U.S. RTD Organic Tea Industry Overview
The U.S. RTD organic tea market size was valued at USD 2.19 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028.
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.
Gather more insights about the market drivers, restrains and growth of the U.S. RTD Organic Tea Market
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.
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U.S. RTD Organic Tea Market Segmentation
Grand View Research has segmented the U.S. RTD organic tea market on the basis of type, distribution channel, and region:
U.S. RTD Organic Tea Type Outlook (Revenue, USD Million, 2016 - 2028)
- Black
- Green
- Herbal
- Others
U.S. RTD Organic Tea Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)
- Supermarkets/Hypermarkets
- Convenience Stores
- Online
U.S. RTD Organic Tea Regional Outlook (Revenue, USD Million, 2016 - 2028)
- Southeast
- Northeast
- Midwest
- West
- Southwest
Market Share Insights
- March 2021: Lipton, a renowned brand of Unilever USA, announced the launch of Lipton Herbal beverages.
- 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.
- 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.
Key Companies profiled:
Some of the key players operating in the U.S. RTD organic tea market are:
- Unilever
- The Coca-Cola Company
- AriZona Beverages USA
- Tama Tea
- Numi, Inc.
- ITO EN (North America) Inc.
- Teatulia, PBC
- Harney Sons Fine Teas
- Guayakí Yerba Mate
- Tejava
- Hain Celestial
- Zevia
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