by Iced tea is a lightly sweetened and often flavored cold beverage made from loose tea leaves. It is increasingly gaining popularity as an alternative to carbonated sod drinks and fruit juices. Iced tea contains antioxidants from tea leaves and less sugar compared to other drinks. It comes in various fruit flavors like lemon, peach, mango etc catering to evolving tastes. Consumers are more health conscious now and prefer refreshing beverages with functional benefits. The ability of iced tea to keep the body hydrated in summer makes it a popular choice.
The global Iced Tea Market is estimated to be valued at Us$ 6490.4 Mn in 2023 and is expected to exhibit a CAGR Of 2.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the iced tea market is the rising demand for organic and natural varieties. Consumers are increasingly preferring beverages made from organic and natural ingredients due to rising health awareness. Many players have launched organic iced tea made from naturally sweetened flavors and certified organic tea leaves to attract such health conscious consumers. Another trend gaining traction is the availability of functional iced tea infused with superfoods and herbs that provide additional health benefits like immunity, digestion etc. Players are coming up with innovative blends of tea, fruits and herbs to offer varied functional properties which is finding favor among consumers and driving the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. The iced tea market is a fragmented market with a low set up cost and minimal technical knowledge required to produce iced tea. However, established market players hold strong brand positioning and distribution channels limiting threat from new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate. Large retailers hold bargaining power over suppliers due to their sizeable purchase volumes. However, suppliers can also bargain by differentiating their products through unique flavors and ingredients.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate due to the availability of substitute ingredients. However, raw materials such as tea leaves, natural flavors are essential for iced tea production and suppliers producing specialty ingredients hold bargaining power.
Threat of new substitutes: The threat of new substitutes is moderate as cold coffees, juices, carbonated drinks, and other beverages are alternatives to consumption occasions of iced tea. However, iced tea offers a unique experience of simplicity and flavors elevating the threat moderately.
Competitive rivalry: The competitive rivalry is intense given the fragmented nature of players. Companies compete on attributes like taste, variety, distribution networks, and pricing to gain market share.
Key Takeaways
The Global Iced Tea Market Demand is expected to witness high growth over the forecast period driven by rising health awareness and affinity for various flavors among consumers.
Regional analysis-
North America is the second largest and a well-established market for iced tea given its popularity as a refreshment drink. Changing consumer preferences towards ready-to-drink health drinks is propelling market growth in the region. Growth will remain steady supported by product innovation focusing on natural flavors and ingredients in the US and Canada.
Key players-
Key players operating in the iced tea market are Adelaide Brighton Ltd, Boral Ltd., Sibelco Australia, Omya Australia Pty Ltd, Wagners, and Lime Group Australia. These established players compete on attributes such as wider distribution, new product flavors, and effective promotional activities to gain market share. Players are investing in branding activities and foraying into e-commerce channels for sales.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
