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Ice Tea Market

Ice Tea Market

Ice Tea Market, Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030

Ice Tea Market
  • Feb-2021
  • List of Tables : 144
  • List of Figures : 153
  • 170 Pages
  • Food & Beverage

About the Report

Globally, demand for ice tea is expected to experience remarkable growth over the next ten years, by virtue of increasing number of health-conscious consumers and comprehensive offerings from suppliers across the world.

Moreover, ice tea is sold in across a wide range of sales channels, amongst which, online sales are expected to flourish like no other over the coming years. Bottled ice tea is in huge demand across regions, especially East Asia, which holds more than half of the global market share.

Fact.MR, in its latest research report, offers insights on key factors expected to fuel demand over the period of 2020 to 2030. The report details trends in 20+ high-growth countries, and also talks exhaustively about the impact the COVID-19 pandemic is having on the food & beverage industry in general, and the ice tea market in particular.

Historical & Future Projections for Ice Tea

Over the historical period of 2015-2019, the global ice tea market expanded at a robust CAGR of 5.4%. Growing health concerns among consumers and wide range of healthy alternatives provided by suppliers have been key reasons for the growth of the market.

Manufacturers are coming up with innovative launches in packaging to further gain consumer attraction.

New packaged marketed beverages are grabbing the attention of environmentally conscious consumers. Unique flavors, eco- friendly packaging, and nutritional benefits are few of the major factors substantiating high growth of ice tea, globally.

By virtue of the above-mentioned factors, the global ice tea market is expected to progress at a sturdy CAGR of over 7% during the forecast period of 2020 to 2030.

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What are the Benefits of Organic Ice Tea over Conventional Versions?

Manufacturers are now shifting their focus from traditional iced tea towards herbal and organic iced teas. This is due to shifting consumer predilection for healthier and diet-conscious tea.

For instance, Ovvio Beverages has now began marketing its cold brew tea with herbal enhancements, which provides better cleansing and releases more antioxidants with more complex flavor, without any tannic or bitter flavor.

Similarly, Coca-Cola also provides its own herbal rich iced tea - Honest tea - with tulsi in it. Honest has an extensive herbal portfolio and specializes in the ice tea segment.

Conventional ice teas and sugary drinks are considered unhealthy, whose market is waning on the onset of organic and herbal enhancements in ice tea.

As such, this opens ample opportunity for manufacturers to go herbal and include organic tea in their portfolio to capture a share of this growing market.

What are Function-specific Ice Teas?

The function specific iced tea means drinks that provide consumers a diverse set of wellness and health benefits. Owing to the COVID-19 pandemic, consumers have now realized the need to take care of their own health.

Iced tea, which offers cognitive, immunity, and mood boosting benefits, will be a significant trend over the coming years.

This trend paves way for the incorporation of various ingredients such as orange blossom, hibiscus, and elderflower with citrus elements, berry, and botanical products.

This is done to augment the functional ability of iced tea by mixing natural health-boosting ingredients and making iced tea more function-specific and healthy.

Function-specific ice tea is set to bestow immense opportunities from consumers requiring specific ice teas for their consumption.

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How will RTD Ice Tea Impact Demand?

Busy timetables along with frenzied lifestyles of the masses, globally, have increased the inclination amongst consumers for RTD drinks.

For instance, China and the U.S. are the top markets for RTD beverages, leading to high sales of bottled tea. Factors such as health-conscious consumers looking out for sugar-free beverages, with low caffeine, and rich in mineral content, has led to increased sales in both countries.

Majority of brands are now benefiting from ready-to-drink ice tea, which costs less and provides easy consumption. Bottled tea is poised for massive growth over the coming years, due to unique flavors, crazy combination of ice teas, and sweet taste.

Will Stylish Packaging & Marketing Surge Ice Tea Demand?

Packaging continues to be one of the most important trappings for companies to market their products. Packaging has been a pivotal part of branding and marketing strategies. Packaging innovation is expected to be the leading trend over the coming years.

Companies focus heavily on the packing of their products, such as Arizona Beverages, which has gained market dominance not for product taste but for its extravagance bottles. This makes consumers feel out of the crowd when they hold the ice tea bottle.

Furthermore, Arizona Beverages has kept its rates of ice tea still at US$ 0.99 since its inception. This is the company’s strategic marketing to cut down on flamboyant ads, and focus on the quality and packaging of its products. As a result, this has generated massive demand for its beverages across the U.S.

