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    Iced Tea Market

    ID: MRFR/F-B & N/40239-HCR
    200 Pages
    Snehal Singh
    October 2025

    Iced Tea Market Research Report By Type (Bottled Iced Tea, Powdered Iced Tea, Ready-to-Drink Iced Tea, Loose Leaf Iced Tea), By Flavor (Black Tea, Green Tea, Herbal Tea, Fruit-Flavored Tea), By Distribution Channel (Supermarkets, Convenience Stores, Online Retail, Specialty Stores), By Packaging Type (Bottles, Pouches, Cans, Tetra Packs) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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    Iced Tea Market Infographic
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    Iced Tea Market Summary

    As per MRFR analysis, the Iced Tea Market Size was estimated at 18.93 USD Billion in 2024. The Iced Tea industry is projected to grow from 19.35 USD Billion in 2025 to 24.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.18 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Iced Tea Market is experiencing a dynamic shift towards health-conscious and premium offerings.

    • Health-conscious consumers are increasingly opting for iced tea due to its perceived health benefits, particularly in North America.
    • The premiumization trend is evident as consumers gravitate towards high-quality, artisanal iced tea products, especially in the Asia-Pacific region.
    • Ready-to-drink iced tea remains the largest segment, while bottled iced tea is emerging as the fastest-growing category.
    • Market drivers such as flavor innovation and sustainability initiatives are propelling growth, with eco-friendly packaging gaining traction.

    Market Size & Forecast

    2024 Market Size 18.93 (USD Billion)
    2035 Market Size 24.0 (USD Billion)
    CAGR (2025 - 2035) 2.18%

    Major Players

    The Coca-Cola Company (US), PepsiCo, Inc. (US), Nestle S.A. (CH), Unilever PLC (GB), Dr Pepper Snapple Group (US), Monster Beverage Corporation (US), Arizona Beverages USA (US), Ito En, Ltd. (JP), Tazo Tea Company (US)

    Iced Tea Market Trends

    The Iced Tea Market is currently experiencing a dynamic evolution, characterized by shifting consumer preferences and an increasing inclination towards healthier beverage options. As individuals become more health-conscious, there is a noticeable demand for products that offer natural ingredients and lower sugar content. This trend appears to be influencing manufacturers to innovate and diversify their offerings, leading to a broader range of flavors and formulations. Additionally, the rise of premium and artisanal iced teas suggests a growing appreciation for quality over quantity, as consumers seek unique taste experiences that align with their lifestyle choices. Moreover, sustainability is emerging as a pivotal factor in the Iced Tea Market. Brands are increasingly focusing on eco-friendly packaging and sourcing practices, reflecting a broader societal shift towards environmental responsibility. This commitment to sustainability not only resonates with consumers but also positions brands favorably in a competitive landscape. As the market continues to evolve, it seems likely that these trends will shape the future of iced tea, driving innovation and fostering a deeper connection between consumers and their beverage choices.

    Health-Conscious Choices

    Consumers are gravitating towards iced teas that emphasize natural ingredients and reduced sugar levels. This trend indicates a broader movement towards healthier lifestyles, prompting brands to reformulate their products accordingly.

    Premiumization

    There is a noticeable shift towards premium and artisanal iced teas, as consumers seek unique flavors and high-quality ingredients. This trend suggests a growing appreciation for craftsmanship and distinctive taste experiences.

    Sustainability Initiatives

    Brands are increasingly adopting eco-friendly practices, focusing on sustainable sourcing and packaging. This trend reflects a commitment to environmental responsibility, appealing to consumers who prioritize sustainability in their purchasing decisions.

    The global iced tea market appears to be experiencing a notable shift towards healthier beverage options, as consumers increasingly prioritize natural ingredients and lower sugar content in their drink choices.

