we were searching for suppliers, it was challenging to find anyone that provides this specific product,” Tarabay disclosed, underscoring the importance of supply chain development as a core business function.
As Dubai’s wellness market matures, with consumers increasingly seeking functional beverages that offer both health benefits and social value, Tarabay remains optimistic that Yerba is perfectly positioned to seize opportunities in a sector that continues to evolve.
“We genuinely hope that we’re going to achieve numbers similar to what we’re witnessing with matcha and kombucha parties,” Tarabay expressed, showcasing the quiet confidence of an entrepreneur who has recognized a genuine market gap.
“Yerba does make a great addition to your health, lifestyle, and community as a whole.”