May 18, 2024
Iced Tea Market

The Growing Demand for Healthy Drink Alternatives is Driving the Iced Tea Market

Iced tea has gained significant popularity as a refreshing and healthy alternative to carbonated drinks or fruit juices. This beverage is made from brewed tea that is chilled and often flavored or sweetened. The rising health consciousness among consumers has increased the demand for iced tea as it contains polyphenols and antioxidants. Iced tea also provides hydration without excessive added sugars compared to sodas. Popular flavors of iced tea include black, green, red, and white teas infused with ingredients like lemon, peach, mango, and mint. Iced tea is commonly available in bottles or cans for on-the-go consumption from vending machines, cafes, restaurants, and grocery stores.

The global iced tea market is estimated to be valued at US$ 7476.95 Mn in 2024 and is expected to exhibit a CAGR of 2.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving growth in the iced tea market size is the introduction of innovative flavors. Manufacturers are leveraging rising demand for unique flavor combinations by launching new varieties infused with exotic fruits like dragonfruit, pineapple, and pomegranate. Moreover, the growing cafe culture has increased the consumption of premium loose-leaf teas sold as cold brews or on-tap iced teas infused with herbs. Ready-to-drink bottled teas flavored with fruits or adaptogens like match  are also gaining market share. Players are focusing on utilizing high-quality, organic, and sustainably sourced ingredients to fuel demand among health-conscious demographics. All these developments are expected to open new avenues for market expansion over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the iced tea market is moderate. Establishing manufacturing facilities and distribution networks require high capital investments. However, the growing demand for iced tea products offers opportunities for new players.

Bargaining power of buyers: The bargaining power of buyers in the iced tea market is high. Buyers have a variety of iced tea brands to choose from. Switching to alternative beverages is also easy for buyers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few large companies dominate raw material supply, suppliers of other ingredients have moderate bargaining power.

Threat of new substitutes: The threat of substitutes is high due to the availability of various alternative beverages like soft drinks, juices, coffees and others. Changing consumer preferences also affect the iced tea market.

Competitive rivalry: The global iced tea market is moderately competitive due to the presence of several private label brands and established players. Companies compete based on pricing, brand, flavor innovations and expansions into new regions.

Key Takeaways

The global iced tea market is expected to witness high growth over the forecast period. The global iced tea market is estimated to be valued at US$ 7476.95 Mn in 2024 and is expected to exhibit a CAGR of 2.1% over the forecast period 2024 to 2031.

North America currently dominates the market owing to rising health awareness. Changing lifestyles and increasing demand for on-the-go beverages are some factors driving market growth in the region.  The Asia Pacific region is expected to be the fastest growing market for iced tea. Increasing middle-class population, hot weather conditions and growing western influences are propelling market expansion in the Asia Pacific region. Countries like China, India, Japan and Australia are anticipated to offer lucrative opportunities over the next few years.

Key players operating in the iced tea market are Adelaide Brighton Ltd, Boral Ltd., Sibelco Australia, Omya Australia Pty Ltd, Wagners, and Lime Group Australia. Companies are focusing on new product launches, expansions and promotions to strengthen their foothold. Strategic collaborations with regional players are also helping them enhance market presence.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it