U.S. RTD Organic Tea Market Size, Share & Growth by 2030
The U.S. RTD Organic Tea market size was valued at US$ 2.98 billion in 2021 and is expected to hit US$ 4.19 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.4% from 2022 to 2030.
Growth Factors:
The rising need for convenience is expected to boost the demand for various ready-to-drink (RTD) products over the forecast period. Rapidly changing consumer lifestyles that encourage on-the-go consumption of food and beverages and a growing trend to replace meals with smaller nutritional snacks have led to an increase in the adoption of ready-to-drink tea. The COVID-19 pandemic has reshaped the demand for healthy and organic drinks. Consumers have become more conscious of their health, and, thus, shifting their preference to more natural, organic, and immunity-boosting drinks. These market trends are creating new scope for RTD green and herbal tea products, owing to their excellent antioxidant properties.
In addition, the trend of being proactive in the prevention of chronic health problems is creating a staggering demand for ready-to-drink tea as it contains antioxidants and other essential ingredients. The rising importance of flavonoid-based food and beverages, which are known to have antioxidant properties, is expected to drive the market over the next few years. In addition, new market entrants, such as cafés, are launching their in-house products to target local customers before expanding their business across the country. For instance, in February 2019, North Carolina-based Tama Café introduced its line of RTD sparkling teas, which are made of organic green tea and other all-natural ingredients.
The Southeast region is one of the major regions contributing to the market growth, in terms of consumption as well as production. A high concentration of manufacturers including key players, such as Unilever and Coca-Cola Company, is the key factor contributing to region-level growth. Organic tea has multiple benefits. Through various studies, it has been found that it helps enhance digestive health by improving the activity of healthy bacteria in the gut. Furthermore, it contains theanine, which reduces anxiety. In addition, it intensifies body relaxation by decreasing drowsiness. The introduction of flavored ready-to-drink organic iced teas with low caffeine content is especially expected to witness high demand in the years to come.
Report Scope of the U.S. RTD Organic Tea Market
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Report Coverage |
Details |
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Market Size in 2021 |
USD 2.98 Billion |
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Revenue Projection By 2030 |
USD 4.19 Billion |
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Growth Rate |
CAGR of 5.4% from 2022 to 2030 |
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Base Year |
2021 |
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Historical data |
2017 - 2020 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
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Companies Mentioned |
Unilever; The Coca-Cola Company; Numi, Inc.; ITO EN (North America) Inc.; Tama Tea; Harney& Sons Fine Teas; Guayakí Yerba Mate; Tejava; Hain Celestial; Zevia; Teatulia; PBC; AriZona Beverages USA |
Type Insights
The black RTD organic tea segment accounted for the largest revenue share of 38.6% in 2020. It is one of the most commonly consumed bottled tea in the U.S. The popularity of the product is fueled by new research into the possible health benefits and the growing demand for convenient products. It has a high concentration of antioxidants and polyphenols that help in reducing blood pressure, risk of diabetes, rheumatoid arthritis, and Parkinson’s disease. Furthermore, it might help in decreasing the development of cancer cells in the body, awareness of such benefits among people is expected to boost the segment growth.
The green RTD organic tea segment is expected to register the fastest CAGR of 4.7% during the forecast period. It has been recognized as a significant source of catechins. Studies have demonstrated that catechins can help in preventing Cardiovascular Diseases (CVDs) and cancer. Furthermore, various research-based backing of green tea benefits is expected to favor the product demand. For instance, a study from MDPI in the year 2019, proved that the bioactive compounds of green tea can be helpful in the prevention and treatment of CVDs. Several players operating in this market are introducing products in various flavors, such as jasmine, rose, and orange, for improved consumer experience.
Distribution Channel Insights
The supermarkets/hypermarkets segment held the largest revenue share of 45.5% in 2020. Among the multiple retail outlets available, supermarkets/hypermarkets are favored in the U.S. because they have a wide variety of RTD teas from multiple brands, which is expected to fuel the segment growth. Most consumers prefer buying products after physically examining the product quality. Furthermore, membership programs offered by these stores include benefits, such as discounts and access to unlimited free delivery services, that enhance the shopping experience of the customers. Most of the products are available at big supermarkets, such as Walmart and Kroger.
