North America Tea Market - Growth, Trends, and Forecast (2018-2023)
Specialty tea, such as herbal tea and fruit tea has been one of the growing categories in the tea market owing to the associated health benefits, which is likely to influence the growth of the market during the forecast period. The US is one of the top importers of tea and there has been an incremental growth of tea imports over the last few years.
The North America tea market is expected to register a CAGR of 3.2%, during the forecast period, 2018-2023. Growing inclination of consumer towards convenience foods is expected to drive the growth of the market.
The driving forces of the tea market in North America is its numerous health benefits, including the high antioxidants levels that aid in abetting arthritis. It can also help prevent various cardiovascular and degenerative diseases, help in the improvement of bone density and the management of blood pressure. Health concerned consumers are often drawn to tea, since it is naturally laden with antioxidants, catechins, and epigallocatechin gallate (EGCG), all of which are positively linked with health benefits and disease prevention. Apart from health benefits, the new innovations in products and flavors, and continuous research helps the market to grow. Convenience of consuming tea through ready to drink products of tea has been one of the key factors for the growth of tea market in this region. Cost per serving of tea is comparatively cheaper with that of its substitute, which, in turn, is driving the market.
The North American tea market has been segmented by form, product type, and distribution channel. By form, the tea market has been segmented into leaf tea, CTC tea, and other forms of tea. Black tea held for the dominant market share of the tea market owing to its wide popularity. South and Northeast regions of Americas are significant consumers of tea. Lipton, Twining, RC Bigelow, Hain Celestial Group, Unilever, and RedCo Foods are the popular brands in this region. Specialist stores held for a significant market due to its variant products offerings of tea across different types and flavors.
Rise in the popularity of ready to drink products has fuelled the growth for tea in this region. The Geriatric population of this region has been demanding the growth of healthy beverage, such as tea, which is expected to drive the demand of the market in this region. The U.S. held for the dominant share of the market owing to its huge presence of regional and global players offering innovative products. Functional or fortified tea has been driving the growth of the tea market in North America. Premiumization of tea products coupled with expansion of tea drinker base have been boosting the growth of the tea market in Canada.