United States Tea Market

United States Tea Market Size and Share:

The United States tea market size was valued at USD 1.48 Billion in 2024. The market is projected to reach USD 2.10 Billion by 2033, exhibiting a CAGR of 3.14% from 2025-2033. The market is fueled by growing health awareness, functional beverage demand, and interest in natural, antioxidant-rich beverages. Green, black, and herbal teas see growing consumption, leading both traditional and ready-to-drink categories to flourish. Flavors, health attributes, and digital consumption are influencing buying patterns. The cultural recognition and perceived health benefits of tea further enhance its market position. The development of specialty blends and creative packaging also facilitates growth in retail outlets, aiding in the increase in United States tea market share.

A major force behind the United States tea market is the growing trend towards natural and plant-based drinks as part of general dietary trends among health-focused consumers. With increasing suspicion around artificial ingredients and sugary beverages, tea provides a clean-label option that supports the movement for simplicity, purity, and transparency in food and beverage (F&B). Consumers are shifting toward minimally processed products, and tea, especially organic or herbal teas, deliver these expectations without any trade-off on taste or refreshment. In addition, as the market for drinks with perceived wellness and therapeutic benefits increases, tea's long-standing image as a calming, antioxidant-packed, and low-calorie beverage lends itself to acceptance in a broad range of daily usage patterns. For instance, in May 2025, Lipton unveiled Lipton Fusions, a new line of RTD teas with lemonade iced tea infused with strawberry and pineapple mango flavors. There are 50% fewer sugars in each 16 oz can compared to regular sodas. Moreover, this trend has broadened the product's appeal beyond core constituencies to younger consumers, wellness advocates, and alternative hydrators. Consequently, tea is a favorite choice that caters to changing lifestyle trends and consumption occasions in the nation.

The other major driver of the United States tea market outlook is the increasing trend towards personalized and experiential beverage drinking. Today's consumers are not just about the taste but also look for distinctive, customized experiences that embody their personality and individual wellness aspirations. This has led to a higher demand for expert blends that combine botanical ingredients, worldwide flavor profiles, and functional additives. Concurrently, an upsurge in tea specialty cafés, tasting rooms, and online subscription services allows consumers to sample new types from various regions, facilitating a more immersive and educational tea drinking experience. The ceremonial nature of brewing tea—from leaf selection to steeping habits—increases value and enhances emotional connection with the product. Additionally, social media influences and digital platforms have further increased consumer exposure to regional and specialty teas, promoting exploration and preference formation. This personalization-driven cultural landscape continues to shape product innovation, packaging, and promotion strategies, making tea a refined and adaptable beverage in contemporary American cultures.

United States Tea Market Trends:

Increased Demand for Wellness and Function-Based Teas

One of the United States tea market's most distinguishing trends is the emphasis on health and wellness by consumers. Tea is no longer viewed as merely a comfort or cultural drink—it is also considered a functional health supplement. Consumers now seek teas that offer targeted benefits, including immune system support, antioxidant levels, digestive well-being, and stress relief. Based on recent industry trends, 45% of consumers favor teas with immune support, and 43% seek antioxidant benefits. The uptick in demand for functional benefits has driven innovation in blends that include probiotics, adaptogens, and supplemented vitamins like B-complex. As more Americans embrace holistic lifestyles, wellness-focused teas continue to surge among age groups. As such preferences continue to evolve, product formulations in the market are progressively becoming more targeted and evidence-based, solidifying this trend as a fundamental impetus for United States tea market growth.

Health Benefits Driving Consumer Interest in Tea Consumption

Scientific evidence and public information campaigns have strengthened the link between the consumption of tea and long-term health benefits, rendering it a key determinant of consumer preference. Research has also shown that tea consumption can lead to a lower risk of chronic conditions, such as heart diseases and some types of cancer. Tea drinking, for example, has been associated with a 29% lower risk of hypopharyngeal cancer and a 9% lower risk of head and neck cancers even at low levels of consumption. Tea harbors health-promoting compounds like theanine and polyphenols, which protect cardiovascular health, brain function, and weight. These results resonate with health-oriented consumers, who today regard tea as a conscious part of their daily regimen. As awareness of these advantages goes mainstream, it strengthens both traditional and functional segments of tea, affirming the product's place in preventive wellness. This consistent integration of consumer wellness objectives with product attributes characterizes United States tea market trends.

Varied Assortments and Cultural Incorporation of Tea into American Lifestyles

Tea has found a place within the multicultural tapestry of the United States, with both classic and innovative blends satisfying a range of tastes and lifestyles. The market encompasses everything from black, green, and oolong teas to fast-growing herbal and decaf infusions. Ready-to-consume teas, cold brews, and specialty loose-leaf teas also contribute to the diversity. The sensory and ritualistic aspect of tea-making—whether steeping green leaves or sipping bottled blends—has become increasingly mainstream across younger generations and city dwellers. Infused teas with fruits, spices, and botanicals cater to the quest for novel taste without added sugar or artificial ingredients. With tea evolving into on-the-go formats and appearing in cafes and health food stores, it continues to be current with changing consumer habits. Such widespread demand and cultural relevance are major drivers of United States tea market share and product penetration.

