The global Iced Tea Market is estimated to be valued at US$ 6,490.4 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Iced tea is a sweetened tea that is often brewed and then cooled before serving over ice. It is usually made from black tea or green tea and served cold. Iced tea is popular around the world for its refreshing taste and ability to quench thirst in hot weather. The product offers various health benefits such as provides antioxidants, improves hydration, and reduces stress. It comes in various flavors to suit different tastes. The convenience of ready-to-drink iced tea is driving its popularity.
Market key trends:
One of the key trends in the market is the rising demand for wellness drinks. Consumers are increasingly preferring beverages with functional benefits. Iced tea fits well due to presence of antioxidants from tea. Market players are leveraging this demand by introducing product lines positioned as wellness drinks. For example, Arizona Beverages has a line of ‘Arnold Palmer’ iced tea and lemonade blend positioning it as refreshing and healthy alternative to sugar-sweetened sodas. Such innovation and marketing is boosting consumer interest in iced tea and supporting the market growth.
Threat of new entrants: The threat of new entrants in the iced tea market is moderate. Established brands have strong brand loyalty which acts as a deterrent for new players. However, the market is growing at a steady pace providing opportunities for new entrants.
Bargaining power of buyers: The bargaining power of buyers in the iced tea market is high. Buyers can choose from a wide variety of brands in the market. Price sensitivity is high as iced tea is a mass-market product.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Raw materials required are readily available and there are no major constraints. However, brands have strong relations with suppliers which reduce suppliers’ power.
Threat of new substitutes: Threat from substitutes like carbonated drinks, juices, and coffee is high. However, iced tea has established itself as a popular refreshment drink reducing impact of substitutes to some extent.
Competitive rivalry: Competitive rivalry in the iced tea market is high due to the presence of major brands. Companies compete based on pricing, innovation, branding and marketing.
The Global Iced Tea Market Size is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing demand for ready-to-drink beverages and rising health consciousness. North America currently dominates the market holding around 35% share due to high consumption of iced tea. Developed markets in Europe and Asia Pacific are also exhibiting growth opportunities for players.
Asia Pacific is projected to be the fastest growing region in the global iced tea market owing to rising disposable incomes, growing urbanization and hot climatic conditions favoring refreshment drinks consumption especially in countries like China and India. Latin America and Middle East are also emerging as high potential regions.
Key players operating in the iced tea market are Arizona Beverages USA, The Coca-Cola Company, Unilever, PepsiCo, Inc., and Nestle SA. Companies are launching innovative flavors and variants to attract health-conscious consumers and expanding in developing regions through strategic partnerships.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it