by Iced tea is a type of cold tea that is prepared by adding sugar, sweeteners or lemon to steeped tea bags or leaves and served over ice. It is usually unsweetened and people add flavors such as lemon, peach or raspberry for taste. Iced tea is considered a healthy alternative to carbonated sodas and juices as it contains antioxidants and polyphenols from tea leaves that can help reduce risk of chronic diseases. With rising health consciousness among people, the demand for iced tea as a low-calorie and healthy beverage is increasing. This is encouraging manufacturers to provide more variety in iced tea flavors.
The global Iced Tea Market is estimated to be valued at Us$ 6490.4 Mn in 2023 and is expected to exhibit a CAGR Of 2.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand for healthy beverages is one of the major drivers propelling the growth of the global iced tea market. Iced tea contains antioxidants from green or black tea leaves which aid in chronic disease prevention. Moreover, it provides hydration to the body without the calories present in carbonated drinks or juices. This makes it a popular choice among health-conscious consumers. Another driver for the market growth is people’s preferences for refreshing and flavored beverages. Tea producers are introducing innovative fruit and herb flavors in iced tea to cater to evolving tastes of consumers. However, availability of substitutes like fruit juices, carbonated soft drinks and functional drinks poses a challenge for the market.
Segment Analysis
The global iced tea market is dominated by the ready-to-drink (RTD) segment which holds more than 50% share of the overall market. The RTD segment is dominating as consumers prefer the convenience of ready to drink bottles and cans of iced tea which can be consumed directly without any preparation. Moreover, increasing participation in outdoor recreational activities has also fuelled the demand for RTD iced tea as it is easy to carry and consume on-the-go.
PEST Analysis
Political: The trade policies and regulations governing the import/export of agricultural commodities influence the prices of tea leaves which is a key raw material. Moreover, regulations regarding labelling of sugar content impact the product development.
Economic: Fluctuations in the price of tea leaves due to currency movements and changing fuel prices impact the costs of manufacturers. The overall economic growth impacts the discretionary spending capacity of consumers.
Social: Changing lifestyle and increasing demand for convenience foods are driving the demand for ready-to-drink beverages. Health consciousness and focus on sugar reduction are influencing product formulations.
Technological: New processing techniques help reduce production costs while advanced packing technologies aid in extending shelf life. Blockchain is being explored for tracing tea sources and ensuring sustainability.
Key Takeaways
The Global Iced Tea Market Demand is expected to witness steady growth over the forecast period due to rising health consciousness.
Regional analysis|:
North America will continue to be the largest market for iced tea driven by established consumption patterns in the US. Asia Pacific is projected to witness growth at over 3% during the forecast period led by countries like China, India and Japan. Per capita consumption of iced tea is lower in Asia Pacific compared to developed regions providing headroom for future growth.
Key players operating in the iced tea market are Adelaide Brighton Ltd, Boral Ltd., Sibelco Australia, Omya Australia Pty Ltd, Wagners, and Lime Group Australia. Key players are focusing on innovations to launch new flavors and customize products for health-conscious consumers. They are also investing in branding and promotional activities to strengthen their foothold.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