    U.S. Department of Agriculture

    Iced Tea Market Drivers

    Flavor Innovation

    Flavor innovation plays a pivotal role in the Iced Tea Market, as manufacturers continuously seek to captivate consumers with unique and diverse flavor profiles. The introduction of exotic flavors, such as hibiscus, lychee, and matcha, has broadened the appeal of iced tea, attracting a wider audience. This trend is particularly pronounced among younger consumers who are eager to experiment with new tastes. Market data suggests that flavored iced teas account for a substantial share of the overall iced tea market, indicating a shift in consumer preferences towards more adventurous options. As brands innovate and expand their flavor offerings, the iced tea market is likely to witness sustained growth, driven by the desire for novel and exciting beverage experiences.

    Health Benefits of Iced Tea

    The Iced Tea Market is experiencing a notable surge in demand due to the increasing awareness of health benefits associated with tea consumption. Iced tea, particularly varieties rich in antioxidants, is perceived as a healthier alternative to sugary beverages. Research indicates that The Iced Tea is projected to grow at a compound annual growth rate of approximately 5.5 percent over the next few years. This growth is driven by consumers seeking beverages that not only quench their thirst but also contribute positively to their health. The rising trend of health-conscious choices among consumers is likely to propel the iced tea market further, as individuals increasingly opt for drinks that align with their wellness goals.

    Cultural Influence and Globalization

    Cultural influences and globalization are shaping the Iced Tea Market, as traditional tea-drinking cultures expand their reach. The infusion of iced tea into various culinary traditions is fostering a diverse market landscape. For instance, Asian tea cultures are increasingly popularizing iced tea variants, which are being embraced by consumers worldwide. This cross-cultural exchange is not only enhancing the flavor profiles available but also driving market growth. Data suggests that the increasing popularity of iced tea in regions previously less familiar with the beverage is contributing to a broader acceptance and consumption. As cultural influences continue to permeate the iced tea market, brands that adapt to these trends are likely to thrive.

    Convenience and Ready-to-Drink Options

    The rise of convenience-oriented lifestyles is significantly influencing the Iced Tea Market, particularly through the popularity of ready-to-drink (RTD) iced tea products. Busy consumers are increasingly seeking convenient beverage options that require minimal preparation. The RTD iced tea segment has seen substantial growth, with market data indicating that it constitutes a significant portion of the overall iced tea sales. This trend is particularly appealing to millennials and Gen Z consumers, who prioritize convenience without compromising on taste. As manufacturers continue to innovate in this space, offering a variety of flavors and health-focused options, the iced tea market is poised for further expansion, driven by the demand for on-the-go beverages.

    Sustainability and Eco-Friendly Packaging

    Sustainability initiatives are becoming increasingly integral to the Iced Tea Market, as consumers demonstrate a growing preference for eco-friendly products. Brands are responding by adopting sustainable practices, including the use of biodegradable packaging and ethically sourced ingredients. This shift is not merely a trend; it reflects a broader societal movement towards environmental responsibility. Market analysis indicates that products marketed as sustainable are gaining traction, with consumers willing to pay a premium for eco-conscious options. As the iced tea market evolves, companies that prioritize sustainability are likely to enhance their brand loyalty and attract environmentally aware consumers, thereby contributing to the overall growth of the industry.

    Market Segment Insights

    Iced Tea Market Segment Insights

    Iced Tea Market Segment Insights

    Iced Tea Market Type Insights

    Iced Tea Market Type Insights

    The Iced Tea Market exhibits a diverse landscape segmented by Type, with notable segments including Bottled Iced Tea, Powdered Iced Tea, Ready-to-Drink Iced Tea and Loose Leaf Iced Tea. In 2024, the market for Bottled Iced Tea was valued at 8.5 USD Billion, representing a significant segment that dominates the overall market due to its convenience and wide consumer acceptance, projecting growth to 11.2 USD Billion by 2035.

    Following closely, the Ready-to-Drink Iced Tea segment garnered a valuation of 6.0 USD Billion in 2024, benefitting from the busy lifestyles of consumers seeking on-the-go refreshment, and is expected to reach 7.2 USD Billion by 2035. Meanwhile, Powdered Iced Tea, valued at 3.0 USD Billion in 2024, appeals to consumers looking for customizable beverage solutions, evolving to a projected valuation of 4.0 USD Billion by 2035.

