US Ready to Drink Tea Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

The US Ready to Drink Tea Market is segmented by Soft Drink Type (Green Tea, Herbal Tea, Iced Tea), by Packaging Type (Aseptic packages, Glass Bottles, Metal Can, PET Bottles) and by Distribution Channel (Off-trade, On-trade). Market Value in USD and Volume in Liters are both presented. Key data points observed include market segmental split by soft drink category, packaging type, distribution channel, and region

US Ready to Drink Tea Market Size

US Ready to Drink Tea Market Summary

Compare market size and growth of US Ready to Drink Tea Market with other markets in Food & Beverage Industry

US Ready to Drink Tea Market Analysis

The US Ready to Drink Tea Market size is estimated at 13.14 billion USD in 2025, and is expected to reach 16.28 billion USD by 2030, growing at a CAGR of 4.38% during the forecast period (2025-2030).

The US ready-to-drink tea market is experiencing a significant transformation driven by evolving consumer preferences towards healthy beverage alternatives. The market's growth is particularly influenced by the younger demographic, with approximately 88.5% of American millennials identifying as tea drinkers in 2022. This shift is reflected in the increasing demand for functional tea market beverages that offer both refreshment and health benefits. Manufacturers are responding by developing products with reduced sugar content, natural ingredients, and enhanced functional properties. The industry is witnessing a surge in premium offerings, with companies investing in high-quality tea leaves and innovative brewing techniques to meet sophisticated consumer preferences.

Product innovation and flavor diversification have become crucial strategies in the RTD tea market. Traditional flavor preferences remain strong, with approximately 75-80% of tea consumed in the United States being iced tea as of 2022. Manufacturers are expanding their portfolios by introducing unique flavor combinations and functional ingredients, such as vitamins, minerals, and herbs. The market has seen a particular emphasis on black tea variants, which accounted for 84% of all tea consumed in the United States in 2022. Companies are also exploring crossover categories, with tea appearing as an ingredient in both alcoholic and non-alcoholic RTD tea beverages.

Sustainability and packaging innovation have emerged as key differentiators in the market. In 2023, approximately 71% of US consumers actively chose products based on packaging sustainability factors. This consumer consciousness has led to significant investments in eco-friendly packaging solutions, with major manufacturers committing to recyclable and reusable packaging options. Companies are increasingly adopting post-consumer recycled (PCR) PET bottles and exploring alternative materials like glass, which is preferred by over 70% of US consumers for its ability to preserve product quality and environmental benefits.

The distribution landscape for packaged tea is evolving with changing consumer shopping habits and preferences for convenience. The market has witnessed a significant shift towards an omnichannel presence, with retailers developing integrated online and offline strategies. The food service sector plays an increasingly important role, with approximately 56% of the US population opting to dine in restaurants in 2023, creating new opportunities for bottled tea consumption through on-trade channels. Major retailers are enhancing their private label offerings while implementing innovative merchandising strategies to improve product visibility and accessibility. The industry is also seeing the emergence of specialized beverage retailers and subscription-based delivery models, catering to premium and health-conscious consumer segments.

Segment Analysis: Soft Drink Type

Iced Tea Segment in US RTD Tea Market

The iced tea segment continues to dominate the US Ready-to-Drink Tea (RTD) market, commanding approximately 62% of the total market value in 2024. This substantial market share can be attributed to Americans' strong preference for cold beverages, with an estimated 75-80% of tea consumed in the United States being iced tea. The segment's popularity is driven by its diverse flavor offerings, with traditional black tea being a top choice among consumers. Major brands are actively expanding their iced tea portfolios by introducing innovative flavors and healthier variants with reduced sugar content, catering to the growing health-conscious consumer base. The convenience factor of RTD iced tea, coupled with its perception as a healthier alternative to carbonated soft drinks, has significantly contributed to its market leadership position.

