February 28, 2024
Iced Tea Market

Iced Tea Market is Expected to be Flourished by Growing Preference towards Flavored Beverages

Iced tea is a variant of hot tea which is served cold with additional flavoring and sweeteners such as sugar and artificial sweeteners. Iced tea is available in various flavors such as peach, lemon, green tea, honeybush, and mint which attracts consumers especially teenagers and young adults. Iced teas are considered as refreshment and become an alternative to carbonated drinks. They provide hydration along with flavors and are considered a healthy option compared to carbonated drinks by health-conscious consumers.

The global iced tea market is estimated to be valued at US$ 6,490.4 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 growing preference towards flavored beverages is driving the growth of the global iced tea market. Iced tea comes in various flavors which attract consumers to choose it as refreshment over other drinks. Moreover, the increasing health awareness among consumers is also fueling the market growth. Iced tea contains antioxidants from tea leaves and provides hydration with low calorie content which makes it a healthy alternative to carbonated drinks and juices. Additionally, the rising disposable income is enabling consumers to spend more on premium and organic variant of iced tea. Manufacturers are introducing innovative flavors of iced tea to cater to changing consumer tastes which is further expected to support market growth over the forecast period.

Segment Analysis
The global iced tea market is dominated by the ready-to-drink segment, which holds around 60% of the overall market share. The ready-to-drink segment experiences high demand as people are increasingly opting for ready-to-consume beverages. The black tea sub-segment within the ready-to-drink iced tea market dominates due to black tea’s widespread consumption globally.

PEST Analysis
Political: The global iced tea market is influenced by various regulations and standards set by governing bodies pertaining to ingredients, packaging, and marketing of beverages.
Economic: The rising disposable incomes and growing health-consciousness among people worldwide are fueling the sales of health drinks like iced tea. Additionally, hot climatic conditions positively influence the consumption of chilled beverages.
Social: Changing lifestyles and busy schedules have increased the demand for on-the-go healthy beverages like iced tea. Moreover, the rising health awareness is driving people towards low-calorie drinks.
Technological: Players in the iced tea market are focusing on developing innovative packaging like tetra packs and cans to increase portability and extend the shelf life of the products. Some companies offer customizable iced tea blends utilizing online platforms.

Key Takeaways
The Global Iced Tea Market Size is expected to witness high growth. The global iced tea market is estimated to be valued at US$ 6,490.4 Mn in 2023 and is expected to exhibit a CAGR of 2.1% over the forecast period 2023 to 2030.

The Asia Pacific region dominates the global iced tea market and is expected to witness the fastest growth over the forecast period. This can be attributed to the increasing population, rising incomes, and growing preference for healthy beverages in developing nations such as China and India.

Key players related content comprises 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. Key players are focusing on strategic collaborations to enhance their distribution networks and product portfolios. They are also investing in marketing & promotional activities to raise brand awareness.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it