United States Tea Market Research Report: Forecast (2026-2032)

United States Tea Market Size: Forecast (2026-2032)

The United States Tea Market size is valued at around USD 3.11 billion in 2025 and is projected to reach USD 3.78 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 2.83 % during the forecast period, i.e., 2026-32. The United States Tea Market is expanding rapidly, as health awareness and premium consumption patterns reshape beverage choices nationwide. Scientific validation continues to reinforce tea’s wellness profile.

The National Institutes of Health identified tea as one of the richest dietary sources of polyphenols, strengthening its appeal among consumers seeking antioxidant-rich beverages. Meanwhile, the American Heart Association highlighted that flavonoid-rich drinks such as black and green tea support healthier endothelial function and improved blood-pressure regulation.

By 2025, beverage manufacturers will have expanded immunity-support blends featuring elderberry, turmeric, ginger, and hibiscus, aligning with the public’s interest in natural health solutions. Large pooled epidemiological analyses further underscored tea’s preventive potential, demonstrating a 29% lower risk of hypopharyngeal cancer and a 9% reduction in total head and neck cancer risk, driven by polyphenols, catechins, and theanine compounds emphasized by the NCCIH.

Simultaneously, premiumization and flavor innovation are broadening category relevance. Younger consumers increasingly adopt specialty loose-leaf teas, cold brews, botanical infusions, and sugar-free fruit blends, reflecting demand for both sensory variety and clean-label formulations across cafes, retail outlets, and ready-to-drink formats.

Investments will further accelerate market expansion. For instance, HTeaO’s planned rollout of 41 new U.S. stores by the end of 2025, followed by more than 40 additional openings in 2026, reflects a strengthening commitment to tea-centric retail infrastructure and signals sustained long-term category momentum.

The growing scientific validation of tea’s health benefits, combined with premiumization, flavor innovation, and expanding retail footprints, will continue to strengthen consumer demand and propel long-term growth in the U.S. Tea Market.

United States Tea Market Recent Developments:

• July 2025: Owl’s Brew introduced its Sun Tea & Vodka RTD range for the summer season, featuring flavors like Strawberry Basil, Half Tea & Half Lemonade, and Blueberry Lemon. Made with fresh-brewed tea and real vodka, the drinks contain about 100–110 calories.
• September 2025: Bigelow Tea introduced two seasonal Fall/Winter blends, Simply Cinnamon Apple and Sweet Cinnamon Dolce. The first is a caffeine-free herbal blend of apple, cinnamon, rose hips, and hibiscus; the second is a dessert-inspired black tea with cinnamon and licorice root. Each comes in an 18-bag box, is gluten-free, non-GMO, and Kosher certified, and retails at USD 3.49 nationwide.

United States Tea Market Scope:

United States Tea Market Drivers:

Rising Focus on Health & Wellness

Growing focus on health & wellness in the United States is significantly strengthening demand for tea, particularly unsweetened, herbal, and functional varieties. Scientific evidence continues to reinforce tea’s role in long-term health management.

A recent meta-analysis of 38 cohort datasets involving 1.96 million participants reported that individuals with the highest tea intake exhibited a 10% reduction in all-cause mortality and a 14% decrease in cardiovascular-disease mortality compared with non-tea drinkers. These benefits are supported by findings from a 2025 study showing that routine herbal-tea consumption correlates with fewer cardiovascular events and lower cardiovascular and overall mortality.

Further, a large pooled analysis of international datasets demonstrated tea’s potential role in cancer prevention, showing a 29% lower risk of hypopharyngeal cancer and a 9% reduction in total head and neck cancer risk even at low consumption levels. These outcomes are linked to compounds such as polyphenols, catechins, and theanine, which exhibit antioxidant, cardioprotective, and anti-inflammatory properties. U.S. public-health institutions, including the NCCIH, highlight these mechanisms in their educational materials, reinforcing consumer confidence.

Beyond 2025, increasing investment in functional beverage R&D, cleaner labelling, and wellness-positioned RTD teas is expected as manufacturers align with national health priorities and rising consumer literacy. As scientific validation and public-health messaging continue to favor tea’s health profile, this driver will meaningfully accelerate both traditional and functional tea demand in the coming years.

United States Tea Market Trends:

Premiumization & Flavor Innovation Reshaping Market Growth Trajectory

Premiumization and flavor innovation are transforming the U.S. tea industry as consumers increasingly seek distinctive taste profiles, artisanal blends, and elevated drinking experiences. This shift encourages brands to develop richer flavors, seasonal varieties, and higher-quality formulations that command premium prices.

Major tea brands accelerated premium flavor innovation in 2025, introducing a wider range of sophisticated blends tailored to evolving consumer tastes. For instance, in June 2025, Rishi expanded its portfolio with three botanically rich teas as Garden Party, Tangerine Hibiscus, and Ritual Green, crafted to deliver floral, citrus, and earthy notes suitable for both hot and iced formats.

In July 2025, Lipton unveiled its new Fruit & Herbal Tea collection with varieties such as Golden Chamomile, Peach Paradise, Smooth Mint, and Lemon Ginger Refresh, targeting consumers seeking elevated flavor profiles with a wellness touch.

Similarly, Celestial Seasonings broadened its wellness-led offerings in July 2025, launching “anytime” blends including She-Well™ Raspberry Leaf, Good Vibes™ Lemon Mint, and a multifunctional Detox Blend featuring dandelion, green rooibos, and aloe vera, all made available in standard bagged-tea packaging.

Collectively, these innovations reveal a shift toward fruit and herbal profiles, wellness-focused blends, and hybrid tea-tea–tea-supplement formats. With formats ranging from classic tea bags to concentrated and infused options, consumers now enjoy broader choices in flavor, convenience, and functional benefits.

