North America Ready to Drink Tea Market Size

The North America Ready to Drink Tea Market is experiencing significant growth, driven by an increasing consumer focus on health and wellness. This market expansion is characterized by a rising demand for convenient, on-the-go beverage options, particularly in the United States, which leads in per capita consumption. The market's evolution includes a diversification of flavors, with herbal tea emerging as a rapidly growing segment. As consumers seek healthier alternatives, there is a notable shift towards RTD teas with lower sugar content and natural ingredients. Mexico is also poised for rapid growth in this sector, reflecting broader regional trends towards healthier beverage choices.

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Market Size of north america ready to drink tea Industry

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

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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

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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 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
On-trade
Country
Canada
Mexico
United States
Rest of North America
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North America Ready to Drink Tea Market Size Summary

The North America Ready to Drink (RTD) Tea Market is experiencing significant growth, driven by an increasing consumer focus on health and wellness. As more individuals become aware of the health benefits associated with RTD tea, such as reducing the risk of type 2 diabetes and lowering cholesterol levels, the market is expanding. The United States leads in per capita consumption, with a strong preference for convenient, on-the-go beverage options. The influence of café culture, particularly the demand for specialty and artisanal beverages, is also contributing to the rising popularity of RTD iced tea. The market is witnessing a diversification in flavors, with herbal tea emerging as a rapidly growing segment, fueled by the demand for functional and flavorful beverages.

In addition to the United States, Mexico is anticipated to register robust growth in the RTD tea market, driven by a shift towards healthier beverage alternatives. The market is characterized by a fragmented landscape, with major players like Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc., and The Coca-Cola Company holding significant shares. Economic factors, such as inflation and supply chain disruptions, are influencing consumer purchasing behavior, prompting companies to offer value packs. As consumer awareness of environmental sustainability increases, companies are also focusing on sustainable packaging solutions. The market's growth is supported by innovations in product offerings, such as those with functional ingredients and unique brewing methods, catering to the evolving preferences of health-conscious consumers.

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

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

    1. 1.1 Soft Drink Type

      1. 1.1.1 Green Tea

      2. 1.1.2 Herbal Tea

      3. 1.1.3 Iced Tea

      4. 1.1.4 Other RTD Tea

    2. 1.2 Packaging Type

      1. 1.2.1 Aseptic packages

      2. 1.2.2 Glass Bottles

      3. 1.2.3 Metal Can

      4. 1.2.4 PET Bottles

    3. 1.3 Distribution Channel

      1. 1.3.1 Off-trade

        1. 1.3.1.1 Convenience Stores

        2. 1.3.1.2 Online Retail

        3. 1.3.1.3 Supermarket/Hypermarket

        4. 1.3.1.4 Others

      2. 1.3.2 On-trade

    4. 1.4 Country

      1. 1.4.1 Canada

      2. 1.4.2 Mexico

      3. 1.4.3 United States

      4. 1.4.4 Rest of North America

North America Ready to Drink Tea Market Size 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.

North America RTD Tea Market Report Snapshots

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