North America Ready to Drink Tea Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

The North America Ready to Drink Tea Market is segmented by Soft Drink Type (Green Tea, Herbal Tea, Iced Tea), by Packaging Type (Aseptic packages, Glass Bottles, Metal Can, PET Bottles), by Distribution Channel (Off-trade, On-trade) and by Country (Canada, Mexico, United States). Market Value in USD and Volume in Liters are both presented. Key data points observed include market segmental split by soft drink category, packaging type, distribution channel, and region

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North America Ready to Drink Tea Market Size

North America Ready to Drink Tea Market Summary
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svg icon Study Period 2018 - 2030
svg icon Market Size (2024) USD 14.48 Billion
svg icon Market Size (2030) USD 18.96 Billion
svg icon Largest Share by Soft Drink Type Iced Tea
svg icon CAGR (2024 - 2030) 4.60 %
svg icon Largest Share by Country United States

Major Players

North America Ready to Drink Tea Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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North America Ready to Drink Tea Market Analysis

The North America Ready to Drink Tea Market size is estimated at 14.48 billion USD in 2024, and is expected to reach 18.96 billion USD by 2030, growing at a CAGR of 4.60% during the forecast period (2024-2030).

14.48 Billion

Market Size in 2024 (USD)

18.96 Billion

Market Size in 2030 (USD)

3.88 %

CAGR (2018-2023)

4.60 %

CAGR (2024-2030)

Largest Segment by Soft Drink Type

61.75 %

value share, Iced Tea, 2023

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Iced tea is gaining recognition across the region as people are substituting the traditional sugary beverages with healthier alternatives boosted by availability of brands like Arizona, Pure Leaf and Lipton.

Fastest-growing segment by Soft Drink Type

6 %

Projected CAGR, Herbal Tea, 2024-2030

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Awareness towards ill-effects of consumption of synthetic beverages is leading to expansive adoption of naturally derived beverages like herbal tea, especially among the youth.

Leading Market Player

16.07 %

market share, PepsiCo, Inc., Inc.

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PepsiCo, Inc. is observed to be the leading player in the market owing to growing partnership and innovation ventures. For instance, Pepsi Co partnered with FIFCO USA to launch Lipton Hard Tea in United States

Largest Segment by Country

87.37 %

value share, United States, 2023

Icon image

United States is observed to be the largest consumer in the region majorly attribued to more 159 million people in the country consuming the beverage on a daily basis.

Fastest-growing segment by Country

6.56 %

Projected CAGR, Mexico, 2024-2030

Icon image

Convenience acts as a key catalyst for RTD tea sales in Mexico coupled with innovation in flavors like chamomile, jasmine and meeting consumer wellness demands for healthier options.

The influence of the café culture, with its emphasis on specialty and artisanal beverages, is supporting the market’s growth

  • The sales value of RTD tea in the North American region registered a growth rate of 8.81% in 2023 compared to 2021. The growth of RTD tea in North America is primarily propelled by the rising consumer emphasis on leading a healthy lifestyle. As consumers become more knowledgeable about the various health advantages associated with RTD tea, the market continues to expand. RTD tea has been shown to reduce headache pain, type 2 diabetes, lower cholesterol levels,  as well as reducing the risk of heart attack. As of 2022, about 38 million Americans suffered from diabetes, and approximately 90% to 95% of them had type 2 diabetes.
  • The United States leads in per capita consumption of RTD tea among North American countries, amounting to an annual average of 18.90 liters in 2022. This preference is largely driven by a taste for convenience and on-the-go consumption.
  • In 2022, Americans consumed more than 85 billion servings of tea or more than 3.9 billion gallons. Among RTD teas, 62.6% of the RTD tea consumed is served cold or iced. Iced tea is often associated with hot weather and is a popular beverage choice during warmer seasons. The influence of the café culture, with its emphasis on specialty and artisanal beverages, is playing a major role in driving the demand for RTD iced tea in the region.
  • Herbal tea emerges as the fastest-growing segment and is projected to witness a 25.20% sales value growth from 2023 to 2027. The US market for herbal tea is surging, driven by a demand for functional and flavorful beverages, along with the introduction of contemporary flavors.
North America Ready to Drink Tea Market

