Tea Production in the US - Industry Market Research Report

Tea Production in the US - Industry Market Research Report

Tea Production in the US

Tea producers blend and package tea, excluding iced and ready-to-drink tea. It was common for tea to fall behind coffee; however, changes in consumer preferences have allowed tea producers to grow. Consumers are becoming more health-conscious, resulting in them looking for alternatives to sugary drinks. Producers are leveraging these changes to promote the health benefits of tea and increase sales. These campaigns have proven successful, as the younger generations are becoming significantly more health-conscious, creating a larger customer pool. Although tea is growing in popularity, the COVID-19 pandemic, rising inflation and a strong US dollar negatively affect the industry. An appreciating US dollar increases the price of domestically produced tea compared with the price of foreign tea, lowering demand and hindering revenue growth. Similarly, growing inflation lowers consumers' purchasing power, forcing them to limit the products they purchase when grocery shopping. As a result, industry revenue has been falling at a CAGR of 2.7% over the past five years, reaching an estimated $1.2 billion in 2023. This includes a decline of 0.7% in 2023 alone.

This industry comprises businesses that blend and package tea, excluding iced and ready-to-drink tea.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.