Market Analysis of US Ready to Drink Tea Market: Chart for Soft Drink Type

Herbal Tea Segment in US RTD Tea Market

The herbal tea segment is emerging as the fastest-growing category in the US RTD tea market, with projections indicating a robust growth rate of approximately 6% during 2024-2029. This growth is primarily driven by the rising popularity of kombucha and other functional herbal teas that offer additional health benefits such as stress relief, immune-boosting properties, and relaxation. Leading brands are capitalizing on this trend by introducing innovative ingredient combinations and flavors, particularly focusing on natural and organic variants. The segment's growth is further supported by the increasing preference among younger demographics, especially millennials and Gen Z consumers, who are actively seeking healthier beverage alternatives with functional benefits.

Remaining Segments in Soft Drink Type

The green tea beverage and other RTD tea segments complete the market landscape, each serving distinct consumer preferences and needs. Green tea beverage maintains its position as a premium segment, appealing to health-conscious consumers seeking antioxidant-rich beverages. The segment's growth is supported by continuous product innovations and the introduction of flavored variants. Meanwhile, the other RTD tea segment, which includes specialized varieties like black tea and canned tea, caters to consumers looking for unique flavor experiences and functional benefits, contributing to the overall market diversity and growth.

Segment Analysis: Packaging Type

PET Bottles Segment in US RTD Tea Market

PET bottles dominate the US Ready-to-Drink (RTD) tea market, commanding approximately 77% market share in 2024. This overwhelming preference for PET packaging is driven by several key factors, including its lightweight nature, durability, and cost-effectiveness in transportation and storage. The segment's popularity is further enhanced by manufacturers' focus on sustainable PET solutions, with major beverage companies targeting up to 50% post-consumer recycled (PCR) PET content during 2024-2030. PET bottles are particularly favored for their ability to preserve beverage quality while offering convenience through their portable and resealable design. Additionally, these bottles provide excellent barrier properties, ensuring product freshness and extending shelf life, making them ideal for RTD tea distribution through various retail channels.

Glass Bottles Segment in US RTD Tea Market

The glass bottles segment is emerging as the fastest-growing packaging format in the US RTD tea market, with projections indicating robust growth through 2024-2029. This growth is primarily driven by increasing consumer awareness of environmental sustainability and the inherent benefits of glass packaging. Glass bottles are gaining traction due to their infinite recyclability and ability to preserve product quality without affecting taste. The segment's appeal is further strengthened by glass's impermeability to external factors and its premium image in the market. Manufacturers are increasingly investing in lightweight glass technology and improved recycling infrastructure to address traditional concerns about weight and breakage while maintaining the material's core benefits.

Remaining Segments in Packaging Type

The RTD tea packaging landscape is further diversified by metal cans and aseptic packages, each serving distinct market needs. Metal cans are valued for their excellent barrier properties and rapid cooling capabilities, making them particularly popular in convenience store settings and outdoor consumption occasions. Aseptic packages, on the other hand, have carved out a significant niche by offering extended shelf life without refrigeration and environmental benefits through their multi-layer construction. Both segments continue to innovate with new formats and sustainable solutions, contributing to the overall dynamism of the RTD tea packaging market.

Segment Analysis: Distribution Channel

Supermarket/Hypermarket Segment in US RTD Tea Market

Supermarkets and hypermarkets continue to dominate the RTD tea distribution landscape in the United States, commanding approximately 52% of the market value in 2024. These retail giants, including major chains like Walmart, Albertsons Companies, Kroger, and Food Lion, leverage their nationwide presence and extensive infrastructure to offer consumers a comprehensive selection of RTD tea products in various pack sizes and formats. The segment's dominance is further strengthened by their ability to provide attractive promotional offerings, such as discounts, buy-one-get-one deals, and combo hampers, while also offering the advantage of in-person product inspection. Additionally, these retail chains have enhanced their competitive edge through membership programs and delivery services, making them the preferred destination for RTD tea purchases.

