North America Tea Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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 (United States, Canada, Mexico and Rest of North America).

Market Snapshot

North America Tea Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 3.1 %
North America Tea Market Major Players

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Market Overview

The North American tea market is projected to register a CAGR of 3.1% during the forecast period (2021 - 2026).

The herbal tea segment is expected to pose significant growth over the coming years. The present situation in terms of the COVID-19 outbreak has paved a strong ground for herbal tea manufacturers, as consumers are actively seeking products that are good for health and nature and act as an immunity booster in the North American region, thus driving the market further.

Consumption of tea in the North American region is not limited by seasonality but is always steady, irrespective of time. 

Owing to the strong consumer preference in the United States, the market is witnessing steady growth, albeit Canada has been lukewarm in its response. Both countries have slashed prices, leading to an increase in tea sales (by volume) in North America.

Canadians have become aware of the health benefits associated with tea consumption and the wide variety of tea offerings, which drove the demand for tea in 2017.

Scope of the Report

Tea is a common beverage made from steeping processed Camellia sinensis leaves with hot water. By form, 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. By geography, the market study included leading countries such as the United States, Canada, Mexico, and the Rest of North America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Form
Leaf Tea
Crush/Tear/Curl Tea
By Product Type
Black Tea
Green Tea
Herbal Tea
Other Product Types
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Specialist Retailers
Onine Retail Stores
Other Distribution Channels
By Country
United States
Canada
Mexico
Rest of North America

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Key Market Trends

Healthy Hydration is Propelling the Market Growth

Tea consumption in North America is driven by consumer’s search for new non-alcoholic beverages over fruit juices and carbonated drinks. ​Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates. Healthy hydration refers to the ability of tea to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee and other energy drinks. ​

The organoleptic versatility associated with tea makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market. ​

The linkage between tea and its healthful properties, such as organic and others, remains fundamentally strong in the North American market. The tea market is propelled due to its health-promoting profile and the variety of herbal variants, new pack sizes, and organic options in North America. ​

North America Tea Market Key Trends

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 US 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 the continued innovation, convenience, and popularity of high-end specialty tea. In the future, the growth is expected to be dependent on increasing consumer interest, as well as the marketing of tea as a healthy beverage.

North America Tea Market Growth Rate

Competitive Landscape

The North American tea market is highly competitive, with regional and global players capturing a significant share in the market. Some of the few companies, which have emerged as the leading players are Unilever, Hain Celestial Group​, and Associated British Foods PLC​. These players have focused on leveraging opportunities posed by emerging markets to expand their product portfolio, further expanding their market share. Companies compete on different factors, including product offerings, quality, taste, flavors, price, functionality, size, packaging, and marketing/branding activities, in order to gain a competitive advantage in the market.​

Recent Developments

  • In October 2019, New Age Beverages Corporation announced the expansion of its partnership with Nestle SA, including expanding its license agreement on NESTEA to include all products under the brand, including NESTEA Powdered Tea products, in the United States.
  • In June 2018, Lipton brands introduced fruit-infused iced herbal teas, including new Lipton Strawberry Watermelon Iced Herbal Tea and Lipton Mango Iced Herbal Tea. These tea are infused with no added sweeteners, artificial flavors, or caffeine, and these teas feature a combination of fruity aromas and hibiscus flowers.
  • In June 2018, Starbucks Coffee Co. introduced Teavana packaged tea in the North American market. The six premium tea sachet varieties are inspired by popular Teavana blends and include Youthberry, a citrus-berry white tea blend with mango, orange, hibiscus, and rose petals; Peach Tranquility, featuring peach and tropical fruit with notes of lemon, verbena, and chamomile; Citrus Lavender, which pairs orange and pineapple with lavender blossom and sage; Jade Citrus Mint, a green tea blend with lemon citrus and spearmint; Imperial Spiced Chai, an oolong tea blend with cinnamon, tropical fruit, and citrus notes; and Earl Grey Creme, a black tea blend with lavender and vanilla notes.

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 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

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Form

      1. 5.1.1 Leaf Tea

      2. 5.1.2 Crush/Tear/Curl Tea

    2. 5.2 By Product Type

      1. 5.2.1 Black Tea

      2. 5.2.2 Green Tea

      3. 5.2.3 Herbal Tea

      4. 5.2.4 Other Product Types

    3. 5.3 By Distribution Channel

      1. 5.3.1 Supermarkets/Hypermarkets

      2. 5.3.2 Convenience Stores

      3. 5.3.3 Specialist Retailers

      4. 5.3.4 Onine Retail Stores

      5. 5.3.5 Other Distribution Channels

    4. 5.4 By Country

      1. 5.4.1 United States

      2. 5.4.2 Canada

      3. 5.4.3 Mexico

      4. 5.4.4 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Strategies Adopted by Leading Players

    2. 6.2 Most Active Companies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Unilever PLC

      2. 6.4.2 Bigelow Tea Company

      3. 6.4.3 Hain Celestial Group (Celestial Seasonings Inc.)

      4. 6.4.4 Associated British Foods PLC

      5. 6.4.5 Yogi Tea

      6. 6.4.6 Reily Foods Company

      7. 6.4.7 Tata Consumer Products

      8. 6.4.8 Traditional Medicinals Inc.

      9. 6.4.9 Tea Forte Inc.

      10. 6.4.10 Republic of Tea

    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 Tea Market market is studied from 2016 - 2026.

The North America Tea Market is growing at a CAGR of 3.1% over the next 5 years.

ITO EN INC., Davids Tea Inc., Hain Celestial Group, Unilever , Tata Consumer Products are the major companies operating in North America Tea Market.

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