The U.S. ready-to-drink (RTD) organic tea products market was valued at USD 1.2 billion in 2022 and is projected to expand at a CAGR of 6.5% from 2023 to 2030. The growing consumer demand for convenience and health-related products is driving the market. Moreover, the rising trend of consuming organic products has encouraged market participants to introduce organic RTD tea products. This has further been supported by the presence of numerous organic tea suppliers in the United States.

The rising demand for ready-to-drink beverages among millennials and the health-conscious population is expected to drive the market. Furthermore, the increased disposable income of the population is boosting the market. The health benefits associated with organic tea consumption are expected to further support the market growth. For instance, according to an article published by Harvard University, organic tea consumption is associated with reduced risks of cancer, Parkinson’s disease, and other age-related chronic diseases.

The growing preference for plant-based beverages is propelling the demand for RTD organic tea products. The increasing awareness among consumers regarding the health benefits associated with organic tea consumption is driving the market. Furthermore, the introduction of innovative products by key players to cater to the growing consumer demand is further boosting the market. For instance, in April 2021, The Republic of Tea, a leading U.S. specialty tea company, launched a new line of organic teas, including oolong, black, green, and white tea.

The growth of the organic segment and the availability of organic products in supermarkets and convenience stores are expected to drive the market. Furthermore, the increasing consumption of natural and herbal beverages among health-conscious consumers is further driving the market. The increasing e-commerce sales of organic tea products is another key factor supporting the market growth. For instance, Amazon is offering a wide variety of organic RTD tea products to meet the growing consumer demand. In addition, the rising trend of premiumization in demand for organic beverages is driving the market.

The RTD organic tea product segment is expected to be the largest segment in the U.S. RTD organic tea products market. Growing demand for healthy and natural beverages has been driving the RTD organic tea product segment. Consumers are increasingly opting for natural and organic products due to their benefits like immunity boosting and digestive health. According to an article published by the Tea and Herbal Association of Canada, in January 2020, the organic tea market is expected to grow at a CAGR of 8.2% over the forecast period. Moreover, increasing demand for convenience and rising consumer preference for healthier beverages are expected to drive the RTD organic tea product segment.

The organic green tea segment is expected to be the fastest growing segment in the U.S. RTD organic tea products market. Green tea is loaded with antioxidants and other health benefits that are attracting consumers to adopt green tea in their daily lives. According to an article published by the New York Times, in November 2019, green tea is high in polyphenols, a type of antioxidant that is believed to help protect against heart disease and cancer. Furthermore, growing awareness about the health benefits associated with green tea and increasing demand for organic green tea are further propelling the growth of the market.

The supermarkets and hypermarkets segment captured the major share of over 50.2% in 2022. According to a study conducted by Future Market Insights in 2019, the rising popularity of organic tea among consumers has led to an increase in the number of organic products available in supermarkets and hypermarkets. These stores are well-stocked with a range of organic RTD teas, which are appealing to consumers due to their convenience, affordability, and availability. Additionally, the presence of store assistants who can provide product advice and recommendations is likely to drive the segment’s growth over the forecast period.

The online segment is anticipated to expand at the highest CAGR of 13.9% over the forecast period. The growing popularity of online shopping and the increasing availability of organic RTD tea products on e-commerce platforms are some of the major factors driving the growth of the segment. Moreover, the high penetration of internet and smartphones, especially among the younger generation, is anticipated to boost the segment’s growth over the forecast period.

The ready-to-drink (RTD) segment held the largest market share in 2020, accounting for over 85.0% of the U.S. RTD organic tea products market. The increasing demand for healthy and nutritious beverages among health-conscious consumers is driving the growth of the RTD segment. Furthermore, the convenience of storing, carrying, and consuming these products is also propelling the segment’s growth.

