US Ready to Drink Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

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).

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.

US Ready to Drink Tea Market Trends

The convenience associated with RTD tea beverages boosts the segment sales

• The convenience of packaged RTD tea and the growing number of cafes, retail stores, and food outlets have also contributed to the increase in consumption of tea in the country. Further, private label brands also play an important role in the market, as they have a strong presence in rural areas.
• People are looking for sustainable packaging with the high demand for sustainable packaging in the country, brands are improving packaging types like PepsiCo plans to double the percentage of all beverage servings it sells delivered through reusable models from a current 10% to 20% by 2030.
• The increasing disposable income is also a driving factor in the sales of RTD tea. It has been recorded that the consumption of RTD tea away from home is higher than at home consumption.
• The health benefits of RTD tea such as promoting weight loss, lessening body and headache discomfort, lowering cholesterol levels, and lowering the risk of heart attacks are driving the demand among fitness enthusiasts and people suffering from the diseases.

US Ready to Drink Tea Industry Overview

The US Ready to Drink Tea Market is fragmented, with the top five companies occupying 36.65%. The major players in this market are Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).

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