On-trade Segment in US RTD Tea Market

The on-trade segment is emerging as the fastest-growing distribution channel in the US RTD tea market, with projections indicating robust growth of approximately 8% from 2024 to 2029. This remarkable growth is primarily driven by the increasing trend of customization in RTD tea products, allowing customers to personalize their beverages by selecting specific ingredients and packaging types. On-trade retailers are actively diversifying their RTD tea offerings with innovative blends and eye-catching packaging, while also forming strategic partnerships with established RTD tea brands to boost sales. Notable examples include Subway's collaboration with Gold Peak and Starbucks' alliance with Anheuser-Busch, demonstrating the segment's commitment to expanding its market presence through strategic partnerships and product innovation.

Remaining Segments in Distribution Channel

The other significant distribution channels in the US RTD tea market include convenience stores, online retail, and specialty stores. Convenience stores serve as crucial points of sale, particularly in high-traffic locations like gas stations and transport hubs, offering easy access to RTD tea products for on-the-go consumers. The online retail channel has gained substantial momentum, driven by its convenience and extensive product selection, while specialty stores cater to premium and niche RTD tea products. These channels are complemented by warehouse clubs, drug stores/pharmacies, and vending machines, each serving distinct consumer needs and preferences while contributing to the market's overall accessibility and growth.

US Ready to Drink Tea Industry Overview

Top Companies in US Ready to Drink Tea Market

The ready-to-drink tea market in the United States is characterized by continuous product innovation and strategic expansion initiatives by major players. Companies are focusing on developing healthier variants with natural ingredients, reduced sugar content, and functional benefits to meet evolving consumer preferences. Operational agility is demonstrated through rapid adaptation to changing market demands, with manufacturers investing in advanced production technologies and sustainable packaging solutions. Strategic partnerships, particularly between beverage companies and retail chains, have become increasingly common to enhance distribution networks and market penetration. Companies are also expanding their product portfolios through the introduction of premium offerings, seasonal flavors, and limited-edition variants, while simultaneously strengthening their digital presence and direct-to-consumer channels.

Consolidated Market Led By Global Players

The US tea market exhibits a consolidated structure dominated by multinational beverage conglomerates with established brand portfolios and extensive distribution networks. These major players leverage their substantial research and development capabilities, marketing resources, and economies of scale to maintain their market positions. The presence of regional specialists and emerging brands adds a competitive dynamic to the market, particularly in premium and organic segments where smaller players can differentiate themselves through unique offerings and local market knowledge.

The market has witnessed significant merger and acquisition activity, primarily driven by large beverage companies seeking to expand their RTD tea portfolios and capture growing market segments. Global players are actively acquiring innovative start-ups and regional brands to strengthen their market presence and access new consumer segments. This consolidation trend is reshaping the competitive landscape, with larger companies gaining access to specialized production capabilities, unique formulations, and established customer bases through strategic acquisitions.

Innovation and Sustainability Drive Future Success

For incumbent companies to maintain and increase their market share, a focus on product innovation, sustainability initiatives, and digital transformation will be crucial. Market leaders must continue investing in research and development to create distinctive flavors and functional benefits while simultaneously expanding their sustainable packaging solutions and reducing environmental impact. Building strong relationships with retailers, optimizing supply chain efficiency, and leveraging data analytics for consumer insights will also be essential for maintaining a competitive advantage in an increasingly dynamic market environment.

Emerging players can gain ground by focusing on niche market segments, developing unique value propositions, and leveraging digital marketing strategies to build brand awareness. Success will depend on their ability to differentiate through innovative ingredients, authentic brand storytelling, and targeted distribution strategies. The market faces moderate substitution risk from other healthy beverage alternatives, making it essential for companies to continuously innovate and adapt to changing consumer preferences. Regulatory considerations, particularly regarding sugar content and health claims, will continue to influence product development and marketing strategies, requiring companies to maintain flexibility in their approach to compliance and consumer communication. The premium RTD tea soft drinks trend is gaining traction, offering opportunities for differentiation.

