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Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition


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Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition

What lies ahead for the tea and ready-to-drink tea market? Reading the leaves, so to speak, Packaged Facts sees a mixed future: a stagnant market for certain products and channels, with growth opportunities emerging in niche and nontraditional channels.

According to Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition, sales of tea will reach $25 billion in 2014, divided between $6.2 billion (or 25%) from retail sales and $18.8 billion from foodservice sales.

Retail sales trends from 2012-2013 suggest both challenges and successes for the U.S. tea market. Bottled and canned tea sales are flat; instant tea mix is a becoming a losing proposition. But packaged retail tea marketers can still find pockets of opportunity, such by making tea drinking a bit more “manly” to looking for ways to personalize tea drinking. And marketers can continue to innovate by supporting premiumization, incorporating unique ingredients, and experimenting with form. But bagged/loose tea participants beware: single-cup tea, from marketers such as Green Mountain, is ready to capture market share.

Tea sales through foodservice look brighter: Packaged Facts expects revenue to grow steadily during 2014-2016, driven by modest growth in foodservice establishment visits, tea menu item and tea room establishment expansion, and pricing power. Growth drivers include iced tea, as well as niche beverages such as chai tea, which has seen the most growth in usage on restaurant menus from 2009-2013. Quick-service establishments can do a better job in making tea a draw for customers.

Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition analyzes the industry and consumer trends shaping this highly competitive environment. The report does the following:

  • Addresses retail tea category innovation, including premium characteristics, ingredients, and new beverage formats.
  • Identifies key marketing opportunities for tea, supported by consumer survey data, product examples and other metrics. In particular, we focus on families, men, healthfulness and customization, single-cup brewing, and all-in-one brewing.
  • Assesses how foodservice operators are capitalizing on “hot” trends; penetration and penetration growth of hot and iced tea types on quick-service, family-midscale, casual and fine dining menus; retail brand penetration in foodservice menus; and trend spotting.
  • Assesses household and personal tea usage and usage frequency trends, including bagged, loose, RTD and instant tea; household and personal tea brand usage and trends, including bagged, loose, RTD and instant tea.
  • Assesses the degree to which consumers get different tea types for home use from different retail distribution channels; similarly, we assess the degree they get tea for immediate consumption from a variety of foodservice channels. Comparative analysis is included.
  • Provides comparative analysis regarding the degree to which consumers drink different flavors and types of tea at home and at restaurants, as well as identifying which tea types/flavors consumers drink most often.
  • Assesses the relative importance consumers place on factors such as taste, getting a specific brand, low price, and time of day when deciding to order tea at a restaurant.