    Lastly, the Loose Leaf Iced Tea segment, although smallest with a current value of 1.44 USD Billion, serves a niche market that values premium quality and authentic taste, with expected growth to 1.6 USD Billion by 2035. This landscape underscores trends such as increased health consciousness and demand for natural ingredients as critical factors driving growth across these segments. The  Iced Tea Market revenue continues to reflect the shifting preferences of consumers towards healthier beverage options, with the segmentation showcasing varying growth potentials in response to changing lifestyle dynamics.

    The statistics present a clear picture of a market evolving alongside consumer trends, presenting both challenges and opportunities for brands to innovate and capture market share effectively. The continuous momentum in the iced tea sector is bolstered by its accessibility in diverse formats, ensuring its position as a staple refreshment for varied consumer preferences in the  Iced Tea Market industry.

    Iced Tea Market Flavor Insights

    Iced Tea Market Flavor Insights

    Among these, black tea remains a prominent flavor due to its wide popularity and strong association with traditional iced tea preparations. Green tea is increasingly favored, attributed to its health benefits and growing health-conscious consumer base, driving its notable share in the market. Herbal tea offers unique flavor profiles and appeals to a diverse audience seeking caffeine-free alternatives, while fruit-flavored tea provides refreshing options that cater to younger demographics and those looking for natural sweetness. The diverse flavor offerings significantly contribute to the overall market growth, fostering innovation and attracting a broader consumer base.

    As trends shift toward healthier and more varied beverage options, the  Iced Tea Market segmentation continues to adapt, presenting both challenges and opportunities in flavor development and consumer engagement. This landscape is shaped by evolving preferences, with brands focusing on natural ingredients and unique flavor combinations to meet demands, ensuring a vibrant, competitive environment in the iced tea industry.

    Iced Tea Market Distribution Channel Insights

    Iced Tea Market Distribution Channel Insights

    Retail environments such as Supermarkets and Convenience Stores are significant contributors, as they provide consumers with easy access to a wide range of iced tea products. Online Retail has emerged as a vital channel, particularly with the increasing trend towards e-commerce, appealing to tech-savvy consumers seeking convenience. Specialty Stores cater to niche markets, focusing on premium or organic iced tea options, which are becoming more popular. Each of these channels brings unique advantages; Supermarkets benefit from high foot traffic, while Online Retail offers accessibility and variety.

    The  Iced Tea Market segmentation across these distribution channels highlights a diverse landscape where various consumer preferences can be addressed effectively, influencing overall market growth and customer engagement strategies. The balance among these distribution avenues remains pivotal to maximizing the reach and revenue generation of the iced tea industry.

    Iced Tea Market Packaging Type Insights

    Iced Tea Market Packaging Type Insights

    The packaging type segmentation of this market includes categories such as bottles, pouches, cans and tetra packs, each playing a pivotal role in influencing market dynamics. Bottles continue to dominate due to their convenience and premium appeal, often preferred for on-the-go consumption. Pouches represent a sustainable option, gaining traction as consumers lean towards eco-friendly alternatives. Cans provide portability and are increasingly chosen for their modern aesthetic, while tetra packs offer extended shelf life, making them a popular choice in various retail environments.

    As consumers show a growing inclination towards ready-to-drink options, the demand for innovative packaging solutions is expected to rise, positioning these types as key growth drivers. The diverse forms of packaging meet the needs of varied consumer segments, reflecting shifts in lifestyle and purchasing behaviors and contributing significantly to the overall  Iced Tea Market statistics and revenue growth.

    Get more detailed insights about Iced Tea Market

    Regional Insights

    The Iced Tea Market is witnessing notable expansion through various regional segments, with North America holding a significant position, valued at 6.5 USD Billion in 2024 and projected to reach 8.0 USD Billion by 2035, largely driven by consumer preferences for refreshing beverages. Europe follows with a valuation of 4.5 USD Billion in 2024, increasing to 5.5 USD Billion by 2035, showcasing a steady demand for flavored iced teas and health-conscious choices.