US Ready to Drink Tea Market Leaders

  1. Arizona Beverages USA LLC

  2. Keurig Dr Pepper, Inc.

  3. Milo’s Tea Company, Inc.

  4. PepsiCo, Inc.

  5. The Coca-Cola Company

  6. *Disclaimer: Major Players sorted in no particular order
US Ready to Drink Tea Market Concentration
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US Ready to Drink Tea Market News

  • January 2023: Milo's Tea Company has announced an initial investment of over USD 130 million to construct a new plant and distribution centre in Spartanburg County, South Carolina. This new investment is a direct response to the growth of Milo's brand. Milo expects to start producing its famous tea and lemonade in the fall of 2024.
  • January 2023: Lipton Tea partnered with Full Cart, a program within the nonprofit U.S. Hunger, and a virtual food pantry, to enhance access to heart-friendly nutrition and grocery assistance.
  • December 2022: Pure Leaf rolled out a limited-edition Merry Mint Iced Tea, coinciding with the release of the Christmas movie 'Christmas Class Reunion'. This mint-flavored iced tea was simultaneously launched through a social media giveaway, enhancing the movie-watching experience for consumers.

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US Ready to Drink Tea Market
US Ready to Drink Tea Market
US Ready to Drink Tea Market
US Ready to Drink Tea Market

US Ready to Drink Tea Market Report - Table of Contents

1. EXECUTIVE SUMMARY & KEY FINDINGS

2. REPORT OFFERS

3. INTRODUCTION

  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study​
  • 3.3 Research Methodology

4. KEY INDUSTRY TRENDS

  • 4.1 Consumer Buying Behaviour
  • 4.2 Innovations
  • 4.3 Brand Share Analysis
  • 4.4 Regulatory Framework

5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

  • 5.1 Soft Drink Type
    • 5.1.1 Green Tea
    • 5.1.2 Herbal Tea
    • 5.1.3 Iced Tea
    • 5.1.4 Other RTD Tea
  • 5.2 Packaging Type
    • 5.2.1 Aseptic packages
    • 5.2.2 Glass Bottles
    • 5.2.3 Metal Can
    • 5.2.4 PET Bottles
  • 5.3 Distribution Channel
    • 5.3.1 Off-trade
    • 5.3.1.1 Convenience Stores
    • 5.3.1.2 Online Retail
    • 5.3.1.3 Supermarket/Hypermarket
    • 5.3.1.4 Others
    • 5.3.2 On-trade

6. COMPETITIVE LANDSCAPE

  • 6.1 Key Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 Company Landscape
  • 6.4 Company Profiles
    • 6.4.1 Arizona Beverages USA LLC
    • 6.4.2 Del Monte Foods, Inc.
    • 6.4.3 Hawaiian Sun Products, Inc.
    • 6.4.4 Ito En, Ltd.
    • 6.4.5 Keurig Dr Pepper, Inc.
    • 6.4.6 Milo’s Tea Company, Inc.
    • 6.4.7 Nestle S.A.
    • 6.4.8 PepsiCo, Inc.
    • 6.4.9 Red Diamond, Inc.
    • 6.4.10 Reily Foods Company
    • 6.4.11 The Coca-Cola Company
    • 6.4.12 Walmart, Inc.
  • *List Not Exhaustive

7. KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS

8. APPENDIX

  • 8.1 Global Overview
    • 8.1.1 Overview
    • 8.1.2 Porter’s Five Forces Framework
    • 8.1.3 Market Dynamics (DROs)
  • 8.2 Sources & References
  • 8.3 List of Tables & Figures
  • 8.4 Primary Insights
  • 8.5 Data Pack
  • 8.6 Glossary of Terms
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List of Tables & Figures

