Iced Tea Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Black Iced Tea, Green Iced Tea, Herbal Iced Tea, Others), By Form (Powder/Premix, Liquid/Ready-to-Drink), By Packaging Type (Bottles, Pouches, Cans, Tetra Packs), By Sales Channel (Supermarket/Hypermarket, Convenience Stores, Online, Others), By Region & Competition, 2020-2030F

Market Overview

Global Iced Tea market was valued at USD 18.43 billion in 2024 and is expected to grow to USD 22.85 billion by 2030 with a CAGR of 3.20% during the forecast period. The Iced Tea market is driven by rising consumer health consciousness and a growing preference for healthier beverages. Iced tea, particularly varieties like green tea, herbal tea, and organic options, is viewed as a healthier alternative to sugary sodas and other soft drinks. Increasing awareness of the health benefits associated with iced tea, such as antioxidants, hydration, and lower calorie content, has significantly contributed to its popularity. Also, the convenience of ready-to-drink (RTD) iced tea products, offering on-the-go options, aligns with the busy lifestyles of consumers. Flavored iced tea variants, along with innovative packaging and sustainability trends, further drive market growth. The rising demand for functional beverages, like those with added vitamins or energy-boosting properties, is also boosting market expansion.

Key Market Drivers

Rising Innovation in Product Offering

Rising innovation in product offerings is a key driver of the global iced tea market. As consumers continue to seek unique and diverse flavor experiences, manufacturers are responding by developing a wide variety of iced tea options to cater to different tastes and preferences. As a part of this, as of March 2024, The US brand Eat the Change launched Just Iced Tea line of canned ready-to-drink iced teas. The new 12oz cans will feature three varieties: Lemon Tea, Raspberry Tea, and Dragon Green Tea – inspired by the beloved Honest Tea favorite, Green Dragon Tea. With these portable, recyclable aluminum cans, the drink can be made accessible to consumers on the go. This includes the introduction of exotic flavors, such as hibiscus, matcha, and tropical fruits, which expand the product range and attract adventurous consumers. Also, there has been a significant increase in the availability of functional iced teas infused with health benefits, such as immune-boosting ingredients, antioxidants, and natural sweeteners. This aligns with the growing consumer demand for beverages that offer both refreshment and health benefits. Companies are also innovating with packaging, using eco-friendly materials and convenient formats like single-serve bottles and cans to enhance accessibility. Also, with the rise of plant-based and organic trends, many iced tea brands are offering certified organic and vegan options to appeal to environmentally conscious consumers. These innovations help brands differentiate themselves in the competitive market and foster consumer loyalty.  

Growing Health-Conscious Population

The growing health-conscious population is a significant driver of the global iced tea market. As more consumers prioritize health and wellness, they are increasingly seeking alternatives to sugary sodas and artificial beverages. Iced tea, particularly varieties like green tea, herbal tea, and unsweetened black tea, is viewed as a healthier option due to its low-calorie content, antioxidant properties, and potential health benefits, such as improved digestion and better hydration. This shift in consumer preferences towards more natural, functional beverages has fuelled demand for iced tea. Also, the awareness of the detrimental effects of high sugar consumption has led many to opt for iced tea as a better choice for overall health. The rise of fitness trends, along with a growing interest in plant-based and organic diets, has further contributed to iced tea’s appeal. As health-conscious consumers seek products that align with their lifestyle, iced tea continues to grow in popularity, driving market expansion globally.

Expansion Policies Adopted by Key Player

Expansion policies adopted by key players are crucial drivers of growth in the global iced tea market. As a part of this, as of November 2023, Coca-Cola has partnered with Luxmi Group’s Makaibari, a tea estate in Darjeeling, to introduce ready-to-drink iced green tea in India.Made from organic green tea from Makaibari estate, the ready-to-drink iced green tea comes in two flavours: lemon-tulsi and mango.  Leading brands are adopting aggressive strategies to increase their market share, enhance distribution, and reach new consumer segments. This includes expanding into emerging markets, where demand for ready-to-drink (RTD) beverages is rising rapidly due to changing lifestyles and increased urbanization. Key players are also investing in partnerships and collaborations with retail chains and e-commerce platforms to improve accessibility and availability. Also, many companies are diversifying their product portfolios by introducing new flavors, health-oriented variants (such as organic or functional iced teas), and sustainable packaging to appeal to a broader audience. In addition, mergers and acquisitions are being pursued to consolidate market position and expand geographical presence. These expansion strategies enable brands to meet evolving consumer demands while maintaining a competitive edge in a rapidly growing market.

