Iced Tea Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Black Iced Tea, Green Iced Tea, Herbal Iced Tea, Others), By Form (Powder/Premix, Liquid/Ready-to-Drink), By Packaging Type (Bottles, Pouches, Cans, Tetra Packs), By Sales Channel (Supermarket/Hypermarket, Convenience Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.39 Billion
CAGR (2026-2031)	3.27%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 23.52 Billion

Market Overview

The Global Iced Tea Market will grow from USD 19.39 Billion in 2025 to USD 23.52 Billion by 2031 at a 3.27% CAGR. The Global Iced Tea Market comprises chilled beverages derived from brewed tea leaves, distributed in ready-to-drink formats, powders, and commercial mixes. The market is fundamentally driven by a widespread consumer shift away from high-calorie carbonated soft drinks toward healthier hydration alternatives, alongside a rising demand for convenient, on-the-go packaging solutions in urban environments. These core drivers foster sustainable expansion distinct from transient product innovations, establishing the category as a staple within the broader non-alcoholic beverage industry.

However, the market confronts a significant challenge regarding seasonality, as consumption volumes typically fluctuate with weather patterns, potentially impeding consistent revenue growth during colder months. Illustrating the category's dominance in major consumption regions, according to the Tea Association of the U.S.A., in 2025, approximately 75% to 80% of tea consumed in the United States was prepared as iced tea. This statistic underscores the critical role of cold tea formats in maintaining overall category volume in key international markets.

Key Market Drivers

Rising consumer preference for healthier beverage alternatives is fundamentally reshaping the Global Iced Tea Market as individuals increasingly prioritize immune support, stress relief, and lower sugar intake over traditional carbonated soft drinks. This shift has compelled manufacturers to reformulate products with functional ingredients like adaptogens and botanicals, positioning iced tea as a wellness-centric hydration option rather than merely a recreational refreshment. The industry is responding aggressively to this sentiment; according to World Tea News, June 2025, in the '2025 State of the Tea Industry Survey', 25.1% of industry respondents identified functional and wellness teas as the single biggest consumer trend impacting their sales strategies. This focus on health attributes has successfully sustained category relevance, with retailers expanding shelf space for refrigerated variants that consumers perceive as fresher and more natural. Highlighting this segment's specific success, according to Beverage Industry, July 2025, in the '2025 State of the Beverage Industry' report, dollar sales for refrigerated teas increased by 5.1% over the preceding year.

Growing demand for convenient ready-to-drink formats serves as the second major catalyst, driven by rapid urbanization and the fast-paced lifestyles of modern professionals who require on-the-go hydration without preparation time. This driver has pushed major beverage conglomerates to innovate within their ready-to-drink portfolios, ensuring that premium tea experiences are accessible in portable, durable packaging suitable for vending and convenience channels. The efficacy of this format strategy is evident in the performance of leading global brands. According to The Coca-Cola Company, October 2025, in the 'Third Quarter 2025 Results', the Fuze Tea brand grew its retail value five times the industry average year-to-date, demonstrating the immense commercial potential of accessible, pre-packaged tea solutions. By combining ease of consumption with the premiumization of flavors, the ready-to-drink sector continues to capture market share from other non-alcoholic beverage categories.

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Key Market Challenges

Seasonality presents a formidable barrier to the sustainable development of the Global Iced Tea Market by introducing severe revenue volatility. This dependence on favorable weather conditions hampers consistent growth, as consumption volumes are disproportionately concentrated in the warmer months. Consequently, manufacturers face a "boom and bust" cycle where cash flow is irregular, making it difficult to maintain year-round operational efficiency or invest in long-term expansion. A single season of adverse weather, such as an unseasonably cool or rainy summer, can drastically reduce annual sales performance, creating a financial vulnerability that product innovation alone cannot offset.

This instability is further compounded by the logistical challenge of managing inventory for a market with such sharp peaks and troughs. The pressure to maximize sales during the limited high-demand window forces companies to commit to substantial production volumes without guaranteed sell-through, often leading to warehousing inefficiencies. The scale of this financial risk is significant when considering the value of key markets. According to the Tea Association of the U.S.A., the ready-to-drink tea sector in the United States was projected to reach an estimated revenue of $9.3 billion in 2025, a valuation that remains heavily contingent on these critical seasonal consumption periods. Without a more balanced demand curve, the industry struggles to convert this massive market potential into reliable, linear growth.

Key Market Trends

The Global Iced Tea Market is witnessing a rapid expansion of the Growth of Hard Iced Tea and Alcoholic Kombucha Segments, driven by a consumer migration from traditional beers and hard seltzers toward flavor-forward, spirits-based alternatives. This trend represents a significant premiumization of the category, where manufacturers are launching vodka-infused teas and botanical alcoholic blends that offer a perceived upgrade in quality compared to malt-based predecessors. The explosive trajectory of this segment is highlighted by the performance of market innovators; according to Food Dive, March 2025, in the 'Surfside rides wave of success with spirits-forward cocktails' article, the Surfside brand sold 4.9 million cases to retailers in 2024, experiencing a 378% growth compared to the previous year. This surge confirms that alcoholic tea variants have become a primary revenue engine, distinct from non-alcoholic hydration trends.