Sugar-free variants, natural sweeteners, and innovative flavors boost the market growth in the United States

  • The North American RTD tea market witnessed robust growth, with sales surging by 7.65% in value terms between 2021 and 2023. This growth was accompanied by a notable diversification in RTD tea flavors, spanning from traditional black and green teas to herbal blends and fruit-infused options. The convenience of RTD tea, especially for on-the-go consumption, is gaining traction as lifestyles become increasingly hectic.
  • In 2023, the United States emerged as the dominant player in the North American RTD tea market. A rising trend among health-conscious US consumers is the preference for RTD teas with lower sugar content, natural sweeteners, and perceived health benefits like antioxidants. Given the high obesity rates in the US, with approximately 100.1 million (41.9%) adults and nearly 14.7 million (19.7%) children classified as obese in 2022, many RTD tea companies are responding by offering low-calorie or sugar-free options.
  • Apart from the Rest of North America, Mexico is anticipated to register the fastest growth in the sales of RTD tea, with a CAGR of 6.56% by value from 2024 to 2030. As consumers become more health-conscious, the demand for beverages perceived as healthier alternatives to sugary and carbonated drinks is increasing. RTD teas, especially those with low sugar content and natural ingredients, align with these trends. As the RTD tea market evolves, consumers in Mexico may show interest in innovative products, such as those with functional ingredients or unique brewing methods.

North America Ready to Drink Tea Market Trends

RTD teas are viewed as a more nutritious option than carbonated soft drinks and other sugary beverages, which is driving up sales

  • Tea is the most widely consumed beverage next to water, and it is found in almost 80% of all North American households. Factors such as busy lifestyles, increasing urbanization, and rising health consciousness among consumers are driving the demand for convenient and healthy beverage options like RTD tea in the region.
  • As consumer awareness about environmental impact grows, RTD tea companies like PepsiCo, Inc., The Coca-Cola Company, Nestle S.A., and others in the market have been actively working towards sustainable packaging solutions.
  • The economic parameter is one of the important and major factors influencing the consumer’s RTD Tea buying behavior in the North American region. Inflation and supply chain disruptions have quickly become the most prominent challenges for the food and beverages industry. Hence, players are bringing in value packs to attract consumers.
  • As of 2022, among millennials, 3 in 5 preferred tea, and more than a third (34%) of this group consumed tea every day. The wide range of RTD tea options, including green tea, herbal tea, and more, contributes to its popularity as a nutritious drink.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

  • Companies are introducing a range of unique flavors, as well as exploring innovative techniques and herbal infusions to cater to diverse consumer preferences
  • Arizona beverage tea often leverages creative marketing and collaborations to capture consumer attention and maintain brand relevance

North America Ready to Drink Tea Industry Overview

The North America Ready to Drink Tea Market is fragmented, with the top five companies occupying 34.32%. The major players in this market are Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).

North America Ready to Drink Tea Market Leaders

  1. Arizona Beverages USA LLC

  2. Keurig Dr Pepper, Inc.

  3. Milo’s Tea Company, Inc.

  4. PepsiCo, Inc.

  5. The Coca-Cola Company

North America Ready to Drink Tea Market Concentration

Other important companies include Del Monte Foods, Inc., Hawaiian Sun Products, Inc., Nestle S.A., Red Diamond, Inc., Walmart, Inc..

*Disclaimer: Major Players sorted in alphabetical order.

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North America Ready to Drink Tea Market News

  • January 2023: Milo's Tea Company has announced an initial investment of over USD 130 million to construct a new plant and distribution centre in Spartanburg County, South Carolina. This new investment is a direct response to the growth of Milo's brand. Milo expects to start producing its famous tea and lemonade in the fall of 2024.
  • January 2023: Lipton Tea has announced a new partnership with Full Cart, a program within nonprofit U.S. Hunger, and a virtual food pantry to make heart-friendly nutrition and grocery assistance more accessible.
  • December 2022: Pure Leaf rolled out a limited-edition Merry Mint Iced Tea, coinciding with the release of the Christmas movie 'Christmas Class Reunion'. This mint-flavored iced tea was simultaneously launched through a social media giveaway, enhancing the movie-watching experience for consumers.

