Iced Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

Global Iced Tea market was valued at USD 18.43 billion in 2024 and is expected to grow to USD 22.85 billion by 2030 with a CAGR of 3.20% during the forecast period. The Iced Tea market is driven by rising consumer health consciousness and a growing preference for healthier beverages. Iced tea, particularly varieties like green tea, herbal tea, and organic options, is viewed as a healthier alternative to sugary sodas and other soft drinks.

Increasing awareness of the health benefits associated with iced tea, such as antioxidants, hydration, and lower calorie content, has significantly contributed to its popularity. Also, the convenience of ready-to-drink (RTD) iced tea products, offering on-the-go options, aligns with the busy lifestyles of consumers. Flavored iced tea variants, along with innovative packaging and sustainability trends, further drive market growth. The rising demand for functional beverages, like those with added vitamins or energy-boosting properties, is also boosting market expansion.

Key Market Drivers

Rising Innovation in Product Offering

Rising innovation in product offerings is a key driver of the global iced tea market. As consumers continue to seek unique and diverse flavor experiences, manufacturers are responding by developing a wide variety of iced tea options to cater to different tastes and preferences. As a part of this, as of March 2024, The US brand Eat the Change launched Just Iced Tea line of canned ready-to-drink iced teas. The new 12oz cans will feature three varieties: Lemon Tea, Raspberry Tea, and Dragon Green Tea - inspired by the beloved Honest Tea favorite, Green Dragon Tea. With these portable, recyclable aluminum cans, the drink can be made accessible to consumers on the go.

This includes the introduction of exotic flavors, such as hibiscus, matcha, and tropical fruits, which expand the product range and attract adventurous consumers. Also, there has been a significant increase in the availability of functional iced teas infused with health benefits, such as immune-boosting ingredients, antioxidants, and natural sweeteners.

This aligns with the growing consumer demand for beverages that offer both refreshment and health benefits. Companies are also innovating with packaging, using eco-friendly materials and convenient formats like single-serve bottles and cans to enhance accessibility. Also, with the rise of plant-based and organic trends, many iced tea brands are offering certified organic and vegan options to appeal to environmentally conscious consumers. These innovations help brands differentiate themselves in the competitive market and foster consumer loyalty.

Key Market Challenges

Supply Chain Disruptions

Supply chain disruptions represent a significant challenge in the global iced tea market. The complexity of sourcing high-quality raw materials, such as tea leaves, fruits, and natural flavourings, can be impacted by various global factors, including geopolitical tensions, natural disasters, and economic instability. For example, unexpected disruptions in key producing countries, such as India or China, can affect the availability and cost of tea leaves.

Also, logistical challenges such as transportation delays, rising fuel prices, and shortages of packaging materials can hinder the timely production and distribution of iced tea products. These disruptions not only affect product availability but also increase operational costs for manufacturers, which can result in price hikes that may alienate cost-sensitive consumers. Also, supply chain inefficiencies can lead to delays in product launches, reduced product variety, and difficulty in maintaining consistent product quality. As a result, iced tea brands must focus on diversifying their supply sources and enhancing operational resilience to mitigate the risks associated with supply chain disruptions.

Key Market Trends

Rising Popularity of Ready-to-Drink Beverages

The rising popularity of ready-to-drink (RTD) beverages is a key trend driving the growth of the global iced tea market. As a part of this, according to a recent study, as of 2025, the RTDs will have a CAGR of 10.18% from 2025 to 2029, with the possibility of reaching USD 81.55 billion by the end of that timeframe. With the increasing demand for convenience and on-the-go consumption, consumers are gravitating toward pre-packaged, single-serve iced tea products that require no preparation. RTD iced teas cater to busy lifestyles by offering a quick, refreshing alternative to traditional homemade beverages.

Also, the variety of flavors, including fruit-infused, herbal, and green teas, allows consumers to personalize their choices according to taste preferences. The RTD segment is particularly popular among younger, urban consumers who prioritize convenience without compromising on taste or health benefits. Also, the appeal of functional RTD iced teas, such as those with added vitamins, antioxidants, or energy-boosting properties, is rising as consumers seek beverages that not only quench thirst but also offer additional health benefits. The availability of RTD iced teas in convenient packaging, like cans, bottles, and tetra packs, enhances accessibility, and increased distribution in supermarkets, convenience stores, and online platforms further drives the market's expansion. This trend reflects a broader shift toward healthier, ready-to-consume beverages that fit into the fast-paced, health-conscious modern lifestyle.

Key Market Players

• The Coca Cola Company
• Nestle S.A.
• Keurig Dr Pepper Inc
• PepsiCo, Inc.
• Asahi Group Holdings, Ltd
• Britvic Soft Drinks Limited
• Suntory Beverage & Food Limited
• Panama Foods
• Higer Health Sciences, LLP
• Amrut MR Kool Food Products Private Limited

Report Scope:

In this report, the Global Iced Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Iced Tea Market, By Type:

• Black Iced Tea
• Green Iced Tea
• Herbal Iced Tea
• Others

Iced Tea Market, By Form:

• Powder/Premix
• Liquid/Ready-to-Drink

Iced Tea Market, By Packaging Type:

• Bottles
• Pouches
• Cans
• Tetra Packs

Iced Tea Market, By Sales Channel:

• Supermarket/Hypermarket
• Convenience Stores
• Online
• Others

Iced Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Asia-Pacific
• China
• Japan
• India
• Australia
• South Korea
• Indonesia
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• South America
• Argentina
• Colombia
• Brazil
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Iced Tea Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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