  • Executive Summary
    • Report Scope
    • Report Summary
      • Market Size, segmentation and forecast
      • Marketing opportunities
      • Retail product trends
      • Foodservice menu trends
      • The Consumer: tea usage & brand trends
      • The Consumer: tea retail & foodservice channel usage trends
      • The Consumer: tea types/flavors drunk at home & restaurants
      • The Consumer: factors influencing restaurant tea order decision
      • Company and brand analysis
      • Foodservice companies and brands
  • Market Size, Segmentation and Forecast
    • Summary analysis
    • Market size and forecast
      • Table Tea Market Size and Forecast: Foodservice and Retail, 2014-2016
    • Tea sales at retail
      • Market segmentation
        • Table Retail Tea Sales and Share, by Segment, 2012-2013
        • Table Retail Tea Sales, Unit Sales and Volume Sales, by Segment, 2012-2013
    • Tea sales at foodservice
      • Table Foodservice Tea Sales, 2011-2016
    • Tea per capita consumption trends
      • Analysis: tea price outlook
        • Table Tea Commodity PPI & CPI Index and Percent Change: 2010-2014
      • At the commodity level: Tea pricing stability delivers growth potential
      • On restaurant menus: Moderate price hikes suggest untapped pricing power
        • Table Iced Tea & Hot Tea Menu Prices and Price Trends, 2007-2013
        • Table Iced Tea & Hot Tea Menu Price Trends, by Restaurant Segment, 2009-2013
      • At retail: coffee commodity declines passed on to consumer; tea stable
      • Tea imports: volume and value
      • Healthy growth in tea import value and volume
        • Table Total Tea Imports, by Value, Volume and Price per Ton Trends, 2009-2013
        • Table Tea Imports, by Tea Type: Value, Volume and Price per Ton Trends, 2009-2013
        • Table Tea Imports, by Tea Type: Value & Volume Share Trends, 2009-2013
  • Market Trends & Opportunities
    • Demographic opportunities: Focus on Family
      • Families are important to the tea market-don't lose them!
        • Table Regular Bagged/Packaged Tea & Instant Iced Tea Mix (HH Use/Daily Use) & RTD ICED Tea (Personal Use), by Age of Children in HH, 2013
      • Harnessing the power of the Millennial mom
    • Demographic opportunities: Men as Tea Drinkers
      • Table RTD Iced Tea Usage Penetration and Share, by Gender, 2013
      • Table RTD Iced Tea Brands Drunk Most: Usage Penetration and Share, by Gender, 2013
    • Leveraging tea attributes
      • The health factor
      • Personalized tea drinking
      • Tea as a replacement for coffee
    • Formulation trends
      • Single-serve/pod brewing
      • Lions, and tigers, and all-in-one brewers? Oh, my!
  • Retail Product Trends
    • Summary analysis
    • The premiumization of tea
      • Quality associations
      • Unique ingredients and flavor profiles
      • Functional benefits
    • Innovations in form
      • Minimal processing
      • Single-serve cups
      • Liquid concentrates
      • Blending tea
      • 2013 best new product awards
  • Foodservice Menu Trends
    • Summary analysis
    • Tea is a top trend
      • Specialty iced tea more than perennial favorite
      • Tea as an ingredient is gaining momentum
    • Beverage variety trends
      • Iced tea is challenged to oust soda as most popular on beverage menus
        • Table Top Beverage Varieties: Percent of Restaurants Featuring: by Restaurant Segment, 2013
        • Table Top Beverage Varieties: Change in Percent of Restaurants Featuring: by Restaurant Segment, 2009-2013
      • Soda commands largest share of beverage menu
        • Table Top Beverage Varieties: Beverage Menu Share: by Restaurant Segment, 2013
        • Table Top Beverage Varieties: Change in Beverage Menu Share: by Restaurant Segment, 2013
    • Tea flavor & variety trends
      • Hot tea widely available
        • Table Top Hot Tea Varieties: Percent of Restaurants Featuring: by Restaurant Segment, 2013
        • Table Top Hot Tea Varieties: Change in Percent of Restaurants Featuring: by Restaurant Segment, 2013
      • Raspberry and sweet tea are the most popular iced tea varieties
        • Table Top Iced Tea Varieties: Percent of Restaurants Featuring: by Restaurant Segment, 2013
        • Table Top Iced Tea Varieties: Change in Percent of Restaurants Featuring: by Restaurant Segment, 2013
      • Snapple brand iced tea has the highest restaurant penetration
        • Table Top Iced Tea Brands: Percent of Restaurants Featuring: by Restaurant Segment, 2013
        • Table Top Iced Tea Brands: Change in Percent of Restaurants Featuring: by Restaurant Segment, 2013
  • The Consumer: Tea Usage & Brand Trends
    • Summary analysis
    • Household and personal tea use
      • Trended tea usage: 2008-2013
