The global sparkling tea market grew from an estimated US$3.7B in 2021 to US$5.0B in 2025, a historical CAGR of approximately 8%, as consumers increasingly sought low-sugar, functionally positioned alternatives to conventional carbonated soft drinks. By product type, classic ready-to-drink sparkling tea leads at 46% share, while functional and fortified sparkling tea is the fastest-growing category at approximately 9.0% CAGR. By tea type, green tea leads at 40% share while herbal and botanical tea blends are the fastest-growing category at approximately 9.2% CAGR. By packaging, cans are both the largest format at 54% share and the fastest-growing at approximately 7.5% CAGR, reflecting strong retailer and consumer preference for convenient, recyclable single-serve formats.
Growth is underpinned by rising demand for low-sugar and functional beverages, growing consumer interest in sophisticated non-alcoholic and low-alcohol social occasions, expansion of specialty and e-commerce grocery channels, and increasing café-chain and hospitality adoption of premium tea-based carbonation. Key trends reshaping the industry include clean-label and organic formulation growth, botanical and adaptogenic ingredient innovation, premiumization of packaging and branding, and rising direct-to-consumer distribution. The market’s principal challenges include competitive pressure from conventional soft drinks, sparkling water and kombucha, premium input and packaging costs, formulation complexity in balancing carbonation with tea extract stability, and the need for continued consumer education around the category.
The competitive landscape spans dedicated sparkling tea specialists such as Copenhagen Sparkling Tea Company, SOUND Beverage Company, Saicho Drinks and Minna, alongside established tea houses including Rishi Tea & Botanicals and The Republic of Tea, and diversified regional beverage manufacturers such as Ito En and Vitasoy International Holdings, with competitive intensity centered on brand differentiation, ingredient sourcing, retail listings and hospitality partnerships. Looking ahead, the global sparkling tea market enters 2026 as a structurally growing category: health-conscious consumption, premiumization and continued retail and foodservice expansion are together expected to sustain demand for sparkling tea formats through 2030.
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Companies Mentioned
- Copenhagen Sparkling Tea Company
- SOUND Beverage Company
- Saicho Drinks
- Minna (New Berlin Beverage Company)
- Rishi Tea & Botanicals
- The Republic of Tea
- Ito En, Ltd.
- Vitasoy International Holdings

