Middle East Ready-to-drink Tea Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Segment Analysis

By Product Type: Herbal Variants Outpace Iced Tea Incumbency

Iced tea accounted for 48.15% of the Middle East's RTD tea value in 2024, driven by decades of multinational investment in flavors such as lemon, peach, and unsweetened black tea, which is distributed widely through hypermarkets and petrol stations. Herbal tea, by contrast, is projected to grow at a 11.13% CAGR through 2030, fueled by its caffeine-free positioning and functional-ingredient narratives that appeal to wellness-focused consumers. Startups such as Seha Wellness, with Ayurvedic blends like Tranquili-Tea, Diges-Tea, and Immuni-Tea, and Nai Arabia, with Hibiscus Pomegranate Rose and Moroccan Mint iced teas, are carving niche segments by highlighting traditional Middle Eastern botanicals like zhourat, a blend of Rosa damascena, Matricaria chamomilla, and Aloysia citrodora, documented for antioxidant and antimicrobial benefits. Other RTD variants, including green, white, oolong, and matcha teas, collectively hold the remaining share, though ambient shelf stability and flavor preservation remain challenges for delicate varietals.

Global brands are also adapting to these trends. The Pepsi Lipton Partnership’s March 2024 US launch of Pure Leaf Zero Sugar Sweet Tea, sweetened with sucralose and acesulfame potassium, demonstrates strong consumer demand for zero-sugar beverages and provides a blueprint for Middle East SKUs navigating Saudi Arabia’s 42% sugar-sweetened beverage tax and the UAE’s Nutri-Mark labeling. Lipton’s May 2025 global rebrand, introducing lower- and zero-sugar iced tea powders under the “We Choose Tea” tagline, targets both hot and cold consumption occasions. Local players like Kinza Drinks, launched in 2022 by Al-Jameel International, are diversifying into hybrid formats such as pomegranate, berries, and Saudi cocktail carbonated beverages. While iced tea’s established distribution, brand recognition, and competitive pricing will sustain volume leadership, herbal tea’s rapid growth suggests it could capture 20–25% of the market by 2028–2029 if functional claims receive regulatory approval and supply-chain traceability is strengthened.

Note: Segment shares of all individual segments available upon report purchase

By Packaging Type: Aseptic Cartons Challenge PET Bottle Dominance

In 2024, PET bottles accounted for 57.53% of Middle East RTD tea packaging, favored for transparency, resealability, and compatibility with existing cold-chain infrastructure in hypermarkets and convenience stores. Aseptic cartons are projected to grow at a 10.83% CAGR through 2030, driven by their extended ambient shelf life (12–24 months), lower refrigeration costs, and sustainability narratives that highlight reduced carbon footprints. SIG’s November 2024 five-year partnership with Almarai, supported by a SAR 18 billion (USD 4.8 billion) investment, demonstrates regional commitment to aseptic technology, with cross-category applications for RTD tea. Alesayi Beverage Corporation’s 126,000-square-meter Jeddah mega-factory, featuring 22 high-speed production lines and SIG bag-in-box systems for HoReCa bulk dispensing, underscores the scale investments needed to compete across packaging formats.

Glass bottles and metal cans make up the remainder of the market, with glass positioned as a premium format and cans preferred for single-serve energy-drink-style RTD teas. Sustainability trends are gaining momentum, with Lamipak producing over 13 billion aseptic cartons globally in 2023, including bio-based and recyclable formats, aligning with UAE and Saudi Vision 2030 goals. Tetra Pak and Aujan are introducing innovative carton-based packaging for on-the-go consumption, demonstrating commercial viability and convenience. While PET’s scale, familiarity, and cost advantages will maintain its leadership, aseptic cartons’ ability to reduce cold-chain dependency and spoilage in remote GCC markets positions them to capture 25–30% of the segment by 2029–2030, provided brands invest in consumer education around recyclability and ambient storage benefits.

By Price Category: Premium Tier Gains Despite Mass Market Entrenchment

Mass-tier RTD tea dominated 78.26% of sales in 2024, driven by hypermarket private-label SKUs and multinational brands catering to price-conscious shoppers in Saudi Arabia through chains such as Lulu, Carrefour, and Panda. In contrast, premium RTD tea is expanding at a 12.36% CAGR through 2030, targeting affluent consumers in Dubai Marina, Abu Dhabi’s Saadiyat Island, and Riyadh’s Diplomatic Quarter who value organic certifications, single-origin sourcing, and functional ingredients over cost. Brands like Nai Arabia, offering 100% natural iced teas in flavors such as Hibiscus Pomegranate Rose, Peach Mango Jasmine, and Moroccan Mint, retail at 30–50% higher prices than mass-tier products but have secured distribution across GCC e-commerce platforms and specialty retailers. Seha Wellness’s Ayurvedic blends, priced at AED 40 (USD 11) per 75 grams with 2-3 day GCC shipping, highlight how functional benefits, stress relief, gut health, and immunity justify premium pricing when paired with heritage narratives.

