Australia Iced Tea Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2025-2034)

The Australia Iced Tea Market was valued at AUD 790.55 Million in 2025, and is projected to reach AUD 1.26 Billion by 2034, rising at a CAGR of 4.84%.

The health benefits of Iced tea are opening up Australia iced tea market opportunities. Iced tea may be a sweetened or unsweetened drink containing numerous antioxidants that provide health benefits such as supporting the immune system, reducing inflammation, and helping with weight loss. It can be served in various flavours such as lemon, orange, passion fruit and peach.

Imports of coffee, tea, mate, and spices in Australia increased from USD 772,298,815 in 2021 to USD 949,301,882 in 2022 indicating the growth in Australia iced tea market.

The Australia iced tea market is growing with rising demand for on-the-go drinks with new flavours and an increase in the innovation of product ranges and sustainable packaging.

Addition of new flavours

Consumer awareness of healthy lifestyles prompts companies to introduce new iced tea flavors sourced organically, like No Ordinary Ice Tea's vitamin-enriched beverages, fueling Australia's iced tea market.

Sustainable Packaging

Brands like The Tea Centre are embracing sustainability by introducing 100% biodegradable, plant-based packaging for their tea bags, eliminating plastic.

Innovation in product ranges

Innovative product ranges drive developments in the Australia iced tea market. Origin Tea's iced tea syrup range offers convenience for cafe drinks.

On-the-go drinks

The Australia iced tea market size is propelled by the rapid lifestyles of consumers, leading to a notable surge in ready-to-drink options for convenience.

May 2023: Pepsi Lipton International launched T2 iced, a new range of ready-to-drink iced tea with three flavours that are low in sugar.

May 2023: No ordinary Ice Tea (NOIT) was launched in Australian supermarkets that are low in sugar and naturally flavoured.

April 2023: Origin Tea - an Australian tea company has launched a new range of sparkling iced tea across Woolworths stores comprising two flavours Tropical Kiss and Sneaky Peach.

February 2023: Lipton Iced Tea organised a creator-led campaign in partnership with Billon Dollar Boy, an influencer agency and invited TikTok star, Matt Storer to create brand awareness and free samples are distributed to people.

Australia Iced Tea Market Trends

The Australia iced tea market growth is attributed to brands crafting various flavour ranges that are naturally sourced and organic which provide benefits to individuals to combat health problems. Iced tea works as a healthier alternative for working professionals in a fast-paced lifestyle as this is convenient and portable for consumption.

As per the Australia iced tea market report, companies such as, Eat the Change, have launched an organic iced tea range named Just Iced Tea with new flavours. Companies have adopted sustainable packaging solutions which are 100% plant-based and plastic-free.

This report offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Black
• Green
• Herbal
• Others

Market Breakup by Form

• Powder/Premix
• Liquid/Ready-to-drink
• Concentrates

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Iced Tea Market Share

Based on product type, herbal tea has driven Australia iced tea market, as these are organic and naturally sourced from plants.

Herbal teas are generally loose leaves of different flavours that are infused in water to create a mix, they provide added benefits such as strengthening of immune system and are also lower in caffeine. Consumption of black iced tea gives a relaxing effect, reduces blood pressure, and supports heart health which eventually drives the Australia iced tea market.

Based on form, Australia iced tea market share is led by liquid and ready-to-drink iced tea.

Ready-to-drink iced tea is convenient and is considered a healthy alternative to sugary beverages and carbonated drinks. Vegan-friendly and naturally made ready-to-drink iced tea is created to provide individuals with a healthy lifestyle. Powder/premixes and concentrates are infused with water to create an iced tea.

Based on the distribution channel, online stores are driving the Australia iced tea market growth.

Online stores are convenient for individuals as they provide a seamless shopping experience allowing them to explore various ranges of iced teas from different brands providing a wide range of flavours and price options.

However, offline platforms such as supermarkets, hypermarkets, and convenience stores are still estimated to constitute a significant portion of the market.

Other Australia iced tea market key players are Iced Tea Co., The Tea Hut, and Ito En Australia Pty Ltd, among others.

Australia Iced Tea Market Analysis by Region

New South Wales, particularly Sydney, is a major consumer hub for iced tea, driven by its diverse population and vibrant café culture. The urban lifestyle and high disposable income contribute to a strong demand for premium and ready-to-drink iced tea options. Health-conscious consumers in NSW are increasingly opting for iced teas with natural ingredients, lower sugar content, and functional benefits, such as antioxidants and vitamins. The market in this region is characterized by a competitive landscape with both international brands and local artisanal producers vying for market share.