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North America Ready to Drink Tea Market
North America Ready to Drink Tea Market
North America Ready to Drink Tea Market
North America Ready to Drink Tea Market

North America Ready to Drink Tea Market Report - Table of Contents

1. EXECUTIVE SUMMARY & KEY FINDINGS

2. REPORT OFFERS

3. INTRODUCTION

  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study​
  • 3.3 Research Methodology

4. KEY INDUSTRY TRENDS

  • 4.1 Consumer Buying Behaviour
  • 4.2 Innovations
  • 4.3 Brand Share Analysis
  • 4.4 Regulatory Framework

5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

  • 5.1 Soft Drink Type
    • 5.1.1 Green Tea
    • 5.1.2 Herbal Tea
    • 5.1.3 Iced Tea
    • 5.1.4 Other RTD Tea
  • 5.2 Packaging Type
    • 5.2.1 Aseptic packages
    • 5.2.2 Glass Bottles
    • 5.2.3 Metal Can
    • 5.2.4 PET Bottles
  • 5.3 Distribution Channel
    • 5.3.1 Off-trade
    • 5.3.1.1 Convenience Stores
    • 5.3.1.2 Online Retail
    • 5.3.1.3 Supermarket/Hypermarket
    • 5.3.1.4 Others
    • 5.3.2 On-trade
  • 5.4 Country
    • 5.4.1 Canada
    • 5.4.2 Mexico
    • 5.4.3 United States
    • 5.4.4 Rest of North America

6. COMPETITIVE LANDSCAPE

  • 6.1 Key Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 Company Landscape
  • 6.4 Company Profiles
    • 6.4.1 Arizona Beverages USA LLC
    • 6.4.2 Del Monte Foods, Inc.
    • 6.4.3 Hawaiian Sun Products, Inc.
    • 6.4.4 Keurig Dr Pepper, Inc.
    • 6.4.5 Milo’s Tea Company, Inc.
    • 6.4.6 Nestle S.A.
    • 6.4.7 PepsiCo, Inc.
    • 6.4.8 Red Diamond, Inc.
    • 6.4.9 The Coca-Cola Company
    • 6.4.10 Walmart, Inc.
  • *List Not Exhaustive

7. KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS

8. APPENDIX

  • 8.1 Global Overview
    • 8.1.1 Overview
    • 8.1.2 Porter’s Five Forces Framework
    • 8.1.3 Market Dynamics (DROs)
  • 8.2 Sources & References
  • 8.3 List of Tables & Figures
  • 8.4 Primary Insights
  • 8.5 Data Pack
  • 8.6 Glossary of Terms
** Subject To Availablity

