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    Iced Tea Market

    ID: MRFR/F-B & N/40239-HCR
    200 Pages
    Snehal Singh
    September 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 Research Report — Global Forecast till 2035 Infographic
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    Iced Tea Market Summary

    The global iced tea market is projected to grow from 18.9 USD billion in 2024 to 24 USD billion by 2035.

    Key Market Trends & Highlights

    Iced Tea Key Trends and Highlights

    • The market is expected to exhibit a compound annual growth rate of 2.18 percent from 2025 to 2035.
    • By 2035, the global iced tea market is anticipated to reach a valuation of 24 USD billion.
    • In 2024, the market valuation stands at 18.9 USD billion, indicating a steady growth trajectory.
    • Growing adoption of healthier beverage options due to increasing health consciousness is a major market driver.

    Market Size & Forecast

    2024 Market Size 18.9 (USD Billion)
    2035 Market Size 24 (USD Billion)
    CAGR (2025-2035) 2.18%

    Major Players

    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

    Iced Tea Market Trends

    The  Iced Tea Market is experiencing significant growth driven by increasing health consciousness among consumers. The shift towards healthier beverage options has led to a rise in demand for natural and organic iced teas, which are perceived as healthier alternatives to sugary soft drinks. Factors such as busy lifestyles have also propelled the market, as ready-to-drink iced tea provides a convenient refreshment option. Innovations in flavoring and packaging are enhancing the appeal of iced tea among diverse demographics, attracting younger consumers who seek variety and novelty in their beverage choices.

    Opportunities in the  Iced Tea Market are abundant, particularly for brands focusing on sustainability and eco-friendly practices. There is a growing consumer preference for products that use organic ingredients and sustainable packaging. Brands that can emphasize these attributes will likely capture a more significant market share. Additionally, the rising trend of customizing beverages offers brands the chance to engage consumers in new ways by allowing them to personalize their iced tea experiences. In recent times, plant-based and functional iced teas have gained attention, focusing on wellness benefits such as antioxidants, hydration, and digestive health.

    The trend towards low-calorie, lower-sugar options is also evident, appealing to health-conscious consumers who are more mindful of their sugar intake. The market is witnessing a surge in online sales channels, making it easier for consumers to access a broader range of iced tea products. As consumer preferences evolve, the need for innovation in flavors, health benefits, and sustainability will continue to shape the future of the  Iced Tea Market.

    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

    Market Growth Projections

    Innovative Flavor Profiles

    Innovation in flavor profiles significantly influences the Global Iced Tea Market Industry. Manufacturers are increasingly experimenting with unique and exotic flavors to attract diverse consumer preferences. For instance, the introduction of blends incorporating fruits, herbs, and spices has expanded the market's appeal. This trend not only caters to traditional iced tea drinkers but also engages younger demographics seeking novel taste experiences. As a result, the market is anticipated to grow, with projections indicating a rise to 24 USD Billion by 2035. Such innovation is crucial for brands aiming to differentiate themselves in a competitive landscape.

    Rising Health Consciousness

    The Global Iced Tea Market Industry experiences a notable surge in demand driven by increasing health consciousness among consumers. As individuals become more aware of the health benefits associated with iced tea, such as antioxidants and lower calorie content compared to sugary beverages, the market is expected to grow. In 2024, the market is projected to reach 18.9 USD Billion, reflecting a shift towards healthier beverage options. This trend is particularly evident in regions where consumers are actively seeking alternatives to carbonated drinks, thereby enhancing the appeal of iced tea as a refreshing and health-oriented choice.

    Cultural Influences and Trends

    Cultural influences play a significant role in shaping the Global Iced Tea Market Industry. Different regions exhibit varying preferences for iced tea, influenced by local customs and traditions. For example, in Asian markets, traditional tea practices often incorporate iced tea, enhancing its popularity. Additionally, the rise of social media has facilitated the sharing of iced tea recipes and trends, further driving consumer interest. This cultural integration is likely to contribute to market growth, as brands tailor their offerings to resonate with local tastes. The ongoing evolution of cultural trends suggests a promising future for the iced tea market.

    Sustainable Packaging Initiatives

    Sustainability emerges as a pivotal driver within the Global Iced Tea Market Industry, as consumers increasingly prioritize environmentally friendly products. Brands are adopting sustainable packaging solutions, such as recyclable materials and biodegradable options, to align with consumer values. This shift not only enhances brand loyalty but also attracts environmentally conscious consumers. The market's growth trajectory is supported by this trend, as companies that embrace sustainability are likely to see increased sales. With the market projected to grow at a CAGR of 2.18% from 2025 to 2035, sustainability initiatives are expected to play a crucial role in shaping consumer preferences.

    Expansion of Distribution Channels

    The expansion of distribution channels significantly impacts the Global Iced Tea Market Industry. Retailers are increasingly diversifying their offerings by including iced tea in various formats, such as ready-to-drink and concentrate forms. This diversification enhances accessibility for consumers, allowing them to purchase iced tea from supermarkets, convenience stores, and online platforms. The convenience of ready-to-drink options caters to busy lifestyles, further driving market growth. As the market evolves, the increased availability of iced tea is expected to contribute to its projected growth, reaching 24 USD Billion by 2035, thereby reflecting changing consumer purchasing behaviors.

    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 Research Report — Global Forecast till 2035

    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

    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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