Iced Tea Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 55.20 Billion |
| Market Size (2029) | USD 74.30 Billion |
| CAGR (2024 - 2029) | 4.83 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia Pacific |
Major Players.webp "Iced Tea Market Major Players"){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Iced Tea Market Analysis
The Iced Tea Market size is estimated at USD 55.20 billion in 2024, and is expected to reach USD 74.30 billion by 2029, growing at a CAGR of 4.83% during the forecast period (2024-2029).
Tea is a widely consumed beverage in almost all regions and countries, and introducing a chilled version brought more prospects to invest in the market. Regular consumption of iced tea provides many health benefits, such as reducing cancer risk. Therefore, with rising health-conscious consumers, iced tea is considered a healthier alternative to aerated and carbonated drinks. Moreover, long working hours and increasing social gatherings drive the consumption of iced tea beverages as a refreshing drink. With this, manufacturers have also taken initiatives to launch products backed by solid marketing targeting the health benefits of iced tea, particularly among millennials and members of Generation Z, which constitute the most extensive market customer base. Moreover, manufacturers focus on introducing new and innovative fruit flavors. For instance, in 2022, Honest Tea returned to the bottled tea business with the launch of Just Ice Tea, a ready-to-drink organic iced tea brand focused on sourcing simple ingredients and Fair Trade Certified teas and sweeteners. The range is available in six flavors: berry hibiscus herbal tea, honey green tea, Moroccan mint tea, original green tea, peach oolong tea, and tea lemonade.
Iced Tea Market Trends
Iced Tea as a Healthy Alternative for Daily Intake
The health benefits of consuming iced tea have persuaded many consumers to prefer it over carbonated drinks. Iced tea contains flavonoids and other components that can bind the cholesterol or bad fat in the blood and remove it from circulation. It is also rich in vitamins, minerals, and antioxidants, and its daily intake can help target nutrient deficiencies. Besides, manufacturers focus on introducing new and innovative fruit flavors. For instance, in July 2022, Teapigs launched iced teas in two new flavors: black tea with peach and superfruit. According to the company's claim, each flavor is craft brewed in the United Kingdom using top-quality tea pigs tea sourced by trained tea tasters. Manufacturers also emphasize organic and herbal teas to cater to changing customer preferences for healthier and diet-friendly tea. For instance, in March 2023, Eat the Change, the planet-friendly snack company, expanded its ready-to-drink organic iced tea line Just Iced Tea in three new varieties, including mango white tea, original black tea, and lemon ginger herbal tea.
Asia Pacific is the Largest Consumer of Iced Tea
China is the largest tea producer and iced tea consumer in Asia. Consumers are incorporating iced tea into their daily routines as a refreshing and healthy beverage option. The rising health consciousness among consumers has led several brands to offer sugar-free variants of iced tea. For instance, in 2022, Coca-Cola China strategically planned to enter the iced tea market by promoting its herbal tea Health Workshop in mainland China, emphasizing its health benefits, with natural sweeteners from Momordica fruit and no additives in the tea.
Japan is another major consumer, and with changing lifestyles and urbanization, consumers are increasingly drawn to iced tea due to its perceived health benefits, mainly when served unsweetened or with minimal sugar. Thus, the iced tea segment is anticipated to grow in the country and contribute to the overall market growth in the forecast period.
Traditional home-brewed tea contains varying amounts of caffeine depending on the type of tea leaves used and the amount of tea used, whereas iced tea mixes and RTD iced tea have consistent amounts of caffeine. Hence, consumers prefer ready-to-drink iced tea in Australia. The popularity of iced tea variations has increased, especially during the warmer months. Ready-to-drink formats appeal to busy-conscious consumers, offering instant refreshment without brewing or preparation.
Iced Tea Industry Overview
The iced tea market is fragmented with many players, including large-scale manufacturers, regional-level players, and local players. Key global iced tea market players include Arizona Beverages USA, The Coca-Cola Company, Keuring Dr Pepper Inc., PepsiCo., Inc., and Nestle SA. These players focus on launching new products, partnerships, mergers, and acquisition strategies to maintain a leading position in their respective market space. With the increasing number of health-conscious consumers worldwide, they are also adopting various strategies to draw consumers' attention by introducing flavored and less-sugar iced tea to capture a larger market share. For instance, Jade Forest launched a premium non-alcoholic beverage, iced tea, for summer 2022 in three new flavors packed with essential nutrients and fruit juice.
Iced Tea Market Leaders
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The Coca Cola Company
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Nestle SA
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Arizona Beverages USA
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Keuring Dr Pepper Inc.
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PepsiCo. Inc.
*Disclaimer: Major Players sorted in no particular order
Iced Tea Market News
- August 2023: Lipton brand launched 330ml cans of its classic lemon and peach flavor ice teas into the United Kingdom market with six-pack multipack variants.
- April 2023: Unilever Plc brand Lipton expanded its iced tea business by launching new iced tea products. The iced teas have different flavors, including lemon, peach, and lychee.
