North America RTD Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America RTD Tea Market is segmented by Type (Black Tea, Green Tea, Herbal Tea, and Other Types), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Stores, and Other Distribution Channels, and Geography (United States, Canada, Mexico, and Rest of North America). For each segment, the market sizing and forecasts have been done on the basis of the value (in USD million).

Market Snapshot

North America Ready to Drink Tea Market Size
Study Period: 2016 -2027
Base Year: 2021
CAGR: 4.3 %
North America Ready to Drink Tea Market Key Players

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Market Overview

The North American ready-to-drink tea market is projected to register a CAGR of 4.3% during the forecast period, 2022-2027.

The COVID-19 pandemic has brought increased attention to the link between nutrition and health, and it's likely to hasten the shift to healthier, higher-quality RTD teas. Of which stress reduction, digestive health, energy boost, and immune support-based RTD tea portfolios, in particular herbal teas, are gaining their space in the North American Market. As per The Tea Association of United States, RTD tea category growth resumed with an estimated growth of around 3 – 5% in 2020-2021, despite competition from other beverages and COVID-19 impacts.

Increased consumer knowledge of the health advantages of RTD tea over a carbonated drink is encouraging consumers to purchase RTD tea globally. RTD also helps with weight reduction, relieves headaches and bodily discomfort, lowers cholesterol levels, and lowers the risk of heart attacks. These benefits, together with increased awareness of the need to adopt a healthy lifestyle, are projected to propel the market forward in the next years. Furthermore, an increase in disposable income, the availability of ready-to-drink tea in handy and attractive packaging are all expected to boost the ready-to-drink tea industry.

Innovations at ingredient levels like a combination of ingredients, introducing new flavors, etc., are done in order to attract the customers.

Scope of the Report

Ready to drink (often known as RTD) tea is a packaged tea that is sold in a prepared form and is ready for consumption. North America's ready-to-drink tea market is segmented on the basis of product type, distribution channel, and geography. On the basis of product type, the market is segmented into black tea, green tea, herbal tea, and other product types. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online stores, and other distribution channels. By geography, the market is segmented into United States, Canada, Mexico, and Rest of North America. For each segment, the market sizing and forecasts have been done on the basis of the value (in USD million).

By Type
Black Tea
Green Tea
Herbal Tea
Other Types
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Online Stores
Other Distribution Channels
By Geography
United States
Canada
Mexico
Rest of North America

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Key Market Trends

Black Tea is the Most Consumed Tea

According to the United States Tea Association, black tea is North America’s favorite tea and highest consumed tea. Black teas usually have a very rich flavor because of their long processing times. Sun tea, sweet tea, iced tea, afternoon tea, etc. These well-known categories of tea are typically made using black tea. Black tea is grown and processed all over the world in varying geographies and climates. Three of the largest producers of black tea today are India, Sri Lanka, and Africa. The tea’s variety, convenience, health benefits, sustainability, availability, continued innovation, and the discovery of unique, flavorful, and high-end specialty tea are the major factors driving the market. It contains no sodium, fat, carbonation, or sugar. It is virtually calorie-free. It helps maintain proper fluid balance and may contribute to overall good health, driving the sales. Further, black tea remains the No. 1 tea varietal, with about 85% of United States imports.

North America Ready to Drink Tea Market Trends

Canada is the Fastest-growing Market in the North American Ready-to-drink Tea

The Canadian ready-to-drink tea market was valued at 730 million USD in 2021 and is growing at a CAGR of 5.6%. As people become aged, they go for more healthy diet options. Canada has around 48% of its population above the age of 45 years. Ready to drink tea is also becoming a growing trend among the youngsters too due to its health benefits and as a substitute for carbonated drinks. Manufacturers are also trying to introduce tea with clean label ingredients to attract health-conscious consumers. Canada's ready-to-drink tea market has also witnessed the introduction of new types of packaging and new flavors, such as Blackcurrant and Blueberry Mint Green Tea, among others. Players are also trying to expand their product base with the new combination of ingredients and flavors.

North America Ready to Drink Tea Market Share

Competitive Landscape

The North American ready-to-drink tea market is highly competitive. The market is dominated by a few major players. The major players have global reach and have a stronger distribution channel. PepsiCo, Coca-Cola, Keurig Dr. Pepper Inc., Hornell Brewing Co. Inc., Starbucks, and New Age Beverages enjoy a significant share in the market. The companies are increasing their product line and expanding their presence worldwide. To continue dominating the market, the key players seek to acquire local players. Acquisition and merger of local players led to mutual benefit.

Recent Developments

  • In 2022, United states brand Swoon introduced its new Sweet Tea to its product line-up. Swoon is a line of zero sugar beverages, creating a market for consumers preferring low-calorie beverages
  • In 2022, Jiant launched Venice Peach in the United States. It is brewed with organic dragonwell green tea with fruit flavors.
  • In 2021, Arizona launched Saint James Tea RTD green tea, with three flavors – Pineapple & Mango, Passionfruit & Peach, and Blueberry & Raspberry alongside Original Green Tea, which was initially launched in Florida.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Black Tea

      2. 5.1.2 Green Tea

      3. 5.1.3 Herbal Tea

      4. 5.1.4 Other Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Online Stores

      4. 5.2.4 Other Distribution Channels

    3. 5.3 By Geography

      1. 5.3.1 United States

      2. 5.3.2 Canada

      3. 5.3.3 Mexico

      4. 5.3.4 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Strategies Adopted by Key Players

    2. 6.2 Most Active Companies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 PepsiCo

      2. 6.4.2 Coca-Cola

      3. 6.4.3 Dr. Pepper Snapple Group Inc.

      4. 6.4.4 Asahi Group Holdings

      5. 6.4.5 Nestle

      6. 6.4.6 JAB Holding Company

      7. 6.4.7 Kirin Holdings

      8. 6.4.8 Milo’s Tea Company Inc.

      9. 6.4.9 Red Diamond Inc.

      10. 6.4.10 Pokka Sapporo Food & Beverages Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The North America Ready-to-Drink Tea Market market is studied from 2016 - 2027.

The North America Ready-to-Drink Tea Market is growing at a CAGR of 4.3% over the next 5 years.

Nestle, Hornell Brewing Co., Inc. , The Coca Cola Company, PepsiCo, Inc., Keurig Dr Pepper Inc. are the major companies operating in North America Ready-to-Drink Tea Market.

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