    The Asia-Pacific (APAC) region also makes its mark, with an initial valuation of 5.0 USD Billion in 2024, anticipated to increase to 6.5 USD Billion by 2035, fueled by a rising trend toward health and wellness beverages. In contrast, South America represents a smaller market size, valued at 1.0 USD Billion in 2024, expected to rise modestly to 1.2 USD Billion by 2035, indicating potential growth opportunities.

    Meanwhile, the Middle East and Africa (MEA) segment shows a considerable increase from 2.0 USD Billion in 2024 to 3.8 USD Billion by 2035, reflecting the increasing acceptance of iced tea as a preferred beverage in these regions. Together, these insights underline the diverse preferences shaping the  Iced Tea Market revenue across various regions, emphasizing the importance of regional market segmentation for strategies and innovation.

    Iced Tea Market By regional

    Source Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The  Iced Tea Market is characterized by a dynamic landscape driven by evolving consumer preferences, health-conscious trends, and innovation in product offerings. The competition in this market is fierce, with various players adopting distinct strategies to capture market share. Brand differentiation, variety in flavors, and health benefits play key roles in how companies position their products. As consumers increasingly seek refreshing alternatives to sugary sodas, iced tea's health attributes, such as being low in calories and enriched with antioxidants, further bolster its appeal.

    The market is also influenced by trends toward organic and premium beverages, prompting companies to expand their portfolios and focus on sustainability while enhancing brand loyalty. With a growing emphasis on unique flavors and premium experiences, companies are continually innovating to maintain a competitive advantage, leading to heightened rivalry within the industry. Asahi Group Holdings has established a significant presence within the  Iced Tea Market, harnessing its robust portfolio and strong brand reputation to cater to diverse consumer needs.

    The company is known for its commitment to quality and a diversified product range that includes various iced tea flavors and formulations. One of its strengths lies in its well-integrated supply chain, allowing for optimized production and distribution capabilities, which ensures the availability of products in key markets worldwide. Additionally, Asahi Group Holdings invests in strategic marketing initiatives that resonate with consumers, focusing on natural ingredients and health benefits that align with current lifestyle trends. This focus not only enhances brand equity but also solidifies Asahi Group Holdings' position as a major player in this competitive landscape.

    Häuserbrau has carved a niche for itself in the  Iced Tea Market, appealing particularly to those who appreciate artisanal and small-batch beverages. The company differentiates itself by emphasizing high-quality ingredients and innovative brewing methods, which cater to a growing demographic of consumers looking for premium experiences. Häuserbrau positions its products as not only refreshing but also crafted with care, appealing to health-conscious individuals who value transparency in sourcing and production. The strengths of Häuserbrau are reflected in its ability to build strong connections with its customer base through authentic branding and a loyal community of supporters.

    With an increasing interest in specialty beverages and unique flavor profiles, Häuserbrau's focus on craftsmanship and quality ensures that the company remains relevant and competitive in the evolving iced tea market.

    Key Companies in the Iced Tea Market market include

    Industry Developments

    Recent developments in the  Iced Tea Market reveal a dynamic landscape influenced by both consumer trends and strategic corporate actions. Companies like Asahi Group Holdings and Unilever have been enhancing their product lines to cater to the increasing demand for healthier beverages, which aligns with the shift towards wellness-focused consumption. In notable mergers and acquisitions, PepsiCo's acquisition of a smaller iced tea brand has strengthened its market position, while Suntory Beverage and Food continues to expand its footprint with new partnerships aimed at diversifying its offerings.

    Concurrently, the growth of brands such as Arizona Beverages and Fuze Beverage indicates a rising interest in innovative tea flavors and formulations, driving market valuations upwards. Companies like Nestlé and The CocaCola Company are also adapting to new consumer preferences that prioritize sustainability and organic ingredients. The impact of these developments reflects a competitive environment as firms strive to leverage emerging trends and consumer preferences to expand their market share. Overall, the  Iced Tea Market is witnessing robust growth, buoyed by innovation and strategic alignment amongst key players such as Keurig Dr Pepper and Tingyi Holding Corporation.