  1. Figure 1:  
  2. CONSUMER BUYING BEHAVIOUR
  1. Figure 2:  
  2. INNOVATIONS
  1. Figure 3:  
  2. BRAND SHARE ANALYSIS
  1. Figure 4:  
  2. VOLUME OF US READY TO DRINK TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 5:  
  2. VALUE OF US READY TO DRINK TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 6:  
  2. VOLUME OF US READY TO DRINK TEA MARKET BY SOFT DRINK TYPE, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 7:  
  2. VALUE OF US READY TO DRINK TEA MARKET BY SOFT DRINK TYPE, USD, UNITED STATES, 2018 - 2030
  1. Figure 8:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 9:  
  2. VOLUME SHARE OF US READY TO DRINK TEA MARKET SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 10:  
  2. VOLUME OF GREEN TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 11:  
  2. VALUE OF GREEN TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 12:  
  2. VALUE SHARE OF GREEN TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 13:  
  2. VOLUME OF HERBAL TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 14:  
  2. VALUE OF HERBAL TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 15:  
  2. VALUE SHARE OF HERBAL TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 16:  
  2. VOLUME OF ICED TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 17:  
  2. VALUE OF ICED TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 18:  
  2. VALUE SHARE OF ICED TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 19:  
  2. VOLUME OF OTHER RTD TEA MARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 20:  
  2. VALUE OF OTHER RTD TEA MARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 21:  
  2. VALUE SHARE OF OTHER RTD TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 22:  
  2. VOLUME OF US READY TO DRINK TEA MARKET BY PACKAGING TYPE, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 23:  
  2. VALUE OF US READY TO DRINK TEA MARKET BY PACKAGING TYPE, USD, UNITED STATES, 2018 - 2030
  1. Figure 24:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 25:  
  2. VOLUME SHARE OF US READY TO DRINK TEA MARKET SPLIT BY PACKAGING TYPE, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 26:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 27:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, USD, UNITED STATES, 2018 - 2030
  1. Figure 28:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA ASEPTIC PACKAGES, SPLIT BY SOFT DRINK TYPE %, UNITED STATES, 2023 VS 2030
  1. Figure 29:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 30:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, USD, UNITED STATES, 2018 - 2030
  1. Figure 31:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA GLASS BOTTLES, SPLIT BY SOFT DRINK TYPE %, UNITED STATES, 2023 VS 2030
  1. Figure 32:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA METAL CAN, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 33:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA METAL CAN, USD, UNITED STATES, 2018 - 2030
  1. Figure 34:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA METAL CAN, SPLIT BY SOFT DRINK TYPE %, UNITED STATES, 2023 VS 2030
  1. Figure 35:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 36:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, USD, UNITED STATES, 2018 - 2030
  1. Figure 37:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA PET BOTTLES, SPLIT BY SOFT DRINK TYPE %, UNITED STATES, 2023 VS 2030
  1. Figure 38:  
  2. VOLUME OF US READY TO DRINK TEA MARKET BY DISTRIBUTION CHANNEL, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 39:  
  2. VALUE OF US READY TO DRINK TEA MARKET BY DISTRIBUTION CHANNEL, USD, UNITED STATES, 2018 - 2030
  1. Figure 40:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SPLIT BY DISTRIBUTION CHANNEL, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 41:  
  2. VOLUME SHARE OF US READY TO DRINK TEA MARKET SPLIT BY DISTRIBUTION CHANNEL, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 42:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 43:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, USD, UNITED STATES, 2018 - 2030
  1. Figure 44:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 45:  
  2. VOLUME SHARE OF US READY TO DRINK TEA MARKET SOLD VIA OFF-TRADE CHANNELS, %, UNITED STATES, 2018 VS 2024 VS 2030
  1. Figure 46:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 47:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES, USD, UNITED STATES, 2018 - 2030
  1. Figure 48:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA CONVENIENCE STORES SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 49:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 50:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL, USD, UNITED STATES, 2018 - 2030
  1. Figure 51:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA ONLINE RETAIL SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 52:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 53:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET, USD, UNITED STATES, 2018 - 2030
  1. Figure 54:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA SUPERMARKET/HYPERMARKET SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 55:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA OTHER DISTRIBUTION CHANNEL, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 56:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA OTHER DISTRIBUTION CHANNEL, USD, UNITED STATES, 2018 - 2030
  1. Figure 57:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA OTHERS SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 58:  
  2. VOLUME OF US READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, LITRES, UNITED STATES, 2018 - 2030
  1. Figure 59:  
  2. VALUE OF US READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, USD, UNITED STATES, 2018 - 2030
  1. Figure 60:  
  2. VALUE SHARE OF US READY TO DRINK TEA MARKET SOLD VIA ON-TRADE CHANNEL, SPLIT BY SOFT DRINK TYPE, %, UNITED STATES, 2023 VS 2030
  1. Figure 61:  
  2. MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, UNITED STATES, 2020 - 2023
  1. Figure 62:  
  2. MOST ADOPTED STRATEGIES, COUNT, UNITED STATES, 2020 - 2023
  1. Figure 63:  
  2. VALUE SHARE OF MAJOR PLAYERS, %, UNITED STATES

