Analysis of Ice Tea market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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.
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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.
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.
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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.
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.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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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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