U.S. RTD Organic Tea Market

U.S. RTD Organic Tea Market Size, Share, Growth Analysis, By Type(black tea, white tea, green tea, and others), By Packaging(bottles, cans, and cartoons), By Distribution channel(hypermarkets, convenience stores, non-store based, and others), By Region - Industry Forecast 2024-2031

Report ID: SQMIC30G2055 | Region: Country | Published Date: April, 2024
Pages: 198 | Tables: 92 | Figures: 76

U.S. RTD Organic Tea Market Insights

U.S. RTD Organic Tea Market size was valued at USD 2.39 billion in 2022 and is poised to grow from USD 2.50 billion in 2023 to USD 3.52 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2024-2031).

The growing demand for ready-to-drink (RTD) beverages is driving the growth of this market, owing to consumers' busy lifestyles and hectic work schedules. This trend has grown significantly in the United States in recent years, despite – and in many ways because of – the COVID-19 pandemic, as consumers focus on living a more active lifestyle, which includes spending more time outside. Furthermore, the growing number of working people is expected to drive demand for convenient RTD beverages, including organic tea. The North American ready-to-drink tea market is expected to grow at a CAGR of 4.3% between 2022 and 2027. The COVID-19 pandemic has heightened awareness of the relationship between nutrition and health, and it is likely to hasten the transition to healthier, higher-quality RTD teas.

RTD tea portfolios based on stress reduction, digestive health, energy boost, and immune support, in particular herbal teas, are gaining traction in the North American market. Increased consumer awareness of the health benefits of RTD tea over carbonated beverages is encouraging consumers worldwide to purchase RTD tea. RTD also aids in weight loss, alleviates headaches and bodily discomfort, lowers cholesterol levels, and reduces the risk of heart attack. Additionally, before expanding their operation across the nation, new market entrants like cafés are launching their own items to attract local clients.

US RTD Organic Tea Market  is poised to grow at a sustainable CAGR for the next forecast year.

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U.S. RTD Organic Tea Market size was valued at USD 2.39 billion in 2022 and is poised to grow from USD 2.50 billion in 2023 to USD 3.52 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2024-2031).

Due to the presence of numerous domestic and foreign competitors, the market is fragmented. Manufacturers are putting more of an emphasis on labelling, marketing campaigns, and product and packaging innovation because these elements are crucial to how a brand and its products are perceived overall. In an effort to broaden their consumer base, well-established companies have started adding new and inventive beverages to their product ranges. For instance, the debut of Lipton Herbal beverages was announced by Unilever USA's well-known brand Lipton in March 2021. 'Honest Tea', 'Pure Leaf', 'Teatulia', 'RUNA', 'Numi Organic Tea', 'Steaz', 'The Republic of Tea', 'Traditional Medicinals', 'Yogi Tea', 'Rishi Tea', 'Guayaki', 'Mighty Leaf Tea', 'Choice Organic Teas', 'Adagio Teas', 'Mighty Leaf Tea', 'Pukka Herbs', 'Harney & Sons', 'Two Leaves and a Bud', 'Inko's Organic White Tea', 'Ito En'

The amount of tea consumed globally reached 273 billion litres in the historical period of 2021, and the same trend will continue in the present period. By the end of 2022, the total consumption is anticipated to reach 297 billion litres. During the projection period, these trends will encourage market growth on a scale. In order to assist consumers in making a decision based on their evolving tastes and preferences, major market companies operating globally are also making significant investments to create and launch products on a wide scale.

Leading market participants like HUL and Nestle are emerging in the RTD tea industry trends, along with varieties like Peach and Lemon that are aiming to appeal to a broad client base. People are increasingly favouring RTD tea since tea shops are mushrooming everywhere and the urban population is displaying evidence of better health than the rural population as a whole.

The rising demand for healthy organic beverages in states such as North Carolina, Florida, Georgia, Mississippi, Tennessee, and Virginia is propelling market growth in this region. The market was overwhelmingly dominated by North America, which also offered the most. The market for tea that has been prepared for consumption in North America is mature, homogenous, and well-infiltrated. It is driven by key players including Coca-Cola Company, Nestle, and Unilever. Additionally, the shift in consumer preferences toward better options for energising beverages and toward tea and espresso is projected to offer up new opportunities for the growth of the prepared-to-drink tea market. Furthermore, rising consumer acceptance of RTD tea as a popular beverage, particularly among millennials, is expected to boost product demand. Furthermore, an increasing number of RTD organic tea product launches are contributing to market growth. Over the forecast period, the Southwest region is expected to have the fastest CAGR. Key market players are introducing new beverages with functional ingredients in a variety of flavours.

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U.S. RTD Organic Tea Market

Report ID: SQMIC30G2055