The North America Tea Market report segments the industry into Form (Leaf Tea, Crush/Tear/Curl Tea), Product Type (Black Tea, Green Tea, Herbal Tea, Other Product Types), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers, Online Retail Stores, Other Distribution Channels), and Geography (United States, Canada, Mexico, Rest of North America). Five-year historic data and forecasts are included.

The US tea production industry is navigating a dynamic landscape driven by evolving consumer preferences and intensified import competition. Despite strong overall tea consumption, domestic production faces challenges related to climate variability, changing demand for traditional teas and a growing interest in specialty and functional varieties. Black and green teas dominate the market, but herbal and alternative options are gaining momentum. Also, sustainability concerns and packaging innovations increasingly influence production and branding strategies. In response, US tea producers are adapting to remain competitive in a rapidly diversifying market. Industry-wide revenue has been expanding at an average annualized 1.5% over the past five years and is expected to total $1.5 billion in 2025 when revenue will inch upward by an estimated 0.7%. Over the past five years, the industry has been shaped by declining interest in traditional teas and a growing appetite for premium, organic and wellness-focused products. Bagged black tea, once a staple, has declined as younger consumers gravitate towards loose-leaf and ready-to-drink (RTD) teas. In contrast, loose green tea and specialty blends have gained popularity because of their perceived freshness and health benefits. The rise of functional teas—featuring adaptogens, probiotics, or botanical ingredients—has influenced consumer choices. Expanding direct-to-consumer sales and e-commerce platforms has also provided boutique and niche brands an advantage in reaching health-conscious consumers. US tea production is expected to embrace premiumization and innovation. Consumer demand for organic, fair-trade and sustainably sourced teas is likely to increase, prompting producers to prioritize ethical sourcing and eco-friendly packaging. RTD teas will continue capturing market share from traditional brewing formats, encouraging diversification with options like cold-brew and infused varieties. Climate change and supply chain challenges may impact domestic tea farming, driving hydroponic and controlled-environment agriculture investment. As tastes shift and interest in global tea cultures rises, US producers focusing on high-quality, specialty and health-oriented products will be best positioned for future success. Industry revenue is forecast to grow at an annualized 1.5% over the five years through 2030 to total $1.6 billion.

The South America Tea Market report segments the industry into Form (Leaf Tea, CTC Tea (Crush, Tear, Curl)), Type (Black Tea, Green Tea, Herbal Tea, Other Types), Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail Stores, Other Distribution Channels), and Country (Brazil, Argentina, Rest of South America). Get five years of historical data and market forecasts.

The statistic displays the wholesale tea value in the United States from 2013 to 2023, by market segment. The food service segment generated tea sales of about *** million U.S. dollars in 2021. In 2020 and 2021, it was far less than previous years due to the coronavirus pandemic. As of 2023, it is forecasted to increase again and reach *** billion U.S. dollars.

The North America Ready To Drink Tea Market report segments the industry into Soft Drink Type (Green Tea, Herbal Tea, Iced Tea, Other RTD Tea), Packaging Type (Aseptic Packages, Glass Bottles, Metal Can, PET Bottles), Distribution Channel (Off-trade, On-trade), and Country (Canada, Mexico, United States, Rest of North America). Get five years of historical data alongside five-year market forecasts.

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Tea Market Size 2025-2029

The tea market size is forecast to increase by USD 19.9 billion, at a CAGR of 5.5% between 2024 and 2029.

The market growth depends on factors such as the functional benefits of tea, which drive its growth by attracting consumers seeking health-conscious beverage options. It also depends on trends like new product launches, with companies introducing innovative tea varieties that offer additional health benefits.
However, the market faces challenges such as the negative impact of overconsumption of tea, which can lead to health issues like caffeine dependence and digestive problems. Despite these challenges, the market continues to grow, fueled by increasing demand for health-promoting and sustainable tea options.

What will be the Size of the Market During the Forecast Period?

