The global Iced Tea Market is estimated to be valued at US$ 6,490.4 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Iced tea is a refreshing beverage prepared by brewing tea leaves with water and ice. It is a popular alternative to carbonated soft drinks, as it has less caffeine and sugar content compared to soda drinks. Preparing iced tea at home saves costs, it is a healthy drink, and quenches thirst effectively in summer.
Market key trends:
Growing health consciousness among consumers is a major trend in the iced tea market. People are shifting their preference from carbonated beverages and sugar-laden drinks to healthier beverage options like iced tea. The rising awareness about negative health impacts of excess sugar intake is driving the demand for low and zero sugar iced tea variants. Companies are launching products made from green tea and herbal infusions to cater to health-focused demographics. Furthermore, the busy lifestyle has prompted buyers to opt for ready-to-drink (RTD) iced tea bottles and cans for easy consumption, which is boosting the market growth.
SWOT Analysis
Strength: Iced tea offers various health benefits such as antioxidants, hydration and contains lesser calories than soda. It comes in different flavors which attract diverse consumer base.
Weakness: High sugar content in flavored iced teas can lead to weight gain and various health issues. Seasonal demand and dependency on climate conditions.
Opportunity: Increasing health consciousness and preference for natural beverages provide growth prospects. Potential for product innovation in flavors and utilizing herbs/botanicals provides differentiation.
Threats: Stringent regulations on marketing of high sugar beverages. Growing demand for plant-based drinks poses competition to iced tea market.
Key Takeaways
The Global Iced Tea Market Size is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing health consciousness among consumers. Wide availability of different flavors cater to evolving consumer preferences.
Regional analysis: North America dominates the global iced tea market currently. However, Asia Pacific is expected to witness the fastest growth during the forecast period due to rising consumption in countries like China and India. Countries like Japan, Australia are also among the major markets for iced tea in the region.
Key players operating in the iced tea market are Arizona Beverages USA, The Coca-Cola Company, Unilever, PepsiCo, Inc., and Nestle SA. The leading companies are focusing on novel product launches catering to the customized needs of regional consumers. For instance, Arizona Beverages offers around 99 customized flavors of iced tea catering to North American taste. Moreover, private label brands from retailers pose competition tonational brands.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.