U.S. RTD Organic Tea Market Growth & Trends

The U.S. RTD organic tea market size is anticipated to reach USD 3.09 billion by 2028, registering a CAGR of 4.4% over the forecast period, according to a new report by Grand View Research, Inc. The growing demand for ready-to-drink (RTD) beverages, owing to consumers’ busy lifestyles and hectic work schedules, is driving the growth of this market. This trend has grown significantly in the U.S. over the past few years, despite - and in many ways because of - the COVID-19 pandemic as consumers are focusing on living a more active lifestyle, which also includes spending more time outdoors. Moreover, the growing number of working individuals is anticipated to drive the demand for convenient RTD beverages, including organic tea.

Millennials and working professionals are becoming increasingly health-conscious and are shifting to healthy foods and drinks. Key players are launching new products that are tasty as well as healthy. For instance, in May 2019, The Granny Squibb Company launched a new range of canned RTD organic teas in three flavors. These product launches are increasing product visibility and driving the demand in the western region of the U.S. Nowadays, consumers are willing to spend more on eco-friendly and convenient food and drink products. RTD organic teas sold in cans are immensely popular among this consumer group as the 100% recyclability of aluminum cans attracts those who are particularly conscious about their environmental footprint.

Studies claim that aluminum cans are less costly to fill and transport and easier to stock and stack as compared to glass bottles, which leads to less breakage. The Southwest region is anticipated to register the fastest CAGR of 5.4% during the forecast period. RTD organic tea is majorly sold through supermarkets and hypermarkets in the Southwest region of the U.S. Key local players are opening new stores to gain maximum customers. For instance, in March 2021, H-E-B Grocery Company, a supermarket chain in Texas, announced to open two new stores in Frisco and Plano, one in each city, by the end of 2022. These market trends are anticipated to boost product sales through supermarkets and hypermarkets distribution channels in the region over the forecast period.

U.S. RTD Organic Tea Market Report Highlights

  • The demand for organic tea is estimated to increase at a rapid pace over the coming years due to its multiple health benefits
  • Through various studies, it has been found that it helps enhance digestive health by improving the activity of healthy bacteria in the gut. Furthermore, it contains theanine, which reduces anxiety
  • The black RTD organic tea type segment accounted for the largest revenue share in 2020 and will expand further at a steady CAGR from 2021 to 2028 retaining the leading position in the market
  • New product launches, innovations, and packaging upgradations in relation to organic RTD beverages are some of the strategies adopted by the key players to gain a higher market share
  • Southeast is expected to record the fastest growth rate from 2021 to 2028 due to the growing consumption of RTD beverages in states including Illinois and Texas