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The Camellia Sinensis plant is the source of the popular beverage, tea. Tea is a staple in the food and beverage industry, is renowned for its health benefits. The plant is rich in Polyphenols, including antioxidants, which contribute to its antioxidant properties. Tea also contains essential minerals like Potassium, Manganese, Magnesium, and Calcium. The market is thriving, driven by the consumer base's increasing preference for organic tea and premium tea experiences. Ethical sourcing and sustainability are key factors influencing the market.
Tea production and consumption continue to rise, with innovations in packaging playing a significant role in maintaining the tea's freshness and quality. Moringa Hibiscus and Peppermint Refresh are among the many tea varieties offering unique health benefits, such as weight management and calming effects. The market is a significant export sector, with major tea-producing countries like India and China contributing significantly to global tea production and exports. The market is expected to continue growing, offering opportunities for businesses and consumers alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Offline
  Online


Product

  Black tea
  Green tea
  Others


Form

  Leaf Tea
  CTC Tea
  Others


Geography

  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  South America

    Brazil


  Middle East and Africa

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The market encompasses the distribution and sale of Camellia Sinensis plant-derived functional tea products through offline channels. These channels include brick-and-mortar stores, supermarkets, speciality tea shops, and health food stores. Consumers engage in person-to-person interactions, allowing for product sampling and knowledgeable staff assistance. Teas, such as green, black, and oolong tea, offer health benefits due to their polyphenols, caffeine, antioxidants, potassium, manganese, magnesium, and calcium content. Offline distribution contributes significantly to the food and beverage sector, with B2C enterprises catering to household spending.

Hot drinks remain a popular choice, leading to retail sales in convenience stores, hotels, restaurants, catering companies, cafés, and bars. Sustainability and ethical sourcing are essential considerations for premium tea experiences, attracting a growing consumer base. Organic tea is a significant market segment. Packaging options include plastic containers, paper packaging, and aluminum tin boxes, while tea bags are a convenient choice for consumers. The market continues to expand, with production data indicating a strong industry. Trade press covers industry trends and developments.

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The offline segment was valued at USD 44.80 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 62% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region, known for its significant tea production and consumption, is expected to experience substantial growth in the market. China and India, as major manufacturers and exporters of green and black tea respectively, dominate the scene. Other key players include Japan, Sri Lanka, Vietnam, and Indonesia. The rise in tea consumption, driven by economic development and the exp

Employment statistics on the Tea Production industry in United States

The revenue, combined in the 'Tea' segment of the hot drinks market in the United States was forecast to continuously increase between 2024 and 2029 by in total *** billion U.S. dollars (+***** percent). After the ninth consecutive increasing year, the revenue, combined is estimated to reach **** billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the volume, combined in the 'Coffee' segment of the hot drinks market in Canada and the revenue, combined in the 'Coffee' segment of the hot drinks market in China.The Statista Market Insights cover a broad range of additional markets.

The North American herbal tea market, valued at approximately $2.5 billion in 2025, is projected to experience steady growth, driven by increasing consumer awareness of health benefits and a shift towards natural and functional beverages. A Compound Annual Growth Rate (CAGR) of 3.45% from 2025 to 2033 indicates a market poised for continued expansion. Key drivers include the rising prevalence of health-conscious consumers seeking natural alternatives to traditional caffeinated beverages, the increasing popularity of herbal teas for specific health benefits like improved digestion, stress reduction, and better sleep, and the growing availability of diverse herbal tea blends and innovative product formats. The market segmentation reveals a strong preference for loose leaf and bagged herbal teas across supermarkets/hypermarkets and online retail channels. While the United States holds the largest market share within North America, Canada and Mexico contribute significantly, representing a substantial growth opportunity for brands targeting diverse consumer preferences across these regions.
The market's growth trajectory is further influenced by evolving consumer trends such as the demand for organic and sustainably sourced herbal teas, the increasing preference for convenient single-serve options, and the rise of e-commerce platforms facilitating direct-to-consumer sales. However, fluctuating raw material prices and the potential for intense competition among established players and emerging brands present challenges. Companies need to focus on differentiation through brand building, product innovation, and strategic partnerships to maintain their market position. The successful players are leveraging digital marketing, expanding their product portfolio, and exploring new distribution channels to capture the growing consumer base actively seeking wellness-oriented beverage options. Continued expansion is expected across all segments, but the demand for organic and sustainably produced herbal teas is anticipated to outpace the overall market growth. Recent developments include: June 2022: Davids Tea Inc. a leading tea merchant in North America, launched their new blend Manoomin Maple, in partnership with fellow tea company Tea Horse, now available at all 18 DAVIDsTEA flagship stores across Canada and online at davidstea.com., May 2022: Tao Tea Leaf opened its latest location in Toronto at Union Station in a high visibility area of the concourse, directly under the Great Hall., January 2022: With the addition of its newest watermelon flavor, Red Diamond Coffee and Tea, a key player in the beverage industry, is expanding its line of Simple Sweet Tea for food service operators.. Notable trends are: Healthy Hydration is Propelling the Market Growth.