        • Table Household Bagged/Loose & Instant Iced Tea Mix Usage, Personal RTD Iced Tea Use, 2008-2013
        • Table Household Bagged/Loose & Instant Iced Tea Mix Usage, Personal RTD Iced Tea Use: by Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
      • Trended HH tea usage frequency
        • Table Household Tea Usage Frequency: Bagged/Loose & Instant Iced Tea Mix, 2008-2013
        • Table Household Tea Usage Frequency: Bagged/Loose & Instant Iced Tea Mix: By Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
      • Personal tea usage frequency
      • The majority of tea drinkers consume several cups per day
        • Table Cups of Tea Drunk Monthly & Daily, by Gender, 2014
        • Table Cups of Tea Drunk Monthly & Daily, by Age, 2014
        • Table Cups of Tea Drunk Monthly & Daily, by HH Income, 2014
        • Table Cups of Tea Drunk Monthly & Daily, by Race/Ethnicity, 2014
        • Table Cups of Tea Drunk Monthly & Daily, by Region, 2014
        • Table Cups of Tea Drunk Monthly & Daily, by Employment Status, 2014
    • Household and personal tea use by type
      • Bagged/loose tea
        • Table Household Tea Usage: Bagged/Loose (Hot & Iced), Regular & Decaffeinated Loose, Regular & Decaffeinated Bagged & Tea Flavors: With Usage Preference Ratios, 2008-2013
        • Table Household Bagged/Loose Tea Usage (Hot & Iced), With Usage Preference Ratios: by Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
        • Table Household Bag/Loose Tea Usage (Regular & Decaffeinated), With Usage Preference Ratios: by Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
        • Table Household Loose Tea Usage (Regular & Decaffeinated), With Usage Preference Ratios: by Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
        • Table Household Bag Tea Usage (Regular & Decaffeinated), With Usage Preference Ratios: by Race/Ethnicity, HH Income, Number/Age of Children in HH & Nielsen Region, 2013
      • Instant iced tea
        • Table Household Instant Iced Tea Mix Usage: Presweetened w/ and w/o Sugar & Unsweetened: With Usage Preference Ratios, 2008-2013
        • Table HH Instant Iced Tea Mix Usage: Presweetened w/ and w/o Sugar & Unsweetened: W/ Usage Preference Ratios: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
      • RTD iced tea
        • Table Ready-to-Drink Tea Usage: Presweetened w/ and w/o Sugar & Unsweetened: With Usage Preference Ratios, 2008-2013
    • Household and personal tea use by brand
      • Bagged/loose tea brand usage
        • Table Household Bagged/Loose Tea Usage, by Brand, With Usage Preference Ratios, 2008-2013
        • Table Household Bagged/Loose Tea Usage, Top 8 Brands: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
        • Table Household Bagged/Loose Tea Usage, Other Brands/Store Brand: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
      • Trended instant iced tea mix brand usage
        • Table Household Instant Iced Tea Mix Usage, by Brand, With Usage Preference Ratios, 2008-2013
        • Table Instant Iced Tea Mix Usage, by Brand/Store Brand: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
      • Trended RTD iced tea brand usage
        • Table Personal Ready-to-Drink Iced Tea Usage, by Brand, With Usage Preference Ratios, 2008-2013
        • Table RTD Iced Tea Usage, Top 5 Brands: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
        • Table RTD Iced Tea Usage, Other Brands/Store Brand: by Race/Ethnicity, HH Income, #/Age of Children in HH & Nielsen Region, 2013
  • The Consumer: Tea Retail & Foodservice Channel Usage Trends
    • Summary analysis
      • Buying tea for at-home use
      • Getting tea to drink now
    • Tea forms bought for home use in the past 12 months, by channel
      • Table Cross-Use of Tea Forms Bought for Home Use in the Past 12 Months
      • Tea retail distribution, by tea form
        • Table Tea Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by Age, 2014
        • Table Tea Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by HH Income
        • Table Tea Bought for Home Use in the Past 12 Months, by Form & Retail Distribution Channel, by Region
    • Tea gotten for immediate consumption in past 12 months, by channel
      • Demographic analysis
        • Table Tea Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by HH Income, 2014
        • Table Tea Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Age, 2014
        • Table Tea Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Employment Status, 2014
        • Table Tea Gotten for Immediate Consumption, by Food Retail & Foodservice Channel, by Region, 2014
  • The Consumer: Tea Types/Flavors Drunk at Home & Restaurants
    • Tea Drunk in Past 12 Months, by Type/Flavor
      • Tea type drunk most
      • At home versus at restaurants
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Gender, 2014
