What you need to know

The tea and RTD (ready-to-drink) tea category has experienced stellar growth in recent years, the result of growing interest in health and wellness and greater availability in both bagged/loose leaf and RTD teas.

Total retail sales of tea are expected to continue upward through 2020 as consumers search for BFY (better-for-you) beverage options, growing 19.7% from 2015-20 to $8.5 billion. The RTD and bagged/loose leaf tea segments are both strong growth areas. Opportunities exist in the $7 billion category with premium RTD teas and teas that highlight de-stressing qualities.

Definition

For the purposes of this report, Mintel has used the following definitions: Bagged/loose leaf teas include any form of dried tea leaves sold at retail, including but not limited to those measured in bags or pods from any material source and in any size, loose leaf, and/or powdered. Canned/bottled teas are shelf stable RTD teas that are typically single-serve. Refrigerated teas are RTD teas that require refrigeration after bottling, typically sold in multiserving sizes.

This report divides the market into four segments:

  • Canned/bottled RTD tea

  • Refrigerated tea, which includes kombucha

  • Bagged/loose leaf tea, which includes powdered

  • Single-cup tea

The market size in this report differs from Tea and RTD Tea – US, July 2014:

  • Instant tea is now excluded, covered in Non-Alcoholic Water Enhancers – US, March 2015.

  • The single-cup tea segment is separated from the bagged/loose leaf tea segment.

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