Market Size of north america ready to drink tea Industry
| Icons | Lable | Value |
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Study Period | 2018 - 2030 |
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Market Size (2024) | USD 14.48 Billion |
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Market Size (2030) | USD 18.96 Billion |
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Largest Share by Soft Drink Type | Iced Tea |
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CAGR (2024 - 2030) | 4.60 % |
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Largest Share by Country | United States |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Ready to Drink Tea Market Analysis
The North America Ready to Drink Tea Market size is estimated at 14.48 billion USD in 2024, and is expected to reach 18.96 billion USD by 2030, growing at a CAGR of 4.60% during the forecast period (2024-2030).
14.48 Billion
Market Size in 2024 (USD)
18.96 Billion
Market Size in 2030 (USD)
3.88 %
CAGR (2018-2023)
4.60 %
CAGR (2024-2030)
Largest Segment by Soft Drink Type
61.75 %
value share, Iced Tea, 2023
Iced tea is gaining recognition across the region as people are substituting the traditional sugary beverages with healthier alternatives boosted by availability of brands like Arizona, Pure Leaf and Lipton.
Fastest-growing segment by Soft Drink Type
6 %
Projected CAGR, Herbal Tea, 2024-2030
Awareness towards ill-effects of consumption of synthetic beverages is leading to expansive adoption of naturally derived beverages like herbal tea, especially among the youth.
Leading Market Player
16.07 %
market share, PepsiCo, Inc., Inc.
PepsiCo, Inc. is observed to be the leading player in the market owing to growing partnership and innovation ventures. For instance, Pepsi Co partnered with FIFCO USA to launch Lipton Hard Tea in United States
Largest Segment by Country
87.37 %
value share, United States, 2023
United States is observed to be the largest consumer in the region majorly attribued to more 159 million people in the country consuming the beverage on a daily basis.
Fastest-growing segment by Country
6.56 %
Projected CAGR, Mexico, 2024-2030
Convenience acts as a key catalyst for RTD tea sales in Mexico coupled with innovation in flavors like chamomile, jasmine and meeting consumer wellness demands for healthier options.
The influence of the café culture, with its emphasis on specialty and artisanal beverages, is supporting the market’s growth
- The sales value of RTD tea in the North American region registered a growth rate of 8.81% in 2023 compared to 2021. The growth of RTD tea in North America is primarily propelled by the rising consumer emphasis on leading a healthy lifestyle. As consumers become more knowledgeable about the various health advantages associated with RTD tea, the market continues to expand. RTD tea has been shown to reduce headache pain, type 2 diabetes, lower cholesterol levels, as well as reducing the risk of heart attack. As of 2022, about 38 million Americans suffered from diabetes, and approximately 90% to 95% of them had type 2 diabetes.
- The United States leads in per capita consumption of RTD tea among North American countries, amounting to an annual average of 18.90 liters in 2022. This preference is largely driven by a taste for convenience and on-the-go consumption.
- In 2022, Americans consumed more than 85 billion servings of tea or more than 3.9 billion gallons. Among RTD teas, 62.6% of the RTD tea consumed is served cold or iced. Iced tea is often associated with hot weather and is a popular beverage choice during warmer seasons. The influence of the café culture, with its emphasis on specialty and artisanal beverages, is playing a major role in driving the demand for RTD iced tea in the region.
- Herbal tea emerges as the fastest-growing segment and is projected to witness a 25.20% sales value growth from 2023 to 2027. The US market for herbal tea is surging, driven by a demand for functional and flavorful beverages, along with the introduction of contemporary flavors.
Understand The Key Trends Shaping This Market
Sugar-free variants, natural sweeteners, and innovative flavors boost the market growth in the United States
- The North American RTD tea market witnessed robust growth, with sales surging by 7.65% in value terms between 2021 and 2023. This growth was accompanied by a notable diversification in RTD tea flavors, spanning from traditional black and green teas to herbal blends and fruit-infused options. The convenience of RTD tea, especially for on-the-go consumption, is gaining traction as lifestyles become increasingly hectic.
- In 2023, the United States emerged as the dominant player in the North American RTD tea market. A rising trend among health-conscious US consumers is the preference for RTD teas with lower sugar content, natural sweeteners, and perceived health benefits like antioxidants. Given the high obesity rates in the US, with approximately 100.1 million (41.9%) adults and nearly 14.7 million (19.7%) children classified as obese in 2022, many RTD tea companies are responding by offering low-calorie or sugar-free options.
- Apart from the Rest of North America, Mexico is anticipated to register the fastest growth in the sales of RTD tea, with a CAGR of 6.56% by value from 2024 to 2030. As consumers become more health-conscious, the demand for beverages perceived as healthier alternatives to sugary and carbonated drinks is increasing. RTD teas, especially those with low sugar content and natural ingredients, align with these trends. As the RTD tea market evolves, consumers in Mexico may show interest in innovative products, such as those with functional ingredients or unique brewing methods.