The loose leaf segment is anticipated to register the highest CAGR of 10.3% during the forecast period. The growing demand for premium-grade organic tea from health-conscious consumers is driving the segment’s growth. The availability of a wide variety of loose leaf tea with different flavors is also boosting the segment’s growth. Furthermore, the rising trend of consuming organic tea for its health benefits is also driving the segment’s growth.

The U.S. has been the dominant region in the global RTD organic tea products market. The changing lifestyle of people in the country, rising demand for natural and organic products, and increasing health-consciousness among consumers are some of the major factors driving the growth of the market in the region. In addition, the presence of major players such as Coca-Cola and PepsiCo, who are investing heavily in the development of organic tea products, is also fueling the growth of the market in the country.

The Asia Pacific region is expected to witness the highest growth rate over the forecast period. This is largely attributed to the increasing demand for organic products in the region. Additionally, increasing health consciousness among consumers is also a major factor driving the growth of the market in the region. Moreover, countries such as India and China are also witnessing a surge in the number of health-conscious youth, which is further driving the demand for organic tea products in the region.

In this part of the U.S. RTD Organic Tea Products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for the business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main sources of revenue for this business come from the sale of RTD organic teas, both online and in retail stores. Other potential sources of income include the sale of merchandising, subscriptions, and promotions.

Projecting Expenses
In this section, all the regular expenses related to keeping the business running will be described. The list of operating expenses includes product development costs, production costs, packaging costs, shipping costs, marketing costs, personnel costs, and administrative costs. Additionally, costs associated with compliance, insurance, and taxes should be taken into account.

Some of the key companies operating in the U.S. RTD organic tea market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In April 2022, Teaonic launched a range of ready to drink organic tea with immune-boosting ingredients.

– In June 2022, Numi Organic Tea launched a range of ready to drink organic teas containing probiotics.

– In August 2022, Teatulia Organic Teas launched a range of ready to drink organic teas with no added sweeteners.

Some of the prominent players in the U.S. RTD organic tea market include:

– Numi Organic Tea
– Teatulia Organic Teas
– Teavana
– Tazo
– Celestial Seasonings
– Honest Tea
– The Republic of Tea
– Arizona Beverage Company
– Ito En
– Teaonic

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global RTD Organic Tea products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Green Tea
– Black Tea
– Herbal Tea
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Key Drivers of the U.S. RTD Organic Tea Products Market?
[A]: The rising demand for organic products, increasing health consciousness among consumers, and convenience are key drivers of the U.S. RTD organic tea products market. Consumers are increasingly opting for RTD organic tea products as they are easy to prepare and do not require any additional ingredients. The growing demand for organic tea products is due to the increasing awareness of the health benefits associated with the consumption of organic tea products.

[Q]: What is the Potential of Product Innovation?
[A]: Innovations in RTD organic tea products are expected to drive market growth in the coming years. Companies are producing RTD organic tea products with various flavors and packaging options to attract consumers. The introduction of innovative products that provide convenience, portability, and improved taste is expected to increase the demand for RTD organic tea products.

[Q]: Who are the Key Players in the U.S. RTD Organic Tea Products Market?
[A]: Key players in the U.S. RTD organic tea products market include Coca-Cola Company, Unilever, Arizona Beverage Company, Nestle, Starbucks Corporation, Ito En, and T.E.A.L.S.

[Q]: Which Region Offers the Largest Opportunity for Sales of U.S. RTD Organic Tea Products?
[A]: The U.S. is estimated to be the most lucrative region for RTD organic tea products market, accounting for the highest revenue share in 2020. This is attributed to the high demand for organic tea products among the health-conscious population of the region.

[Q]: What are the trends in the U.S. RTD Organic Tea Products Market?
[A]: The increasing demand for convenience, portability, and improved taste is driving the growth of the RTD organic tea products market. The introduction of new flavors, packaging options, and product innovations are expected to increase the demand for RTD organic tea products in the U.S. Furthermore, the increasing trend of health-conscious consumers and the rising demand for organic products will also have a positive impact on the market.