Enjoy complimentary customisation on priority with our Enterprise License!
The US Foodservice Tea Market size is projected to increase by USD 3.57 billion and the market size is estimated to grow at a CAGR of 4.6% between 2023 and 2028. The mobile foodservice industry is experiencing significant growth due to the increasing convenience and flexibility it offers consumers. This trend is further bolstered by the burgeoning food delivery and takeaway sector, which has seen exponential growth in recent years. Tea, a popular beverage choice, plays a functional role in this market. With its numerous health benefits, including boosting immunity, aiding digestion, and providing a caffeine kick, tea is a key offering in the foodservice industry. The convenience of mobile foodservice and the functional benefits of tea make for a winning combination, catering to the modern consumer's desire for quick, healthy, and convenient options. The rise of food delivery and takeaway services, coupled with the functional benefits of tea, is driving the growth of the mobile foodservice industry and shaping consumer preferences.
The US Foodservice Tea Market shows an Accelerate CAGR during the forecast period.
To get additional information about the market, Request Free Sample
The foodservice tea market in the US encompasses a wide range of offerings catering to diverse tastes and health preferences. From traditional regular hot brewed coffee to refreshing iced coffee and speciality espresso based drinks, the market also features speciality tea drinks, including regular tea and specialty tea drinks like bubble tea and herbal teas such as basil and tulsi. These beverages are enjoyed across foodservice establishments for their rich flavonoids, antioxidants, and other phytochemicals that promote health benefits against conditions like arthritis, cardiovascular diseases, and high blood pressure. Increasing consumer demand for organic and healthy ingredients drives innovation in specialty iced teas and supports the growth of the market in the US.
Rising demand for mobile foodservice is the key factor driving the growth of the market. Investing in mobile foodservice not only brings benefits in reaching a wide range of customers but also reduces the complexity of daily operations. Another advantage of food trucks over traditional restaurants is a better opportunity to expand the customer base. Additionally, the growing demand for mobile food services is encouraging mobile fast food providers to increase their domestic and international presence. Therefore, the growth of the mobile foodservice market is anticipated to drive the growth of the US foodservice tea market during the market forecast period.
Premiumization of functional tea products is the primary trend shaping the growth of the market. US - foodservice tea market players offer a variety of products of varying flavors and qualities, at varying quantities and prices. Premium products such as organic herbal tea and functional tea are all certified by the USDA, ensuring the organic quality of the product. Consumer engagement is primarily driven by premium products.
Furthermore, to satisfy a full range of teas, tea sellers are focusing on expanding their presence in the premium tea segment. To increase consumer acceptance of premium tea products, market players are offering unique packaging with different tea flavors. Therefore, the premiumization of tea products is anticipated to propel the growth of the market during the forecast period.
The negative impact of overconsumption of tea is a challenge that affects the growth of the market. According to nutrition experts, the ideal amount of tea consumed should not exceed three cups per day. The main threat of consuming too much tea is that it can be addictive. Overconsumption can also cause dehydration, bloating, deficiencies in key nutrients, and anxiety. Consuming too much tea also increases caffeine consumption.
Additionally, consuming too much tea has also been linked to many other side effects, such as osteoporosis (weak bones), stomach upset, nausea, and constipation. Thus, the impact of excessive tea consumption may impede the demand in the US foodservice tea market during the market research and growth period.
Black tea is a very popular type of tea and is widely consumed around the world, especially in the US. Black tea is a staple in many restaurants, cafes, and hotels, serving as the base for classic hot tea offerings and as the main ingredient in iced tea. Because of its rich, slightly astringent flavor, black tea pairs well with a variety of foods, making it a versatile choice for food service establishments looking to supplement their menus with tea-based beverages. The popularity of black tea goes beyond traditional tea preparation. It serves as the base for a variety of specialty and flavored teas, allowing foodservice organizations to create innovative tea-based beverages to satisfy diverse customer preferences. Therefore, these factors will propel the growth of the black tea segment in the market during the market forecasting period.