The online distribution channel segment is expected to witness the fastest CAGR over the forecast period. The shift in consumer shopping behavior and increased penetration of technology and smartphones are major factors driving product sales through online distribution channels. Moreover, benefits offered by online platforms, including shopping from the comfort of one’s home, doorstep delivery, free shipping, subscription services, and discounts, are attracting millennials and the young generation, thereby resulting in increasing popularity and usage of online sites.
Regional Insights
The Southeast region held the largest revenue share of the global market of more than 29% in 2020. The growing demand for healthy organic drinks in states, such as North Carolina, Florida, Georgia, Mississippi, Tennessee, and Virginia, drives the market growth in this region. Moreover, an increased acceptance of RTD tea as a popular beverage among consumers, especially among millennials, is anticipated to increase the product demand. In addition, an increasing number of RTD organic tea product launches are contributing to the growth of the market.
The Southwest region is expected to register the fastest CAGR over the forecast period. Key players in the market are launching new beverages containing functional ingredients in various flavors. For instance, in July 2020, Tempo Beverages announced the launch of two new CBD-infused RTD beverages. These drinks are launched in two variants-green tea with ginger &turmeric and hibiscus tea with blackberry &lemon.
Key Companies & Market Share Insights
The market is fragmented with the presence of several local and international players. Manufacturers in the market are increasingly focusing on product & packaging innovation, labeling, and marketing campaigns as these factors play a vital role in the overall image of the brand and its products. Established players have been expanding their product portfolios by incorporating new and innovative beverages to extend their consumer base. For instance, in March 2021, Lipton, a renowned brand of Unilever USA, announced the launch of Lipton Herbal beverages. Some of the key players operating in the U.S. RTD organic tea market are:
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at U.S. for the period of 2017 to 2030
Key Points Covered in U.S. RTD Organic Tea Market Study:
Chapter 1. Methodology and Scope
1.1. Market Segmentation & Scope
1.2. Market Definition
1.3. Information Procurement
1.3.1. Purchased Database
1.3.2. Nova one advisor’s Internal Database
1.3.3. Secondary Sources & Third-Party Perspectives
1.3.4. Primary Research
1.4. Information Analysis
1.4.1. Data Analysis Models
1.5. Market Formulation & Data Visualization
1.6. Data Validation & Publishing
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segmental Outlook
2.3. Competitive Insights
Chapter 3. U.S. RTD Organic Tea Market Variables, Trends & Scope
3.1. Market Introduction
3.2. Penetration & Growth Prospect Mapping
3.3. Impact of COVID-19 on U.S. RTD Organic Tea market
3.4. Industry Value Chain Analysis
3.4.1. Sales/Retail Channel Analysis
3.4.2. Profit Margin Analysis
3.5. Market Dynamics
3.5.1. Market Driver Analysis
3.5.2. Market Restraint Analysis
3.5.3. Industry Challenges
3.5.4. Industry Opportunities
3.6. Business Environment Analysis
3.6.1. Industry Analysis - Porter’s
3.6.1.1. Supplier Power
3.6.1.2. Buyer Power
3.6.1.3. Substitution Threat
3.6.1.4. Threat from New Entrant
3.6.1.5. Competitive Rivalry
3.7. Roadmap of U.S. RTD Organic Tea Market
3.8. Market Entry Strategies
Chapter 4. Consumer Behaviour Analysis
4.1. Demographic Analysis
4.2. Consumer Trends and Preferences
4.3. Factors Affecting Buying Decision
4.4. Consumer Product Adoption
4.5. Observations & Recommendations
Chapter 5. U.S. RTD Organic Tea Market: Type Estimates & Trend Analysis
5.1. Type Movement Analysis & Market Share, 2021 & 2030
5.2. Black
