North America Tea Market Size

North America Tea Market Analysis

The North American tea market is projected to register a CAGR of 3.45% in the next five years.

• The perceived health benefits of green tea, herbal tea, and fruit tea are increasing their popularity in the North American market. Hence, the consumption of tea is rising in the region. According to Statistics Canada, the amount of tea available for consumption per person in Canada increased to 82.04 liters in 2021 from 63.69 liters in 2018.
• Additionally, the herbal tea segment is expected to grow significantly over the coming years. As a result of their health benefits, such as improving immunity, the market for herbal teas is increasing in the North American region.
• Moreover, with the rising demand for natural and organic ingredients, consumers are also exploring a diversity of flavors and blends. In addition to higher-quality specialty teas featuring particular flavors, there is a growing interest in higher-quality specialty teas.
• For instance, in February 2021, California-based Numi Organic Tea launched the 'Stay Healthy' Line of functional herbal tea. They recently introduced a line of teas that includes efficacious plants like echinacea, elderberry, dandelion root, Kanna leaf, and burdock root. It contains herbal blends developed to help users relax, support immunity, and combat common cold symptoms.
• The market is witnessing steady growth due to the strong consumer preference in the United States, albeit Canada has been lukewarm in its response. Consumption of tea in the North American region is not limited by seasonality but is always steady, irrespective of time. Canadians have become aware of the health benefits associated with tea consumption and the wide variety of tea offerings, driving the demand for tea during the forecast period.