Global Iced Tea Market - 2023-2030

Global Iced Tea Market - 2023-2030

Iced Tea Market reached US$ 55.2 billion in 2022 and is expected to reach US$ 88.6 billion by 2030 growing with a CAGR of 6.1% during the forecast period 2023-2030.

The rising consumer preference for natural and organic products is creating opportunities in the iced tea market. Consumers are increasingly seeking beverages made with natural ingredients, free from artificial additives and preservatives. As a result, market players are introducing organic and natural iced tea variants to cater to this demand, further expanding the market.

The availability of innovative flavors and blends is driving the market growth. Manufacturers are continuously introducing new and unique flavors to attract consumers seeking novel taste experiences. These innovative offerings, such as fruit-infused and herbal iced teas, add excitement to the market and contribute to its expansion.

Market Dynamics
Increasing Popularity of Ready-To-Drink (RTD) Beverages Drives the Market Growth
Ready-to-drink beverages eliminate the need for preparation and brewing, providing consumers with a hassle-free and on-the-go option. The busy and fast-paced lifestyles of consumers are leading to a rising demand for convenient beverage choices, driving the market for RTD iced tea. RTD iced tea offers a refreshing experience, making it a popular choice in warm climates.

The natural and rejuvenating properties of iced tea, make it an appealing option for consumers seeking a refreshing beverage. This consumer preference for refreshing drinks further propels the growth of the RTD iced tea market. Manufacturers are introducing a wide variety of flavors, including fruit-infused, herbal, and exotic blends, to cater to diverse consumer preferences. This flavor innovation is expanding the consumer base and creating a strong market presence for RTD iced tea products.

For instance, on April 21, 2023, Lipton announced a delightful new creation with Lipton Hard Iced Tea. This innovative beverage is carefully crafted with real brewed Lipton tea, infused with natural fruit flavors, and blended with a triple-filtered, premium malt base. The result is a non-carbonated product with a 5% ABV, offering a perfect balance of taste and refreshment. Launching in four mouthwatering flavors, inspired by Lipton tea fan favorites, including Lemon, Peach, Half & Half, and Strawberry, this hard iced tea delivers just the right amount of sweetness to tantalize your taste buds.

The Increasing Prevalence of Lactose Intolerance and Dairy Allergies Drives Market Growth
Consumers are seeking healthier and sustainable products leading to a significant shift towards natural and organic products in the market. Consumers are seeking beverages that are free from these additives with concerns about artificial additives, and synthetic flavors. Iced tea is made from natural ingredients including real tea leaves and fruit extracts driving its demand in the market.

The increasing awareness of organic products' potential health and environmental benefits is driving demand for the organic iced tea market. Companies are promoting their lactose-free and dairy-free iced tea products through marketing campaigns that highlight their suitability for individuals with dietary restrictions, further driving their demand in the market.

For instance, on April 26, 2023, Pure Leaf Iced Tea introduced its latest innovation - Pure Leaf Sugar Iced Tea. The new beverage is expertly crafted with just 5g of sugar, a remarkable 85% reduction compared to Pure Leaf's Sweet Tea offerings. It contains no artificial flavors, tea powders, or concentrate, ensuring a refreshingly genuine and natural taste.

Sugar Content Concerns of the Iced Tea Hamper the Market Growth
The sugar content concerns of iced tea are restraining the global iced tea market. Consumers are becoming health conscious of the potential health risks with excessive sugar consumption, and their perception of sugary beverages like traditional iced tea is shifting, restraining the global iced tea market growth.

Consumers are seeking alternatives to high-sugar beverages with a growing emphasis on wellness and reduced sugar intake, including iced tea. The sugar content concerns are prompting consumers to be selective in their beverage choices, leading to a decline in demand for traditional high-sugar iced tea products.

COVID-19 Impact Analysis
The COVID-19 pandemic had a significant impact on the global iced tea market. With lockdowns, travel restrictions, and social distancing measures in place, the market experienced disruptions in supply chains, distribution networks, and consumer behavior. The closure of restaurants, cafes, and food service establishments led to a decline in the out-of-home consumption of iced tea, affecting market demand.

However, the health consciousness of consumers during the pandemic had an impact on the market. With an increased focus on personal health and wellness, consumers sought healthier beverage options, including reduced-sugar and natural iced tea varieties. This trend encouraged manufacturers to innovate and offer healthier options in response to changing consumer preferences.

Segment Analysis
The global iced tea market is segmented based on product type, form, distribution channel, and region.

Rising Awareness About Health Benefits of Green Iced Tea among Consumers
Green iced tea is holding the largest share of the global iced tea market. The growing trend of health and wellness among consumers is propelling the demand for green iced tea. Green tea is well-known for its numerous health benefits such as high levels of antioxidants and potential metabolic. As consumers become more health-conscious, the perceived health advantages of green tea are driving its popularity in the market.

Green iced tea is gaining popularity as a refreshing and natural beverage choice. Unlike some other flavored and artificially sweetened iced tea varieties, green tea offers a clean and authentic taste. This appeal is attracting consumers seeking a pure and unadulterated iced tea experience, boosting its market demand.

Geographical Analysis
Increasing Iced Tea Consumption with Strong Established Brands in North America
North America region is dominating the global iced tea market. Iced tea is long been a popular beverage choice among North American consumers, with a strong cultural and regional preference for this refreshing drink. The established and widespread consumption of iced tea is leading to a large and consistent market demand, solidifying North America's leading position.

The presence of well-established and renowned iced tea brands in North America is contributing to its dominance in the global market. North American companies are at the forefront of iced tea innovation, introducing diverse flavors, convenient packaging formats, and healthier formulations that align with changing consumer preferences.

For instance, on September 20, 2022, Honest Tea made a significant comeback in the bottled tea industry by introducing Just Ice Tea, a brand-new line of ready-to-drink organic iced tea. The brand's emphasis lies in sourcing pure ingredients, including Fair Trade Certified teas and sweeteners. Just Ice Tea offers a delightful selection of six flavors, each with its unique appeal: Berry Hibiscus Herbal Tea, Honey Green Tea, Moroccan Mint Tea, Original Green Tea, Peach Oolong Tea, and ½ Tea ½ Lemonade.

Competitive Landscape
The global iced tea market players include PepsiCo, Unilever, The Coca-Cola Company, 4C Foods Corp., Harris Freeman & Co, Mother Parkers Tea & Coffee Inc., Arizona Beverages USA, BOS Brands, Templar Food Products, and Nestle SA.

Why Purchase the Report?
• To visualize the global iced tea market segmentation based on product type, form, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the iced tea market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global iced tea market report would provide approximately 61 tables, 58 figures, and 119 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies