North America Tea Market - Growth, Trends, and Forecast (2020 - 2025)

The North America Tea Market is segmented by Form (Leaf Tea and Crush/Tear/Curl tea), Product Type (Black Tea, Green Tea, Herbal Tea, and Other Product Types), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers, Online Retail Stores, and Other Distribution Channels), and Geography.

Market Snapshot

Study Period:


Base Year:



3.1 %

Largest Market:

United States

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Market Overview

The North America Tea Market is expected to register a CAGR of 3.1%, during the forecast period (2020 - 2025).

  • Consumption of tea in the North American region is not limited by seasonality but is always steady, irrespective of time. 
  • Ready-to-drink tea and iced tea have gained more popularity in Canada and the United States, driving the North America tea market.
  • The market is witnessing steady growth, thanks to strong consumer preference in the United States, albeit Canada has been lukewarm in its response. Both countries have slashed prices, leading to an increase in sales(by volume) of tea in North America.
  • Canadians have become aware of the health benefits associated with tea consumption, as well as the wide variety of tea offerings, which drove the demand for tea in 2017.

Scope of the Report

Scope of the market includes segmenataion, by tea, the market is segmented into leaf tea and CTC (crush, tear, and curl) tea. By product type, the market is segmented as black tea, green tea, herbal tea, and other product types. By distribution, the market is segmented as supermarkets/hypermarkets, convenience stores, specialist retailers, online retail stores, and other distribution channels.

Leaf Tea
CTC Tea (Crush, Tear, and Curl)
Product Type
Black Tea
Green Tea
Other Product Types
Distribution Channel
Convenience Stores
Specialist Retailers
Online Retail Stores
Other Distribution Channels
North America
United States
Rest of North America

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Key Market Trends

Increasing Demand for Ready-to-Drink Tea

Rising awareness regarding the health benefits of RTD tea, on-the-go convenience trend, and premiumization of tea are a few factors driving the market. Healthy hydration trends, among the consumers in North America, have led to the rise in the demand for RTD tea products, over other carbonated or soft drinks. The market faces challenges with respect to the availability of substitute products, such as energy drinks, other RTD drinks, like coffee, and functional beverages. Innovations and new product launches remain the key influential factors for the market growth, where manufacturers are coming up with new flavors, combinations of ingredients, and strong promotional positioning of the products. For instance, Value-added RTD tea, such as kombucha fermented tea products, are gearing up the market growth in the overall RTD market.

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United States is the Largest Market Segment

The United States has been identified as the third-largest importer of tea, globally. Tea consumption in the United States has increased significantly in the past few years, and tea is now the most popular beverage in this country. In this region, the major growth opportunities include increasing health awareness among North American consumers, the introduction of new flavors, and the demand for convenience. The United States tea market recorded robust growth, in terms of value and volume in 2018, with herbal and green tea reflecting stronger demand. The market for tea is expected to grow at an impressive pace, due to continued innovation, convenience, and popularity of high-end specialty tea. In Future, the growth is expected to be dependent on increasing consumer interest, as well as the marketing of tea as a healthy beverage.

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Competitive Landscape

In North America, the packaged tea segment includes several brands/companies, including Unilever PLC, Tata Tea, Waghbakri, Duncan's, Brooke Bond, Red Rose, and A1. Moreover, packaged tea brands have been experimenting with pack sizes from HORECA large packing to 5-10 INR pack sizes, which is targeting various consumer segments, coupled with new innovations in packaging ranging from thin standard packs, tea bags, pet jars, and tetrapacks to wooden and ceramic exotic gift packing for some of the premium variants offered by players, such as Dilmah, Infinitea etc.  

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Table Of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study



    1. 3.1 Market Overview


    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Form

      1. 5.1.1 Leaf Tea

      2. 5.1.2 CTC Tea (Crush, Tear, and Curl)

    2. 5.2 Product Type

      1. 5.2.1 Black Tea

      2. 5.2.2 Green Tea

      3. 5.2.3 Other Product Types

    3. 5.3 Distribution Channel

      1. 5.3.1 Supermarkets/Hypermarkets

      2. 5.3.2 Convenience Stores

      3. 5.3.3 Specialist Retailers

      4. 5.3.4 Online Retail Stores

      5. 5.3.5 Other Distribution Channels

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America


    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Celestial Seasonings Inc.

      2. 6.4.2 Unilever PLC

      3. 6.4.3 ITO EN Inc.

      4. 6.4.4 Tata Global Beverages

      5. 6.4.5 Davids Tea Inc.

      6. 6.4.6 Bigelow Tea

      7. 6.4.7 Tea Forte

      8. 6.4.8 Republic of Tea

  7. *List Not Exhaustive

** Subject to Availability

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