Dubai startup positions yerba maté as matcha rival in wellness beverage boom

Arabian Business

27-05-2025

A Dubai-based media executive has launched a startup targeting yerba maté as the region's next premium wellness beverage, aiming to replicate the global success of matcha tea amid an unprecedented boom in health-conscious consumer spending.
Raji Tarabay, a senior manager at Publicis Media Group, founded his company, Yerba, in early 2025 after identifying an untapped opportunity in Dubai's competitive wellness market for the traditional South American drink, which has strong cultural connections to Lebanese and Druze communities.
'We're looking at a market that doesn't have any actionable ground or drive to it,' Tarabay told Arabian Business. 'There's a giant gap in the market with actual yerba maté products that have any branding behind them.'
The timing aligns with explosive growth in the global wellness economy, which reached a record $6.3 trillion in 2023, accounting for 6.03 per cent of global GDP according to the Global Wellness Institute. The sector is projected to approach $9.0 trillion by 2028, with food, fitness and mental wellness among the fastest-growing categories.
Yerba maté, a caffeinated herbal tea made by steeping dried leaves of the yerba maté plant in hot water, has long been popular in Argentina, Uruguay, Paraguay and Brazil. Traditionally consumed from a hollowed gourd through a metal straw called a bombilla, it contains caffeine comparable to coffee but without the jitteriness some experience, due to the presence of theobromine – also found in chocolate.
The beverage has remained largely confined to South American expat communities and certain Middle Eastern demographics, primarily Lebanese and Syrian consumers whose cultural connection to maté came via immigrants who settled in South America before returning to the Levant.
What began as a side hustle for Tarabay and his business partner Bassel Malaeb has quickly evolved into a structured operation with seven employees. The founders are currently running the business as a direct-to-consumer e-commerce model but plan to expand distribution channels soon.
'We're running the business like a corporation, even though it's a startup,' Tarabay explained. '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
The company's business strategy hinges on positioning yerba maté as a premium wellness product with significant health benefits, rather than simply a cultural curiosity.
'People are out there injecting themselves with all of these drugs to suppress their appetite and lose weight,' Tarabay said, referencing 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 properties, anti-inflammatory properties and reduces bloating.'
This wellness-focused positioning mirrors the successful marketing strategy that propelled matcha from a traditional Japanese tea ceremony component to a global wellness phenomenon. Dubai has embraced such trends enthusiastically, with the city now hosting 'matcha raves' – alcohol-free, daytime parties where attendees sip matcha-based beverages while socialising.
Yerba's strategy aligns with other successful functional beverages like kombucha, which has seen explosive growth globally over the past few years. The fermented tea beverage market was valued at $1.67 billion in 2019 and is projected to reach $7.05 billion by 2027, driven by consumer interest in gut health and probiotic benefits.
The COVID-19 pandemic accelerated these wellness trends, with 41.6 per cent of individuals in the Middle East and North Africa reporting increased consumption of fruits and vegetables during the pandemic, while 48.8 per cent reduced fast-food intake, indicating a shift towards healthier eating habits.
Wellness tourism, another booming sector growing at 16.6 per cent annually, was valued at $651 billion in 2022 and is projected to reach $1.4 trillion by 2027. This reflects a growing consumer desire to integrate health-focused experiences into every aspect of their lives, including travel and social activities.
Unexpected market penetration
Market research and early sales data have revealed surprising consumer demographics, 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 said. 'We see that the local communities are coming back time and time again.'
Perhaps more significant for the business model, Yerba has achieved its early growth without formal marketing campaigns.
'Key influencers are trying out yerba by themselves, through their customer journeys,' he added, indicating that planned influencer marketing initiatives could accelerate growth further.
Expansion strategy
The company has ambitious plans for scaling operations across multiple dimensions.
'We are heading regional. That is the goal,' Tarabay confirmed. 'In terms of expansion, we're actually 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 different marketplaces.'
While specific platforms remain undisclosed until partnerships are finalised, this multi-channel approach suggests a shift from pure direct-to-consumer to a more diversified distribution strategy.
The company draws inspiration from global market developments, with Tarabay noting that in January 2024, popular neuroscientist and Huberman Lab podcast host Dr. Andrew Huberman partnered with Canadian investment firm Tiny to acquire a majority stake in Mateína, a Canadian yerba maté beverage company. This high-profile partnership coincided with Mateína's U.S. market debut and included the development of a sugar-free, non-smoked yerba maté beverage, potentially signalling growing mainstream interest in the product category.
Yerba's market positioning balances authenticity with accessibility, recognising both the South American origins and Middle Eastern adoption of maté.
'Our branding is about honouring tradition, but with a modern twist,' Tarabay explained. 'We do believe that it is a great South American product.'
This carefully calibrated approach aims to appeal to wellness-focused consumers seeking authenticity while making the product accessible to those unfamiliar with maté culture.
Operational challenges
However, building a new product category presents significant challenges, particularly in consumer education and securing reliable supply chains for premium yerba maté.
'Even when we were looking around and trying to find the suppliers, it was quite difficult to even find anyone that does this certain product,' Tarabay revealed, highlighting supply chain development as a critical business function.
As Dubai's wellness market continues to mature, with consumers increasingly seeking functional beverages that deliver both health benefits and social cachet, Tarabay believes Yerba appears well-positioned to capitalise on emerging trends in a sector that shows no signs of slowing down.
'We genuinely hope that we're going to be achieving the numbers that we are seeing right now when it comes to matcha and kombucha parties,' said Tarabay, with the quiet confidence of an entrepreneur who has identified a genuine market opportunity.
'It does have a great addition to your health, to your lifestyle, and to the community as a whole.'