An Adaptive Approach to Modern-day Research Needs

What are the Key Challenges for Ice Tea Manufacturers?

The presence of different dominant alternative beverages such as coffee, carbonated drinks, and other iced beverages in the market may split consumers and their preference for iced tea. Ever-changing consumer preferences may adversely affect the growth of the iced tea market.

Consumers’ penchant towards cost-effective food and beverages such as diet coke and natural juices may also affect demand for iced tea. Also, consumers’ intransigence for hot beverages may inhibit market growth to some extent over the forecast period.

Country-wise Analysis

ice tea market region

How popular is Ice Tea in the U.S.?

During the historical period, 2015-2019, the U.S. ice tea market progressed at a steady pace of 4.2% CAGR. The United States has a history of consuming iced teas in mass amounts, with principle tea drinkers in the country preferring iced tea over hot tea. According to Tea Association of USA, United States consumption of ice tea accounts for 85% of overall tea consumption within the country.

Moreover, majority of companies operating in the U.S. have an extensive portfolio of offerings in the ice tea segment, and keep consumers’ preferences in mind while launching any new product in dominant market.

Why are Most Companies Eyeing the China Ice Tea Market?

The ice tea market in China is poised for remarkable growth over the forecast period, at a robust pace of close to 8% over the forecast period. China has a long history of tea consumption, with the country being the top producer and top consumer of tea as well. Ice tea accounts for 2/5 of total tea consumption in the country. This factor is massive, considering the huge population and the amount of tea consumed in the country.

Why is Organic Ice Tea Popular in Japan?

The market in Japan expanded at a steady pace of 4.7% CAGR over the historical period. Japan is home to one of most popular matcha teas.

Japan’s tea consumption dates back to the 8th century, and is still the most popular drink in the country. Furthermore, Japanese follow their culture of tea ceremonies to date, which is considered to be significant moment in the lives of people.

Ready-to-drink ice tea consumption in Japan is most popular, with citizens demanding low-sugar, unsweetened, and rich in minerals and vitamins in their iced tea. Consumers within the country are highly health-conscious, and demand for organic ice tea is poised for exponential growth in the country.

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Category-wise Insights

Is Organic Ice Tea Expected to Go Mainstream?

Organic ice tea consumption is expected to witness conspicuous growth over the forecast period, and is poised to go mainstream with increased adoption of the drink in corpus amounts by high population countries such as China and India.

Black tea is still the dominant type, but absolute growth of green and herbal teas has left black tea producers red-faced. Demand for organic tea is poised to expand at a thumping CAGR of 8% over the forecast period.

How Big is the Opportunity for Bottled (RTD) Tea?

RTD products such as RTD tea are easy to consume, as they save time by being portion-packed and come in appropriate packaging, such as thaw- or freeze-stable.

Technological advancements in the industry of packaging have led to increase in the range of leisure food products such as RTD tea.

Consumption of RTD products globally is on an exponential rise, and thus, inclination towards the same has become an important factor for increase in the demand for ice tea.

For instance, many companies are now opting for targeted mergers and acquisitions in the bottled tea market space to gain significant share and dominance in the market.

For instance, Starbucks partnered with Anheuser-Busch InBev to bring ready-to-drink Teavana sparkling craft iced tea to various locations across the U.S.

What is the Market Share of CBD-infused Tea?

On the basis of type, the market is segmented into 4 tea types, i.e. fruit infused-tea, liquor-infused tea, CBD-infused tea, and specialty tea, which includes matcha and kombucha tea.

Among these aforementioned types, CBD-infused ice tea is expected to witness the highest growth.

This absolute growth is complemented by increasing popularity of CBD additives in tea, which professes to be a healthy alternative to other types of tea with antioxidants and healing properties of CBD.

CBD is considered for therapeutic and is believed to relieve pain and reduce inflammation.

The fruit-infused tea segment is also expected to grow at a significant pace, owing to a variety of mixes and combos that can be made by infusing tea with fruits.

Competition Landscape

ice tea market competition

The aforementioned market players are considered as prominent players in the ice tea market. Further, key market players are focusing on backward integration for business development and expansion of their existing production capabilities.

Targeted acquisitions and mergers within the industry are key for sustaining in the ice tea market. Also, Coca-Cola and Starbucks, among key players, are adopting various organic and inorganic strategies to maintain their market dominance.

