Iced Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Iced Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Iced Tea market is projected to register a CAGR of 6.30% during the forecast period, 2022-2027.

There is a growing demand for healthy food and beverages across the globe with the rise in awareness among consumers, along with the post-pandemic effects supporting the trend. This has created an opportunity in the market for manufacturers to offer high-quality, nutrition-rich, and healthy products for consumers. With this, iced tea manufacturers have also taken initiatives to launch products backed by strong marketing targeting the health benefits of iced tea.

It is also considered that the regular consumption of iced tea may even lessen the threat of cancer, this is attracting consumers towards iced tea as a beverage for day-to-day consumption. In addition, it is considered a healthier alternative to aerated and carbonated drinks. Furthermore, tea is a widely consumed beverage in almost all regions and countries, and introducing a chilled version brought more prospects to invest in the market.

Moreover, with manufacturers focusing on introducing new and innovative fruit flavors, iced teas are gaining popularity among consumers. For instance, in 2022, Honest Tea has returned to the bottled tea business with the launch of Just Ice Tea, a ready-to-drink organic iced tea brand focused on sourcing simple ingredients and Fair Trade Certified® teas and sweeteners. The range is available in six flavors, namely, Berry Hibiscus Herbal Tea, Honey Green Tea, Moroccan Mint Tea,. Original Green Tea, Peach Oolong Tea, ½ Tea ½ Lemonade.

Key Market TrendsIced Tea as a Healthy Alternative for Daily Intake

The health benefits associated with the consumption of iced tea have persuaded a large number of consumers to prefer iced tea over other beverages such as carbonated drinks. Manufacturers are offering iced tea leaves that detoxify the body on regular consumption. This factor, coupled with the consumer's changing preference for new and innovative food and beverage products, has given an impetus to market expansion.

In addition to this, breweries are actively serving iced tea as a healthy alternative for tea consumers. Iced tea contains flavonoids and other components that can bind the cholesterol or bad fat in the blood and remove it from blood circulation. For instance, Lipton’s unsweetened brewed green and black tea contains about 150mg and 170mg of flavonoids per cup, which supports a healthy heart. Moreover, iced tea is rich in vitamins, minerals, and antioxidants, and the consumption of a glass of iced tea every day can provide all the nutrients needed for daily intake. Thus, a large number of health benefits associated with iced teas are driving the demand in the global market.

North America to Emerge as a Largest Consumer for Iced Tea

North America is anticipated to drive the iced tea market across the globe with a large consumer base for tea. In North America, the United States is the largest consumer with over 159 million Americans drinking tea on daily basis and approximately 75 - 80% of which is consumed in iced format according to the Tea Association of the United States. Moreover, consumers widely prefer to drink black ice tea and it occupies the largest market share for iced tea in the region. With changing taste preferences of consumers for various flavors, manufacturers in the region are focusing on launching new, innovative, and natural flavors to attract consumers for instance, in June 2022, DAVIDsTEA launched new cold brew iced tea with fruity flavors to achieve higher sales in summers. Thus with the large consumer base for iced tea along with presence of major players in the region, North America is expected to be the lagest consumer of iced tea over the forecast period.

Competitive Landscape

The iced tea market is concentrated with many players, that includes large-scale manufacturers, regional level players, and local players with a wide range of product offerings. Manufacturers in the industry are focusing on launching new products, flavors, partnerships, mergers, and acquisition strategies to maintain a leading position in their respective market space.

Some of the key players in the global iced tea market include Arizona Beverages USA, BOS Brands, 4C Foods Corp., The Coca-Cola Company, Harris Freeman & Co, Unilever, Mother Parkers Tea & Coffee Inc., and Templar Food Products. With the increasing number of health-conscious consumers across the world, major players are adopting various strategies to draw the attention of consumers, by introducing flavored and less-sugar iced tea to capture the larger share of the market studied. For instance, recently Jade Forest launched a premium non-alcoholic beverage Iced Tea for summer 2022 in three new flavors that are packed with essential nutrients and fruit juices.

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