The tea market in Northern America is poised to experience a steady increase in consumption over the next decade, driven by rising demand. Market volume is expected to reach 129K tons by 2035, with a projected market value of $666M.

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US Foodservice Tea Market Size 2025-2029

The US foodservice tea market size is forecast to increase by USD 3.86 billion at a CAGR of 4.8% between 2024 and 2029.

The Foodservice Tea Market in the US is experiencing significant growth, driven by the increasing demand for mobile foodservice and the premiumization of functional tea products. Consumers' busy lifestyles have led to a surge in demand for convenient foodservice options, including tea, which can be easily consumed on-the-go. Additionally, the growing awareness of tea's health benefits and the availability of premium, functional tea varieties have fueled market expansion. However, market growth is not without challenges. Regulatory hurdles impact adoption, with stringent regulations governing the use of certain ingredients and labeling requirements. Furthermore, supply chain inconsistencies temper growth potential due to the dependence on tea imports from countries with unstable political climates and potential disruptions to supply.
Companies seeking to capitalize on market opportunities must navigate these challenges effectively by investing in research and development to comply with regulations and establish reliable supply chains. By focusing on innovation and sustainability, foodservice tea providers can differentiate themselves in a competitive market and meet the evolving demands of health-conscious consumers.

What will be the size of the US Foodservice Tea Market during the forecast period?

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The US foodservice tea market is flourishing, driven by functional tea blends and health-focused tea menus that cater to wellness trends. Premium iced tea and cold brew tea trends dominate, while artisanal tea offerings and ethnic tea flavors attract diverse consumers. Specialty tea shops and mobile foodservice tea units enhance accessibility, and sustainable tea sourcing appeals to eco-conscious diners. Tea-based mocktails are gaining popularity in upscale venues, boosting innovation. These trends, fueled by evolving consumer preferences and creative offerings, position the market for strong growth through 2029.
The foodservice tea market in the US is characterized by a diverse range of offerings and continuous innovation. From the origins of tea in China and India to the customization of tea services, the industry caters to various consumer preferences. Tea advertising emphasizes flavor profiles, health benefits, and unique tea pairings. Tea competitions showcase the art of tea infusions and blending, while certifications ensure tea safety and quality control. Tea events, festivals, and tours offer immersive experiences, connecting consumers to the tea culture. Tea menus and programs feature an array of tea beverages, from concentrates and extracts to drinks and cocktails.
Brands invest in marketing and technology to personalize the tea experience, offering subscriptions, promotions, and even tea training. Tea innovation extends to new product offerings, such as tea powders and mocktails, as well as tea health benefits, which are increasingly recognized for their hydration and wellness properties. Regulations and certifications play a crucial role in ensuring the authenticity and sustainability of tea offerings. Overall, the US tea market is a dynamic and evolving landscape, driven by consumer curiosity and the pursuit of unique, high-quality tea experiences.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Full-service restaurants
  Limited-service restaurants
  Others


Product

  Black tea
  Green tea
  Others


Application

  Iced tea
  Hot tea
  Blended Drinks


Format

  Loose Leaf Tea
  Tea Bags
  Ready-to-Drink (RTD) Tea
  Instant Tea Mixes


Geography

  North America

    US

By Distribution Channel Insights

The full-service restaurants segment is estimated to witness significant growth during the forecast period.

The foodservice tea market in the US is experiencing significant growth, with ready-to-drink tea becoming increasingly popular among foodservice operators. Innovation in tea brewing equipment and technology, such as tea infusers and dispensers, is driving this trend. Fine dining and casual dining establishments, including restaurants and tea lounges, are incorporating tea into their menus, offering various blends, flavors, and even personalized tea experiences. Sustainability is a key consideration in the industry, with a focus on organic and fair trade tea, as well as sustainable tea estates. Tea safety and quality control are also crucial, with certifications and regulations ensuring the health benefits of tea are maximized.

Tea trends include the popularity of green tea, herb

The USA bubble tea market is projected to grow from USD 1,075.9 million in 2025 to USD 2,691.6 million by 2035, reflecting a CAGR of 9.6%. This growth is driven by the increasing popularity of Asian beverages among younger demographics, coupled with the expanding footprint of specialty tea cafés and bubble tea chains across major USA cities.

