Market Size of us ready to drink tea Industry
| Icons | Lable | Value |
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Study Period | 2018 - 2030 |
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Market Size (2024) | USD 12.62 Billion |
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Market Size (2030) | USD 16.28 Billion |
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Largest Share by Soft Drink Type | Iced Tea |
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CAGR (2024 - 2030) | 4.33 % |
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Fastest Growing by Soft Drink Type | Herbal Tea |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
US Ready to Drink Tea Market Analysis
The US Ready to Drink Tea Market size is estimated at 12.62 billion USD in 2024, and is expected to reach 16.28 billion USD by 2030, growing at a CAGR of 4.33% during the forecast period (2024-2030).
12.62 Billion
Market Size in 2024 (USD)
16.28 Billion
Market Size in 2030 (USD)
3.67 %
CAGR (2018-2023)
4.33 %
CAGR (2024-2030)
Largest Segment by Soft Drink Type
61.71 %
value share, Iced Tea, 2023
Consumers choosing functional beverage over caffeinated and carbonated beverages is leading to popularity of iced tea, as they are infused with antioxidants boosting immunity.
Largest Segment by Packaging Type
77.18 %
value share, PET Bottles, 2023
The surging focus of brand makers to introduce more environment-friendly alternatives like recyclable pet bottles and initiatives like "All Bottle Back" has contributed to the growth of market
Fastest-growing segment by Soft Drink Type
5.78 %
Projected CAGR, Herbal Tea, 2024-2030
Herbal tea, like Kombucha is observed to be gaining traction owing to infusion of various herbs and other natural ingredients, especially among youth due to health benefits.
Fastest-growing segment by Packaging Type
7.46 %
Projected CAGR, Glass Bottles, 2024-2030
Owing to several benefits like impermeability, infinite recyclability and less impact on growing landfill in the country, glass bottle packaging is projected to grow fastest.
Leading Market Player
16.66 %
market share, PepsiCo, Inc., Inc.
Pepsico, Inc. and its increasing partnership with brands like, Lipton and premium home grown brands like Pure Leaf, is allowing product penetration at an expansive level in the country.
RTD green tea gains traction due to its antioxidant properties and potential health benefits
- The iced tea segment dominates the market. It witnessed a significant growth rate of 9.71% by value from 2020 to 2023. This surge can be attributed to the influence of health and wellness trends. Consumers are increasingly favoring ready-to-drink (RTD) iced tea, perceiving it as a healthier alternative to sugary soft drinks. As of 2022, around 75% to 80% of tea consumed in the United States is iced, reflecting its popularity. Iced tea's appeal lies in its diverse flavor offerings, with traditional black tea being a top choice.
- RTD green tea secures the second-largest market share in the RTD tea sector, registering a notable CAGR of 5.06% by value from 2020 to 2023. The antioxidant-rich composition and potential health benefits of green tea have made it a preferred option for health-conscious consumers. In 2021, Americans consumed a staggering 85 billion servings of tea, with green tea accounting for approximately 15% of the total. Notable brands in this space include Lipton, Pure Leaf, and Arizona.
- The other RTD tea segment is the fastest-growing in the market and is projected to register a CAGR of 6.19% by value during 2024-2030. This segment encompasses a variety of teas, such as black tea, functional tea, and sparkling tea. Manufacturers are focusing on ingredient-level innovations, introducing new flavors and combinations to entice consumers. The rising popularity of flavonoid-based beverages, known for their antioxidant properties, is expected to drive this market further. Notably, black tea accounted for 84% of all tea consumed in the United States in 2021.
Understand The Key Trends Shaping This Market
US Ready to Drink Tea Industry Segmentation
Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel.
- The iced tea segment dominates the market. It witnessed a significant growth rate of 9.71% by value from 2020 to 2023. This surge can be attributed to the influence of health and wellness trends. Consumers are increasingly favoring ready-to-drink (RTD) iced tea, perceiving it as a healthier alternative to sugary soft drinks. As of 2022, around 75% to 80% of tea consumed in the United States is iced, reflecting its popularity. Iced tea's appeal lies in its diverse flavor offerings, with traditional black tea being a top choice.