The market share growth by the full service restaurants segment will be significant during the forecast period. This segment includes fine-dining restaurants, casual dining restaurants, and mid-range restaurants. These are restaurants that offer relatively larger menus, tables, counters, and wait staff. They offer meals, drinks, and other snacks for immediate consumption, mainly on-site, but they can also provide takeout services.
The full-service restaurants segment was valued at USD 5.64 billion in 2018.
For a detailed summary of the market segments Request for Sample Report
In addition, the presence of convenient and affordable fast food outlets, as well as improved advertising and promotional activities of large restaurant chains, will play a key role in the company's revenue growth. Additionally, exposure to international culture and lifestyles has led consumers worldwide to experiment with different beverages, including tea and coffee, creating growth opportunities for FAFH. Therefore, increasing consumption of FAFH will facilitate the growth of the US - foodservice tea market during the market growth analysis period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The US foodservice tea market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
You may also be interested in:
Tea Market - Tea Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Japan, UK - Size and Forecast
Green Tea Market - Green Tea Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast
Functional Tea Market - Functional Tea Market by Distribution Channel, Type, and Geography - Forecast and Analysis
The foodservice tea market in the US is vibrant and diverse, offering a wide array of options to cater to various preferences and health considerations. From traditional coffee drinks to specialty espresso-based drinks and specialty tea drinks, this market serves a broad spectrum of consumers across coffee shops, full-service restaurants, and convenience stores. Trends indicate a shift towards iced beverages and innovative flavors in response to consumer demand for refreshing options. With a growing emphasis on health and wellness, organic and premium blends are gaining popularity among younger demographics seeking beverages that offer both taste and health benefits. This market evolution reflects changing consumer preferences and the ongoing innovation within the beverage industry.
Further, the market in the US caters to diverse consumer preferences and health trends, offering an extensive range of beverages. From specialty espresso-based drinks to specialty tea drinks, this market thrives in various settings including full-service restaurants and away-from-home locations like cafes and convenience stores. Emerging trends, such as the shift towards iced beverages and the rising popularity of premium and craft offerings highlight evolving consumer tastes and preferences. With a growing emphasis on health and wellness, organic and herbal teas, including Ayurvedic blends, are gaining traction among health-conscious consumers. This market's dynamic growth reflects ongoing innovation and adaptation to consumer demands for both flavor diversity and nutritional benefits.
The tea market is undergoing dynamic shifts influenced by various trends and consumer behaviors. Increasingly, consumers are opting for tea away from home, driven by the growth of the foodservice coffee market ,which now includes diverse AFH offerings. Amid concerns over the climate crisis, there's a heightened focus on sustainability, impacting coffee producers in tropical countries and shaping consumer choices towards organic and quality teas. Innovations in the iced coffee space and trending flavors are capturing consumer interest, alongside the appeal of eye-catching beverages. Health-conscious trends are driving demand for simple coffee/tea drinks, organic and herbal teas, including Ayurvedic blends, catering to the needs of the working population seeking instant energy and hydration. Overall, the tea market reflects evolving consumer preferences and health conditions, particularly among younger consumers seeking natural and functional beverage options.
Market Scope |
|
Report Coverage |
Details |
Page number |
143 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2024-2028 |
USD 3.57 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
4.18 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anchor Beverages Inc., Aroma Israel, Associated British Foods Plc, Bigelow Tea, Golden Fleece Beverages Inc., Harney and Sons Fine Teas, Harris Freeman, Inspire Brands Inc., LIPTON Teas and Infusions, Numi Inc., Oribe Tea LLC, PALAIS DES THES, Starbucks Corp., Tata Consumer Products Ltd., Teatulia Organic Teas, The Hain Celestial Group Inc., TreeHouse Foods Inc., and Yamamotoyama of America |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
BUY NOW Full Report and Discover more
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.