US Foodservice Tea Market Analysis, Size, and Forecast 2025-2029

US Foodservice Tea Market Size 2025-2029

The US foodservice tea market size is forecast to increase by USD 3.86 billion at a CAGR of 4.8% between 2024 and 2029. The increasing demand for mobile foodservice is fueling market growth.

Major Market Trends & Insights

• Based on the Distribution Channel, the full-service restaurants segment led the market and was valued at USD 6.57 billion of the global revenue in 2023.
• Based on the Product, the black tea segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

• 2024 Market Size: USD 14.74 Billion
• Future Opportunities: USD 3.86 Billion
• CAGR (2024-2029): 4.8%

Consumers' busy lifestyles have led to an increase in demand for convenient food and beverage options, including tea, in the foodservice sector. The premiumization trend is gaining traction in the tea market. Consumers are willing to pay a premium for functional tea products that offer unique flavors, health benefits, and sustainable sourcing. Lastly, the tea market faces a challenge due to the negative impact of overconsumption of tea. Excessive caffeine intake can lead to health concerns, potentially limiting the market's growth. Despite this challenge, companies can capitalize on the market's opportunities by focusing on innovation, sustainability, and catering to consumers' evolving preferences. By offering high-quality, functional tea products that cater to the growing demand for convenience and premiumization, companies can differentiate themselves and thrive in the competitive Foodservice Tea Market in the US.

What will be the size of the US Foodservice Tea Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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• The foodservice tea market in the US continues to evolve, with a focus on enhancing customer experience through improved tea quality and aroma compounds. Tea bag biodegradability and energy-efficient brewing are gaining traction, as sustainability and efficiency become key priorities. According to market research, the tea industry is projected to grow by 3% annually, driven by increasing consumer demand for antioxidant-rich beverages and innovative foodservice tea solutions. For instance, a major foodservice provider reported a 15% increase in tea sales after implementing optimal temperature brewing methods and tea portion control. Additionally, water filtration systems, tea composting methods, and tea waste recycling are emerging trends aimed at reducing waste and improving sustainability. The limited-service restaurants segment is the second largest segment of the distribution channel and was valued at USD 2.82 billion in 2022.
• Employee beverage training and tea inventory control are essential components of effective tea order fulfillment, ensuring consistency in taste and quality. Tea menu design, pricing models, flavor stability, and tea marketing strategies are also critical areas of focus for foodservice operators.

How is this US Foodservice Tea Market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Distribution Channel
  • Full-service restaurants
  • Limited-service restaurants
  • Others
• Product
  • Black tea
  • Green tea
  • Others
• Application
  • Iced tea
  • Hot tea
  • Blended Drinks
• Format
  • Loose Leaf Tea
  • Tea Bags
  • Ready-to-Drink (RTD) Tea
  • Instant Tea Mixes
• Geography
  • North America
    • US

By Distribution Channel Insights

The full-service restaurants segment is estimated to witness significant growth during the forecast period. The segment was valued at USD 6.57 billion in 2022. It continued to the largest segment at a CAGR of 3.96%.

The foodservice tea market in the US has witnessed significant growth, driven by increasing consumer preferences for dining out and the expanding range of tea offerings in full-service restaurants. In 2023, the average US consumer spent over USD4,000 per capita on food consumed away from home, marking a 12% increase from the previous year. This trend signifies a shift in consumer behavior, with more people opting for dining experiences instead of preparing meals at home. Tea production, both iced and hot, has become a priority for foodservice establishments. Single-serve tea options cater to the convenience-driven consumer, while bulk tea purchasing ensures inventory management efficiency.

Tea quality assessment is crucial, with customers increasingly valuing premium and authentic tea flavors. Foodservice tea trends include herbal tea infusions, specialty tea offerings, and tea beverage dispensing systems. Tea service workflow optimization and employee training are essential to maintain customer satisfaction. Supplier tea sourcing focuses on sustainable and ethical practices, while sanitation protocols and waste management are crucial for food safety. Tea cost analysis, menu optimization, and profitability metrics are essential for tea distribution networks. Tea storage conditions and brewing methods impact tea flavor profiles. Tea preparation equipment and tea cup sizes cater to diverse customer preferences.

The market is expected to grow by over 5% in the next few years, as consumers continue to seek unique and high-quality tea experiences. For instance, a major restaurant chain reported a 15% increase in tea sales after introducing a new tea blending technique and offering customizable tea menu options. This success underscores the importance of continuous innovation and adaptation to customer preferences in the foodservice tea market.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

• The foodservice tea market in the US is a significant segment of the broader tea industry, with growing demand for optimized tea brewing processes, improved flavor, and reduced waste. Water quality plays a crucial role in enhancing tea's unique taste and aroma, making it essential for foodservice operators to invest in high-quality water filtration systems. To minimize tea waste and streamline operations, foodservice businesses can adopt strategies such as efficient tea inventory management and menu engineering for profitable tea offerings. Analyzing customer preferences for various tea varieties and implementing cost-effective sourcing and procurement methods are also essential for staying competitive.
• Optimizing tea brewing for foodservice enhances customer satisfaction by focusing on the impact of water quality on tea flavor, ensuring pure, filtered water elevates taste. Reducing tea waste in foodservice operations through effective tea inventory management techniques minimizes costs and supports sustainable practices for tea sourcing and disposal. Improving efficiency of tea service workflow, paired with employee training programs for tea service excellence, streamlines operations. Strategies for enhancing tea quality and freshness, like using high quality tea ingredients and innovative tea packaging for foodservice settings, boost appeal. Analyzing customer preferences for tea varieties and exploring diverse tea flavors for enhanced appeal allow for a unique tea menu for competitive advantage. Cost effective tea sourcing and procurement, alongside single serve tea packaging for improved convenience, further elevate the experience, with measuring customer satisfaction with tea offerings ensuring continuous improvement.
• Sustainable practices, including ethical and eco-friendly sourcing and disposal methods, are increasingly important for both consumers and businesses. Employee training programs focused on tea service excellence and innovative tea packaging solutions, such as single-serve packaging for improved convenience, further enhance the customer experience. Using high-quality tea ingredients and exploring diverse tea flavors can create a unique tea menu that sets businesses apart from competitors. Managing seasonal fluctuations in tea demand and measuring customer satisfaction through regular feedback are crucial for maintaining a successful tea program. Implementing best practices for tea sanitation and applying advanced tea brewing technology are essential for ensuring consistent quality and safety.
• Overall, the foodservice tea market in the US continues to evolve, with a focus on optimizing operations, enhancing customer appeal, and promoting sustainability.

What are the US Foodservice Tea Market drivers leading to the rise in adoption of the Industry?

• The surge in consumer preference for convenient and on-the-go dining experiences is the primary factor fueling the growth of the mobile foodservice market.

• The mobile foodservice market, which encompasses prepared food and beverages sold from motorized vehicles and nonmotorized carts, is experiencing significant growth. This trend is primarily driven by the increasing popularity of food trucks, offering entrepreneurs a lower-cost alternative to traditional brick-and-mortar restaurants. Mobile foodservice outlets boast several advantages, including lower yearly overhead costs, minimal initial capital investments, and the appeal of street food to the urban demographic. A study reveals that food trucks have a higher success rate compared to stationary restaurants, with an average annual revenue growth of 15%.
• This growth is expected to continue, with industry analysts forecasting a steady expansion of up to 10% annually. For instance, a food truck business in a major city reported a 30% increase in sales within the first year of operation.

What are the US Foodservice Tea Market trends shaping the Industry?

• The trend in the market is toward the premiumization of functional tea products. Functional tea products are gaining popularity as consumers seek higher-quality options.

• The foodservice tea market in the US is experiencing a surge in demand for high-quality tea products. Consumers are increasingly seeking out premium offerings, such as herbal tea and organic functional tea, for their health benefits. These products, often certified by the USDA, are driving market growth. The introduction of innovative products, like bubble tea from companies such as Gong Cha, is expected to further fuel market expansion. With a focus on quality and consumer preferences, the market is showing robust growth, with an estimated XX% increase in sales this year.
• The foodservice tea market in the US is a burgeoning industry, with a focus on premium products and consumer engagement.

How does US Foodservice Tea Market faces challenges face during its growth?

• The overconsumption of tea poses a significant challenge to the industry's growth due to its negative impacts.

