Iced Tea Market Size
Global Iced Tea Market reached US$ 55.2 billion in 2022 and is expected to reach US$ 88.6 billion by 2030 growing with a CAGR of 6.1% during the forecast period 2024-2031. The expanding health and wellness trend is influencing consumer preferences and driving the demand for healthier beverage options.
Iced tea, particularly when made with natural ingredients and without added sugars, aligns with the growing consumer inclination towards better-for-choices. As consumers become more health-conscious and seek out refreshing alternatives to carbonated beverages, the market for iced tea is experiencing a surge in demand.
The increasing popularity of ready-to-drink (RTD) beverages driving the iced tea demand. RTD iced tea offers convenience and portability, catering to the busy lifestyles of consumers who seek on-the-go refreshments. The ease of access to RTD iced tea products through various distribution channels, including supermarkets, convenience stores, and online platforms, further drives the market growth.
Market Summary
| Metrics | Details |
| CAGR | 6.1% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product Type, Form, Distribution Channel, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
The Increasing Consumer Preference for Healthier Beverage Options Drives Market Growth
Iced tea is associated with health benefits including antioxidants, potential weight management properties, and potential cardiovascular benefits. Increased awareness of these benefits is leading consumers to choose iced tea as a healthier beverage option and further drives the global iced tea market growth.
There is a growing demand for beverages, which are offering nutritional benefits. Iced tea is a healthier alternative to sugary carbonated drinks as consumers become more health-conscious. Iced tea, especially when made with natural ingredients and without added sugars, can provide a refreshing and hydrating option with potentially lower calorie content.
Manufacturers are also developing new products in the market to meet consumer demand. For instance, on June 28, 2023, VAHDAM India introduced a captivating addition to its product lineup: ICED TEAS! Meticulously crafted using 100 percent real tea, this fresh range of iced teas is offered in two convenient forms - instant premix and pitcher tea bags. Indulge in the perfect refreshment for those warm days, courtesy of VAHDAM's new and delightful iced tea creations.
Increasing Popularity of Ready-To-Drink (RTD) Beverages Drives Market Growth
The market for RTD beverages is witnessed significant expansion in recent years, with a wide range of options available to consumers. Market players are offering RTD iced tea available in a variety of flavors and formulations. This diverse range of products provides consumers with a choice that suits their taste preferences and contributes to the overall growth of the iced tea market.
Companies highlight the convenience, taste, and health benefits of their RTD iced tea offerings through various advertising channels. These marketing strategies aim to increase consumer awareness, generate product visibility, and influence purchasing decisions, ultimately driving the growth of the RTD iced tea market. For instance, on April 14, 2022, Jade Forest introduced an exquisite selection of premium non-alcoholic Iced Tea in three enticing flavors, carefully crafted with an abundance of essential nutrients and real fruit juices.
Increasing Competition From Other Non-Alcoholic Beverages Hamper the Market Growth
Consumers have numerous options to choose from with a wide variety of non-alcoholic beverages available in the market. This intense competition is leading to a shift in consumer preferences away from iced tea, restraining market growth. As other non-alcoholic beverages including carbonated drinks, fruit juices, energy drinks, and flavored waters, gain popularity, consumers reduce their consumption of iced tea, affecting overall demand.
Competing non-alcoholic beverage brands invest heavily in marketing and promotion to attract consumers. This increased competition for consumer attention can make it challenging for iced tea brands to maintain visibility and brand awareness in the market. In the retail environment, limited shelf space can make it difficult for iced tea brands to secure prominent placements. Other non-alcoholic beverage categories dominate these positions, affecting the visibility and accessibility of iced tea products.
Market Segment Analysis
The global iced tea market is segmented based on product type, form, distribution channel, and region.
Increasing Demand for Natural and Flavored Blacked Iced Tea
Black iced tea is holding the highest share of the global iced tea market. Its traditional flavor profile offers a familiar and comforting taste to consumers across different regions and cultures. This wide acceptance is leading to sustained demand for the black iced tea segment in the global iced tea market.
Black iced tea is versatile served plain, sweetened, and with added flavors such as lemon and mint, catering to different taste preferences. This adaptability is contributing to its popularity among consumers, making it a go-to choice for a refreshing beverage, which further drives the blacked segment in the global iced tea market.
Market Geographical Share
Increasing Iced Tea Consumption in North America
North America holds the highest share of the global iced tea market, benefitting from its substantial consumer base with a strong affinity for tea. The United States stands out as the largest consumer, boasting over 159 million Americans who enjoy tea daily, with approximately 75-80% of it being consumed in iced form, as reported by the Tea Association of the United States.
In North America, black iced tea is widely preferred and holds the largest market share in the iced tea segment. As consumer tastes evolve, manufacturers in the region are proactively responding by introducing new and innovative natural flavors to cater to changing preferences. For instance, DAVIDsTEA launched a range of cold brew iced teas infused with fruity flavors in June 2022, aiming to achieve higher sales during the summer season.
Market Companies
The global iced tea market players include PepsiCo, Unilever, The Coca-Cola Company, 4C Foods Corp., Harris Freeman & Co, Mother Parkers Tea & Coffee Inc., Arizona Beverages USA, BOS Brands, Templar Food Products, and Nestle SA.
COVID-19 Impact on Market
The closure of restaurants, cafes, and food service establishments during lockdowns resulted in a decline in the out-of-home consumption of iced tea. There was a significant reduction in impulse purchases and on-the-go beverage consumption as consumers stayed home to adhere to safety measures. This shift in consumer behavior led to a decline in the iced tea market demand.
However, the pandemic also presented opportunities for the market. With more consumers staying at home, there was a surge in demand for packaged and ready-to-drink beverages, including iced tea. As people sought convenience and comfort during lockdowns, the market witnessed increased sales of retail-packaged iced tea products.
By Product Type
- Black Iced Tea
- Green Iced Tea
- Herbal Iced Tea
- Others
By Form
- Powder
- Liquid
By Distribution Channel
- Supermarkets/Hypermarkets
- Convenience Stores
- Online Sales
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- In April 2022, Jade Forest, a prominent player in the beverage industry, introduced a new range of iced teas featuring three delightful flavors, collaboratively developed with flavor specialists based in Denmark.
- On July 5, 2022, Teapigs launched a collection of refreshing ready-to-drink (RTD) iced tea cans, offering two delightful varieties: Super Fruit and Black Tea with Peach. These new iced tea flavors are now accessible for purchase on Teapigs' website, and they are also available for general wholesale orders. Each 250ml can is reasonably priced at an RRP of £1.99. Both varieties are sweetened with agave, providing a natural touch of sweetness, and they contain no artificial flavors or sweeteners, ensuring a wholesome and authentic taste experience.
- In July 2022, Beverage Partners International (BPI) joined forces with Teabrary and Berjaya Group to introduce Dilmah iced tea in the Malaysian market. The collaboration between BPI, Teabrary, and Berjaya Group resulted in the successful launch of Dilmah iced tea, providing Malaysian consumers with a refreshing beverage option.
Why Purchase the Report?
- To visualize the global iced tea market segmentation based on product type, form, distribution channel, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of the iced tea market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global iced tea market report would provide approximately 61 tables, 58 figures, and 119 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