United States Tea Market Challenges:

Fluctuating Prices of Tea Leaves and Botanicals

Fluctuating prices of tea leaves and botanicals have become a significant cost challenge for U.S. tea manufacturers, as global supply instability continues to affect procurement. For instance, India’s tea production fell 7.8% in 2024 to 1.28 billion kg after erratic rainfall in Assam, pushing average wholesale prices to about USD 2.61/kg, a notable rise from the previous year.

Similarly, Kenya, another key supplier, reported export price swings between USD 2.27–2.47/kg during 2023–2024, underscoring persistent auction volatility. International agencies also flagged higher beverage-related commodity costs in 2023–2024, adding to import uncertainties for U.S. blenders.

Botanical ingredients widely used in flavored and functional teas, such as ginger, turmeric, hibiscus, and specialty herbs, also saw sharp price fluctuations in 2023–2024 due to weather disruptions and elevated freight costs. This volatility increases formulation expenses, especially for premium and wellness-oriented blends that rely on multiple botanicals.

Rising and unpredictable ingredient costs squeeze margins, limit innovation budgets, and may force price hikes, collectively slowing product development and restricting the growth trajectory of the U.S. tea industry.

United States Tea Market (2026-32) Segmentation Analysis:

The United States Tea Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Category

• Black Tea
  • Loose Black Tea
  • Tea Bags Black
• Fruit/Herbal Tea
• Green Tea
• Instant Tea
• Others

The black tea segment holds the largest share in the United States Tea Market, around 55%, supported by its long-standing consumer base, versatility, and wide retail availability across both loose-leaf and tea-bag formats.

Tea bags, in particular, dominate household consumption due to their convenience, portion control, and strong brand presence from companies such as Lipton, Bigelow, and Twinings. Black tea also benefits from its established role in foodservice, ready-to-drink formulations, and iced tea products, segments that account for a significant share of U.S. tea consumption.

While green tea and fruit/herbal tea is expanding rapidly due to wellness positioning, they do not yet match the scale and penetration of black tea in daily-use occasions, large-format retail, and value-driven purchasing. Instant tea and niche varieties remain comparatively small due to limited innovation and lower consumer preference.

Overall, black tea leads because of its cultural familiarity, convenience-driven formats, and strong integration into both hot and iced tea habits, keeping it firmly positioned as the dominant category.

Based on Packaging

• Flexible Packaging
  • Flexible Paper
  • Flexible Plastic
  • Stand-Up Pouches
• Metal Packaging
  • Metal Tins
  • Metal Cans
• Rigid Plastic Packaging
• Glass Packaging
• Others

The flexible packaging category leads the United States Tea Industry, accounting for 45% of market volume, driven by its cost efficiency, lightweight structure, and suitability for both loose-leaf and bagged teas.

Flexible paper and flexible plastic dominate retail shelves because they offer strong barrier protection against moisture, aroma loss, and light exposure, critical for maintaining tea quality. Stand-up pouches have grown rapidly as brands shift to resealable formats that enhance freshness and improve convenience for consumers purchasing premium loose-leaf and herbal blends.

Metal tins and cans remain important in the premium and gift-pack segments, while rigid plastic and glass are used more selectively due to higher material and transportation costs. However, they do not match the scale and affordability of flexible formats in everyday retail.

Overall, flexible packaging leads because it delivers cost-effective manufacturing, extended shelf life, reduced shipping weight, and higher consumer convenience, making it the preferred choice for both mainstream and specialty tea brands across the U.S. market.

Leading Players of the United States Tea Market:

• Unilever PLC

Unilever PLC was founded in 1929, is headquartered in London, United Kingdom. The company specializes in fast-moving consumer goods across food, beverages, personal care, and home care. In the tea segment, Unilever has decades of expertise through iconic brands such as Lipton and PG Tips, focusing on large-scale sourcing, sustainable agriculture programs, and wide retail distribution.

• Bigelow Tea

Bigelow Tea was established in 1945 and is headquartered in Fairfield, Connecticut, USA. The company is known for its specialty teas, including black, green, herbal, and flavored blends. Bigelow emphasizes family-owned craftsmanship, quality sourcing, and Non-GMO/Kosher offerings, with strong expertise in tea-bag production and national retail penetration.

• Yogi Tea Co.

Yogi Tea was founded in 1984 and is headquartered in Eugene, Oregon, USA, with additional operations in Hamburg, Germany. The brand specializes in Ayurvedic-inspired herbal and wellness teas, blending botanicals, spices, and functional ingredients. It is recognized for its expertise in wellness formulations, organic sourcing, and purpose-driven product development.

Numi, Tetley USA Inc., Traditional Medicinals, Hain Celestial Group, Stash Tea, and others are the key players of the United States Tea Market.

United States Tea Market (2026-32): Regional Projection

The United States Tea  Market is dominated by the South region, driven primarily by its deep-rooted iced-tea culture, year-round warm climate, and high consumption frequency. Sweet tea is a long-standing regional staple, shaping both household and foodservice demand.

Major quick-service restaurant chains across Southern states serve iced tea as a core beverage, reinforcing its everyday consumption. The region also benefits from strong retail turnover for black tea and ready-to-drink formats, which dominate national volume sales.

Population growth in states such as Texas, Florida, Georgia, and North Carolina further strengthens demand, as expanding urban centers and foodservice outlets boost on-premise and takeaway tea purchases. Additionally, the South’s preference for large-format beverages aligns with the popularity of family-sized iced-tea blends and multi-serve products.

Overall, the South leads because of cultural affinity, climate-driven consumption, and strong retail–foodservice integration, making it the most influential regional contributor to U.S. tea market volume.

Gain a Competitive Edge with Our United States Tea Market Report 

• United States Tea Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions. 
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition. 
• United States Tea Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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