List of Tables & Figures

  1. Figure 1:  
  2. CONSUMER BUYING BEHAVIOUR
  1. Figure 2:  
  2. INNOVATIONS
  1. Figure 3:  
  2. BRAND SHARE ANALYSIS
  1. Figure 4:  
  2. VOLUME OF READY TO DRINK TEA MARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 5:  
  2. VALUE OF READY TO DRINK TEA MARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 6:  
  2. VOLUME OF READY TO DRINK TEA MARKET BY SOFT DRINK TYPE, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 7:  
  2. VALUE OF READY TO DRINK TEA MARKET BY SOFT DRINK TYPE, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 8:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 9:  
  2. VOLUME SHARE OF READY TO DRINK TEA MARKET SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 10:  
  2. VOLUME OF GREEN TEA MARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 11:  
  2. VALUE OF GREEN TEA MARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 12:  
  2. VALUE SHARE OF GREEN TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 13:  
  2. VOLUME OF HERBAL TEA MARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 14:  
  2. VALUE OF HERBAL TEA MARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 15:  
  2. VALUE SHARE OF HERBAL TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 16:  
  2. VOLUME OF ICED TEA MARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 17:  
  2. VALUE OF ICED TEA MARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 18:  
  2. VALUE SHARE OF ICED TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 19:  
  2. VOLUME OF OTHER RTD TEA MARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 20:  
  2. VALUE OF OTHER RTD TEA MARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 21:  
  2. VALUE SHARE OF OTHER RTD TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 22:  
  2. VOLUME OF READY TO DRINK TEA MARKET BY PACKAGING TYPE, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 23:  
  2. VALUE OF READY TO DRINK TEA MARKET BY PACKAGING TYPE, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 24:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 25:  
  2. VOLUME SHARE OF READY TO DRINK TEA MARKET SPLIT BY PACKAGING TYPE, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 26:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 27:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 28:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, SPLIT BY SOFT DRINK TYPE %, NORTH AMERICA, 2023 VS 2030
  1. Figure 29:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 30:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 31:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, SPLIT BY SOFT DRINK TYPE %, NORTH AMERICA, 2023 VS 2030
  1. Figure 32:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA METAL CAN, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 33:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA METAL CAN, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 34:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA METAL CAN, SPLIT BY SOFT DRINK TYPE %, NORTH AMERICA, 2023 VS 2030
  1. Figure 35:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 36:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 37:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, SPLIT BY SOFT DRINK TYPE %, NORTH AMERICA, 2023 VS 2030
  1. Figure 38:  
  2. VOLUME OF READY TO DRINK TEA MARKET BY DISTRIBUTION CHANNEL, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 39:  
  2. VALUE OF READY TO DRINK TEA MARKET BY DISTRIBUTION CHANNEL, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 40:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY DISTRIBUTION CHANNEL, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 41:  
  2. VOLUME SHARE OF READY TO DRINK TEA MARKET SPLIT BY DISTRIBUTION CHANNEL, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 42:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 43:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 44:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 45:  
  2. VOLUME SHARE OF READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 46:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 47:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 48:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 49:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 50:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 51:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 52:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 53:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 54:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 55:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA OTHER DISTRIBUTION CHANNEL, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 56:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA OTHER DISTRIBUTION CHANNEL, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 57:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA OTHERS SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 58:  
  2. VOLUME OF READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 59:  
  2. VALUE OF READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 60:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, SPLIT BY SOFT DRINK TYPE, %, NORTH AMERICA, 2023 VS 2030
  1. Figure 61:  
  2. VOLUME OF READY TO DRINK TEA MARKET BY COUNTRY, LITRES, NORTH AMERICA, 2018 - 2030
  1. Figure 62:  
  2. VALUE OF READY TO DRINK TEA MARKET BY COUNTRY, USD, NORTH AMERICA, 2018 - 2030
  1. Figure 63:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY COUNTRY, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 64:  
  2. VOLUME SHARE OF READY TO DRINK TEA MARKET SPLIT BY COUNTRY, %, NORTH AMERICA, 2018 VS 2024 VS 2030
  1. Figure 65:  
  2. VOLUME OF RTD TEA MARKET, LITRES, CANADA, 2018 - 2030
  1. Figure 66:  
  2. VALUE OF RTD TEA MARKET, USD, CANADA, 2018 - 2030
  1. Figure 67:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY SUB DISTRIBUTION CHANNEL, %, CANADA, 2023 VS 2030
  1. Figure 68:  
  2. VOLUME OF RTD TEA MARKET, LITRES, MEXICO, 2018 - 2030
  1. Figure 69:  
  2. VALUE OF RTD TEA MARKET, USD, MEXICO, 2018 - 2030
  1. Figure 70:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY SUB DISTRIBUTION CHANNEL, %, MEXICO, 2023 VS 2030
  1. Figure 71:  
  2. VOLUME OF RTD TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 72:  
  2. VALUE OF RTD TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 73:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY SUB DISTRIBUTION CHANNEL, %, UNITED STATES, 2023 VS 2030
  1. Figure 74:  
  2. VOLUME OF RTD TEA MARKET, LITRES, REST OF NORTH AMERICA, 2018 - 2030
  1. Figure 75:  
  2. VALUE OF RTD TEA MARKET, USD, REST OF NORTH AMERICA, 2018 - 2030
  1. Figure 76:  
  2. VALUE SHARE OF READY TO DRINK TEA MARKET SPLIT BY SUB DISTRIBUTION CHANNEL, %, REST OF NORTH AMERICA, 2023 VS 2030
  1. Figure 77:  
  2. MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, NORTH AMERICA, 2020 - 2023
  1. Figure 78:  
  2. MOST ADOPTED STRATEGIES, COUNT, NORTH AMERICA, 2020 - 2023
  1. Figure 79:  
  2. VALUE SHARE OF MAJOR PLAYERS, %, NORTH AMERICA, 2022