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Key Market Challenges

 Supply Chain Disruptions

Supply chain disruptions represent a significant challenge in the global iced tea market. The complexity of sourcing high-quality raw materials, such as tea leaves, fruits, and natural flavourings, can be impacted by various global factors, including geopolitical tensions, natural disasters, and economic instability. For example, unexpected disruptions in key producing countries, such as India or China, can affect the availability and cost of tea leaves. Also, logistical challenges such as transportation delays, rising fuel prices, and shortages of packaging materials can hinder the timely production and distribution of iced tea products. These disruptions not only affect product availability but also increase operational costs for manufacturers, which can result in price hikes that may alienate cost-sensitive consumers. Also, supply chain inefficiencies can lead to delays in product launches, reduced product variety, and difficulty in maintaining consistent product quality. As a result, iced tea brands must focus on diversifying their supply sources and enhancing operational resilience to mitigate the risks associated with supply chain disruptions.

Fluctuating Prices of Raw Material

Fluctuating prices of raw materials pose a significant challenge to the global iced tea market. The key ingredients in iced tea, such as tea leaves, fruits, herbs, and natural flavourings, are subject to price volatility due to various factors like weather conditions, crop yields, and global supply chain disruptions. For instance, poor weather in major tea-producing countries like India or China can lead to a reduced supply of tea leaves, causing prices to rise. Similarly, the prices of fruits and herbs can fluctuate based on seasonal availability, transportation costs, and global trade conditions. These fluctuations not only impact production costs but also create uncertainty for manufacturers, making it difficult to maintain consistent pricing for consumers. As a result, companies may face higher production costs, which could force them to either absorb the costs, reducing profit margins, or pass them onto consumers, potentially limiting demand. To mitigate these risks, companies often need to secure long-term contracts, diversify their suppliers, and adopt cost-efficient production methods to maintain competitive pricing.

Key Market Trends

Rising Popularity of Ready-to-Drink Beverages

The rising popularity of ready-to-drink (RTD) beverages is a key trend driving the growth of the global iced tea market. As a part of this, according to a recent study, as of 2025, the RTDs will have a CAGR of 10.18% from 2025 to 2029, with the possibility of reaching USD 81.55 billion by the end of that timeframe. With the increasing demand for convenience and on-the-go consumption, consumers are gravitating toward pre-packaged, single-serve iced tea products that require no preparation. RTD iced teas cater to busy lifestyles by offering a quick, refreshing alternative to traditional homemade beverages. Also, the variety of flavors, including fruit-infused, herbal, and green teas, allows consumers to personalize their choices according to taste preferences. The RTD segment is particularly popular among younger, urban consumers who prioritize convenience without compromising on taste or health benefits. Also, the appeal of functional RTD iced teas, such as those with added vitamins, antioxidants, or energy-boosting properties, is rising as consumers seek beverages that not only quench thirst but also offer additional health benefits. The availability of RTD iced teas in convenient packaging, like cans, bottles, and tetra packs, enhances accessibility, and increased distribution in supermarkets, convenience stores, and online platforms further drives the market's expansion. This trend reflects a broader shift toward healthier, ready-to-consume beverages that fit into the fast-paced, health-conscious modern lifestyle.

Surging E-Commerce Growth

The surging growth of e-commerce is a significant trend shaping the global iced tea market. As a part of this, according to IBEF, the Indian e-commerce sector will grow substantially and reach a value of USD 325 billion by 2030. As online shopping continues to gain popularity, consumers are increasingly turning to e-commerce platforms to purchase iced tea, especially ready-to-drink (RTD) varieties and specialized products. The convenience of ordering iced tea online, with the ability to browse a wide range of flavors and brands, appeals to consumers seeking variety and ease. E-commerce also provides greater accessibility to niche and premium iced tea brands that may not be available in traditional retail stores. Also, online shopping allows for direct-to-consumer sales, bypassing traditional distribution channels and enabling brands to offer exclusive deals or products. Subscription models, offering regular deliveries of iced tea, are also gaining traction, appealing to consumers who prefer convenience and consistency. The growth of digital platforms, combined with the increasing use of mobile apps and targeted marketing, is helping iced tea brands expand their reach and connect with a broader audience. This trend is reshaping the market by providing greater flexibility, improved consumer engagement, and more efficient distribution channels.

Rising Demand for Eco-Friendly Packaging

The rising demand for eco-friendly packaging is a prominent trend in the global iced tea market. As consumers become more environmentally conscious, there is increasing pressure on brands to adopt sustainable packaging solutions. Traditional packaging, such as plastic bottles, is being replaced with eco-friendly alternatives like glass bottles, recyclable cans, and biodegradable materials. This shift is driven by consumer concerns about plastic waste and its environmental impact. Brands are responding by using packaging that reduces carbon footprints, such as recyclable, compostable, or post-consumer recycled (PCR) materials. Also, there is a growing preference for iced tea brands that emphasize sustainability in their overall production process, from ingredient sourcing to packaging. Companies that implement sustainable practices often gain favor with environmentally conscious consumers, enhancing brand loyalty and driving sales. This trend also aligns with the broader movement toward sustainability in the food and beverage industry, encouraging brands to innovate and adopt greener practices to stay competitive.

