Iced tea is a refreshing beverage derived from tea leaves brewed in hot water and then cooled or served with ice. It is available in a variety of flavors such as black, green, red, white and oolong. Iced tea provides various health benefits such as increased metabolism, weight management, better hydration and antioxidant properties. The demand for healthy beverage alternatives high in nutrients and low in calories is growing significantly. Iced tea fits well in the healthy beverage category as it contains low to no calories and is rich in antioxidants. The availability of various flavor options also attracts health-conscious consumers. The global iced tea market is expanding rapidly to cater to the rising demand for refreshments having health advantages.
The global Iced Tea Market is estimated to be valued at US$ 6490.4 Mn in 2023 and is expected to exhibit a CAGR of 2.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rise in adoption of organic and natural ingredients: Consumers are shifting towards beverages containing organic and natural ingredients due to rising health awareness. Many key players are focusing on using organic tea leaves, natural flavors and cane sugar in their iced tea products to cater to this growing demand. For instance, Honest Tea uses organic and fair trade certified ingredients in its range of iced teas.
Innovative product launches: Manufacturers are innovating new product varieties, flavors and packaging types to attract more consumers. Products such as dragon fruit sparkling iced tea, peach tranquility black tea and lemon ginger green tea have been successful in enhancing the overall market growth. Ready-to-drink bottled iced tea and iced tea shots are gaining immense popularity among young consumers.
Growing consumption in developing regions: Emerging markets like Asia Pacific and Latin America are displaying high growth potential for Iced Tea Market Improving living standards and rapid urbanization drive the demand for affordable refreshments like flavored iced tea in these regions. Moreover, aggressive marketing strategies by brands target new customers in developing countries.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the iced tea market is moderate. New brands will face competitive pressure from established players and high costs of production and marketing.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to the availability of numerous product options and brands in the market.
Bargaining power of suppliers: Suppliers of raw materials like tea leaves, flavorings, and packaging have low to moderate bargaining power due to the availability of substitutes.
Threat of new substitutes: The threat of substitutes like carbonated drinks, coffee, and other flavored beverages is high as they are used for refreshment.
Competitive rivalry: The competitive rivalry is high among existing established players.
Key Takeaways
The Global Iced Tea Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global Iced Tea Market is estimated to be valued at US$ 6490.4 Mn in 2023 and is expected to exhibit a CAGR of 2.1% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market owing to high tea consumption in countries like China and India. Factors such as changing eating habits, rising disposable incomes, and blooming food retail industry are fueling the growth of the Asia Pacific iced tea market. North America is also expected to showcase substantial growth.
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. These companies are focusing on expanding their product portfolio and strengthening distribution channels to strengthen their position in the global market.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it