Iced Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The iced tea market was valued at USD 52.64 billion for the current year and is projected to register a CAGR of 6.12% over the next five years.

Key Highlights

• 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.
• Particularly among millennials and members of Generation Z, the preferred beverage for many people has developed over the past few years and has become more than just a hot beverage. The popularity of matcha tea has inspired an innovation movement that has left tea's traditional origins behind and changed it into something intriguing, and cold brews are also growing in popularity.
• New competitors entering the market are concentrating on millennials because they make up the largest portion of the market. For Instance- January 2021 "Truly Hard Seltzer, a brand marketed by Boston Beer, the company that owns Samuel Adams, started a "Try January" campaign to advertise the first alcoholic seltzer with tea. Truly Iced Tea Hard Seltzer launched that month in a variety of flavors.
• Moreover, with manufacturers focusing on introducing new and innovative fruit flavors, iced teas are gaining popularity among consumers. For instance, in 2022, Honest Tea 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, tea lemonade.

Iced Tea Market Trends

Iced 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, with manufacturers focusing on introducing new and innovative fruit flavors, iced teas are gaining popularity among consumers.
• For instance, in July 2022, Teapigs launched iced teas with two new flavors that are black tea with peach & superfruit. According to the company claim, each flavor is craft brewed in the United Kingdom using top quality tea pigs tea sourced by trained tea tasters.
• 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. The emphasis of manufacturers is currently changing away from conventional iced tea and towards organic and herbal iced teas. This is a result of changing customer preferences for tea that is healthier and more diet-friendly.
• For instance, in March 2023, Eat the Change, the planet-friendly snack company, expanded its ready-to-drink organic iced tea line Just Iced Tea in three new varieties, including mango white tea, original black tea, and lemon ginger herbal tea.

North America to Emerge as a Largest Consumer for Iced Tea

• 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, with manufacturers focusing on introducing new and innovative fruit flavors, iced teas are gaining popularity among consumers.
• For instance, in July 2022, Teapigs launched iced teas with two new flavors that are black tea with peach & superfruit. According to the company claim, each flavor is craft brewed in the United Kingdom using top quality tea pigs tea sourced by trained tea tasters.
• 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. The emphasis of manufacturers is currently changing away from conventional iced tea and towards organic and herbal iced teas. This is a result of changing customer preferences for tea that is healthier and more diet-friendly. For instance, in March 2023, Eat the Change, the planet-friendly snack company, expanded its ready-to-drink organic iced tea line Just Iced Tea in three new varieties, including Mango White Tea, Original Black Tea, and Lemon Ginger Herbal Tea.

Iced Tea Industry Overview

The iced tea market is fragmented 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, The Coca-Cola Company, Unilever, PepsiCo, Inc., and Nestle SA.

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 a 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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