United States Iced/RTD Tea Drinks Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

United States Iced/RTD Tea Drinks Market Size

The United States iced/RTD tea drinks market reached nearly USD 12.11 billion in 2024. It is assessed to grow at a CAGR of 4.2% during the forecast period of 2025-2034 to reach around USD 17.60 billion by 2034.

United States Iced/RTD Tea Drinks Market Outlook

The increasing popularity of convenient drink formats has led to a significant increase in the United States iced/RTD tea drinks market growth. A key driver of the market is the consumer inclination towards convenient ready-to-drink beverages due to busier and fast-paced lifestyles. These ready-to-drink beverages can be carried along and consumed on the go, which has increased their popularity. 

Additionally, consumers have grown more health-conscious and dependent on caffeine in recent times, which has led to a prominent increase in the consumption of herbal teas in the United States. In the year 2023 alone, the United States imported an estimated USD 508 million worth of tea. Moreover, according to the Tea Association of the country, 75-80% of the tea consumed is iced. The market players are also experimenting with newer flavours, which can play a significant role in the United States iced/RTD tea drinks market expansion.

The Rising Popularity of Green Tea is One of the Crucial United States Iced/RTD Tea Drinks Market Trends

• Green tea is expected to experience the highest growth, with a CAGR of 4.8%. The increasing consumer awareness of its health benefits and a rising preference for antioxidant-rich beverages are boosting the United States iced/RTD tea drinks market revenue. 

• Herbal tea, growing at a CAGR of 4.5%, is favoured for its diverse flavours and perceived health benefits, appealing to a broad range of consumers. 

• Black tea is estimated to grow at a CAGR of 4.3% between 2025 and 2034. The soaring popularity of black tea due to its strong flavour and its traditional presence in diverse distribution channels are creating lucrative United States iced/RTD tea drinks market opportunities. 

• Fruit tea, growing at a CAGR of 4.1%, attracts consumers looking for refreshing and naturally flavoured beverages. 

• As per the United States iced/RTD tea drinks market analysis, the 'Others' category, with a CAGR of 3.8%, includes various other types of iced and RTD tea drinks contributing to the overall market growth.

The Surging Popularity of Iced and RTD in Cafes and Restaurants are Driving the United States Iced/RTD Tea Drinks Market Development

• The off-trade distribution channel is expected to lead with the highest CAGR of 4.7%. The United States iced/RTD tea drinks demand growth is being driven by the convenience of purchasing beverages from retail outlets, supermarkets, and online stores, coupled with increasing consumer preference for at-home consumption.

• The on-trade distribution channel, growing at a CAGR of 3.8%, continues to witness an upward trajectory. The growing popularity of iced and RTD tea drinks in cafes, restaurants, and other hospitality venues, where consumers enjoy these beverages as part of their dining and social experiences, is increasing the United States iced/RTD tea drinks market value.

United States Iced/RTD Tea Drinks Market Regional Analysis

• The Far West region is expected to lead with the highest CAGR of 4.9%. The region's health-conscious consumers and a strong preference for convenient, ready-to-drink beverages are shaping the United States iced/RTD tea market dynamics and trends.

• The Rocky Mountain region follows with a CAGR of 4.6%, supported by increasing outdoor recreational activities and a growing demand for refreshing beverages. 

• The Southwest, with a CAGR of 4.4%, benefits from its warm climate and diverse population driving the popularity of iced and RTD tea drinks. 

• The Southeast, growing at a CAGR of 4.2%, is expected to hold a significant portion of the United States iced/RTD tea drinks market share. The region shows significant growth due to the region's traditional preference for iced tea and rising disposable incomes. 

• New England, with a CAGR of 3.9%, and the Mideast, with a CAGR of 3.6%, exhibit steady growth, driven by established consumer markets and a trend towards healthier beverage options. 

• As per the United States iced/RTD tea drinks industry statistics, the Plains region, with a CAGR of 3.4%, and the Great Lakes region, with a CAGR of 3.2%, experience moderate growth due to stable consumer demand and ongoing market penetration efforts.

Key Questions Answered in This Report:

• How has the United States iced/RTD tea drinks market performed historically, and what are the growth expectations for the future?

• What are the primary factors influencing demand and growth in the United States iced/RTD tea drinks market?

• What are the key segments within the United States iced/RTD tea drinks market, and how are they expected to evolve over the forecast period?

• What are the major challenges and opportunities facing stakeholders in the United States iced/RTD tea drinks market?

• Who are the key players in the United States iced/RTD tea drinks market, and what strategies are they employing to maintain a competitive edge?

• What are the regulatory and policy factors influencing the United States iced/RTD tea drinks market globally or regionally?

• How competitive is the United States iced/RTD tea drinks market according to Porter's five forces analysis, including factors like the bargaining power of buyers and suppliers?

• What are the current trends shaping the United States iced/RTD tea drinks market landscape, and how are they expected to evolve in the future?

• How are technological advancements impacting the United States iced/RTD tea drinks market, and what role do innovation and R&D play in driving growth?

• What are the consumer preferences and buying behaviour trends influencing the United States iced/RTD tea drinks market?

• How sustainable are current growth rates in the United States iced/RTD tea drinks market, and what factors could potentially disrupt these trends?

• What are the regional dynamics within the United States iced/RTD tea drinks market, and how do they contribute to overall market growth?

• What are the economic factors influencing the United States iced/RTD tea drinks market, such as GDP growth, inflation rates, and currency fluctuations?

• How are demographic shifts, such as ageing populations or urbanization trends, affecting demand in the United States iced/RTD tea drinks market?

• What are the key strategic partnerships, mergers, and acquisitions shaping the competitive landscape of the United States iced/RTD tea drinks market?

• What are the regulatory and legal frameworks impacting the United States iced/RTD tea drinks market globally or in key regions?

• How are changing consumer lifestyles and preferences influencing product or service demand within the United States iced/RTD tea drinks market?

• What are the emerging market trends and niche opportunities within the United States iced/RTD tea drinks market that stakeholders should be aware of?

• How resilient is the United States iced/RTD tea drinks market to external shocks or disruptions, such as geopolitical tensions or natural disasters?

• What are the potential barriers to market entry and growth for new players in the United States iced/RTD tea drinks market?

Key Benefits for Stakeholders:

Expert Market Research's industry report provides a comprehensive quantitative analysis of various market segments, and historical and current market trends, and forecasts the dynamics of the United States iced/RTD tea drinks market spanning from 2018 to 2032. 

The research report delivers up-to-date insights into the market drivers, challenges, and opportunities shaping the United States iced/RTD tea drinks market.

Stakeholders can leverage Porter's five forces analysis to assess the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. This analysis aids in evaluating the competitiveness and attractiveness of the United States iced/RTD tea drinks market.

The competitive landscape section enables stakeholders to gain a deep understanding of their competitive environment. It offers insights into the current market positions of key players, their strategies, and their market shares.

Additionally, the report highlights emerging trends, regulatory influences, and technological advancements that are pivotal for stakeholders navigating the United States iced/RTD tea drinks market landscape.

Key Highlights of the Report