The Iced Tea Market is estimated to be valued at US$ 6,490.4 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Iced tea refers to cold tea that is prepared and served over ice. It is flavored with tea extracts or cold tea concentrate. It is available in both flavored and unflavored variants and finds widespread application owing to its refreshing taste when served chilled. The market is thriving due to rising awareness regarding the benefits of tea consumption such as antioxidant properties and other health advantages.
Market key trends:
One of the key trends spurring growth of the iced tea market is rising demand for healthy beverages. Consumers are increasingly focusing on a healthier lifestyle and avoiding carbonated drinks and sugary juices. Iced tea, being naturally low in calories and rich in antioxidants if prepared with green or black tea, is seen as a healthier alternative. Moreover, product innovations in the form of herbal iced teas infused with natural flavors and additional nutritional benefits is further boosting popularity of these beverages. Manufacturers are introducing new flavors and combinations to meet evolving consumer needs as well as leverage opportunities presented by rising health-consciousness. This is expected to continue driving market expansion over the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market requires large scale capital investment and strong brand establishment. However, private label brands pose a threat.
Bargaining power of buyers: The bargaining power of buyers is high as iced tea market has many established brands and consumers can easily switch between brands.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials required for iced tea production such as tea leaves and sugars are commodity products.
Threat of new substitutes: The threat of new substitutes is high as fruit juices, soft drinks and other beverages compete for consumers' preference.
Competitive rivalry: Intense competition exists between established brands.
SWOT Analysis
Strength: Iced tea has wide consumer base and is consumed globally. Brand recognition and loyalty for market leaders.
Weakness: Seasonal demand. High marketing and promotion costs to increase market share.
Opportunity: Growth in away-from-home consumption channels. Innovative product launches to attract health-conscious consumers.
Threats: Stringent regulations on sugar content. Increased health awareness may impact sales.
Key Takeaways
The Global Iced Tea Market Size is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing consumption of ready-to-drink beverages and on-the-go lifestyles. North America currently dominates the market owing to high per capita consumption in the US.
Regional analysis Asian countries are the fastest growing markets for iced tea due to rising incomes, urbanization and hot weather conditions favorable for chilled beverages consumption. China has emerged as a highly lucrative market, supported by growing western influences.
Key players operating in the iced tea market are Arizona Beverages USA, The Coca-Cola Company, Unilever, PepsiCo, Inc., and Nestle SA. These companies are focusing on product development, innovations and expansion into emerging markets to strengthen their global presence.
For More Insights, Read: https://www.newswirestats.com/iced-tea-market-demand-growth-and-regional-outlook-by-2030/