  • For instance, The Coca-Cola Company partnered with TerraCycle in 2019, and is providing customers of Western Europe the ability to use refillable containers for diverse beverages, including ice teas, via a European retailer.
  • In addition, Nestle SA, in 2019, switched to 23 ounce PET bottles, and significantly enhanced the quality of tea it produced under the new leadership in America to regain its lost dominance in the domestic market.

Report Scope



Forecast Period


Historical Data Available for


Market Analysis

US$ Mn for Value & Kilo Tons for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • the Middle East & Africa

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • Spain
  • Italy
  • France
  • U.K.
  • China
  • India
  • Thailand
  • ANZ
  • GCC
  • South Africa

Key Segments Covered

  • Product Type
  • Tea Type
  • Nature
  • Price Range
  • Sales Channel
  • Region

Key Companies Profiled

  • Unilever
  • Coca-Cola
  • Starbucks
  • Nestle SA
  • Arizona Beverages
  • Harris Freeman & Co.
  • Mother Packers
  • Hangzhou Wahaha Group
  • Teatulia
  • BOS Brands
  • 4C Food Corp
  • Steaz (Healthy Beverage)
  • Adagios Tea

Customization & Pricing

Available upon Request

Key Segments Covered of Ice tea Market

Product Type

  • Bottled Tea
  • Powdered Tea
  • Tea Bags

Tea Type

  • Fruit-infused Tea
    •  Lemon Tea
    •  Ginger Tea
    •  Cherry Tea
    •  Peach Tea
    •  Apple Tea
    •  Mango Tea
    •  Others
  • Liquor-infused Tea
  • CBD-infused Tea
  • Specialty Tea
    • Matcha Tea
    • Kombucha Tea


  • Organic
  • Conventional

Price Range

  • Economy 
  • Mid-range
  • Premium 

Sales Channel

  •  Modern Trade 
  •  Specialty Stores 
  •  Departmental Stores
  •  Convenience Stores
  •  Online Retailers 
  •  Other Sales Channels   


  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa

Ice Tea Market- Scope of Report

A recent study by Fact.MR on the ice tea market offers a 10-year forecast for 2020 to 2030. The study analyzes crucial trends that are currently determining the growth of market.

This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of ice tea.

The study also provides the dynamics that are responsible for influencing the future status of ice tea market over the forecast period.

A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the ice tea market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse feature, including demand, product developments, revenue generation, and sales in the ice tea market across the globe.

A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of ice tea during the forecast period. Price point comparison by region with global average price is also considered in the study.

Analysis on Market Size Evaluation

The ice tea market has been analyzed for each market segment in terms of volume (Kilo tons) and value (US$ Mn).

Market estimates at global and regional levels for ice tea are available in terms of “US$ Mn” for value and in “Kilo Tons” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report.

Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global Ice tea market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the ice tea market report, which have helped deliver projection on regional markets.

These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the ice tea market during the forecast period.

Country-specific valuation on demand for ice tea has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competitive Landscape

The report sheds light on the leading manufacturers of ice tea, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in the production of ice tea has been brought with the help of a detailed dashboard view.

Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player.

Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the ice tea market.

Prominent companies operating in the global ice tea market include Nestle SA, Unilever, Starbucks, Coca-Cola, Arizona Beverages, Mother Packers, Harris Freeman and Co., BOS Brands, etc.

- FAQs -

The global ice tea market to register a CAGR worth over 7% across the 2020-2030 assessment period. High demand for organic and diet tea is anticipated to drive growth in a positive direction

China is expected to pivot expansion, attributed to surging consumption of tea as well as ample amount of tea production in the country. A CAGR of close to 8% is projected for China.

In recent years, growing popularity of gaudy packaging technology has increased the attraction of consumers towards ice tea. Companies are now moving towards providing best-in-class packaging for bottled ice tea to attract consumers with to niche brand

Prominent players operating in the global ice tea market space include Unilever, Coca-Cola, Starbucks, Nestle SA, Arizona Beverages, Harris Freeman & Co., Mother Packers, Hangzhou Wahaha Group, Teatulia, BOS Brands, 4C Food Corp, Steaz (Healthy Bev

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Is the market research conducted by Fact.MR?

Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

Is a sample of this report available for evaluation?

Yes, you can request a sample, and it will be sent to you through an email.