North America Ready to Drink Tea Industry Segmentation

Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel. Canada, Mexico, United States are covered as segments by Country.

  • The sales value of RTD tea in the North American region registered a growth rate of 8.81% in 2023 compared to 2021. The growth of RTD tea in North America is primarily propelled by the rising consumer emphasis on leading a healthy lifestyle. As consumers become more knowledgeable about the various health advantages associated with RTD tea, the market continues to expand. RTD tea has been shown to reduce headache pain, type 2 diabetes, lower cholesterol levels,  as well as reducing the risk of heart attack. As of 2022, about 38 million Americans suffered from diabetes, and approximately 90% to 95% of them had type 2 diabetes.
  • The United States leads in per capita consumption of RTD tea among North American countries, amounting to an annual average of 18.90 liters in 2022. This preference is largely driven by a taste for convenience and on-the-go consumption.
  • In 2022, Americans consumed more than 85 billion servings of tea or more than 3.9 billion gallons. Among RTD teas, 62.6% of the RTD tea consumed is served cold or iced. Iced tea is often associated with hot weather and is a popular beverage choice during warmer seasons. The influence of the café culture, with its emphasis on specialty and artisanal beverages, is playing a major role in driving the demand for RTD iced tea in the region.
  • Herbal tea emerges as the fastest-growing segment and is projected to witness a 25.20% sales value growth from 2023 to 2027. The US market for herbal tea is surging, driven by a demand for functional and flavorful beverages, along with the introduction of contemporary flavors.
Soft Drink Type Green Tea
Herbal Tea
Iced Tea
Other RTD Tea
Packaging Type Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel Off-trade Convenience Stores
Online Retail
Supermarket/Hypermarket
Others
Distribution Channel On-trade
Country Canada
Mexico
United States
Rest of North America
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Market Definition

