North America Tea Market Outlook, 2028

North America Tea Market Outlook, 2028

Tea has been a popular beverage for generations, and its popularity is growing all across the world. Over the last decade, the tea market in North America has seen substantial development and transformation. The North American tea market, which includes the United States, Canada, and Mexico, has experienced rapid expansion in recent years. Traditionally, coffee consumption has been robust in North America, but there has been a clear movement in consumer preferences towards tea. This trend can be linked to a number of factors, including rising health consciousness, a growing appreciation for varied tea flavours, and an emerging specialty tea sector. In recent years, the North American tea market has become increasingly diverse, providing consumers with a diverse choice of flavours and blends to choose from traditional black and green teas to herbal infusions, fruit-flavoured teas, and exotic varieties like oolong and white tea. There's a tea for every palate. The market for specialty teas such as matcha and bubble tea has grown significantly. These distinctive and tasty tea options have proven popular among millennials and Gen Z customers looking for fresh and Instagram-worthy experiences. The market for specialty teas such as matcha, chai, and bubble tea has grown dramatically. These distinctive and tasty tea options have proven popular among millennials and Gen Z customers looking for fresh and Instagram-worthy experiences. Teas with functional compounds such as CBD, adaptogens, and probiotics are gaining popularity due to their potential health advantages. These teas provide consumers with a novel way to treat various health and wellness issues. High-end tea shops and specialised tea lounges are becoming increasingly popular, providing clients with a luxurious and instructive tea experience.

According to the research report, “North America Tea Market Outlook, 2028” published by Bonafide Research, the North America Tea market was valued more than USD 5 Billion in 2022. The increased emphasis on health and wellbeing is one of the most noticeable developments in the North American tea market. Teas are becoming increasingly popular among consumers due to their possible health benefits. Green tea, in particular, has grown in popularity due to its high concentration of antioxidants such as catechins, which are thought to have a variety of health-promoting characteristics ranging from weight loss to heart health. Herbal teas, such as chamomile and peppermint, are especially popular for their natural healing benefits, which include inducing relaxation and calming digestion. Consumers who are constantly on the go are pushing the need for cold-brew teas and ready-to-drink tea choices. During the summer, these items provide a simple and pleasant alternative to traditional hot tea. Cold-brew teas are becoming increasingly popular for their smoother and less astringent taste, while canned or bottled ready-to-drink teas offer instant refreshment and portability. The growing popularity of teas with beauty and skincare benefits is a unique trend in North America. Teas with collagen, antioxidants, and vitamins are being marketed for their ability to improve skin health and attractiveness. These ""beauty teas"" are intended to improve general well-being by providing a holistic approach to health and attractiveness. Tea mixology, or the skill of making cocktails and beverages with tea as a base, is becoming increasingly popular in the North American tea scene. Tea-infused spirits and tea syrups are being experimented with by creative mixologists to create unusual and pleasant alcoholic and non-alcoholic beverages. This trend appeals to individuals seeking novel and socially engaging tea-based beverages.

Based on report market is divided into three major countries United, Canada and Mexico. Among them United States accounts for the largest market for tea in North America.

Tea, once regarded as the archetypal British beverage, has transcended cultural boundaries and captured the hearts and palates of people all around the world, including the United States. Tea use in the United States has increased dramatically in recent years, owing to a rising appreciation for its health benefits, diverse flavour profiles, and cultural significance. One of the key reasons for the tea market's growth in the United States is the diversity of products available. Traditional black teas like Earl Grey and English breakfast are popular, but they just scratch the surface. Green tea, oolong tea, white tea, and herbal teas are all becoming more popular. Furthermore, due to their distinct flavours and aromas, specialty teas such as matcha have grown in popularity due to their distinct flavours and health benefits. The tea market in the United States has also seen substantial innovation in terms of product types and packaging. The tea industry in the United States is tiny but growing, with tea estates in Hawaii, South Carolina, and Oregon. Teas grown in the United States are becoming increasingly popular due to their distinct tastes. January is National Hot Tea Month in the United States, commemorating the warmth and pleasure that a hot cup of tea gives during the winter months. Several celebrities in the United States have sponsored and even launched their own tea companies, which has helped to raise market knowledge and appeal.