United States Tea Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States tea market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, packaging, distribution channel, and application.

Analysis by Product Type:

• Green Tea
• Black Tea
• Oolong Tea
• Others

Green tea consumption is increasing in the U.S. owing to its link with weight loss, detox, and antioxidant benefits. Green tea is the choice of consumers of natural wellness products, which are frequently flavored or blended with herbs and fruits. Being versatile across both hot and cold formats, it increases its market penetration and sustained demand.

Black tea is still a leading preferred by American consumers because of its deep flavor and increased caffeine content. Flavor and traditional blends serve as options for frequent and irregular drinkers. Both hot and iced, black tea is still a steady fixture in household and business usage patterns.

Oolong tea fills a niche in the U.S. market for tea. Its partially oxidized flavor is appealing to consumers who look for sophisticated taste between green and black tea. Commonly consumed by connoisseurs and health-conscious consumers, it enjoys limited but consistent demand through specialty outlets and Asian tea retail channels.

The "others" segment consists of white tea, herbal teas, rooibos, and specialty infusions. They are chosen by health-conscious consumers for their low caffeine and functional properties. Chamomile, hibiscus, and turmeric-based products dominate this category, with growth stimulated by rising experimentation and product exploration for well-being.

Analysis by Packaging:

• Plastic Containers
• Loose Tea
• Paper Boards
• Aluminium Tin
• Tea Bags
• Others

Plastic packaging serves mainly bulk and ready-to-drink tea products. They are appreciated for durability, affordability, and convenience. Although under criticism regarding environmental impact, they are still applicable owing to convenience, particularly for on-the-go tea products and multi-serve packs in commercial and retailing sectors.

Loose tea resonates with sophisticated shoppers demanding freshness, taste control, and high quality. It is in demand in the specialty and organic tea segments, where consumers appreciate bespoke brewing experiences. Priced primarily in paper or metal pouches, it underpins the craft and luxury positioning of the overall tea market.

Paperboard packaging is widely used in mass-market tea offerings, particularly tea bags. It is inexpensive, lightweight, and recyclable, making it attractive to manufacturers as well as environmentally responsible consumers. With room for prominent labeling and branding space, it effectively communicates health claims, certifications, and country of origin to shelf consumers.

Aluminum tins are linked to high-end and gift-worthy tea beverages. They provide sealable storage, allowing for extended shelf life and product flavor preservation. Used in gourmet and specialty retailing channels, this packaging facilitates product distinction and is frequently reused, being in line with consumer desire for green and sophisticated storage.

Tea bags are the most popular form in the U.S. tea industry. Preferred for portability and portion control, they have a stranglehold on household use. Advances in biodegradable options and pyramid designs make them more appealing. Functional and herbal teas are readily available in tea bag format for convenient daily use.

This category comprises pouches, sachets, single-serve capsules, and ready-to-brew sticks. These forms appeal to contemporary lifestyles and diverse brewing habits. As convenience demand increases, portable and portion-controlled packaging forms are becoming increasingly popular across demographic segments and gaining shelf space in supermarkets and online channels.

Analysis by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Convenience Stores
• Online
• Others

These are the top channels for tea sales in the US, providing wide range and price points. High visibility, point-of-sale promotions, and private labels enhance their market power. They serve bulk purchasers and regular consumers, cementing their dominance in value- and volume-based tea retailing.

Specialty tea stores sell high-end, artisanal, and loose-leaf teas. They cater to discerning customers looking for distinctive blends, health benefits, and carefully selected tea experiences. Personalized assistance, trained staff, and in-store tastings boost the interaction between customers and staff, and they play a key role in brand-building and market expansion in the upscale tea segment.

Convenience stores are impulse and on-the-go shoppers, especially of ready-to-drink tea and single-serve sachets. They enable high volume but low interaction purchases, often found in city centers, transport hubs, and university campuses. Their presence is critical in fueling volume for chilled and pre-packaged tea drinks in the market.

E-commerce sites are expanding quickly in the US tea market. Online selling provides customers with access to specialty, organic, and international teas, with subscription options that allow personalization. Variety, convenience, and direct-to-home delivery drive the trend, particularly among young consumers and specialty tea drinkers.

Others channels involve vending machines, cafés, health food shops, and tea clubs. Such outlets help drive niche market expansion and facilitate cross-promotion-based marketing strategies. Used more and more to launch new flavors or formats, the channels enable brands to reach out to diverse customers within non-traditional retail spaces.

