The global iced tea market has seen robust growth in recent years driven by growing awareness about health benefits associated with tea consumption. Iced tea contains antioxidants that are beneficial for overall well-being. It is low in calories and contains negligible amounts of caffeine making it a suitable beverage for everyday consumption. The market is fragmented with the presence of a large number of regional and international players.
The Global Iced Tea Market is estimated to be valued at US$22.2 billion in 2027 and is expected to exhibit a CAGR of 2.1% over the forecast period 2023-2027.
Advances in processing and packaging have made Iced Tea Market Demand tea easily available in tetra packs and bottles. The beverage is easy to prepare and consume on-the-go fulfilling the increasing demand for convenient packaged food and drinks.
Key Takeaways
Key players operating in the iced tea market are PepsiCo, Suntory Beverage & Food Ltd., The Coca-Cola Company, Nestle and Starbucks Corporation.
The Iced Tea Companies is growing worldwide driven by rising health awareness. Attributes such as low sugar and calorie content along with antioxidant properties are fueling consumption.
Players in the market are investing in new flavors and packaging formats to expand their market share globally. International brands are targeting emerging economies in Asia Pacific and Latin America having warm climates conducive to iced tea consumption.
Market key trends
The segment of organic and naturally sweetened iced tea is witnessing significant growth. Players are introducing organic varieties made from non-GMO certified ingredients to cater to consumer demand for clean label products.
Flavored iced tea products infused with fruits like peach, lemon and berries have gained popularity recently. Customers find these varieties more refreshing than regular black or green tea variants.
Porter’s Analysis
Threat of new entrants: The market already has established players with brand recognition which acts as barrier for new players. Capital requirements for marketing and distribution network also prevents easy entry.
Bargaining power of buyers: Large retail chains have significant influence on prices being set by manufacturers. They can switch brands easily putting pricing pressure.
Bargaining power of suppliers: Major brands engaging suppliers under long term contracts, supplies for raw materials like tea leaves are available from many small farmers limiting their negotiation power.
Threat of new substitutes: Beverages like carbonated drinks, fruit juices, coffees offers substitution but tea have loyal customer base not easily substituted.
Competitive rivalry: Major players differentiating through product innovation, flavors etc to gain market share intensifying competition in the market.
Geographical Regions
North America accounts for the largest share of around 35% of global market value sales led by United States. Wide product availability through major retail chains and changing consumer preferences towards healthier beverages drives market.
Asia Pacific region is fastest growing for iced tea market with countries like China and India witnessing highest growth rates over forecast period. Rising incomes, hot weather conditions and increasing health awareness among consumers in developing economies supports market expansion.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)