Fact.MR, a market intelligence company, has been tracking the ice tea market for some time, and it says the market grew at a rate of 5.4 percent, primarily due to the global demand for bottled ice tea. Changing consumer preferences for quick and ready-to-make beverages has augmented the sales of ice tea across all regions.
Over the coming years, extensive demand for ice tea is expected with the arrival of trendy and flashy flavors, according to Fact.MR. Also, reduced sugar and health-beneficial unsweetened ice tea is expected to go mainstream and is predicted to drive the market over the coming years. The industry is also witnessing high growth in demand for herbal tea and green tea, according to the company.
Overall, the global ice tea market is projected to expand at a healthy CAGR of more than 7 percent through 2030.
Key Takeaways from Fact.MR on the Ice Tea Market Include:
• The global ice tea market is anticipated to add 2x value by 2030.
• Bottled ice tea is predicted to grow at a sturdy rate of more than 6 percent CAGR.
• East Asia is the transcendent market with a value of US$33.3 billion in 2019, and is set to balloon at a vigorous CAGR of 7.2 per during the forecast period.
• Organic ice tea is set to observe a brisk growth rate, while conventional ice tea is projected to add 2x its value through 2030.
• Regions such as Latin America and the Middle East & Africa are projected to witness a surge at CAGRs of 8.6 percent and 8.8 percent, respectively.
• By sales channel, online retailers are leading among all globally, in terms of growth rate, and they’re expected to progress at a high CAGR of more than 9 percent through 2030, while brick-and-mortar stores are expected to follow next at a handsome CAGR of 7.5 percent.
• An important market, China, is projected to expand at a CAGR of 7.6 percent, while India is set to race ahead at 9.3 percent.
• The U.S. ice tea market is expected to expand at a CAGR of more than 7 percent through 2030.
• Targeted mergers and acquisitions of trending companies in the ice tea market is a key strategy being adopted by many market players, according to Fact.MR researchers.
North America is a transcendent region, per the firm, thanks to a constantly increasing demand for ice tea. The United States consumes around 85 percent of its tea in ice form, according to the company. Asian countries such as China, Japan and India are also expected to witness whopping growth due to considerable increase in population, rising per capita income of the populace, and health-conscious consumers looking for sugar-free beverages that are low in caffeine content and rich in minerals. Europeans are generally considered hot tea drinkers, but a horde of flavor offerings are changing consumer needs have helped the market grow steadily.
Key players such as Nestle Inc. and Coca Cola are pivoting their focus on mergers and acquisitions to gain significant market dominance. Coca Cola has completed the acquisition of Costa Coffee, and it acquired full ownership of CHI limited to distribute its ice teas in West Africa, which will help the company gain significant market share in the region. Similarly, Unilever has decided to sell its stake in a joint venture with Pepsi in Lipton Ice Tea in other geographic regions, except the Indian and Indonesian markets, which was part of its strategic divestiture plan announced in 2020.
These insights are based on a report on the ice tea market by Fact.MR. To learn more, visit FactMR.com.