Bottled Iced Tea Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Bottled Iced Tea Market is projected to expand from USD 16.15 Billion in 2025 to USD 25.36 Billion by 2031, reflecting a compound annual growth rate of 7.81%. This market consists of ready-to-consume tea beverages sold in sealed packaging, with growth largely fueled by increasing consumer preference for convenient hydration options and a broader transition from carbonated soft drinks to healthier, functional alternatives. This upward trajectory is supported by the premiumization of the sector, particularly through products incorporating organic ingredients and botanical infusions. Highlighting the sector's economic robustness, the Tea Association of the U.S.A. reported that canned and bottled tea sales reached approximately 4.6 billion dollars in the United States in 2024, confirming the enduring popularity of convenient tea formats in major retail markets.

However, the industry faces a substantial hurdle in the form of raw material cost volatility resulting from the effects of climate change on global tea cultivation. Erratic weather conditions have diminished crop yields, causing instability within the supply chain and driving up expenses for producers. Consequently, manufacturers struggle to sustain competitive retail prices while absorbing these escalating input costs, a dynamic that jeopardizes volume growth in regions sensitive to price fluctuations.

Market Drivers

A primary factor reshaping the market is the surging consumer demand for healthier hydration options as individuals increasingly abandon high-sugar carbonated soft drinks. This shift is prompting manufacturers to reformulate their offerings by incorporating functional ingredients and lowering sugar content to satisfy wellness-focused lifestyles. Brands are capitalizing on this movement by launching unsweetened and botanical variants that provide the antioxidant advantages of tea without the high calorie count of conventional sodas. As noted in the 'The Evolving Landscape of RTD Tea in the US' article in the January 2025 issue of Tea & Coffee Trade Journal, ready-to-drink tea products with no or low sugar claims saw an 8.4 percent growth in 2024. Furthermore, The Coca-Cola Company reported a 2 percent growth in its water, sports, coffee, and tea segment in 2025, illustrating the comparative resilience of these functional categories against sugary beverages.

The growth of the ready-to-drink (RTD) convenience sector is also a major catalyst, driven by the need to cater to on-the-go consumption patterns. Retailers are enhancing cold-chain logistics to ensure the availability of premium, immediate-consumption formats that attract busy professionals and students looking for quality beverages away from home. Placing these products in high-traffic areas like convenience stores and supermarkets is essential for volume growth, as it secures impulse purchases often missed by multi-serve options. According to the '2024 State of the Industry' report by Beverage Industry in July 2024, the refrigerated tea segment generated 1.6 billion dollars in sales for the year ending May 19, underscoring the strong performance of accessible, chilled formats despite raw material price fluctuations.

Market Challenges

The expansion of the global bottled iced tea sector is significantly hampered by the volatility of raw material costs driven by climate change. Unpredictable weather patterns are disrupting traditional agricultural cycles and directly reducing tea leaf yields in key cultivation areas. This decline leads to supply chain instability and increased procurement costs for beverage manufacturers. With the availability of raw materials becoming increasingly uncertain, companies encounter heightened operational pressure to obtain high-quality ingredients without sacrificing profit margins, making consistent financial planning difficult.

This rise in costs restricts manufacturers' capacity to keep retail prices competitive. When producers are compelled to transfer these increased input costs to buyers, it suppresses demand in price-sensitive markets where affordability heavily influences purchasing decisions. The consequences of environmental stress on supply are clearly reflected in recent production data. For instance, the Indian Tea Association reported that tea production in the Assam region fell by roughly 15 percent during the early 2024 harvesting period due to intense heatwaves and lack of rainfall. Such shortages limit volume expansion and hinder market penetration in developing economies.

Market Trends

The rise of carbonated and sparkling ready-to-drink tea varieties is establishing a sophisticated beverage category that competes directly with standard soft drinks and alcoholic beverages. Producers are utilizing fermentation and carbonation techniques to create complex, champagne-like flavor profiles that attract adults looking for premium choices during social events. This development aligns with the expanding "sober curious" trend, where consumers seek celebratory drinks devoid of alcohol's negative impacts, effectively broadening tea consumption into dining and evening settings. Highlighting this shift, The Guardian's January 2025 article, 'Sparkling tea sales soar as Britons seek healthy options for festive fizz,' noted that the drinks company Real saw sales of its sparkling tea rise by 72 percent at Ocado and 60 percent at Waitrose compared to 2023 levels, demonstrating the rapid market acceptance of fizzy teas.

Concurrently, the widespread implementation of sustainable rPET (recycled polyethylene terephthalate) and aseptic packaging is reshaping production standards as companies aim to meet circular economy objectives. Leading tea brands are actively switching from virgin plastic to recycled materials to lower their environmental impact and adhere to increasingly strict global plastic regulations. This operational transition requires substantial investment in supply chain infrastructure to obtain high-quality food-grade recycled resins, thereby separating business growth from fossil fuel reliance. As stated in Suntory Beverage & Food Europe's '2024 Sustainability Report' from June 2025, the company raised its use of recycled plastic to 47 percent in 2024, up from 44 percent the prior year, illustrating how top manufacturers are focusing on packaging innovation to uphold brand equity and satisfy consumer demands for environmental stewardship.

Key Players Profiled in the Bottled Iced Tea Market

• Unilever PLC
• Crystal Geyser Water Company
• AriZona Beverages USA, LLC
• Nestle S.A.
• Starbucks Corporation
• Uni-President China Holdings Ltd.
• Hangzhou Wahaha Group Co., Ltd.
• VDF Futureceuticals, Inc.
• The Coca-Cola Company
• Suntory Holdings Ltd.

Report Scope

In this report, the Global Bottled Iced Tea Market has been segmented into the following categories:

Bottled Iced Tea Market, by Product Type:

• Black Tea
• Green Tea
• White Tea
• Oolong Tea
• Fruit Tea

Bottled Iced Tea Market, by End User:

• Residential
• HoReCa

Bottled Iced Tea Market, by Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Departmental Stores
• Online Stores
• Others (Direct Sales
• Distributor & Dealer Sales etc.)

Bottled Iced Tea Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Bottled Iced Tea Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.