US Ready to Drink Tea Industry Segmentation

Green Tea, Herbal Tea, Iced Tea are covered as segments by Soft Drink Type. Aseptic packages, Glass Bottles, Metal Can, PET Bottles are covered as segments by Packaging Type. Off-trade, On-trade are covered as segments by Distribution Channel.
Soft Drink Type Green Tea
Herbal Tea
Iced Tea
Other RTD Tea
Packaging Type Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel Off-trade Convenience Stores
Online Retail
Supermarket/Hypermarket
Others
On-trade
Soft Drink Type
Green Tea
Herbal Tea
Iced Tea
Other RTD Tea
Packaging Type
Aseptic packages
Glass Bottles
Metal Can
PET Bottles
Distribution Channel
Off-trade Convenience Stores
Online Retail
Supermarket/Hypermarket
Others
On-trade
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Market Definition

  • Carbonated Soft Drinks (CSDs) - Carbonated soft drinks (CSDs) refer to non-alcoholic beverages that are carbonated and typically flavored, containing dissolved carbon dioxide to create effervescence. These beverages commonly include cola, lemon-lime, orange, and various fruit-flavored sodas. Marketed in cans, bottles, or fountain dispense.
  • Juices - We have considered packaged juices which encompass non-alcoholic beverages derived from fruits, vegetables, or a combination thereof, processed and sealed in various packaging formats such as bottles, cartons, or pouches. Excluding fresh juices, this market segment involves commercially prepared and preserved juices, often with added preservatives and flavors.
  • Ready-to-Drink (RTD) Tea and RTD Coffee - Ready-to-Drink (RTD) tea and RTD coffee are pre-packaged, non-alcoholic beverages that are brewed and prepared for consumption without further dilution. RTD tea typically includes various tea varieties, infused with flavors and sweeteners, and comes in bottles, cans, or cartons. Similarly, RTD coffee involves pre-brewed coffee formulations, often mixed with milk, sugar, or flavorings, and is conveniently packaged for on-the-go consumption.
  • Energy Drinks - Energy drinks are non-alcoholic beverages formulated to provide a quick boost of energy and alertness. Whereas, sports drinks are beverages designed to hydrate and replenish electrolytes, particularly after physical exertion, exercise, or intense activity
Keyword Definition
Carbonated Soft Drinks Carbonated soft drinks (CSDs) are a combination of carbonated water and flavouring, sweetened by sugar or a non-sugar sweeteners.
Standard Cola Standard Cola is defined as the original flavor of cola soda.
Diet Cola A cola-based soft drink containing no or low amounts of sugar
Fruit Flavored Carbonates A carbonated beverage prepared from fruit juice/fruit flavor with carbonated water and containing sugar, dextrose, invert sugar or liquid glucose either singly or in combination. It may contain peel oil and fruit essences.
Juice Juice is a drink made from the extraction or pressing of the natural liquid contained in fruit and vegetables.
100% Juice Fruit/vegetable juice made from fruit in the form of its juice with no water added to make up the volume. It is not permitted to add sugars, sweeteners, preservatives, flavourings or colourings to fruit juice.
Juice Drinks (up to 24% Juice) Fruit/vegetable juice drinks with up to 24% fruits/vegetable extract.
Nectars (25-99% Juice) Juices that can have between 25 and 99% of fruit, with the minimum legal limits defined depending on the type of fruit
Juice concentrates Juice Concentrates are those form of juices when most of this liquid is removed resulting in a thick, syrupy product known as juice concentrate.
RTD Coffee Packaged coffee beverages that are sold in a prepared form and are ready for consumption at the time of purchase.
Iced Coffee An iced coffee is a cold version of coffee, usually a combination of hot espresso and milk with ice added to it.
Cold Brew Coffee Cold brew also called cold water extraction or cold pressing is made by steeping ground coffee in room-temperature water for several hours.
RTD Tea Ready-to-drink (RTD) tea is a packaged tea product ready for immediate consumption without brewing or preparation