The US Ready to Drink Tea Market is segmented by Soft Drink Type (Green Tea, Herbal Tea, Iced Tea), by Packaging Type (Aseptic packages, Glass Bottles, Metal Can, PET Bottles) and by Distribution Channel (Off-trade, On-trade). Market Value in USD and Volume in Liters are both presented. Key data points observed include market segmental split by soft drink category, packaging type, distribution channel, and region

North America RTD Tea held the major market of more than 26% of the global revenue with a market size of USD 27.35 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030

The Latin American tea market rose slightly to $1.3B in 2024, surging by 2.5% against the previous year. Overall, consumption saw a relatively flat trend pattern. As a result, consumption attained the peak level of $1.4B. From 2015 to 2024, the growth of the market failed to regain momentum.

South America Tea Market Outlook 2031:

The South America tea market size was valued at USD 9.11 Billion in 2022 and is projected to reach USD 13.77 Billion by 2031, expanding at a CAGR of 4.7% during the forecast period 2023 - 2031. The growth of the market is attributed to the premiumization of tea products.

Tea is produced by steeping the tea powder or leaf buds of the tea plant, also known as camellia sinensis, in freshly boiled water. Tea was introduced in China in 2700 BC. For centuries it was a medical beverage and in around third century it became a daily drink.

In 1824, tea cultivation was found in the slopes, along the outskirts of Burma and in Assam, a state of India. The British brought tea culture into India in 1836 and into Ceylon (Sri Lanka) in 1867. Earlier, they utilized seeds from China; however, later seeds were used from Assam. The Dutch East India Company conveyed the principal transfer of tea from China to Europe in 1610.



In 1669, the English East India Company brought tea from ports in Java to London. By 19^th Century, the tea market had spread to Georgia, Sumatra, and Iran and further reached out to non-Asian nations such as Natal, Uganda, Malawi, Brazil, Argentina, and Peru in South America.

Tea Market Trends, Drivers, Restraints, and Opportunities

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The global tea market, valued at $64.83 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 5.5% from 2025 to 2033. This expansion is driven by several key factors. The rising popularity of tea as a healthy and refreshing beverage, particularly among younger demographics, fuels significant demand. Furthermore, the increasing awareness of tea's potential health benefits, including antioxidant properties and potential contributions to improved well-being, is a major driver. Innovation within the tea industry, encompassing new flavors, functional blends (e.g., incorporating adaptogens or probiotics), and convenient packaging options (ready-to-drink, tea bags), caters to evolving consumer preferences and lifestyles, further stimulating market growth. The growth is also fueled by the expansion of online retail channels, providing greater accessibility and convenience to consumers globally. Geographic expansion into emerging markets, particularly in Asia and parts of Africa, presents substantial opportunities for future market expansion. However, the market faces certain challenges. Fluctuations in tea leaf prices due to factors like weather patterns and global trade dynamics can impact profitability. Intense competition among established tea brands and the emergence of new players necessitate continuous innovation and strategic marketing to maintain market share. Moreover, changing consumer preferences and the rise of alternative beverages require producers to adapt their product offerings and marketing strategies to retain customer loyalty. The segmentation of the market into offline and online distribution channels, along with product categories (black tea, green tea, and others), presents unique opportunities for targeted marketing and product development within specific niches. The regional distribution of the market, with significant contributions anticipated from APAC (particularly China and India), Europe, and North America, highlights the importance of geographically focused strategies to capitalize on regional preferences and market dynamics.

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Herbal Tea Market Size 2024-2028

The herbal tea market size is forecast to increase by USD 848.1 million at a CAGR of 4.6% between 2023 and 2028.

The market is experiencing significant growth, driven by several key factors. Widely available alternatives to traditional tea, such as fruit and herbal infusions, are gaining popularity due to their unique flavors and health benefits. Consumers are increasingly seeking out products that cater to their health concerns, leading to a surge in demand for herbal teas. Additionally, the rapid growth of e-commerce platforms has made it easier for consumers to access these products from the comfort of their homes. These trends are expected to continue, making the market an attractive investment opportunity for businesses. However, challenges such as increasing competition and the need for product differentiation remain, requiring companies to innovate and adapt to stay competitive.Overall, the market is poised for continued growth, driven by consumer demand for healthier alternatives and the convenience of online shopping.

What will be the Size of the Herbal Tea Market During the Forecast Period?