Based on tea type market is bifurcated into green tea, black tea, oolong tea, herbal tea white tea and others. Among them Black tea is widely consumed in North America and is dominating the market as well. Furthermore based on application market is divided into residential and commercial. Residential application is predicted to lead the market.

In North America, black tea has a long history of consumption. For generations, it has been a staple beverage, profoundly woven into the cultural fabric. Because of its familiarity and tradition, black tea has been the default choice for many customers who grew up with it. Black tea contains more caffeine than most other teas, making it an acceptable substitute for coffee. As the coffee culture in North America continues to thrive, black tea provides a softer and typically healthier alternative for individuals seeking a caffeine boost without the intensity of coffee. Many popular North American tea mixes, such as Earl Grey and English Breakfast, are based on black tea. These blends have a devoted following and contribute greatly to the dominance of the black tea market. It is more convenient to make tea at home. Tea bags, loose-leaf tea, and a range of tea-making equipment are readily available to consumers, making it simple to brew tea at any time. This ease of use corresponds to busy lifestyles and the desire for a quick and convenient beverage alternative. Many people prefer making their own tea at home as the movement towards health and wellbeing rises. This allows them to maintain control over the tea's quality and components, ensuring that it meets their health and dietary objectives. Tea's expanding popularity in North America has resulted in a flourishing tea culture at home. More consumers are adopting tea as a daily routine, experimenting with various types of tea, and embracing traditional tea preparation methods.

In terms of distribution channel market is divided into supermarkets /hypermarkets, speciality stores, convenience stores and online. Supermarkets/ hypermarkets are leading the distribution channel of tea market of North America. Furthermore based on packaging type market is divided into paper boards, plastic, loose tea, aluminium tin and tea bags.

Tea is widely available in supermarkets and hypermarkets, catering to a wide range of consumer preferences. Under one roof, customers may get a diverse range of tea types, brands, flavours, and package sizes. This diversity guarantees that customers can quickly discover their favourite teas and try new ones, making these establishments a one-stop shop for tea lovers. Large shops can use their buying power to negotiate favourable terms with tea suppliers, allowing them to offer consumers competitive pricing. Compared to specialist tea shops or smaller businesses, shoppers are more likely to find cheap options for their favourite teas in supermarkets and hypermarkets. Discounts, buy-one-get-one deals, and loyalty programmes are common sales and promotional events at supermarkets and hypermarkets. These deals appeal to budget-conscious customers and encourage them to buy more tea products. Packaging has a significant impact on how a product is viewed. Tea firms frequently employ packaging paper boards to create eye-catching designs that help their products stand out on retail shelves. Eye-catching packaging can capture consumers' attention and affect their purchasing decisions. Paperboard packaging provides a protective barrier for tea leaves or bags, preserving the freshness, flavour, and scent of the tea. It protects the tea from light, air, and moisture, all of which can degrade its quality over time.

Companies Covered in this report:

Tata Consumer Products Associated British Foods plc, The Hain Celestial Group, Inc., Starbucks Corporation, Dilmah Ceylon Tea Company PLC, Lipton Teas and Infusions, Ito En, Ltd., Tim Hortons Inc., Wissotzky Tea, Harney & Sons, The Republic of Tea, DavidsTea, R.C. Bigelow, Inc.

Considered in this report:

• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• North America Tea market Outlook with its value and forecast along with its segments
• Country-wise Tea market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• United States
• Canada
• Mexico

By Tea Type:

• Green Tea
• Black Tea
• Oolong Tea
• Herbal Tea
• White Tea
• Others

By Application:

• Residential
• Commercial

By Distribution Channel:

• Supermarkets/ Hypermarkets
• Speciality Stores
• Convenience Stores
• Online

By Packaging Type:

• Paper Boards
• Plastic
• Loose Tea
• Aluminium Tin
• Tea Bags

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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