Ready-to-Drink (RTD) Tea - United States

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

Customer preferences: One of the main reasons for the growth of the RTD Tea market in United States is the increasing demand for healthier beverage options. Consumers are becoming more health-conscious and are actively seeking out beverages that are low in sugar and calories. Ready-to-drink teas are seen as a healthier alternative to carbonated soft drinks and other sugary beverages. Additionally, the convenience factor of RTD teas is also appealing to consumers who are looking for on-the-go options.

Trends in the market: One of the key trends in the RTD Tea market in United States is the rise of functional teas. Functional teas are those that are infused with additional ingredients such as herbs, botanicals, and vitamins, which are believed to provide specific health benefits. These functional teas cater to consumers who are looking for more than just a refreshing beverage, but also a way to support their overall well-being. Another trend in the market is the increasing popularity of premium and artisanal RTD teas. These teas are often made from high-quality tea leaves and are carefully crafted to provide a unique and flavorful experience. Consumers are willing to pay a premium price for these teas as they are seen as a higher quality product compared to mass-produced options.

Local special circumstances: One of the unique aspects of the RTD Tea market in United States is the regional preferences for different types of tea. For example, in the southern states, sweet tea is a popular choice, while in the western states, iced tea with a hint of fruit flavors is more common. This regional variation in preferences allows for a wide variety of RTD tea options to cater to different consumer tastes.

Underlying macroeconomic factors: The growing health and wellness trend in United States is a major macroeconomic factor driving the growth of the RTD Tea market. As consumers become more health-conscious, they are actively seeking out healthier beverage options, which includes RTD teas. Additionally, the increasing disposable income and changing lifestyles of consumers also contribute to the growth of the market. The convenience factor of RTD teas makes them a popular choice for busy individuals who are looking for quick and easy refreshments.

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.