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Market Overview:
The Iced Tea Market size is estimated to reach $75.8 Billion by 2031, growing at a CAGR of 4.7% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, “Iced Tea Market – By Type (Black Iced Tea, Green Iced Tea, Herbal Iced Tea & Oolong Iced Tea and Others), By Flavor (Lemon, Peach, Raspberry, Mint, Berry and Others), By Form (Powdered Ice Tea, Ready to Drink Ice Tea) By Distribution Channel (Offline & Online), By Geography - Opportunity Analysis & Industry Forecast, 2025-2031”
Iced tea is gaining significant popularity as a ready-to-drink (RTD) beverage due to its refreshing qualities and health benefits. The growing consumer demand for healthier alternatives to carbonated drinks and increasing innovation in flavors are key drivers of the market.
APAC Dominated the Market in 2024:
APAC accounted for the largest share of 40% of the Iced Tea Market in 2024. The rising consumption of RTD beverages in countries like China, India, and Japan combined with increasing health consciousness is fueling the demand for iced tea in the region. As per industry reports, growing tea exports are driving the demand for iced tea in key markets. According to the Food and Agriculture Organization (FAO), global tea exports reached approximately 2 million metric tons in 2023, with countries like China, India, Sri Lanka, and Kenya leading the market. India's tea exports alone stood at 250 million kilograms in 2023, reflecting a steady increase due to rising international demand. This surge in exports is contributing to the expanding iced tea market as manufacturers capitalize on the availability of high-quality tea leaves to create diverse and innovative products. The availability of iced tea in diverse flavors and innovative packaging formats further supports its market growth in APAC.
Iced Tea Market: Key Takeaways
Healthier Beverage Alternatives:
As per recent health trends, the global demand for healthier beverages is rising, driven by awareness of sugar-related health risks. According to WHO, high sugar intake is linked to obesity and diabetes. A 2023 IFIC survey found that 62% of consumers prefer reduced-sugar or sugar-free drinks, fueling demand for healthier iced tea options. Iced tea, being a low-calorie, antioxidant-rich alternative is witnessing rising demand, particularly in urban and health-conscious markets. The market's growth aligns with the global shift towards natural and functional beverages.
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Availability of Diverse Flavors:
The iced tea market is witnessing a surge in demand for diverse flavors as consumers seek unique taste experiences. Brands are expanding their portfolios with fruit-infused, herbal, and exotic blends to cater to evolving preferences. Popular flavors such as peach, lemon, hibiscus, and matcha are gaining traction, while limited-edition and region-specific variants are enhancing market appeal. This trend is driving product innovation and increasing consumer engagement, making flavor variety a key factor in market growth. The growing preference for natural and organic ingredients is also influencing flavor innovations, with brands incorporating botanicals, spices, and superfoods into their iced tea offerings. Additionally, the rising demand for reduced-sugar and functional beverages has led to the introduction of unsweetened and health-boosting flavors. This expansion in flavor diversity is helping brands attract a wider consumer base and differentiate themselves in a competitive market.
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Recent Developments:
- In June 2024, Coca-Cola launched Fuze Iced Tea in Canada, aiming to strengthen its presence in the ready-to-drink tea segment and cater to the growing demand for flavorful and refreshing beverage options.
- In April 2024, Arizona Beverages announced the launch of its new eco-friendly canned iced tea series, reducing carbon emissions and aligning with sustainability goals.
Iced Tea Market: Competitive Landscape
Key companies profiled in the Iced Tea Market include Unilever, Nestlé, The Coca-Cola Company, PepsiCo, Inc., Arizona Beverage Company, Dr Pepper Snapple Group, Inc., Tata Global Beverages, BOS Brands, 4C Foods Corp., Harris Freeman & Co., Inc. and Others
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About IndustryARC™:
IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets.
IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format that assists an intelligent and informed decision-making process.
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IndustryARC
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