Iced Tea Ice tea or iced tea is a drink made from tea without milk but with sugar and sometimes fruit flavourings, drunk cold.
Green Tea Green tea is a tea beverage which promotes mental alertness, relieving digestive symptoms and promoting weight loss.
Herbal Tea Herbal tea beverages are made from the infusion or decoction of herbs, spices, or other plant material in hot water.
Energy Drink A type of drink containing stimulant compounds, usually caffeine, which is marketed as providing mental and physical stimulation. They may or may not be carbonated and may also contain sugar, other sweeteners, or herbal extracts, among numerous possible ingredients.
Sugar-free or Low-calories Energy Drinks Sugar-free or Low-calories Energy Drinks are sugar-free, artificially sweetened energy drinks with few or no calories.
Traditional Energy Drink Traditional Energy Drinks are functional soft drinks containing ingredients designed to boost the consumer's energy.
Natural/Oraganic Energy Drinks Natural/Organic energy drinks are energy drinks free of artificial sweeteners and synthetic colorings. Instead, they contain naturally derived ingredients such as green tea, yerba mate, and botanical extracts.
Energy Shots A small but highly concentrated energy drink that contains large amounts of caffeine and/or other stimulants. The quantity is comparatively smaller compared to energy drinks.
Sports Drink Sports drinks are beverages designed specifically for the rapid supply of fluid, carbohydrates, and electrolytes before, during or after exercise.
Isotonic Isotonic drinks contain similar concentrations of salt and sugar as in the human body, and are designed to quickly replace fluids lost during exercise but with an increase of carbohydrate.
Hypertonic Hypertonic drinks have a higher concentration of salt and sugar than the human body. They are best drunk after exercise as it is important to replace glycogen levels quickly after exercise.
Hypotonic Hypotonic drinks are designed to quickly replace fluids lost during exercise. They have very low carbohydrate content and a lower concentration of salt and sugar than the human body.
Electrolyte-Enhanced Water Electrolyte water is water infused with electrically-charged minerals, such as sodium, potassium, calcium, and magnesium.
Protein-based Sport Drinks Protein-based sports drinks are those sports drinks which has added protein in it that will improve performance and reduce muscle protein breakdown.
On-Trade The on-trade refers to places that sell beverages for immediate consumption on the premises like bars, restaurants, and pubs
Off-Trade Off-trade usually means places like liquor stores, supermarkets and other places where you don't consume the beverage right away.
Convenience Store A retail business that provides the public with a convenient location to quickly purchase a wide variety of consumable products and services, generally food and gasoline.
Specialty store A specialty store is a shop/store that carries a deep assortment of brands, styles, or models within a relatively narrow category of goods
Online Retail Online retail is a type of eCommerce whereby a business sells goods or services directly to consumers from a website.
Aseptic Packaging Aseptic packaging refers to the filling of a cold, commercially sterile product under sterile conditions into a presterilized container and closure under sterile conditions to form a seal that effectively excludes microorganisms. These includes tetra packs, cartons, pouches etc.
PET Bottle PET bottle means a bottle made of polyethylene terephthalate.
Metal Cans Metal containers made of aluminum or tin- plated or zinc-plated steel, which are commonly used for packaging food, beverages or other products.
Disposable Cups Disposable Cup means a cup or other container designed for single use to serve beverages, such as water, cold drinks, hot drinks and alcoholic beverages.
Gen Z A way of referring to the group of people who were born in the late 1990s and early 2000s.
Millenial Anyone born between 1981 and 1996 (ages 23 to 38 in 2019) is considered a Millennial