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Age, 2014
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, HH Income, 2014
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Region, 2014
        • Table Tea Type/Flavor Drunk at Home & Restaurant in Past 12 Months, by Race/Ethnicity, 2014
  • The Consumer: Factors Influencing Restaurant Tea Order Decision
    • Factors influencing decision to order type of tea at restaurant
      • Taste and getting that specific flavor
      • Not brand sensitive
      • Did someone say low price? Does it matter?
      • "To your health!" "Hey, not so loud . . ."
      • What time is it?
      • Generations don't always separate us
        • Table Factors Influencing Decision to Order Type of Tea at Restaurant, Ranked by Importance, by Age, 2014
      • Yes to lower price
        • Table Factors Influencing Decision to Order Type of Tea at Restaurant, Ranked by Importance, by HH Income, 2014
      • Race/ethnicity
        • Table Factors Influencing Decision to Order Type of Tea at Restaurant, Ranked by Importance, by Race/Ethnicity, 2014
  • Retail Company and Brand Analysis
    • Summary analysis
      • The retail market
      • By market segment
      • More about the players
    • Segment snapshot
    • Leading retail tea marketers
      • Market leaders challenged to grow sales and share
        • Table Top Retail Tea Marketers, by Marketer and Tea Category, 2013
      • Consumer usage trends point to longer term growth
    • Tea marketers and brands by category
      • Top RTD canned and bottled tea marketers
        • Table Top Canned/Bottled Retail Tea Marketers, by Marketer and Brand, 2013
      • Top bag/loose tea marketers
        • Table Top Bag/Loose Retail Tea Marketers, by Marketer and Brand, 2013
      • Top RTD refrigerated tea marketers
        • Table Top Refrigerated Tea Marketers, by Marketer and Brand, 2013
      • Top instant tea marketers
        • Table Top Instant Tea Marketers, by Marketer and Brand, 2013
    • Pepsi Lipton Tea Partnership
      • Table Pepsi Lipton Tea Partnership Sales, by Tea Category and Brand, 2013
      • Leveraging the refreshment of RTD Lipton tea
    • Ferolito, Vultaggio & Sons
      • Table Ferolito Vultaggio & Sons Sales, by Tea Category and Brand, 2013
      • AriZona offers steady innovation
    • Unilever
      • Table Unilever Sales, by Tea Category and Brand, 2013
      • Unilever uses innovation and marketing to boost interest in flagship black tea
    • Dr Pepper/Snapple
      • Table Dr Pepper/Snapple Sales, by Tea Category and Brand, 2013
      • Snapple engages consumers with Real Fact marketing
      • SnapTea offers value positioning
    • Coca-Cola Co.
      • Table Coca-Cola Co. Sales, by Tea Category and Brand, 2013
      • Gold Peak continues to grow
      • Premium positioning of Honest Tea
      • Fueling sales with Fuze
  • Foodservice Companies and Brands
    • Green Mountain Coffee Roasters, Inc.
      • Growth strategy
        • Table Green Mountain K-Cup Tea Retail Sales and Unit Sales, by Brand, 2012-2013
        • Table Green Mountain Coffee & Tea K-Cup Retail Sales, 2012-2013
      • Licensing/partner strategy
        • Table Keurig Brewer Placements & Attachment Rate, by Location Type, 2013
        • Table Keurig Brewer Penetration, by Region, 2013
      • Sales performance
        • Table Green Mountain Coffee Roasters, Selected Metrics, 2009-13
    • Starbucks Corporation
      • Menu trends: beverage category expansion
      • Menu trends: tea in the mix
        • Table Starbucks Food and Beverage Menu Share, by Menu Item Type
      • Acquisition trends: Turning to tea
      • Menu trends: Addressing the food challenge and building food share
        • Table Starbucks Company-Operated Stores: Revenue Mix by Product Type, 2009-2013
      • Sales performance
        • Table Starbucks U.S. and Global Company-Owned & Licensed Locations, 2012-13
        • Table Starbucks Revenue: Restaurant & Retail/Foodservice, 2009-2013; Product Type & Geography, 2011-2013
        • Table Starbucks Comparable Sales, Transaction & Ticket Growth, by Geography, 2009-2013
    • Teavana
      • Store experience
      • Teas and other products
      • Sales and growth
        • Table Teavana Net Sales, Comparable Sales, Total Store & Sales by Product Category, 2009-2013
    • Argo Tea Café
      • Target: Upscale cache
      • The campus connection
      • On the menu
      • At retail
      • Marketing & promotional activity
      • Health focus
        • Table Argo Tea Café, Selected Signature Drinks, 2014
  • Appendix
    • Methodology
      • Consumer survey methodology
    • Market size and forecast
    • Terms and definitions
      • Varieties of tea
      • Restaurant categories

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