Segmental Insights

Distribution Channel Insights

Supermarket & Hypermarket dominated the global Iced Tea market due to their widespread accessibility, large product variety, and convenience. These retail outlets provide consumers with easy access to a broad selection of iced tea brands, flavors, and packaging formats, making them a go-to destination for purchasing beverages. The presence of well-known iced tea brands and the ability to compare prices in-store also drive consumer preference for these retail channels. Also, supermarkets and hypermarkets often offer promotional deals, bulk purchasing options, and discounts, attracting cost-conscious consumers. The physical presence of these stores, coupled with the rise of in-store promotions and seasonal offerings, makes them a dominant force in the iced tea market.

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Regional Insights

North America dominated the global Iced Tea market, due to high consumer demand for ready-to-drink (RTD) beverages and a growing preference for healthier alternatives. Iced tea, particularly in convenient, pre-packaged formats, aligns with the busy lifestyles of North American consumers. The region's strong retail infrastructure, including supermarkets, hypermarkets, and e-commerce platforms, further boosts iced tea availability. Also, increasing health consciousness among consumers in North America has driven demand for low-sugar, organic, and functional iced tea options. The popularity of flavored iced teas and premium, artisanal products also contributes to the region's market dominance, with brands offering a wide range of diverse options to cater to evolving consumer tastes.

Recent Developments

• In February 2025, HTeaO, the leading iced tea franchise in the country, partnered with Poppi, the popular prebiotic soda brand, to create a unique beverage offering. This partnership combines poppi's fizzy, modern sodas with HTeaO's freshly brewed iced teas, delivering an innovative experience that reflects HTeaO's commitment to quality, community, and creativity. This limited-time offer will be available at participating HTeaO locations.
• In June 2023, Vahdam India, a top-tier global wellness brand recognized for its organic and high-quality teas and spices sourced from India, launched Iced Teas. This new line of iced teas, made with 100% genuine tea, comes in two practical formats: instant premix and pitcher tea bags. The instant premix and pitcher tea bags are crafted with a skillful blend of black and green teas, providing consumers with an enjoyable assortment of flavors. These blends are infused with fresh, exotic, tropical, and aromatic notes, promising to capture the essence of summer in every sip.
• In October 2023, Gulabs, recognized for its artisanal syrups, khakhras, and pickles, has expanded into the Iced Tea Concentrate market. The brand has launched three invigorating flavors: Lemon Iced Tea, Lemon Ginger Iced Tea, and Lemon Mint Iced Tea. The concentrates are packaged conveniently in glass bottles of 200 ml. Also, Gulabs provides larger packaging tailored for the HoReCa (Hotel, Restaurant, and Café) sector. The brand asserts that it uses genuine ingredients to provide its products with true flavor, scent, and mouthfeel.
• In March 2023, Lipton Ice Tea, the leading ready-to-drink tea brand, is refreshing its product lineup with updated designs and new packaging across all flavors. In addition to the packaging overhaul, the sugar content in core flavors—Peach, Lemon, and Green Mint & Lime—will be reduced. This adjustment is aimed at catering to the growing demand for lower-sugar options while ensuring the brand continues to deliver great taste.

Key Market Players

• The Coca‑Cola Company
• Nestle S.A.
• Keurig Dr Pepper Inc
• PepsiCo, Inc.
• Asahi Group Holdings, Ltd
• Britvic Soft Drinks Limited
• Suntory Beverage & Food Limited
• Panama Foods
• Higer Health Sciences, LLP
• Amrut MR Kool Food Products Private Limited

Report Scope:

In this report, the Global Iced Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Iced Tea Market, By Type:

o   Black Iced Tea

o   Green Iced Tea

o   Herbal Iced Tea

o   Others

• Iced Tea Market, By Form:

o   Powder/Premix

o   Liquid/Ready-to-Drink

• Iced Tea Market, By Packaging Type:

o   Bottles

o   Pouches

o   Cans

o   Tetra Packs

• Iced Tea Market, By Sales Channel:

o   Supermarket/Hypermarket

o   Convenience Stores

o   Online

o   Others

• Iced Tea Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  Japan

§  India

§  Australia

§  South Korea

§  Indonesia

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Iced Tea Market.

Available Customizations:

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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