Simultaneously, the Adoption of Cold Brew and Nitro-Infused Processing Technology is redefining product texture and flavor delivery, moving beyond simple refreshment to offer a craft-beverage experience. By utilizing prolonged cold-water extraction and nitrogen gas infusion, producers are eliminating the astringency and bitterness associated with heat-brewed teas, resulting in a naturally sweeter, creamier mouthfeel that appeals to artisanal preferences. This technological shift is gaining substantial traction in premium retail channels; according to Tea Journey, June 2025, in the 'Iced Tea Rises as a Functional Standout in the Wellness Beverage Movement' report, revenue from refrigerated and cold-brewed tea and coffee in natural and specialty grocers reached $1.3 billion for the 12 months ending November 2024. These advanced processing methods allow brands to differentiate their portfolios in a crowded marketplace.

Segmental Insights

The Online segment is identified as the fastest-growing category in the Global Iced Tea Market, driven by the increasing reliability of e-commerce logistics and shifting shopper preferences. Digital platforms provide consumers with access to a wider inventory of premium and functional tea variants that often face space limitations in physical retail outlets. Furthermore, the expansion of direct-to-consumer distribution models allows brands to offer subscription services and bulk delivery options, enhancing customer retention. This rapid digital adoption signifies a fundamental change in retail dynamics, prioritizing convenience and product accessibility for a global audience.

Regional Insights

North America holds a dominant position in the global iced tea market due to a marked consumer shift from carbonated soft drinks to healthier ready-to-drink alternatives. This transition is supported by product innovations from key industry players focusing on natural ingredients and sugar reduction. Furthermore, strict labeling guidelines enforced by the U.S. Food and Drug Administration ensure transparency regarding nutritional content, fostering consumer trust in unsweetened and functional tea varieties. Consequently, the widespread availability of diverse tea blends through established retail channels solidifies the region's market leadership.

Recent Developments

• In September 2025, AriZona Beverages collaborated with Mike’s Hot Honey to introduce a line of limited-edition spicy iced tea cocktails. This partnership reimagined the beverage company’s iconic flavors by infusing them with chili pepper-flavored honey to create a distinctive "sweet heat" profile. The new collection included Spicy Green Tea, Spicy Mucho Mango, and Spicy Watermelon, delivering a balance of refreshing fruitiness and a spicy kick. The collaboration represented a strategic move to push flavor boundaries and engage consumers with unexpected ingredient pairings, leveraging the independent spirits of both Brooklyn-born brands to drive excitement in the competitive ready-to-drink tea sector.
• In May 2025, The Coca-Cola Company launched Sprite + Tea, a cross-category beverage innovation that blended the crisp lemon-lime taste of Sprite with real iced tea flavors. Released in both regular and zero-sugar varieties across the United States and Canada, this limited-time offering was directly inspired by a viral social media trend where consumers steeped tea bags in the carbonated soft drink. The product was positioned to bridge the gap between sparkling soft drinks and the ready-to-drink tea market, catering to fans seeking unique, multisensorial refreshment experiences through a "category-crossing" strategic innovation.
• In August 2024, Lipton Hard Iced Tea broadened its alcoholic beverage offerings by introducing a new Citrus Green Tea flavor. This product launch capitalized on the significant growth within the hard tea segment, which had experienced a surge in sales over the preceding year. The new offering featured a 5% alcohol by volume formulation derived from a triple-filtered malt base and real brewed green tea. Designed to provide a smooth, non-carbonated drinking experience, the Citrus Green Tea joined the brand’s existing portfolio of fruit-infused hard teas, targeting consumers seeking lighter, flavor-forward alternatives to traditional alcoholic malt beverages.
• In March 2024, the Pepsi Lipton Partnership expanded its premium ready-to-drink portfolio with the launch of Pure Leaf Zero Sugar Sweet Tea. The company developed this innovation to address a primary consumer barrier to sweet tea consumption: high sugar content. Brewed from freshly picked black tea leaves, the beverage was formulated to deliver the classic sweet tea taste consumers expect but with zero calories and zero grams of sugar. This strategic addition to the brand's lineup underscored a commitment to meeting evolving health-conscious preferences in the North American market while maintaining the authentic quality of real-brewed tea.

Key Market Players

• The Coca‑Cola Company
• Nestle S.A.
• Keurig Dr Pepper Inc
• PepsiCo, Inc.
• Asahi Group Holdings, Ltd
• Britvic Soft Drinks Limited
• Suntory Beverage & Food Limited
• Panama Foods
• Higer Health Sciences, LLP
• Amrut MR Kool Food Products Private Limited

By Type	By Form	By Packaging Type	By Sales Channel	By Region
Black Iced Tea Green Iced Tea Herbal Iced Tea Others	Powder/Premix Liquid/Ready-to-Drink	Bottles Pouches Cans Tetra Packs	Supermarket/Hypermarket Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Iced Tea Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Iced Tea Market, By Type:

• Black Iced Tea
• Green Iced Tea
• Herbal Iced Tea
• Others

• Iced Tea Market, By Form:

• Powder/Premix
• Liquid/Ready-to-Drink

• Iced Tea Market, By Packaging Type:

• Bottles
• Pouches
• Cans
• Tetra Packs

• Iced Tea Market, By Sales Channel:

• Supermarket/Hypermarket
• Convenience Stores
• Online
• Others

• Iced Tea Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE