North America Tea Market Size (2024 - 2029)

The North American tea market is experiencing steady growth, driven by increasing consumer awareness of the health benefits associated with various types of tea, including green, herbal, and fruit teas. The market size is expanding as consumers show a growing preference for natural and organic ingredients, leading to a rise in the popularity of herbal teas known for their immunity-boosting properties. Additionally, there is a notable interest in higher-quality specialty teas with diverse flavors and blends. Despite a more subdued response in Canada compared to the United States, the demand for tea remains consistent throughout the year, reflecting a strong and sustained market presence in the region.

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Market Size of North America Tea Industry

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North America Tea Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.45 %
Market Concentration Low

Major Players

North America Tea Market Major Players

*Disclaimer: Major Players sorted in no particular order

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North America Tea Market Analysis

The North American tea market is projected to register a CAGR of 3.45% in the next five years.

  • The perceived health benefits of green tea, herbal tea, and fruit tea are increasing their popularity in the North American market. Hence, the consumption of tea is rising in the region. According to Statistics Canada, the amount of tea available for consumption per person in Canada increased to 82.04 liters in 2021 from 63.69 liters in 2018.
  • Additionally, the herbal tea segment is expected to grow significantly over the coming years. As a result of their health benefits, such as improving immunity, the market for herbal teas is increasing in the North American region.
  • Moreover, with the rising demand for natural and organic ingredients, consumers are also exploring a diversity of flavors and blends. In addition to higher-quality specialty teas featuring particular flavors, there is a growing interest in higher-quality specialty teas.
  • For instance, in February 2021, California-based Numi Organic Tea launched the 'Stay Healthy' Line of functional herbal tea. They recently introduced a line of teas that includes efficacious plants like echinacea, elderberry, dandelion root, Kanna leaf, and burdock root. It contains herbal blends developed to help users relax, support immunity, and combat common cold symptoms.
  • The market is witnessing steady growth due to the strong consumer preference in the United States, albeit Canada has been lukewarm in its response. Consumption of tea in the North American region is not limited by seasonality but is always steady, irrespective of time. Canadians have become aware of the health benefits associated with tea consumption and the wide variety of tea offerings, driving the demand for tea during the forecast period.

North America Tea Industry Segmentation

Tea is a common beverage made from steeping processed Camellia sinensis leaves along with hot water. 

The North American tea market is segmented by form, product type, distribution channel, and geography. Based on form, the market is segmented into leaf tea and CTC (crush, tear, and curl) tea. Based on product type, the market is segmented as black tea, green tea, herbal tea, and other product types. Based on distribution, the market is segmented as supermarkets/hypermarkets, convenience stores, specialist retailers, online retail stores, and other distribution channels. By geography, the market study included leading countries such as the United States, Canada, Mexico, and the Rest of North America. 

For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

Form
Leaf Tea
Crush/Tear/Curl Tea
Product Type
Black Tea
Green Tea
Herbal Tea
Other Product Types
Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Specialist Retailers
Online Retail Stores
Other Distribution Channels
Geography
United States
Canada
Mexico
Rest of North America
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North America Tea Market Size Summary

The North American tea market is experiencing steady growth, driven by increasing consumer awareness of the health benefits associated with various types of tea, such as green, herbal, and fruit teas. The demand for herbal teas, in particular, is on the rise due to their perceived health advantages, including immunity enhancement. Consumers are also showing a growing interest in natural and organic ingredients, leading to a diverse exploration of flavors and blends. This trend is supported by the introduction of specialty teas with unique flavors and health-promoting properties. The market's expansion is further fueled by the convenience of tea in bag form, offering a healthy alternative to traditional non-alcoholic beverages like fruit juices and carbonated drinks. The tea market in North America is characterized by its non-seasonal consumption pattern, with a strong preference for healthful and organic options.

The United States stands out as a significant player in the global tea market, being the second-largest importer of tea worldwide. The market is highly competitive, with both regional and global companies vying for market share by offering a variety of products that cater to consumer preferences for quality, taste, and health benefits. Key players such as Hain Celestial Group Inc., Bettys & Taylors Group, and Bigelow Tea Company are actively expanding their product portfolios to capture emerging market opportunities. The introduction of new flavors and convenient packaging options is a strategic focus for these companies, aiming to meet the rising demand for innovative and health-conscious tea products. The market's growth is supported by ongoing product launches and expansions, reflecting the increasing popularity of tea as a preferred beverage choice in North America.

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North America Tea Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form

      1. 2.1.1 Leaf Tea

      2. 2.1.2 Crush/Tear/Curl Tea

    2. 2.2 Product Type

      1. 2.2.1 Black Tea

      2. 2.2.2 Green Tea

      3. 2.2.3 Herbal Tea

      4. 2.2.4 Other Product Types

    3. 2.3 Distribution Channel

      1. 2.3.1 Supermarkets/Hypermarkets

      2. 2.3.2 Convenience Stores

      3. 2.3.3 Specialist Retailers

      4. 2.3.4 Online Retail Stores

      5. 2.3.5 Other Distribution Channels

    4. 2.4 Geography

      1. 2.4.1 United States

      2. 2.4.2 Canada

      3. 2.4.3 Mexico

      4. 2.4.4 Rest of North America

North America Tea Market Size FAQs

The North America Tea Market is projected to register a CAGR of 3.45% during the forecast period (2024-2029)

Hain Celestial Group Inc., Bettys & Taylors Group, Associated British Foods PLC, Bigelow Tea Company and Traditional Medicinals Inc. are the major companies operating in the North America Tea Market.

North America Tea Market Report Snapshots

North America Tea Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)