  • Carbonated Soft Drinks (CSDs) - Carbonated soft drinks (CSDs) refer to non-alcoholic beverages that are carbonated and typically flavored, containing dissolved carbon dioxide to create effervescence. These beverages commonly include cola, lemon-lime, orange, and various fruit-flavored sodas. Marketed in cans, bottles, or fountain dispense.
  • Juices - We have considered packaged juices which encompass non-alcoholic beverages derived from fruits, vegetables, or a combination thereof, processed and sealed in various packaging formats such as bottles, cartons, or pouches. Excluding fresh juices, this market segment involves commercially prepared and preserved juices, often with added preservatives and flavors.
  • Ready-to-Drink (RTD) Tea and RTD Coffee - Ready-to-Drink (RTD) tea and RTD coffee are pre-packaged, non-alcoholic beverages that are brewed and prepared for consumption without further dilution. RTD tea typically includes various tea varieties, infused with flavors and sweeteners, and comes in bottles, cans, or cartons. Similarly, RTD coffee involves pre-brewed coffee formulations, often mixed with milk, sugar, or flavorings, and is conveniently packaged for on-the-go consumption.
  • Energy Drinks - Energy drinks are non-alcoholic beverages formulated to provide a quick boost of energy and alertness. Whereas, sports drinks are beverages designed to hydrate and replenish electrolytes, particularly after physical exertion, exercise, or intense activity
Keyword Definition
Carbonated Soft Drinks Carbonated soft drinks (CSDs) are a combination of carbonated water and flavouring, sweetened by sugar or a non-sugar sweeteners.
Standard Cola Standard Cola is defined as the original flavor of cola soda.
Diet Cola A cola-based soft drink containing no or low amounts of sugar
Fruit Flavored Carbonates A carbonated beverage prepared from fruit juice/fruit flavor with carbonated water and containing sugar, dextrose, invert sugar or liquid glucose either singly or in combination. It may contain peel oil and fruit essences.
Juice Juice is a drink made from the extraction or pressing of the natural liquid contained in fruit and vegetables.
100% Juice Fruit/vegetable juice made from fruit in the form of its juice with no water added to make up the volume. It is not permitted to add sugars, sweeteners, preservatives, flavourings or colourings to fruit juice.
Juice Drinks (up to 24% Juice) Fruit/vegetable juice drinks with up to 24% fruits/vegetable extract.
Nectars (25-99% Juice) Juices that can have between 25 and 99% of fruit, with the minimum legal limits defined depending on the type of fruit
Juice concentrates Juice Concentrates are those form of juices when most of this liquid is removed resulting in a thick, syrupy product known as juice concentrate.
RTD Coffee Packaged coffee beverages that are sold in a prepared form and are ready for consumption at the time of purchase.
Iced Coffee An iced coffee is a cold version of coffee, usually a combination of hot espresso and milk with ice added to it.
Cold Brew Coffee Cold brew also called cold water extraction or cold pressing is made by steeping ground coffee in room-temperature water for several hours.
RTD Tea Ready-to-drink (RTD) tea is a packaged tea product ready for immediate consumption without brewing or preparation
Iced Tea Ice tea or iced tea is a drink made from tea without milk but with sugar and sometimes fruit flavourings, drunk cold.
Green Tea Green tea is a tea beverage which promotes mental alertness, relieving digestive symptoms and promoting weight loss.
Herbal Tea Herbal tea beverages are made from the infusion or decoction of herbs, spices, or other plant material in hot water.
Energy Drink A type of drink containing stimulant compounds, usually caffeine, which is marketed as providing mental and physical stimulation. They may or may not be carbonated and may also contain sugar, other sweeteners, or herbal extracts, among numerous possible ingredients.
Sugar-free or Low-calories Energy Drinks Sugar-free or Low-calories Energy Drinks are sugar-free, artificially sweetened energy drinks with few or no calories.
Traditional Energy Drink Traditional Energy Drinks are functional soft drinks containing ingredients designed to boost the consumer's energy.
Natural/Oraganic Energy Drinks Natural/Organic energy drinks are energy drinks free of artificial sweeteners and synthetic colorings. Instead, they contain naturally derived ingredients such as green tea, yerba mate, and botanical extracts.
Energy Shots A small but highly concentrated energy drink that contains large amounts of caffeine and/or other stimulants. The quantity is comparatively smaller compared to energy drinks.
Sports Drink Sports drinks are beverages designed specifically for the rapid supply of fluid, carbohydrates, and electrolytes before, during or after exercise.
Isotonic Isotonic drinks contain similar concentrations of salt and sugar as in the human body, and are designed to quickly replace fluids lost during exercise but with an increase of carbohydrate.
Hypertonic Hypertonic drinks have a higher concentration of salt and sugar than the human body. They are best drunk after exercise as it is important to replace glycogen levels quickly after exercise.
Hypotonic Hypotonic drinks are designed to quickly replace fluids lost during exercise. They have very low carbohydrate content and a lower concentration of salt and sugar than the human body.
Electrolyte-Enhanced Water Electrolyte water is water infused with electrically-charged minerals, such as sodium, potassium, calcium, and magnesium.
Protein-based Sport Drinks Protein-based sports drinks are those sports drinks which has added protein in it that will improve performance and reduce muscle protein breakdown.