Regional incumbents are also elevating RTD tea through strategic investments. Almarai’s SAR 18 billion plan through 2028, coupled with a five-year partnership with SIG for aseptic packaging expansion, demonstrates cross-category premiumization in dairy-adjacent beverages, informing RTD tea strategies. Lipton’s May 2025 global rebrand, introducing English Breakfast and Earl Grey blends alongside lower- and zero-sugar iced teas, positions the brand for premium-lite segments where health claims meet affordability. The region’s appetite for sophistication is reflected in Dubai Duty Free’s USD 310 million liquor sales, suggesting non-alcoholic premium RTD teas can attract flexi-drinkers aged 21-45 in hotels and lounges. While mass-tier products will maintain volume leadership due to entrenched distribution and cost advantages, premium RTD teas could capture 25-30% of value share by 2029-2030 if brands invest in consumer education, functional-ingredient storytelling, supply-chain transparency, and sustainability certifications that resonate with affluent Middle East consumers.

By Distribution Channel: HoReCa Outpaces Retail Despite Off-Trade Dominance

Off-trade channels, including supermarkets, hypermarkets, convenience stores, and online retail, accounted for 62.41% of Middle East RTD tea volume in 2024, reflecting decades of investment in modern retail distribution and cold-chain infrastructure. Supermarkets and hypermarkets dominate in the UAE and Saudi Arabia, with chains such as Lulu, Carrefour, and Panda featuring chilled RTD tea in end-aisle displays and checkout coolers. Convenience stores and petrol station kiosks cater to impulse purchases during peak traffic hours, particularly for single-serve PET bottles and metal cans, which are designed for on-the-go consumption. Online retail is expanding rapidly, with quick-commerce apps delivering chilled beverages within 30 minutes. Meanwhile, direct-to-consumer brands like Seha Wellness and Nai Arabia are leveraging e-commerce and social engagement to bypass traditional retail channels and capture higher margins.

On-trade (HoReCa) is growing at a 12.88% CAGR through 2030, driven by the UAE’s expanding foodservice sector, including Dubai’s specialty coffee outlets and Abu Dhabi’s fine dining segment. Alesayi Beverage Corporation’s Jeddah mega-factory has installed SIG bag-in-box aseptic systems (10-liter bags with SIG 2Pure Film) to serve HoReCa bulk dispensing, enabling cafés and restaurants to provide consistent RTD tea on tap without compromising shelf life. Digital B2B platforms also play a role, with Coca-Cola Europacific Partners reporting over EUR 2.3 billion in annual revenue from myCCEP.com across 13 markets, highlighting the potential for online ordering to boost volume in HoReCa and independent retail, though Middle East-specific penetration data remains undisclosed^{[4]Source: Coca-Cola Europacific Partners, “Annual Report 2024,” cocacolaep.com}.

Geography Analysis

In 2024, Saudi Arabia dominated the Middle East RTD tea market with a 55.82% share, supported by major investments from multinational players. PepsiCo committed SAR 9 billion (approximately USD 2.4 billion) over eight years, while Nestlé pledged SAR 7 billion over the next decade. PepsiCo’s December 2024 launch of Sting energy drink and the April 2025 opening of an expanded Riyadh headquarters, featuring a SAR 30 million (USD 8 million) R&D center, highlight the company's deepening localization and product development efforts. Nestlé’s October 2024 groundbreaking of its first Saudi food factory, a USD 72 million facility with 15,000 tonnes annual capacity, signals potential expansion into RTD tea production. Regulatory developments, including mandatory caffeine disclosure, high-salt warnings, and physical activity icons effective July 2025, are raising compliance costs but also creating opportunities for health-focused, reformulated SKUs. Local innovations, such as Milaf Cola, a date-based soft drink launched by Thurath Al-Madina in December 2024 and distributed through the Lulu Group, illustrate the growing appeal of culturally resonant products, especially following a 7% sales decline of Western beverage brands in H1 2024.

The UAE, while smaller in market share, serves as the region’s hub for re-exports and innovation. Dubai’s DMCC Tea Centre handled over 24,400 metric tonnes of tea in 2024, and the country accounts for more than half of global tea re-exports, enabling just-in-time inventory strategies. The Nutri-Mark front-of-pack labeling system, launched in June 2025, grades products on sugar, sodium, and saturated fat, potentially affecting sweetened RTD tea appeal. A vibrant herbal tea ecosystem has emerged, with startups like Seha Wellness, Nai Arabia, MyPekoe, SAC Herbal, Al Malaky Royal, BRW Society, Sy’a Teas, and Balqees leveraging e-commerce and social media to bypass traditional retail. Innovative offerings such as Tania’s Teahouse’s Cordyceps Latte and Reishi-infused chocolates reflect growing consumer interest in adaptogens and functional ingredients, which could influence RTD tea development.

Other GCC markets show varied growth dynamics. Qatar is projected to record the fastest geographic CAGR at 11.92% through 2030, driven by hospitality expansion and tourism investments. Oman’s 31.7% excise tax on sugar-sweetened beverages incentivizes lower-sugar RTD tea formulations, while Bahrain imposes stringent regulatory requirements that favor established brands. Exports to Jordan, Egypt, and Iraq offer opportunities, though political instability and import complexities pose challenges. Saudi Arabia’s robust manufacturing base and the UAE’s re-export infrastructure position them as regional engines, while Qatar’s hospitality-driven growth and Omani tax-driven reformulation create targeted opportunities for premium and functional RTD tea SKUs.