Caraway Tea Company Expands Capacity for Sleep & Stress Wellness Teas

POUGHKEEPSIE, N.Y., May 27, 2026 /PRNewswire/ -- Caraway Tea Company, the SQF Level 2-certified, USDA Organic, women-owned wholesale tea manufacturer and private-label co-packer based in New York's Hudson Valley, today announced expanded production capacity for sleep and stress-support herbal blends, in response to one of the fastest-moving consumer wellness categories of 2026.

The evening tea ritual has emerged as a cornerstone of modern wellness behavior. Industry data places chamomile at roughly 32% of the global herbal ingredient market — the single most consumed wellness botanical worldwide. Consumer research published earlier this year ranks sleep-supporting herbal teas among the highest-growth wellness beverage segments, with brands across both retail and DTC channels building entire product lines around the "wind-down" occasion.

To meet that demand, Caraway Tea Company has relocated to a larger manufacturing facility in Poughkeepsie equipped with six pyramid tea bag lines, dedicated iced tea bag lines, pyramid envelope lines, and loose tea packing capabilities — providing the flexibility brands need to launch a sleep or stress SKU in virtually any retail format.

"Sleep and stress are no longer a sub-category — they're driving the conversation," said Michael Caraway, COO of Caraway Tea Company. "Three years ago, brands came to us asking for a chamomile blend. Today they're asking for a five-ingredient evening formulation with valerian, passionflower, lemon balm, lavender, and an adaptogen layer — and they want clinical-quality botanicals, full traceability, and a packaging format that supports a ritual, not just a serving. Our expanded facility was built specifically for that level of complexity."

The bedtime tea category Caraway is now producing for includes:

• Classic relaxation blends built on chamomile, lavender, and lemon balm — the traditional foundation for evening rituals.
• Deeper sleep formulations incorporating valerian root, passionflower, hops, and skullcap for brands targeting consumers with more pronounced sleep concerns.
• Stress-and-cortisol-support blends featuring adaptogens such as ashwagandha, holy basil (tulsi), and reishi — bridging the daytime stress and nighttime recovery occasions.
• Caffeine-replacement evening rituals designed for the growing consumer base trading evening alcohol or screen time for a structured wind-down practice.

All blends are produced under SQF Level 2 and USDA Organic protocols, with format flexibility spanning pyramid sachets, traditional and iced tea bags, pyramid envelopes, and loose-leaf retail and foodservice packs.

The rigor problem in the sleep category

Caraway Tea Company is also pushing for higher standards in functional tea manufacturing, especially in the fast-growing sleep category, where consumers expect real results—not just marketing claims.

"A bedtime tea makes a promise," added 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 partners with established brands and emerging wellness companies to develop sleep and stress blends from concept to finished goods, backed by in-house blending, small-batch flexibility, and full regulatory documentation. The company is now accepting inquiries for Q3 production at its expanded Poughkeepsie facility.

Media Contact:
Michael Caraway
845-236-3645
[email protected]

SOURCE Caraway Tea Company