    Future Outlook

    Iced Tea Market Future Outlook

    The Global Iced Tea Market is projected to grow at a 2.18% CAGR from 2024 to 2035, driven by health trends, innovative flavors, and sustainable packaging.

    New opportunities lie in:

    • Develop premium organic iced tea lines targeting health-conscious consumers.
    • Leverage e-commerce platforms to enhance distribution and reach younger demographics.
    • Invest in eco-friendly packaging solutions to attract environmentally aware customers.

    By 2035, the Global Iced Tea Market is expected to exhibit robust growth, reflecting evolving consumer preferences and sustainability initiatives.

    Market Segmentation

    Iced Tea Market Type Outlook

    • Bottled Iced Tea
    • Powdered Iced Tea
    • Ready-to-Drink Iced Tea
    • Loose Leaf Iced Tea

    Iced Tea Market Flavor Outlook

    • Black Tea
    • Green Tea
    • Herbal Tea
    • Fruit-Flavored Tea

    Iced Tea Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Iced Tea Market Packaging Type Outlook

    • Bottles
    • Pouches
    • Cans
    • Tetra Packs

    Iced Tea Market Distribution Channel Outlook

    • Supermarkets
    • Convenience Stores
    • Online Retail
    • Specialty Stores

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 18.53(USD Billion)
    Market Size 2024 18.94(USD Billion)
    Market Size 2035 24.0(USD Billion)
    Compound Annual Growth Rate (CAGR) 2.18% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled Asahi Group Holdings, Häuserbrau, Britvic, Suntory Beverage and Food, Ito En, Unilever, PepsiCo, Keurig Dr Pepper, Liptovska Minerálna Voda, Tingyi Holding Corporation, Nestlé, The CocaCola Company, Arizona Beverages, Fuze Beverage, Monster Beverage
    Segments Covered Type, Flavor, Distribution Channel, Packaging Type, Regional
    Key Market Opportunities 1.       Health-conscious beverage trends, 2.       Innovative flavor combinations, 3.       Sustainable packaging solutions, 4.       Premium iced tea segments, 5.       Growing ready-to-drink options
    Key Market Dynamics 1.       Health-conscious consumer trends, 2.       Rising popularity of specialty teas, 3.       Sustainable packaging initiatives, 4.       Innovative flavors and formulations, 5.       Growth in online retailing
    Countries Covered North America, Europe, APAC, South America, MEA

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    FAQs

    What was the expected market size of the Iced Tea Market in 2024?

    The Iced Tea Market was expected to be valued at 18.94 billion USD in 2024.

    What is the projected market size of the Iced Tea Market by 2035?

    By 2035, the Iced Tea Market is projected to be valued at 24.0 billion USD.

    What is the expected CAGR for the Iced Tea Market from 2025 to 2035?

    The expected CAGR for the Iced Tea Market from 2025 to 2035 is 2.18%.

    Which region holds the largest market value for the Iced Tea Market in 2024?

    In 2024, North America holds the largest market value in the Iced Tea Market at 6.5 billion USD.

    What was the market size of Bottled Iced Tea in 2024?

    Bottled Iced Tea was valued at 8.5 billion USD in the Iced Tea Market in 2024.

    Which key players dominate the Iced Tea Market?

    Key players in the Iced Tea Market include Asahi Group Holdings, Unilever, and The CocaCola Company, among others.

    What is the projected market size for Powdered Iced Tea in 2035?

    The projected market size for Powdered Iced Tea by 2035 is 4.0 billion USD.

    How much is the market valued for Ready-to-Drink Iced Tea in 2024?

    Ready-to-Drink Iced Tea is valued at 6.0 billion USD in the Iced Tea Market in 2024.

    What is the market value for the MEA region in 2024?

    In 2024, the MEA region is will be valued at 2.0 billion USD in the Iced Tea Market.

    What is the expected growth rate for Loose Leaf Iced Tea from 2024 to 2035?

    The expected market value for Loose Leaf Iced Tea is anticipated to reach 1.6 billion USD by 2035.

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