- April 2023: Molson Coors and Coca-Cola added a new beverage through their partnership with the launch of Peace Hard Tea. According to the company's claim, Peace Hard Tea is available in single-serve 24 oz cans in three different flavors.
Iced Tea Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Iced Tea as a Healthy Alternative for Daily Intake
- 4.1.2 Introduction of Innovative and Flavorful Iced Tea Options
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4.2 Restraints
- 4.2.1 Competiton From Substitutes
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4.3 Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Black Iced Tea
- 5.1.2 Green Iced Tea
- 5.1.3 Herbal Iced Tea
- 5.1.4 Other Iced Tea
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5.2 Form
- 5.2.1 Powder/Premix
- 5.2.2 Liquid/Ready-to-drink
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5.3 Distribution Channel
- 5.3.1 Supermarkets/ Hypermarkets
- 5.3.2 Convenience Stores
- 5.3.3 Online Retail Stores
- 5.3.4 Other Retail Distribution Channels
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Italy
- 5.4.2.5 Spain
- 5.4.2.6 Rest of Europe
- 5.4.3 Asia Pacific
- 5.4.3.1 China
- 5.4.3.2 Japan
- 5.4.3.3 India
- 5.4.3.4 Australia
- 5.4.3.5 Rest of Asia Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East & Africa
- 5.4.5.1 South Africa
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 PepsiCo. Inc.
- 6.3.2 Unilever PLC
- 6.3.3 The Coca-Cola Company
- 6.3.4 4C Foods Corp.
- 6.3.5 Harris Freeman & Co
- 6.3.6 Arizona Beverages USA
- 6.3.7 BOS Brands
- 6.3.8 Nestle SA
- 6.3.9 Tata Consumers Products Limited
- 6.3.10 Keurig Dr Pepper Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Iced Tea Industry Segmentation
Iced tea is a cold beverage with different flavors, such as lemon, raspberry, lime, passion fruit, peach, orange, strawberry, and cherry.
The iced tea market is segmented based on product type, form, distribution channel, and geography. The market is segmented by product type into black iced tea, green iced tea, herbal iced tea, and others. The market is segmented by form into powder/premix and liquid/ready-to-drink. The market is segmented by distribution channel into supermarkets/ hypermarkets, convenience stores, online retail stores, and other retail distribution channels. By geography, the market is segmented by North America, Europe, Asia-Pacific, South America, the Middle East, and Africa.
The report offers the market size in value terms in USD for all the abovementioned segments.
| Product Type | Black Iced Tea | |
| Green Iced Tea | ||
| Herbal Iced Tea | ||
| Other Iced Tea | ||
| Form | Powder/Premix | |
| Liquid/Ready-to-drink | ||
| Distribution Channel | Supermarkets/ Hypermarkets | |
| Convenience Stores | ||
| Online Retail Stores | ||
| Other Retail Distribution Channels | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | South Africa |
| Saudi Arabia | ||
| Rest of Middle East & Africa |
Iced Tea Market Research FAQs
How big is the Iced Tea Market?
The Iced Tea Market size is expected to reach USD 55.20 billion in 2024 and grow at a CAGR of 4.83% to reach USD 74.30 billion by 2029.
What is the current Iced Tea Market size?
In 2024, the Iced Tea Market size is expected to reach USD 55.20 billion.
Who are the key players in Iced Tea Market?
The Coca Cola Company, Nestle SA, Arizona Beverages USA, Keuring Dr Pepper Inc. and PepsiCo. Inc. are the major companies operating in the Iced Tea Market.
Which is the fastest growing region in Iced Tea Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Iced Tea Market?
In 2024, the Asia Pacific accounts for the largest market share in Iced Tea Market.
What years does this Iced Tea Market cover, and what was the market size in 2023?
In 2023, the Iced Tea Market size was estimated at USD 52.53 billion. The report covers the Iced Tea Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Iced Tea Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growing consumer trends in the Iced Tea Market?
The growing consumer trends in the Iced Tea Market are a) Health-conscious choices b) Sugar reduction c) Organic ingredients d) Functional benefits
Iced Tea Industry Report
The global iced tea market is witnessing dynamic growth, significantly propelled by the integration of functional ingredients such as vitamins, adaptogens, and CBD, catering to a health-conscious global audience seeking wellness benefits. With innovative flavor introductions like peach and lemon, ice tea brands are expanding their appeal and utilizing social media to enhance direct consumer engagement, crucial in the competitive beverage industry. The market sees extensive activity across various distribution channels, particularly online sales, which are expected to surge due to their convenience and wide range of options. Geographically, the market shows strong performance in both established regions like North America and emerging markets such as the Asia Pacific, with the iced tea market in India showing notable growth potential. This trend is driven by an inclination towards premium, health-oriented consumer goods, positioning iced tea as both a modern and traditional beverage choice poised for ongoing growth and innovation. For detailed market insights, including market share, size, and revenue growth rate, consider downloading a free report sample from Mordor Intelligence™.