Request Free SampleThe market encompasses a diverse range of tea blends, derived from various plants and herbs, excluding the Camellia sinensis plant used for traditional black, green, and oolong teas. This sector is driven by a growing consumer preference for natural, clean label foods and alcohol-free beverages. Ecological processes and biodiversity are essential considerations in herbal tea farming, ensuring the soil maintains its health and fertility. Sustainable agricultural practices are increasingly adopted to cater to this market, ensuring a working population involved in ethical and eco-friendly production. Retail markets are thriving due to the popularity of herbal teas, with key ingredients including licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, and turmeric.Consumers prioritize food safety, quality, taste, and the absence of pesticides when purchasing herbal teas, making it a competitive yet rewarding industry.

How is this Herbal Tea Industry segmented and which is the largest segment?

The herbal tea industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. TypeGreenBlackYellowDistribution ChannelOfflineOnlineGeographyAPACChinaIndiaEuropeGermanyUKNorth AmericaUSSouth AmericaMiddle East and Africa

By Type Insights

The green segment is estimated to witness significant growth during the forecast period.

The herbal tea industry has experienced significant growth due to increasing consumer preference for natural, clean label foods and pesticide-free commodities. Tea farming, adhering to ecological processes and sustainable agricultural practices, is essential to maintain plant biodiversity and soil health. Herbal tea offerings, including licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, and various blends, cater to diverse consumer needs. Key flavors like Tulsi Detox, Peppermint Refresh, Moringa hibiscus, and Simply Chamomile address cognitive health and wellness concerns. Herbal tea is available in tea bags and loose leaves, and retail markets cater to obesity and overweight issues, offering products free from synthetic chemicals.Brands like Sea Berry Tea and Gut Goodness Tea emphasize food safety and quality, ensuring a natural and authentic taste. Online stores provide easy access to these alcohol-free beverages, appealing to consumers seeking health, weight loss, and wellness benefits. Keywords: the market, tea farming, ecological processes, biodiversity, sustainable agricultural practices, natural ingredient, clean label foods, pesticide-free commodities, food safety, quality, taste, alcohol-free, licorice, apple, cinnamon, star anise, dandelion, chamomile, ginger, turmeric, blends, Tulsi Detox, Peppermint Refresh, Moringa hibiscus, Simply Chamomile, cognitive health, tea bags, loose leaves, obesity, overweight issues, synthetic chemicals, Soothing Sleep, Sea Berry Tea, Gut Goodness Tea, online store, health, weight loss, wellness, dietary supplements, cherry, hibiscus, orange detox, tropical turmeric, chamomile lavender.

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The Green segment was valued at USD 1530.20 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 38% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regio

The North America RTD Tea Market size was valued at USD 27350 Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 1.50 % during the forecast periods. Consumer demand for convenient and health-oriented beverages has been rapidly driving the North American Ready-to-Drink tea market. The broad market for ready-to-drink black, green, and herbal teas includes flavored and functional-added teas in multiple applications, from refreshment to health benefits. The paper considers types that can be categorized as standard, premium, and health-focused—all improved by better brewing technology combined with advanced packaging technology. Boosts the beverage industry by health trends. Convenience and good taste variations make it appealing to a wide range of consumer preferences, thereby increasing competitive forces in this sector of the North American beverage market. Recent developments include: January 2023: Milo's Tea Company has announced an initial investment of over USD 130 million to construct a new plant and distribution centre in Spartanburg County, South Carolina. This new investment is a direct response to the growth of Milo's brand. Milo expects to start producing its famous tea and lemonade in the fall of 2024.January 2023: Lipton Tea has announced a new partnership with Full Cart, a program within nonprofit U.S. Hunger, and a virtual food pantry to make heart-friendly nutrition and grocery assistance more accessible.December 2022: Pure Leaf rolled out a limited-edition Merry Mint Iced Tea, coinciding with the release of the Christmas movie 'Christmas Class Reunion'. This mint-flavored iced tea was simultaneously launched through a social media giveaway, enhancing the movie-watching experience for consumers.. Key drivers for this market are: Increasing demand for meat alternatives. Potential restraints include: Presence of numerous alternatives in the plant proteins. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2024, exports of tea in Northern America skyrocketed to X tons, picking up by X% on 2023 figures. In general, exports showed a slight increase. Over the period under review, the exports reached the peak figure at X tons in 2017; however, from 2018 to 2024, the exports remained at a lower figure.