Fact.MR, which offers actionable market insights, custom market analysis, and consulting services, recently released a report on the bottled tea market.
Bottled tea is the general name given to types of tea that are commercially sold as bottled drinks. In the food and beverage industry, bottled tea is known as ready-to-drink (RTD) tea. Bottled tea is offered in a variety of packaging, including cans, glass bottles, plastic bottles, and more.
The report forecasted the global bottled tea market to expand at a CAGR (compound annual growth rate) of 4.5% from 2023 to 2033. The market was valued at $50 billion in 2023 and is expected to reach $78 billion by the end of 2033.
Currently, North America makes up a 60% share of the global market. And according to the Tea Association of USA, bottled tea accounts for nearly 70% of tea consumption in North America.
Black tea currently has 60% of market share, driven by its strong flavor as well as its health properties of antioxidants and polyphenols.
Drivers of Bottled Tea Growth
The convenience factor of RTDs has helped to drive demand for bottled teas amidst an increasingly busy consumer base.
According to Fact.MR, the touted health benefits of bottled teas versus carbonated soft drinks is also driving the market. As a result, premium brands in the industry are introducing clean-label, tea-based formulations natural in origin and low in sugar.
The younger generation of millennials and gen Z are increasingly embracing bottled teas, which is also helping market growth. The functional ingredients in bottled teas are helping to drive demand as consumers look for antioxidants and other ingredients to reduce stress, increase hydration, and more.
Of the factors that could dampen tea's growth, price is a big one. In comparison to regular tea and coffee, RTD tea is more expensive.
Plan to Attend or Participate in World Tea Expo, March 18-20, 2024
To learn about other key developments, trends, issues, hot topics and products within the global tea community, plan to attend World Tea Expo, March 18-20, 2024 in Las Vegas, co-located with Bar & Restaurant Expo. Visit WorldTeaExpo.com.
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