United States (USA) Tea Market Overview, 2028

Tea, previously thought to be the iconic British beverage, has crossed cultural barriers and won the hearts and palates of people all over the world, including the United States. The tea market in the United States has seen tremendous change in recent years, owing to a growing appreciation for its health advantages, different flavour profiles, and cultural significance. The variety of offers in the US tea market is one of the primary reasons for its rise. Traditional black teas, such as Earl Grey and English breakfast, are commonly consumed, yet they just scratch the surface. Green teas, oolong teas, white teas, and herbal teas have all gained popularity. Furthermore, specialty teas such as matcha and chai have gained popularity due to their distinct flavours and health benefits. The tea market in the United States has also seen substantial innovation in terms of product types and packaging. Ready-to-drink (RTD) teas and tea-infused beverages have become more widely available, providing consumers with on-the-go convenience. Furthermore, novel tea products such as cold-brew teas and tea lattes have broadened tea's appeal beyond traditional hot servings. Tea bags and loose leaf tea continue to dominate the market, but the industry's capacity to adapt and react to changing consumer tastes has been a driving force behind its expansion. The tea market in the United States is positioned for further expansion and innovation. Tea will remain a versatile and appealing beverage option as people grow more health-conscious and adventurous in their beverage choices. The industry is anticipated to place more attention on sustainability, with a focus on eco-friendly packaging and responsible sourcing. The trend towards personalised and direct-to-consumer services is expected to strengthen, ensuring that tea enthusiasts have access to a diverse range of products that cater to their specific preferences.

According to the research report "United States Tea Market Overview, 2028," published by Bonafide Research, the United States Tea market is expected to grow with more than 6% CAGR from 2023 to 2028. The growth of e-commerce and online retail has transformed the way people buy tea in the United States. Through online shops and subscription services, consumers can readily acquire a diverse range of teas from around the world. Many specialty tea companies have also embraced direct-to-consumer business strategies, which strengthens the relationship between producers and consumers. In the United States, tea is more than just a beverage; it has become a part of the country's culinary and cultural environment. Tea has been included in desserts, cocktails, and fusion cuisines, increasing its variety and popularity. Mixologists and bartenders have embraced tea, including it in inventive drinks and mocktails. Tea-infused beverages offer distinct flavour profiles as well as a healthier alternative to standard alcoholic beverages. The tea business in the United States is small but developing, with tea estates in states such as Hawaii, South Carolina, and Oregon. Teas cultivated in the United States are gaining popularity for their distinct flavours. In the United States, January is National Hot Tea Month, honouring the warmth and comfort that a hot cup of tea brings during the winter months. Several celebrities have sponsored and even started their own tea brands in the United States, which has helped to increase the market's awareness and popularity. In the United States, June 10th is designated as National Iced Tea Day, honouring the popular chilled tea beverage. The United States organises a number of tea trade exhibitions, such as the World Tea Expo, where industry professionals, tea fans, and tea firms gather to discuss tea trends and developments. Celestial Seasonings, founded in 1969, is one of the most well-known tea brands in the United States. Their herbal and specialty teas have a loyal following. Visitors can take tours of the lovely tea farms and sample fresh, locally grown tea in Hawaii, which is noted for its tea plantations.

Based on tea type market is segmented into green tea, black tea, oolong tea, herbal tea and white tea. Black tea is widely consumed in United States and is dominating the market of United States tea market with significant market share. In the United States, black tea has a rich history stretching back to colonial times. Black tea taxes were the basis of the Boston Tea Party and the following move away from British tea imports. Since then, black tea has remained a popular beverage among many Americans. Black tea contains more caffeine than other forms of tea. This is appealing to consumers looking for an energy boost or those switching from coffee to tea but still wanting a caffeine spike. Many Americans like the convenience of tea bags, and black tea is widely offered in this form. The ease of use of tea bags for rapid and easy preparation has led to the popularity of black tea. Black tea contains a significant amount of caffeine, which appeals to those who desire an energy boost without the jittery effects associated with high-caffeine beverages like coffee. It strikes a balance between providing alertness and being a soothing drink. It is estimated that the average selling price of black tea in United States is approximately around USD 40 to USD 50. Black tea appeals to a diverse audience, ranging from young folks to retirees. Its broad appeal makes it a popular choice for people of all ages and backgrounds. Black tea has a lot of blending potential. It's a wonderful canvas for crafting one-of-a-kind and enticing flavour combinations, appealing to individuals who enjoy creative and artisanal teas.

In terms of application market is majorly divided into residential and commercial. Residential application is dominating the market of United States tea market. Residential customers can experiment with a wide range of teas and tailor their tea-drinking experience to their specific tastes. They can customise their tea experience by selecting from a wide range of tea varieties, flavours, and mixes. Tea has found a place in American homes, with many households including tea drinking into their daily routines. This includes the traditional tea hour, drinking tea with meals, or drinking tea before bedtime. Residential customers have control over how their tea collections are stored and organised. They can curate a range of teas to suit various moods and events, ensuring that their preferred blends are always available. The distribution channel of the market include supermarkets /hypermarkets, speciality stores, convenience stores and online. Supermarkets/ hypermarkets are main distribution channel for tea products in United States and is leading distribution channel segment of United States tea market. Tea is widely available in supermarkets and hypermarkets, with various tea varieties, flavours, brands, and packaging options. This variety allows customers to quickly discover and select their favourite teas all in one place. Consumers can purchase tea as well as other grocery items, household goods, and personal care products in these stores, making them one-stop shopping locations. Customers are more likely to include tea on their regular shopping lists as a result of this ease. Supermarkets and hypermarkets are well-known shopping destinations for customers. Because of the familiarity and dependability connected with these establishments, people feel more at ease purchasing tea goods, ensuring product safety and quality.

Considered in this report:
• Geography: United States
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028



Aspects covered in this report:
• United States Tea market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Tea Type:
• Green Tea
• Black Tea
• Oolong Tea
• Herbal Tea
• White Tea
• Others

By Application:
• Residential
• Commercial

By Distribution Channel:
• Supermarkets/ Hypermarkets
• Speciality Stores
• Convenience Stores
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tea industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.