U.S. RTD Organic Tea Market Share, Strategies and Forecasts 2028

U.S. RTD Organic Tea Industry Overview

The U.S. RTD organic tea market size is anticipated to reach USD 3.09 billion by 2028, registering a CAGR of 4.4% over the forecast period, according to a new report by Grand View Research, Inc. The growing demand for ready-to-drink (RTD) beverages, owing to consumers’ busy lifestyles and hectic work schedules, is driving the growth of this market. This trend has grown significantly in the U.S. over the past few years, despite – and in many ways because of – the COVID-19 pandemic as consumers are focusing on living a more active lifestyle, which also includes spending more time outdoors. Moreover, the growing number of working individuals is anticipated to drive the demand for convenient RTD beverages, including organic tea.

U.S. RTD organic tea market size, by type, 2018 - 2028 (USD Billion)

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:

Based on the Type Insights, the market is segmented into Black, Green, Herbal, Others.

  • The black RTD organic tea segment accounted for the largest revenue share of 38.6% in 2020. It is one of the most commonly consumed bottled tea in the U.S. The popularity of the product is fueled by new research into the possible health benefits and the growing demand for convenient products. It has a high concentration of antioxidants and polyphenols that help in reducing blood pressure, risk of diabetes, rheumatoid arthritis, and Parkinson’s disease. Furthermore, it might help in decreasing the development of cancer cells in the body, awareness of such benefits among people is expected to boost the segment growth.
  • The green RTD organic tea segment is expected to register the fastest CAGR of 4.7% during the forecast period. It has been recognized as a significant source of catechins. Studies have demonstrated that catechins can help in preventing Cardiovascular Diseases (CVDs) and cancer. Furthermore, various research-based backing of green tea benefits is expected to favor the product demand. For instance, a study from MDPI in the year 2019, proved that the bioactive compounds of green tea can be helpful in the prevention and treatment of CVDs. Several players operating in this market are introducing products in various flavors, such as jasmine, rose, and orange, for improved consumer experience.

Based on the Distribution Channel Insights, the market is segmented into Supermarkets/Hypermarkets, Convenience Stores, and Online.

  • The supermarkets/hypermarkets segment held the largest revenue share of 45.5% in 2020. Among the multiple retail outlets available, supermarkets/hypermarkets are favored in the U.S. because they have a wide variety of RTD teas from multiple brands, which is expected to fuel the segment growth. Most consumers prefer buying products after physically examining the product quality.
  • The online distribution channel segment is expected to witness the fastest CAGR over the forecast period. The shift in consumer shopping behavior and increased penetration of technology and smartphones are major factors driving product sales through online distribution channels.

U.S. RTD Organic Tea Regional Outlook

  • Southeast
  • Northeast
  • Midwest
  • West
  • Southwest

Key Companies Profile & Market Share Insights

The market is fragmented with the presence of several local and international players. Manufacturers in the market are increasingly focusing on product & packaging innovation, labeling, and marketing campaigns as these factors play a vital role in the overall image of the brand and its products. Established players have been expanding their product portfolios by incorporating new and innovative beverages to extend their consumer base.

Some of the prominent players operating in the U.S. RTD organic tea market include,

  • 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

Order a free sample PDF of the U.S. RTD Organic Tea Market Intelligence Study, published by Grand View Research.

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