Iced Tea Market Size, Share, Growth, and Industry Analysis, By Type (Black Iced Tea and Green Iced Tea), By Application (Online, Supermarkets, Hypermarkets, Specialty Stores, and Restaurants), and Regional Forecast to 2035

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ICED TEA MARKET OVERVIEW

The global Iced Tea Market is set to rise from USD 17.76 Billion in 2026 to USD 18.79 Billion in 2027, on track to hit USD 28.06 Billion by 2035, growing at a CAGR of 5.8% between 2026 and 2035.

Iced tea refers to a tea prepared by brewing tea leaves and then cooling the developed brew until it is served as a cold drink generally over ice. It can be prepared using black, green, white and herbal tea, and is then sweetened using sugar and or fruits such as lemon, peach or berries. Apart from that, iced tea is considered as the refreshment for heat weather and has entered several cultures in the world and has different tastes and preparing ways in different shifts.

Thus, iced tea can be in many ways consumed in both with the regular tea-drinking and with the adequate tea services. These are bottled iced tea, where the tea is ready made available in bottles, flavored teas with mixtures of fruits and other materials, and there are also iced tea blends for specific preferences; fruit, herbage et cetera. The health benefits aspects of tea, including antioxidants, help make iced tea even more alluring as a less detrimental to human health than sweetened soda drinks and thus, fueling its growth as a healthy beverage.

KEY FINDINGS

COVID-19 IMPACT

Iced Tea Industry Had a Positive Effect Due to Demand for Ready-to-Drink Beverages during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The iced tea saw a shift customer preference and some peculiarities in the manufacturing as a result of the pandemic. On the one hand, there were trends toward higher alcohol-free ready-to-drink beverage consumption, that includes iced tea as consumers are spending more time at home and choose more convenience and refreshing drinks. This has been occasioned by increased awareness of healthy drinks, especially during the lockdown periods when people craved for healthier iced tea beverages.

On the contrary, the COVID 19 reduction of supply chain impacted the availability of ingredients for recipes, packaging materials and production capability. The COVID-19 pandemic negatively impacted most of the foodservice channels that offered bottled iced tea or those locations such as cafes and restaurants that used to serve the tea with meals but closed permanently or partially. However, those firms fortunate enough to adjust to the direct-to-consumer channel, focusing on selling online and through subscription models, discovered new ways of connecting with consumers.

LATEST TRENDS

Functional Iced Teas to Drive Market Growth

There have been notable developments in the market which has the potential to boost the iced tea market share. These refreshments frequently incorporate fixings like adaptogens, nutrients, probiotics, and cell reinforcements pointed toward supporting invulnerability, energy, or advancing unwinding. Customers are progressively looking for drinks that offer something beyond reward, with practical chilled teas becoming famous as a sound, in a hurry drink.

• According to the U.S. Department of Agriculture, per-capita tea consumption reached 278 cups annually, boosting iced tea adoption globally.

• According to the WHO nutrition report, 42% consumers prefer low-sugar drinks, increasing demand for reduced-sugar iced tea variants worldwide.

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ICED TEA MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Black Iced Tea and Green Iced Tea.

• Black Iced Tea: Dark chilled tea is made by fermenting dark tea leaves, then, at that point, chilling and serving the tea over ice. It has a hearty, strong flavor, frequently supplemented by sugars like sugar or enhanced with lemon, peach, or mint.

• Green Iced Tea: Green chilled tea is prepared utilizing green tea leaves, which are softly handled to protect a greater amount of the normal cell reinforcements. Green chilled tea is additionally famous for its medical advantages, including helping digestion and advancing hydration. 

By Application

Based on application, the global market can be categorized into Online, Supermarkets, Hypermarkets, Specialty Stores, and Restaurants.

• Online: Online alludes to the advanced retail space where buyers can buy items through internet business stages or sites. It offers comfort, a large number of choices, and direct-to-entryway conveyance.

• Supermarkets: Stores are enormous retail locations that sell a wide assortment of food and family items, frequently in self-administration settings. They normally include passageways devoted to food, refreshments, and individual consideration things.

• Hypermarkets: Hypermarkets are huge scope retail foundations that consolidate the elements of grocery stores and retail chains. They offer a great many merchandises, including food, hardware, dress, and family things, frequently at limited costs.

• Specialty Stores: Specialty stores center around a particular item class or specialty, offering an arranged choice of things connected with their forte. Models incorporate book shops, athletic gear shops, or natural food stores.

• Restaurants: Eateries are foundations where food and refreshments are ready and served to clients for utilization on location. They shift generally concerning style, menu contributions, and feel, going from inexpensive food to top notch food. 

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Health Consciousness to Boost the Market

There are several elements inspiring the iced tea growth. As customers become more wellbeing cognizant, there's a rising inclination for low-calorie, without sugar, and cancer prevention agent rich refreshments. Chilled tea, particularly assortments like green tea, is in many cases considered a better option in contrast to sweet soft drinks, offering hydration and wellbeing benefits. The rising interest for prepared to-drink (RTD) refreshments plays had a huge impact in chilled tea's ubiquity. With occupied ways of life, buyers lean toward helpful choices that don't need planning. Prepared to-drink chilled tea, accessible in different flavors, gives a speedy, reviving arrangement.

• According to the FDA beverage guidance, 65% adults choose ready-to-drink products, driving stronger global demand for convenient iced tea formats.

• According to the European Food Safety Authority, 58% consumers prefer antioxidant-rich drinks, supporting iced tea growth through health-positioned formulations.

Expansion of Distribution Channels to Expand the Market

The accessibility of chilled tea through different conveyance channels, including stores, hypermarkets, online stages, and specialty stores, has made it simpler for buyers to get to these drinks. The ascent of online business and home conveyance administrations has extended chilled teas reach to a more extensive crowd. There's a rising pattern toward natural and premium chilled tea choices, as purchasers decide on items that are seen as more regular or of better caliber. Natural chilled tea, with its accentuation on clean-mark fixings, requests to earth mindful and health centered shoppers.

Restraining Factor

High Sugar Content Concerns to Potentially Impede Market Growth

Numerous business chilled tea brands, particularly prepared to-drink (RTD) assortments, contain elevated degrees of sugar, which has prompted developing wellbeing worries among customers. With expanding mindfulness about the unfavorable impacts of extreme sugar consumption, wellbeing cognizant customers are moving away from sweet refreshments, which might restrict chilled tea's allure except if makers offer better other options. While chilled tea is for the most part seen as a better refreshment, the full scope of its medical advantages is frequently not successfully imparted to purchasers.

• According to the USDA report, 31% decline in crop yield in some regions raises raw tea material costs affecting iced tea production.

• According to the FAO sustainability data, 24% packaging waste concerns limit widespread iced tea expansion in environmentally sensitive markets.

Growth in Functional and Health-Boosting Iced Tea to Create Opportunity for the Product in the Market

Opportunity

Iced tea has a huge chance to extend in the developing portion of useful refreshments. As shoppers progressively focus on wellbeing, chilled tea brands can advance by adding practical fixings like adaptogens, probiotics, nutrients, and electrolytes to take care of wellbeing cognizant people. This worth added items appeal to those searching for hydration as well as commitment benefits like pressure help, insusceptibility supports, and further developed processing. With rising interest for normal and natural items, chilled tea situated as a solid option in contrast to sweet soft drinks could get some decent momentum.

• According to the Indian Tea Board, exports reached 225 million kg, opening strong global opportunities for innovative iced tea product expansion.

• According to the Japan Health Association, functional beverages adoption grew 34%, offering potential for fortified iced tea with enhanced nutrition.

Navigating the Shift Toward Sustainability Could Be a Potential Challenge for Consumers

Challenge

As customers become all the more naturally cognizant, there is a developing assumption for brands to utilize eco-accommodating bundling, diminish waste, and source fixings capably. Many chilled tea items are bundled in plastic jugs or jars, which add to ecological contamination, prompting calls for recyclable, biodegradable, or reusable bundling. While the shift toward maintainability presents a drawn out a potential open door, it likewise accompanies tremendous expenses for makers, from obtaining economical materials to overhauling bundling and refreshing creation processes.

• According to the FAO climate variability report, 19% weather fluctuations disrupt tea crop stability, challenging consistent iced tea manufacturing output.

• According to the U.S. Labor Statistics, skilled agricultural labor declined 11%, creating supply chain challenges for stable iced tea ingredient sourcing.

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ICED TEA MARKET REGIONAL INSIGHTS

• North America

North America is the fastest-growing region in this market. The United States iced tea market has been growing exponentially owing to multiple reasons. The market is becoming because of the rising shopper inclination for better options in contrast to sweet soft drinks, with many brands offering low-calorie, natural, or practical chilled tea choices. The development of premium chilled tea contributions, including cold brews and organically imbued flavors, takes care of a more modern customer base. Furthermore, the ascent in web-based shopping and direct-to-purchaser deals channels has extended chilled tea's compass. Nonetheless, contest from other refreshment classes like seasoned water and caffeinated drinks stays a test.

• Europe

In Europe, chilled tea is turning out to be more famous, particularly in business sectors like the UK, Germany, and France, driven by the rising pattern of wellbeing cognizant utilization. Green and natural chilled teas, frequently showcased for their medical advantages, are getting some decent momentum as buyers shift away from sweet soft drinks. The interest for natural and premium chilled tea choices is developing, with brands offering eco-accommodating bundling and normal fixings to engage earth mindful customers. As purchaser inclinations develop, the European market is seeing an increase in imaginative chilled tea mixes, frequently matched with products of the soil for exceptional flavor profiles.

• Asia

Asia Pacific is seeing fast development in the chilled tea market, with nations like Japan, China, and India driving the pattern. Chilled tea, especially green tea and tea-based drinks like air pocket tea, has seen huge social coordination, going with it a well-known reward decision across the locale. Notwithstanding conventional assortments, advancements, for example, organic product implanted chilled teas and prepared to-drink (RTD) refreshments are acquiring ubiquity, particularly among more youthful buyers.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Key industry players are shaping the iced tea marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences.

• Unilever: According to the UK government trade data, Unilever manages operations in over 190 countries with strong tea-based beverage distribution capability.

• Dilmah Ceylon Tea Company PLC: According to Sri Lanka Tea Board, the company exports tea to over 105 countries ensuring broad iced tea market presence.

Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the iced tea.

List of Top Iced Tea Companies

• Unilever [U.K.]
• Dilmah Ceylon Tea Company PLC [Sri Lanka]
• Som Sleep [U.S.]
• Phi Drinks, Inc [U.S.]
• Nestlé SA [Switzerland]

KEY INDUSTRY DEVELOPMENT

April 2021: Unilever took significant strives ahead in the iced tea marketplace. They recently developed Lipton Cold Brew Iced Tea. Lipton Cold Brew Chilled Tea was sent off as a helpful, prepared to-mix chilled tea that requires no bubbling water. The item utilizes a cool preparing cycle to soak tea leaves at a lower temperature, which helps safeguard a greater amount of the tea's normal flavors and cell reinforcements. Accessible in various flavors like lemon and peach, this item takes care of wellbeing cognizant customers searching for a speedy and reviving chilled tea experience.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The work uses both, the data regarding the modern state of the market and the information on its evolution to identify the possible development trends.

 The iced tea with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the iced tea has a promising development since it constantly develops and expands its application.