Iced Tea Market Outlook 2024–2031: Size, Trends, Segmentation & Key Players

 The Iced Tea Market Size reached USD 55.2 billion in 2022 and is projected to grow to USD 88.6 billion by 2030, registering a compound annual growth rate of 6.1 percent between 2023 and 2030. This robust expansion is underpinned by rising consumer demand for convenient, ready-to-drink beverages that align with health and wellness trends. Iced tea’s natural antioxidant profile, lower sugar alternatives, and innovations in flavor infusions have driven its adoption across both on‐premise and off‐premise channels. Improvements in packaging  such as single-serve bottles, cans with resealable caps, and cold-brew technology  have further enhanced shelf stability, taste consistency, and year-round availability.

Latest News & Trends
In early 2025, North American beverage manufacturers ramped up cold-brew iced tea launches, promoting smoother mouthfeel and elevated flavor notes compared to hot‐steeped counterparts. Several major quick‐service restaurant chains added flavored iced tea lattes  combining tea extracts with dairy or plant-based milks  to their menus, tapping into consumer interest in hybrid coffee–tea offerings. European supermarkets expanded their private-label iced tea assortments to include organic and low‐calorie versions sweetened with stevia and monk fruit. In Asia Pacific, on‐the-go demand has driven premiumization: boutique tea shops in Japan and South Korea now offer draft‐style iced tea on tap, brewed from whole‐leaf infusions and served with novel garnishes like yuzu peel and matcha foam. Sustainability initiatives are accelerating: operators are shifting toward fully recyclable aluminum cans and compostable tea bags for home‐brewing iced tea kits, while several producers have pledged to source all tea leaves from Rainforest Alliance– or Fair Trade–certified estates.

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Market Segmentation
The iced tea market can be understood through intersecting dimensions of type, format, distribution channel, and application, each backed by quantitative benchmarks. By type, black‐tea–based iced tea retains the largest share  approximately 45 percent  owing to its traditional flavor appeal and established processing infrastructure. Green‐tea variants account for roughly 30 percent, buoyed by perceived health benefits tied to catechins and metabolism‐boosting claims. Herbal and fruit‐infused iced teas make up the remaining 25 percent, with exotic blends (e.g., hibiscus‐berry, mint‐cucumber) achieving double‐digit annual growth as consumers seek novel sensory experiences.

In terms of format, bottled iced tea dominates at about 60 percent of total market volume, driven by convenience and portability. Canned iced tea comprises 25 percent, favored for on‐premise venues such as cafés and vending machines. Ready‐to‐brew sachets and tea‐bag formats  designed for at‐home or office steeping  hold the remaining 15 percent, growing at a 7 percent annual rate as direct‐to‐consumer e-commerce platforms expand subscription offerings.

Distribution is led by supermarkets and hypermarkets, which capture 50 percent of iced tea sales through broad assortments, promotional pricing, and private‐label products. Convenience stores and fuel‐retail outlets together contribute 20 percent, leveraging impulse‐buy purchasing occasions. E-commerce channels account for 20 percent of market value and are expanding at over 12 percent annually, fueled by grocery‐delivery partnerships and branded D2C platforms. Specialty tea shops, cafés, and restaurants make up the final 10 percent, offering premium draft and on‐tap iced tea experiences.

Application‐wise, at‐home consumption represents roughly 65 percent of volume, as consumers integrate iced tea into daily hydration and nutrition routines. Out‐of‐home consumption  spanning quick‐service restaurants, cafés, cinemas, and stadiums  accounts for 35 percent, with on‐trend beverage programs driving innovation in blended and mixed‐drink formats.

Regional Analysis
In the United States, the iced tea market was valued at approximately USD 11.0 billion in 2022  nearly 20 percent of global demand  and is forecast to grow at a CAGR of 5.5 percent through 2031. Growth drivers include heightened consumer focus on lower‐sugar alternatives, the proliferation of cold‐brew café menus, and expanded distribution of premium bottled varieties. Federal specialty‐crop grants under the Farm Bill have subsidized tea‐processing equipment upgrades and organic certification costs for smallholders in states like Texas and South Carolina, enhancing domestic supply resilience. Food‐service partnerships and national retail chains have co‐branded limited‐edition iced tea flavors with sports and entertainment events, further broadening reach.

Japan’s iced tea market  estimated at around USD 4.5 billion in 2022, representing roughly 8 percent of global volume  is projected to expand at a CAGR of 6.2 percent through 2031. Japanese consumers’ affinity for both traditional and innovative tea offerings has driven premium bottled and draft‐style iced teas in convenience stores and vending machines. Under the Green Food System Strategy, government incentives  including R&D grants for functional‐beverage innovation and subsidies for biodegradable packaging development  have spurred local producers to launch vitamin‐enriched and botanical‐infused iced teas, reinforcing health‐first positioning.

Key Highlights from Report

• Iced tea’s antioxidant-rich profile and lower‐sugar variants align strongly with global health‐and‐wellness trends.
  
  

• Cold‐brew formats are outpacing hot‐brew infusions, supported by smoother flavor profiles and premium price points.
  
  

• E-commerce’s rapid expansion  driven by D2C subscriptions and grocery‐delivery integrations  is democratizing access to niche and imported iced tea varieties.
  
  

• Private‐label entrants from major retailers are intensifying price competition, while artisanal brands focus on unique botanicals and limited editions.
  
  

• Sustainable packaging initiatives, including aluminum can adoption and compostable tea‐bag materials, are becoming table stakes for leading players.
  
  

Key Players & Competitors
Major global companies shaping the iced tea landscape include PepsiCo (Pure Leaf), The Coca-Cola Company (Gold Peak, Honest Tea), Unilever (Lipton), Arizona Beverages USA, Celestial Seasonings (Hain Celestial), 4C Foods Corp., Nestlé (Nestea), PG Tips (PG Iced Tea), Ito En, and Tata Global Beverages. The top five market leaders by revenue share and strategic initiatives are PepsiCo (expanding cold‐brew rollouts and D2C platforms), Coca-Cola (innovating low‐calorie sparkling tea variants), Unilever (driving sustainability with fully recyclable bottles), Arizona Beverages (maintaining premium multi‐flavor portfolio), and Nestlé (leveraging global distribution networks for private‐label partnerships).

Conclusion
The iced tea market is poised for sustained, mid-single-digit growth through 2031, anchored by health-centric consumer preferences, cold‐brew technological advancements, and omnichannel distribution expansion. Policy support for specialty crops in the United States and innovation incentives in Japan will underpin capacity building and product development. Brands that invest in functional formulations, sustainable packaging, and seamless consumer experiences  across retail, e-commerce, and food-service  will be best positioned to capture emerging opportunities in this dynamic, refreshment-focused category.