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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1202159

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PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1202159

North America Tea Market - Growth, Trends, and Forecasts (2023 - 2028)

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The North American tea market is projected to register a CAGR of 3.45% in the next five years.

Key Highlights

  • The perceived health benefits of green tea, herbal tea, and fruit tea are increasing their popularity in the North American market. Hence, the consumption of tea is rising in the region. According to Statistics Canada, the amount of tea available for consumption per person in Canada increased to 82.04 liters in 2021 from 63.69 liters in 2018.
  • Additionally, the herbal tea segment is expected to grow significantly over the coming years. As a result of their health benefits, such as improving immunity, the market for herbal teas is increasing in the North American region.
  • Moreover, with the rising demand for natural and organic ingredients, consumers are also exploring a diversity of flavors and blends. In addition to higher-quality specialty teas featuring particular flavors, there is a growing interest in higher-quality specialty teas.
  • For instance, in February 2021, California-based Numi Organic Tea launched the 'Stay Healthy' Line of functional herbal tea. They recently introduced a line of teas that includes efficacious plants like echinacea, elderberry, dandelion root, Kanna leaf, and burdock root. It contains herbal blends developed to help users relax, support immunity, and combat common cold symptoms.
  • The market is witnessing steady growth due to the strong consumer preference in the United States, albeit Canada has been lukewarm in its response. Consumption of tea in the North American region is not limited by seasonality but is always steady, irrespective of time. Canadians have become aware of the health benefits associated with tea consumption and the wide variety of tea offerings, driving the demand for tea during the forecast period.

North America Tea Market Trends

Healthy Hydration is Propelling the Market Growth

  • Tea consumption in North America is driven by consumers' search for new non-alcoholic beverages over fruit juices and carbonated drinks. ​Consumers are developing an affinity for tea due to its bag version, which offers enhanced convenience, thus, providing a suitable, convenient, and healthy alternative to juices and carbonates.
  • Healthy hydration refers to the ability of tea to provide instant refreshment and mild stimulating benefits that are not considered detrimental, which is otherwise the case with coffee and other energy drinks. The organoleptic versatility associated with tea makes it open to manufacturers to innovate alongside the healthy trends that have been resonating more prominently in the North American market. ​
  • The linkage between tea and its healthful properties, such as organic and others, remains fundamentally strong in the North American market. The tea market is propelled due to its health-promoting profile and the variety of herbal variants, new pack sizes, and organic options in North America. ​The manufacturers are launching their products in the region owing to the rising demand for healthy tea in the region.
  • For instance, in June 2022, The UK-based Clipper Tea Company expanded its product range in the United States with new packaging and flavors. The newly added flavors include organic earl grey black tea, organic orange & turmeric herbal tea, organic green tea & lemon, organic winter apple & cinnamon herbal tea, and organic winter berries herbal tea.

The United States Has the Highest Tea Consumption

  • The United States has been identified as the second-largest importer of tea globally. Tea consumption in the United States has increased significantly in the past few years, and tea is now the most popular beverage in this country.
  • According to the International Trade Centre Trade Map, in 2021, the top three most valuable import markets for tea were Pakistan (USD 596.5 million), followed by the United States of America (USD 531.8 million), followed by Russia (USD 436.2 million).
  • In this region, the major growth opportunities include increasing health awareness among North American consumers, the introduction of new flavors, and the demand for convenience. For instance, in September 2021, in the United States, Old Barrel Tea Company launched three new Mexico-inspired loose-leaf tea blends in three new flavors, hand-crafted in Albuquerque. The latest tea blends include Prickly Pear Green Tea, Pecan Pie Pu Erh Tea, and Horchata Rooibos Tea. Furthermore, in North America, the tea market is primarily driven by rising awareness among the public about the health benefits associated with tea consumption.

North America Tea Market Competitor Analysis

The North American tea market is highly competitive, with regional and global players capturing a significant share of the market. Some of the few companies which have emerged as the leading players are Hain Celestial Group Inc., Bettys & Taylors Group, Associated British Foods PLC, Bigelow Tea Company, and Traditional Medicinals Inc. These players have focused on leveraging opportunities posed by emerging markets to expand their product portfolio, further expanding their market share. Companies compete on different factors, including product offerings, quality, taste, flavours, price, functionality, size, packaging, and marketing/branding activities, to gain a competitive advantage in the market.​

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 54136



  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study




  • 4.1 Market Drivers
  • 4.2 Market Restraints
  • 4.3 Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry


  • 5.1 Form
    • 5.1.1 Leaf Tea
    • 5.1.2 Crush/Tear/Curl Tea
  • 5.2 Product Type
    • 5.2.1 Black Tea
    • 5.2.2 Green Tea
    • 5.2.3 Herbal Tea
    • 5.2.4 Other Product Types
  • 5.3 Distribution Channel
    • 5.3.1 Supermarkets/Hypermarkets
    • 5.3.2 Convenience Stores
    • 5.3.3 Specialist Retailers
    • 5.3.4 Online Retail Stores
    • 5.3.5 Other Distribution Channels
  • 5.4 Geography
    • 5.4.1 United States
    • 5.4.2 Canada
    • 5.4.3 Mexico
    • 5.4.4 Rest of North America


  • 6.1 Strategies Adopted by Leading Players
  • 6.2 Market Share Analysis
  • 6.3 Company Profiles
    • 6.3.1 Bettys & Taylors Group
    • 6.3.2 Davids Tea Inc.
    • 6.3.3 Red Diamond Inc.
    • 6.3.4 Associated British Foods PLC
    • 6.3.5 Bigelow Tea Company
    • 6.3.6 Hain Celestial Group, Inc.
    • 6.3.7 William B. Reily and Company, Inc. (Luzianne)
    • 6.3.8 Traditional Medicinals Inc.
    • 6.3.9 Tata Consumer Products (Tata Tea)
    • 6.3.10 CVC Capital Partners (Ekaterra Tea)
    • 6.3.11 Tao Tea Leaf
    • 6.3.12 Ito En, Ltd.


Have a question?

Jeroen Van Heghe

Manager - EMEA



Christine Sirois

Manager - Americas


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