Ready-to-Drink (RTD) Tea - North America

The Ready-to-Drink (RTD) Tea market in North America has been experiencing significant growth in recent years.

Customer preferences: Consumers in North America have shown a strong preference for healthy and convenient beverage options, which has contributed to the growth of the RTD Tea market. RTD teas are often marketed as a healthier alternative to sugary carbonated drinks, appealing to health-conscious consumers who are looking for refreshing and flavorful beverages without the guilt. The convenience factor of RTD teas, which can be easily consumed on-the-go, has also resonated with busy consumers who are constantly on the move.

Trends in the market: One of the key trends in the RTD Tea market in North America is the increasing demand for natural and organic ingredients. Consumers are becoming more mindful of the ingredients in the products they consume and are seeking out options that are free from artificial additives and preservatives. As a result, many RTD tea brands have started to use natural sweeteners and flavors, as well as organic tea leaves, to cater to this growing demand. Another trend in the market is the rise of functional RTD teas. These products are infused with additional ingredients such as vitamins, antioxidants, and herbal extracts, which are believed to offer health benefits. Functional RTD teas are particularly popular among health-conscious consumers who are looking for beverages that not only quench their thirst but also provide added nutritional value.

Local special circumstances: The United States is the largest market for RTD tea in North America. One of the reasons for the growth of the market in the country is the increasing diversity of the population. With a large number of immigrants from tea-drinking cultures such as China, India, and Japan, there is a growing demand for authentic and traditional RTD teas that cater to these cultural preferences. This has led to the introduction of a wide variety of RTD tea flavors and styles in the market.

Underlying macroeconomic factors: The growing popularity of RTD tea in North America can also be attributed to the overall economic growth in the region. As disposable incomes have increased, consumers are willing to spend more on premium and healthier beverage options. Additionally, the rise of e-commerce and online shopping has made it easier for consumers to access a wide range of RTD tea products, further driving the growth of the market. In conclusion, the Ready-to-Drink (RTD) Tea market in North America is experiencing growth due to consumer preferences for healthy and convenient beverage options, the demand for natural and organic ingredients, and the rise of functional RTD teas. The diversity of the population and the overall economic growth in the region also contribute to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.