On-Trade The on-trade refers to places that sell beverages for immediate consumption on the premises like bars, restaurants, and pubs
Off-Trade Off-trade usually means places like liquor stores, supermarkets and other places where you don't consume the beverage right away.
Convenience Store A retail business that provides the public with a convenient location to quickly purchase a wide variety of consumable products and services, generally food and gasoline.
Specialty store A specialty store is a shop/store that carries a deep assortment of brands, styles, or models within a relatively narrow category of goods
Online Retail Online retail is a type of eCommerce whereby a business sells goods or services directly to consumers from a website.
Aseptic Packaging Aseptic packaging refers to the filling of a cold, commercially sterile product under sterile conditions into a presterilized container and closure under sterile conditions to form a seal that effectively excludes microorganisms. These includes tetra packs, cartons, pouches etc.
PET Bottle PET bottle means a bottle made of polyethylene terephthalate.
Metal Cans Metal containers made of aluminum or tin- plated or zinc-plated steel, which are commonly used for packaging food, beverages or other products.
Disposable Cups Disposable Cup means a cup or other container designed for single use to serve beverages, such as water, cold drinks, hot drinks and alcoholic beverages.
Gen Z A way of referring to the group of people who were born in the late 1990s and early 2000s.
Millenial Anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a Millennial
Taurine Taurine is an amino acid that supports immune health and nervous system function.
Bars & Pubs It is a drinking establishment licensed to serve alcoholic drinks for consumption on the premises.
Café It is a foodservice establishment serving refreshments (mainly coffee) and light meals.
On the go It means doing / dealing with while busily engaged with something and not diverting plans in order to accommodate.
Internet Penetration The Internet Penetration Rate corresponds to the percentage of the total population of a given country or region that uses the Internet.
Vending Machine A machine that dispenses small articles such as food, drinks, or cigarettes when a coin or token is inserted
Discount store A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.
Clean Label Clean label on the beverage market are drinks that are made from few ingredients of natural origin and are not or only slightly processed.
Caffeine An alkaloid compound which is a stimulant of the central nervous system. It is mainly used recreationally, as a mild cognitive enhancer to increase alertness and attentional performance.
Extreme sport Action sports, adventure sports or extreme sports are activities perceived as involving a high degree of risk.
High-intensity interval training It incorporates several rounds that alternate between several minutes of high intensity movements to significantly increase the heart rate to at least 80% of one's maximum heart rate, followed by short periods of lower intensity movements.
Shelf life The length of time for which an item remains usable, fit for consumption, or saleable.
Cream Soda Cream soda is a sweet soft drink. Generally flavored with vanilla and based on the taste of an ice cream float
Root Beer Root beer is a sweet North American soft drink traditionally made using the root bark of the sassafras tree Sassafras albidum or the vine of Smilax ornata as the primary flavor. Root beer is typically, but not exclusively, non-alcoholic, caffeine-free, sweet, and carbonated.
Vanilla Soda A carbonated soft drink flavoured with vanilla.
Dairy-Free A product that does not contain any milk or milk products from cows, sheep or goats.
Caffeine-Free Energy Drinks Caffeine-free energy drinks rely on other ingredients to boost the energy. Popular choices include amino acids, B vitamins, and electrolytes.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: IDENTIFY KEY VARIABLES: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.​
  • Step-4: Research Outputs: Syndicated reports, custom consulting assignments, databases & subscription platforms
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North America Ready to Drink Tea Market Research FAQs

The North America Ready to Drink Tea Market size is expected to reach USD 14.48 billion in 2024 and grow at a CAGR of 4.60% to reach USD 18.96 billion by 2030.

In 2024, the North America Ready to Drink Tea Market size is expected to reach USD 14.48 billion.

Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company are the major companies operating in the North America Ready to Drink Tea Market.

In the North America Ready to Drink Tea Market, the Iced Tea segment accounts for the largest share by soft drink type.

In 2024, United States accounts for the largest share by country in the North America Ready to Drink Tea Market.

In 2023, the North America Ready to Drink Tea Market size was estimated at 14.48 billion. The report covers the North America Ready to Drink Tea Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Ready to Drink Tea Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.

North America RTD Tea Industry Report

Statistics for the 2023 North America Ready to Drink Tea market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Ready to Drink Tea analysis includes a market forecast outlook to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

North America RTD Tea Market Report Snapshots

North America Ready to Drink Tea Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

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