Market Trends of North America Tea Industry
This section covers the major market trends shaping the North America Tea Market according to our research experts:
Healthy Hydration is Propelling the Market Growth
- Tea consumption in North America is driven by consumers' search for new non-alcoholic beverages over fruit juices and carbonated drinks. Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates.
- Healthy hydration refers to the ability of tea to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee and other energy drinks. The organoleptic versatility associated with tea makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market.
- The linkage between tea and its healthful properties, such as organic and others, remains fundamentally strong in the North American market. The tea market is propelled due to its health-promoting profile and the variety of herbal variants, new pack sizes, and organic options in North America. The manufacturers are launching their products in the region owing to the rising demand for healthy tea in the region.
- For instance, in June 2022, The UK-based Clipper Tea Company expanded its product range in the United States with new packaging and flavors. The newly added flavors include organic earl grey black tea, organic orange & turmeric herbal tea, organic green tea & lemon, organic winter apple & cinnamon herbal tea, and organic winter berries herbal tea.
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The United States Has the Highest Tea Consumption
- The United States has been identified as the second-largest importer of tea globally. Tea consumption in the United States has increased significantly in the past few years, and tea is now the most popular beverage in this country.
- According to the International Trade Centre Trade Map, in 2021, the top three most valuable import markets for tea were Pakistan (USD 596.5 million), followed by the United States of America (USD 531.8 million), followed by Russia (USD 436.2 million).
- In this region, the major growth opportunities include increasing health awareness among North American consumers, the introduction of new flavors, and the demand for convenience. For instance, in September 2021, in the United States, Old Barrel Tea Company launched three new Mexico-inspired loose-leaf tea blends in three new flavors, hand-crafted in Albuquerque. The latest tea blends include Prickly Pear Green Tea, Pecan Pie Pu Erh Tea, and Horchata Rooibos Tea. Furthermore, in North America, the tea market is primarily driven by rising awareness among the public about the health benefits associated with tea consumption.
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