- RTD green tea secures the second-largest market share in the RTD tea sector, registering a notable CAGR of 5.06% by value from 2020 to 2023. The antioxidant-rich composition and potential health benefits of green tea have made it a preferred option for health-conscious consumers. In 2021, Americans consumed a staggering 85 billion servings of tea, with green tea accounting for approximately 15% of the total. Notable brands in this space include Lipton, Pure Leaf, and Arizona.
- The other RTD tea segment is the fastest-growing in the market and is projected to register a CAGR of 6.19% by value during 2024-2030. This segment encompasses a variety of teas, such as black tea, functional tea, and sparkling tea. Manufacturers are focusing on ingredient-level innovations, introducing new flavors and combinations to entice consumers. The rising popularity of flavonoid-based beverages, known for their antioxidant properties, is expected to drive this market further. Notably, black tea accounted for 84% of all tea consumed in the United States in 2021.
| Soft Drink Type | |
| Green Tea | |
| Herbal Tea | |
| Iced Tea | |
| Other RTD Tea |
| Packaging Type | |
| Aseptic packages | |
| Glass Bottles | |
| Metal Can | |
| PET Bottles |
| Distribution Channel | ||||||
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| On-trade |
Need A Different Region Or Segment?
US Ready to Drink Tea Market Size Summary
The US Ready to Drink Tea Market is experiencing a robust expansion, driven by shifting consumer preferences towards healthier beverage options. The market is predominantly led by the iced tea segment, which has seen substantial growth due to its perception as a healthier alternative to sugary soft drinks. This segment's popularity is further bolstered by its diverse flavor offerings, with traditional black tea being a favored choice. The RTD green tea segment also holds a significant share, appealing to health-conscious consumers due to its antioxidant-rich composition and potential health benefits. The market is characterized by a variety of tea options, including functional and sparkling teas, with manufacturers focusing on innovative ingredient combinations to attract consumers. The convenience of packaged RTD tea, coupled with the increasing number of cafes and retail outlets, has further fueled market growth.
The market landscape is fragmented, with major players like Arizona Beverages, Keurig Dr Pepper, Milo’s Tea Company, PepsiCo, and The Coca-Cola Company holding a significant portion of the market share. The demand for sustainable packaging is rising, prompting brands to enhance their packaging solutions. Additionally, the increasing disposable income and the health benefits associated with RTD tea, such as weight loss and reduced cholesterol levels, are contributing to its growing popularity. The market is also seeing investments in production facilities, as evidenced by Milo's Tea Company's plans to expand its operations. Collaborative efforts, such as Lipton Tea's partnership with Full Cart, aim to enhance access to nutritious options, further supporting market growth.
US Ready to Drink Tea Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Soft Drink Type
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1.1.1 Green Tea
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1.1.2 Herbal Tea
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1.1.3 Iced Tea
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1.1.4 Other RTD Tea
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1.2 Packaging Type
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1.2.1 Aseptic packages
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1.2.2 Glass Bottles
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1.2.3 Metal Can
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1.2.4 PET Bottles
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1.3 Distribution Channel
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1.3.1 Off-trade
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1.3.1.1 Convenience Stores
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1.3.1.2 Online Retail
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1.3.1.3 Supermarket/Hypermarket
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1.3.1.4 Others
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1.3.2 On-trade
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US Ready to Drink Tea Market Size FAQs
How big is the US Ready to Drink Tea Market?
The US Ready to Drink Tea Market size is expected to reach USD 12.62 billion in 2024 and grow at a CAGR of 4.33% to reach USD 16.28 billion by 2030.
What is the current US Ready to Drink Tea Market size?
In 2024, the US Ready to Drink Tea Market size is expected to reach USD 12.62 billion.
