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.

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 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 960 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 1.1 billion U.S. dollars.

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

The USA Bubble Tea Market is projected to reach USD 1,075.9 million in 2025, growing at a CAGR of 9.6% over the next decade to an estimated value of USD 2,691.6 million by 2035.

Attributes	Values
Estimated USA Industry Size in 2025 (USD Million)	USD 1,075.9 Million
Projected Global Value in 2035 (USD Million)	USD 2,691.6 Million
Value-based CAGR from 2025 to 2035	9.6%

US Bubble Tea Market Size and Forecast

US Bubble Tea Market size was valued at USD 542.6 Million in 2024 and is projected to reach USD 961.97 Million by 2031, growing at a CAGR of 7.42% from 2024 to 2031.

US Bubble Tea Market Drivers

Rising Popularity of Asian Cuisine: The increasing popularity of Asian cuisine, particularly among younger generations, has driven the demand for bubble tea, a popular Asian beverage.

Customization and Experiential Consumption: Bubble tea offers a high degree of customization, allowing consumers to choose their preferred tea base, flavorings, and toppings. This personalized experience attracts consumers and drives repeat business.

Social Media Influence: Social media platforms like Instagram and TikTok have played a significant role in popularizing bubble tea, with visually appealing drinks and trendy hashtags driving consumer interest.

US Bubble Tea Market Restraints

Seasonal Fluctuations: As a beverage typically associated with warm weather, bubble tea sales may fluctuate with seasonal changes, impacting overall market growth.

Price Sensitivity: The relatively higher price of bubble tea compared to traditional beverages may limit consumer purchasing power, especially among price-sensitive segments.

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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

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 1.8 billion U.S. dollars (+10.98 percent). After the ninth consecutive increasing year, the revenue, combined is estimated to reach 18.2 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.

Market Size statistics on the Tea Production industry in United States

During a survey from April to October 2024, about 53 percent of responding iced tea consumers in the United States stated that they drank AriZona in the past twelve months.If you want to compare brands, do deep-dives by survey items of your choice, filter by total online population or users of a certain brand, or drill down on your very own hand-tailored target groups, our Consumer Insights Brand KPI survey has you covered.

Global Tea Market is expected to reach a value of US$ 21.33 Bn, registering a CAGR of 5.0% over the forecast period due to various factors, on which PMR offers vital insights

Forecast: Mate and Tea Market Size Volume in the US 2022 - 2026 Discover more data with ReportLinker!

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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 Ready To Drink (RTD) tea market will probably reach USD 40,007.5 Million by 2025. Then, it may grow even more to USD 88,802.7 Million by 2035, with a yearly growth rate of 8.3%.

Metric	Value
Market Size (2025E)	USD 40,007.5 Million
Market Value (2035F)	USD 88,802.7 Million
CAGR (2025 to 2035)	8.3%

Country-wise Insights

Country	CAGR (2025 to 2035)
USA	8.5%

Country	CAGR (2025 to 2035)
UK	8.1%

Region	CAGR (2025 to 2035)
European Union (EU)	8.2%

Country	CAGR (2025 to 2035)
Japan	8.4%

Country	CAGR (2025 to 2035)
South Korea	8.3%

Ready to Drink (RTD) Tea Market - Segmentation Outlook

Product Type	Market Share (2025)
Black Tea	42.6%

Sales Channel	Market Share (2025)
Indirect Sales	68.9%

Competitive Outlook: Ready-To-Drink (RTD) Tea Market

Company Name	Estimated Market Share (%)
The Coca-Cola Company (Honest Tea, Fuze Tea)	20-24%
Nestlé S.A. (Nestea)	16-20%
PepsiCo, Inc. (Lipton, Pure Leaf)	14-18%
AriZona Beverages USA	10-14%
Suntory Beverage & Food Limited	8-12%
Other Companies (combined)	30-40%

According to Cognitive Market Research, the global High-End Tea market size will be USD 126841.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 12.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 50736.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 38052.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 29173.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 6342.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 2536.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2031.
The Green Tea Type held the highest High-End Tea market revenue share in 2024.

Market Dynamics of High-End Tea Market

Key Drivers for High-End Tea Market

Growing Health Consciousness to Increase the Demand Globally

The tea market is experiencing a notable rise in demand due to increasing awareness of the health benefits associated with tea consumption, particularly green tea and herbal infusions. Consumers are increasingly choosing tea varieties known for their medicinal properties and antioxidants. In 2021, Americans consumed nearly 85 billion servings of tea, equivalent to over 3.9 billion gallons. Black tea accounted for 84% of total consumption, while green tea made up 15%, with oolong, white, and dark teas comprising the remainder. U.S. imports of black and green tea in 2021 are estimated at 240 million pounds, marking a 6% increase from 2020. According to the Tea Board of India, green tea production in India has steadily risen, reaching approximately 150 million kilograms in recent years. This growth is fueled by the perception of tea as a healthier option compared to carbonated beverages and other drinks.

Foodservice and Hospitality Sector to Propel Market Growth

The food service and hospitality industries offer a lucrative market for high-end teas, including premium blends and specialty beverages. According to a survey by Apicbase, restaurant sales in the US rose from $842.3 million in 2021 to $974.9 million in 2022, reaching $1,087 million in 2023. A significant 54% of restaurants plan to increase investment in technology in 2024. Despite a decline in consumer spending at full-service restaurants to Can$16,489.6 million in 2020 and Can$21,157.7 million in 2021 due to the pandemic, spending rebounded to Can$25,913.7 million in 2022, surpassing the pre-pandemic 2019 level of Can$25,812.1 million. Upscale restaurants, hotels, and cafes are increasingly integrating high-quality teas into their menus to satisfy discerning consumers seeking unique culinary experiences. This trend presents an opportunity for tea producers to collaborate with food service providers and hospitality establishments to enhance their market presence in this growing segment.

Restraint Factor for the High-End Tea Market

Challenges in Sustainability and Quality Maintenance to Limit the Sales

Despite its prominent position in the global tea market, tea production confronts challenges concerning sustainability and maintaining consistent quality standards. Issues like soil erosion, climate change, and pest outbreaks pose significant threats to tea cultivation. Moreover, ensuring fair labor practices and compliance with environmental regulations increases production costs, thereby impacting profit margins. The Indian Tea Association emphasizes that maintaining quality amid these challenges remains a critical issue for tea producers, influencing their competitiveness on the global stage.

Impact of Covid-19 on the High End Tea Market

During lockdowns and periods of uncertainty, consumers turned to comforting and health-enhancing beverages, including high-end teas known for their health benefits. This shift in consumer preference towards wellness-oriented products boosted demand for premium teas. With restrictions on physical retail outlets, there was a signi...

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

Recent developments include: In December 2023, Chinese bubble tea company Heytea entered United States market by opening their first store in the country. In this newly opened store, they have sixteen different beverages available for buyers, including fruit-made tea and milk tea. , In December 2023, The Coffee Bean & Tea Leaf added Ceylon Milk Tea with Brown Sugar Boba to its menu in nine different stores on trial basis across Southern California and Arizona to address the growing demand for the product. .

Expert industry market research on the Bubble Tea Shops in the US (2005-2030). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

Forecast: Mate and Tea Market Size Volume Per Capita in the US 2022 - 2026 Discover more data with ReportLinker!

The United States Tea market is expected to grow with more than 6% CAGR from 2023 to 2028, due to growing health conscious consumers.