Taurine Taurine is an amino acid that supports immune health and nervous system function.
Bars & Pubs It is a drinking establishment licensed to serve alcoholic drinks for consumption on the premises.
Café It is a foodservice establishment serving refreshments (mainly coffee) and light meals.
On the go It means doing / dealing with while busily engaged with something and not diverting plans in order to accommodate.
Internet Penetration The Internet Penetration Rate corresponds to the percentage of the total population of a given country or region that uses the Internet.
Vending Machine A machine that dispenses small articles such as food, drinks, or cigarettes when a coin or token is inserted
Discount store A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.
Clean Label Clean label on the beverage market are drinks that are made from few ingredients of natural origin and are not or only slightly processed.
Caffeine An alkaloid compound which is a stimulant of the central nervous system. It is mainly used recreationally, as a mild cognitive enhancer to increase alertness and attentional performance.
Extreme sport Action sports, adventure sports or extreme sports are activities perceived as involving a high degree of risk.
High-intensity interval training It incorporates several rounds that alternate between several minutes of high intensity movements to significantly increase the heart rate to at least 80% of one's maximum heart rate, followed by short periods of lower intensity movements.
Shelf life The length of time for which an item remains usable, fit for consumption, or saleable.
Cream Soda Cream soda is a sweet soft drink. Generally flavored with vanilla and based on the taste of an ice cream float
Root Beer Root beer is a sweet North American soft drink traditionally made using the root bark of the sassafras tree Sassafras albidum or the vine of Smilax ornata as the primary flavor. Root beer is typically, but not exclusively, non-alcoholic, caffeine-free, sweet, and carbonated.
Vanilla Soda A carbonated soft drink flavoured with vanilla.
Dairy-Free A product that does not contain any milk or milk products from cows, sheep or goats.
Caffeine-Free Energy Drinks Caffeine-free energy drinks rely on other ingredients to boost the energy. Popular choices include amino acids, B vitamins, and electrolytes.
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Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: IDENTIFY KEY VARIABLES: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.​
  • Step-4: Research Outputs: Syndicated reports, custom consulting assignments, databases & subscription platforms
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US Ready to Drink Tea Market Research FAQs

How big is the US Ready to Drink Tea Market?

The US Ready to Drink Tea Market size is expected to reach USD 13.14 billion in 2025 and grow at a CAGR of 4.38% to reach USD 16.28 billion by 2030.

What is the current US Ready to Drink Tea Market size?

In 2025, the US Ready to Drink Tea Market size is expected to reach USD 13.14 billion.

Who are the key players in US Ready to Drink Tea Market?

Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company are the major companies operating in the US Ready to Drink Tea Market.

Which segment has the biggest share in the US Ready to Drink Tea Market?

In the US Ready to Drink Tea Market, the Iced Tea segment accounts for the largest share by soft drink type.

Which is the fastest growing segment in the US Ready to Drink Tea Market?

In 2025, the Herbal Tea segment accounts for the fastest growing by soft drink type in the US Ready to Drink Tea Market.

What years does this US Ready to Drink Tea Market cover, and what was the market size in 2025?

In 2025, the US Ready to Drink Tea Market size was estimated at 13.14 billion. The report covers the US Ready to Drink Tea Market historical market size for years: 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the US Ready to Drink Tea Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

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