5.2.1. Market estimates and forecast, 2017 - 2030 (USD Million)
5.3. Green
5.3.1. Market estimates and forecast, 2017 - 2030 (USD Million)
5.4. Herbal
5.4.1. Market estimates and forecast, 2017 - 2030 (USD Million)
5.5. Others
5.5.1. Market estimates and forecast, 2017 - 2030 (USD Million)
Chapter 6. U.S. RTD Organic Tea Market: Distribution Channel Estimates & Trend Analysis
6.1. Distribution Channel Movement Analysis & Market Share, 2021 & 2030
6.2. Supermarkets/Hypermarkets
6.2.1. Market estimates and forecast, 2017 - 2030 (USD Million)
6.3. Convenience Stores
6.3.1. Market estimates and forecast, 2017 - 2030 (USD Million)
6.4. Online
6.4.1. Market estimates and forecast, 2017 - 2030 (USD Million)
Chapter 7. U.S. RTD Organic Tea Market: Regional Estimates & Trend Analysis
7.1. Regional Movement Analysis & Market Share, 2021 & 2030
7.2. Southeast
7.2.1. Market estimates and forecast, 2017 - 2030 (USD Million)
7.2.2. Market estimates and forecast, by type, 2017 - 2030 (USD Million)
7.2.3. Market estimates and forecast, by distribution channel, 2017 - 2030 (USD Million)
7.3. Northeast
7.3.1. Market estimates and forecast, 2017 - 2030 (USD Million)
7.3.2. Market estimates and forecast, by type, 2017 - 2030 (USD Million)
7.3.3. Market estimates and forecast, by distribution channel, 2017 - 2030 (USD Million)
7.4. Midwest
7.4.1. Market estimates and forecast, 2017 - 2030 (USD Million)
7.4.2. Market estimates and forecast, by type, 2017 - 2030 (USD Million)
7.4.3. Market estimates and forecast, by distribution channel, 2017 - 2030 (USD Million)
7.5. West
7.5.1. Market estimates and forecast, 2017 - 2030 (USD Million)
7.5.2. Market estimates and forecast, by type, 2017 - 2030 (USD Million)
7.5.3. Market estimates and forecast, by distribution channel,2017 - 2030 (USD Million)
7.6. Southwest
7.6.1. Market estimates and forecast, 2017 - 2030 (USD Million)
7.6.2. Market estimates and forecast, by type, 2017 - 2030 (USD Million)
7.6.3. Market estimates and forecast, by distribution channel, 2017 - 2030 (USD Million)
Chapter 8. Competitive Analysis
8.1. Key U.S. players, recent developments & their impact on the industry
8.2. Key Company/Competition Categorization (Key innovators, Market leaders, Emerging players)
8.3. Vendor Landscape
8.3.1. Key company market share analysis, 2021
Chapter 9. Company Profiles
9.1. Unilever
9.1.1. Company Overview
9.1.2. Financial Performance
9.1.3. Product Benchmarking
9.1.4. Strategic Initiatives
9.2. The Coca-Cola Company
9.2.1. Company Overview
9.2.2. Financial Performance
9.2.3. Product Benchmarking
9.2.4. Strategic Initiatives
9.3. AriZona Beverages USA
9.3.1. Company Overview
9.3.2. Financial Performance
9.3.3. Product Benchmarking
9.3.4. Strategic Initiatives
9.4. Tama Tea
9.4.1. Company Overview
9.4.2. Financial Performance
9.4.3. Product Benchmarking
9.4.4. Strategic Initiatives
9.5. Numi, Inc.
9.5.1. Company Overview
9.5.2. Financial Performance
9.5.3. Product Benchmarking
9.5.4. Strategic Initiatives
9.6. ITO EN (North America) INC.
9.6.1. Company Overview
9.6.2. Financial Performance
9.6.3. Product Benchmarking
9.6.4. Strategic Initiatives
9.7. Teatulia, PBC.
9.7.1. Company Overview
9.7.2. Financial Performance
9.7.3. Product Benchmarking
9.7.4. Strategic Initiatives
9.8. Harney& Sons Fine Teas
9.8.1. Company Overview
9.8.2. Financial Performance
9.8.3. Product Benchmarking
9.8.4. Strategic Initiatives
9.9. Guayakí Yerba Mate
9.9.1. Company Overview
9.9.2. Financial Performance
9.9.3. Product Benchmarking
9.9.4. Strategic Initiatives
9.10. Tejava
9.10.1. Company Overview
9.10.2. Financial Performance
9.10.3. Product Benchmarking
9.10.4. Strategic Initiatives
9.11. Hain Celestial
9.11.1. Company Overview
9.11.2. Financial Performance
9.11.3. Product Benchmarking
9.11.4. Strategic Initiatives
9.12. Zevia
9.12.1. Company Overview
9.12.2. Financial Performance
9.12.3. Product Benchmarking
9.12.4. Strategic Initiatives
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers