Iced Tea Market Is Estimated To Witness High Growth Owing To Rising Consumption Of Ready-To-Drink Beverages
Iced tea is a popular beverage made by steeping tea leaves in cold or hot water and then cooling it. It is available in green, black, oolong, and herbal flavors. Iced tea is generally mass-produced in large volume by companies and private label producers for major retailers. It is commonly packaged in PET bottles or cans for on-the-go consumption. The easy portability and availability in single-serve packages have increased the popularity of ready-to-drink iced tea.
The global Iced Tea Market is estimated to be valued at Us$ 6490.4 Mn in 2023 and is expected to exhibit a CAGR Of 2.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising consumption of ready-to-drink beverages is estimated to be the major driver of the global iced tea market over the forecast period. According to an FAO report, the global soft drinks market was valued at $528.4 billion in 2020 and is projected to grow at a CAGR of 3.4% from 2022 to 2027. The on-the-go consumption trend coupled with the increasing demand for healthier alternatives to carbonated drinks is fueling the sales of ready-to-drink iced tea. Moreover, the introduction of innovative flavors by manufacturers and the growing popularity of organic and unsweetened tea variants are also contributing to the market growth. However, the stringent regulations regarding product labeling and ingredients usage may hamper the growth of the iced tea market during the forecast period.
SWOT Analysis
Strength: The iced tea market has grown in popularity due to its health benefits and convenience as a ready-to-drink beverage. Consumption of iced tea is associated with a lower risk of diabetes, obesity, and some types of cancer. The market also benefits from the wide variety of flavors available to suit changing consumer preferences.
Weaknesses: While the market has gained popularity, heavy promotion is still needed to drive wider adoption, especially in developing regions. The seasonality of consumption also poses a challenge for producers in managing inventory levels throughout the year.
Opportunity: Emerging markets like Asia Pacific and Latin America present significant opportunities for future growth due to rising health consciousness and increasing disposable incomes. Product innovations involving premium ingredients and additional functional benefits can further boost demand.
Threats: Strict regulations around ingredients and labeling come into effect in many countries. Raw material price volatility also affects production costs. Additionally, the threat from substitute beverages like bottled water and healthier options limits market expansion.
Key Takeaways
The Global Iced Tea Market Demand is expected to witness high growth over the forecast period of 2023 to 2030 at a CAGR of 2.1%.
Regional analysis:
Asia Pacific dominates the global market and is expected to grow at the fastest pace due to growing health awareness.
Key players operating in the iced tea market are Adelaide Brighton Ltd, Boral Ltd., Sibelco Australia, Omya Australia Pty Ltd, Wagners, and Lime Group Australia.
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