Analysis by Application:

• Residential
• Commercial

Residential use dominates the U.S. tea market, home brewing and everyday consumption sustaining steady demand. Consumers consume tea for relaxation, health, and functional reasons. Growing popularity for home rituals and health-oriented diets underpin premium, specialty, and herbal teas growth in households throughout the country.

Restaurants, cafés, hotels, and institutional food service establishments are part of the commercial segment. Tea is a standard feature in menus for traditional as well as ready-to-drink varieties. Expansion in tea cafés and wellness-focused dining drives demand. Specialized blends and premium products respond to changing customer experience in this segment.

Regional Analysis:

• Northeast 
• Midwest 
• South 
• West 

The Northeast market enjoys a high demand for specialty and organic teas. Urban areas such as New York and Boston enable premium and craft product demand. Health-conscious consumers, ethnic diversity, and cultural values of tea drive this region's consistent growth and product variety.

The South reflects a rising interest in functional and classic teas, mainly among wellness-oriented consumers. Mid-range and value teas comprise the majority of shelves with deeper penetration in suburban locations. Online platforms are ensuring niche brands penetrate Midwest markets, leading to slow diversification of preferences in the area.

The Southern United States boasts a well-established tea culture, particularly for sweet and iced offerings. Taste and convenience rank as primary concerns for consumers within this region. Packaged, ready-to-consume (RTC) teas and large-pack formats rule, with health-focused innovations incrementally gaining ground. Regional pride affects brand allegiance and product development.

The Western United States, particularly California, is the hotbed for organic, herbal, and functional teas. Consumers demonstrate robust demand for high-quality, sustainability-verified, and plant-based items. Trends in wellness, alternative diets, and rich café culture drive tea exploration to fuel growth in creative and small-batch products.

Competitive Landscape:

The United States tea market's competitive landscape is dominated by a diverse range of established brands, specialty companies, and newer wellness-oriented entrants. Firms compete on several different dimensions, including product range, quality, price, health value, and sustainability. The industry offers a broad range of products from loose-leaf teas to ready-to-drink beverages, functional blends, and herbal infusions to suit different consumer tastes. Innovation is a key differentiator, with companies launching novel flavor pairings, organic ingredients, and functional ingredients such as adaptogens, probiotics, and collagen to meet changing health trends. Online engagement and e-commerce channels also heighten competition since brands use direct-to-consumer models and subscription services to drive consumer accessibility and loyalty. Sustainability practices, such as recyclable packaging and the ethical sourcing of tea leaves, also become more critical in defining brand perception. Further, the United States tea market forecast highlights how innovation and consumer-led strategies will continue to shape competitive positioning across the sector.

The report provides a comprehensive analysis of the competitive landscape in the United States tea market with detailed profiles of all major companies.

Latest News and Developments:

• May 2025: Bojangles launched a limited-time Watermelon Sweet Tea, blending its Legendary Iced Tea with real watermelon juice. Celebrating summer and the PGA Championship, the promo includes free drinks with code “TEATIME” from May 15–22. The new beverage complements seasonal menu items and is available via app ordering.
• May 2025: Sprite launched Sprite + Tea, a limited-time blend of lemon-lime soda and tea, available in regular and zero-sugar versions across the U.S. and Canada. Inspired by a viral trend, the drink features a bold marketing campaign and collaboration with Eastside Golf to refresh traditional beverage categories.
• May 2025: Milo’s Tea Company launched three new summer beverages: Strawberry Lemonade, Raspberry Lemonade, and Lemon Sweet Tea. Made with natural ingredients and free from preservatives, these new offerings expand Milo’s top-selling refrigerated tea and lemonade range, now available in various sizes at major U.S. retailers.
• March 2025: 7-Eleven launched Southland Reserve, a cold brew tea line created with AriZona Beverages. Featuring four flavors, Sweet, Unsweet, Peach, and Lemon Tea, the teas honor 7-Eleven’s heritage and are brewed with high-quality tea leaves using cold steeping for smooth, bold taste in 16 oz. bottles nationwide.
• February 2025: Boulevard Brewing Co. launched Quirk Hard Tea, a green tea-based hard tea line with four flavors: Lemonade, Raspberry, Peach, and Pomegranate. Each 100-calorie can features real fruit juice and 4% ABV. The Tea Mix Pack and Lemonade Tea formats are available across the Midwest.
• December 2024: TreeHouse Foods announced the USD 205 Million acquisition of Harris Tea's private brand tea business, including facilities in New Jersey and Georgia. The deal enhances TreeHouse’s tea capabilities and scale, adds 300 employees, and supports its strategy to grow in high-margin categories, with expected completion in Q1 2025.

United States Tea Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States tea market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States tea market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States tea industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.