GROWTH OF THE
ICED TEA CATEGORY The global iced tea market is estimated to register a Compound Annual Growth Rate (CAGR) of more than 9.5% in terms of value during forecast period 2017–2027,1 but how will this manifest in the tea category? ccording to the World Coffee Portal, more than 170 million iced beverages are estimated A to be sold in UK cafés every year, led by consumers under the age of 30 — with 45% purchasing one every week. 2 orth America and Europe are expected to become the fastest-growing markets for the iced N tea category, due to an increase in consumer preferences of ready-to-drink tea beverages.1 here is increased global consumer preference for iced tea as a healthy alternative to coffee T due to its perceived antioxidant properties and lower sugar content, which is helping to drive further growth across the category as a competitive alternative to carbonated soft drinks.1 ew Product Development (NPD) that includes a variety of iced tea flavour options is a major N factor expected to help brands grow their range — for example, sugar-free iced tea infused with fruity flavours.1 owever, the use of artificial sweeteners in iced tea is H expected to stunt the growth of the global market due to its perceived negative effects on our health and wellness.1
It’s clear from brand responses to the growth of the category that it’s one to watch. This increased demand for iced drinks and for flavoured teas is evident across the industry, including the Teavana™ Shaken Iced Tea beverage within the We Proudly Serve Starbucks offer. The range includes flavours such as Green Tea and Peach Green Tea Lemonade to help operators capitalise on the growing success of the category, not just in summer but all year round. We’re looking forward to watching how brands respond to this category growth in 2021, whether that’s through range development or similar footfall-driving mechanics once the global coffee industry has harnessed its new normal post-pandemic.
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1–MarketResearch.biz: Global Iced Tea Market Trends, Applications, Analysis, Growth, and Forecast: 2017 to 2027 2–Beveagedaily.com: Iced drinks grew 14.3% in the UK last year, cold brew continues to climb.