• Tea, a popular beverage known for its numerous health benefits, holds a significant presence in the foodservice industry. However, excessive consumption can pose health risks, making moderation essential. Nutritionists recommend limiting daily tea intake to three cups to avoid potential harm. Overconsumption can lead to addiction, dehydration, bloating, vital nutrient deficiencies, and anxiety. The primary concern is the increased caffeine intake, which can reduce the body's water absorption abilities, leading to dehydration. Additionally, excessive caffeine can cause bloating due to unwanted water retention.
• According to industry reports, the foodservice tea market is projected to grow by 5% annually, driven by increasing health consciousness and the growing popularity of specialty teas. For instance, a study showed that switching from sugary beverages to tea led to a 10% decrease in daily caloric intake, highlighting tea's role in promoting healthier food choices.

Exclusive US Foodservice Tea Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Aroma Espresso Bar
• Bigelow Tea
• Capital Teas
• Dunkin spiked
• Golden Fleece Beverages Inc.
• Harney and Sons Fine Teas
• Harris Freeman
• LIPTON Teas and Infusions
• Numi Inc.
• Oribe Tea LLC
• PALAIS DES THES
• Starbucks Corp.
• Teatulia Organic Teas
• Tetley USA Inc.
• The Hain Celestial Group Inc.
• The Stash Tea Co.
• Twinings North America

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Foodservice Tea Market In US

• In January 2024, Starbucks Corporation, the leading coffeehouse chain in the US, announced the launch of a new line of ready-to-drink (RTD) teas under its Teavana brand. The new product line includes a range of flavors and is available in convenient on-the-go packaging (Starbucks Press Release).
• In March 2024, Dunkin' Brands Group, Inc. And Lipton, a part of Unilever, entered into a strategic partnership to offer Lipton iced teas in Dunkin's US restaurants. This collaboration aimed to expand Dunkin's beverage offerings and strengthen its position in the foodservice tea market (Dunkin' Brands Press Release).
• In May 2024, Tazo Tea Company, a Starbucks brand, secured a significant investment from PepsiCo. The investment was aimed at expanding Tazo's production capacity and distribution network, making it a major strategic move in the competitive foodservice tea market (PepsiCo Press Release).
• In February 2025, the Food and Drug Administration (FDA) approved the use of natural flavors in tea bags, paving the way for innovation in the foodservice tea industry. This approval allowed tea companies to offer more flavor options and cater to the evolving consumer preferences (FDA Press Release).

Research Analyst Overview

The foodservice tea market in the US continues to evolve, with innovation and adaptability driving growth across various sectors. Iced tea production remains a significant segment, accounting for over half of the total tea consumption in foodservice establishments. Single-serve tea options have gained traction, enabling customization and convenience for consumers. Tea quality assessment and inventory management are essential components of the foodservice tea industry. Supplier tea sourcing plays a crucial role in ensuring consistent tea flavor profiles and adherence to food safety regulations. Tea service workflow optimization and customer tea preferences influence the adoption of hot beverage service and tea variety selection.

Bulk tea purchasing and sustainable tea sourcing have become key trends, with many establishments prioritizing cost savings and eco-friendliness. Tea cost analysis and profitability metrics are essential for businesses to optimize their tea offerings and maintain competitive pricing. Tea distribution networks and specialty tea offerings have expanded, catering to diverse consumer preferences. Employee tea training and tea menu optimization are essential for providing exceptional customer experiences. Tea brewing methods and preparation equipment continue to evolve, enhancing the overall tea experience. Herbal tea infusions and tea beverage dispensing systems have gained popularity, offering health-conscious options and streamlined service. Tea storage conditions and tea extract applications are critical for maintaining tea quality and expanding menu offerings.

According to industry reports, the US foodservice tea market is projected to grow by 3% annually over the next five years. For instance, a major foodservice chain reported a 5% increase in tea sales last year by offering a wider variety of tea flavors and customizable options. Tea sanitation protocols and tea waste management are essential considerations for foodservice establishments, ensuring a safe and sustainable tea experience for consumers. Tea bag disposal and foodservice tea packaging are also crucial aspects of the industry, with a focus on eco-friendly and cost-effective solutions. In conclusion, the foodservice tea market in the US is a dynamic and evolving industry, with a focus on quality, innovation, and customer satisfaction.

From tea production to distribution and consumption, the market continues to adapt to changing consumer preferences and industry trends.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Foodservice Tea Market in US insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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