India Iced Tea Market Size 2025-2029
The india iced tea market size is valued to increase by USD 6.99 billion, at a CAGR of 17.7% from 2024 to 2029. Rising urbanization and changing consumer lifestyles will drive the india iced tea market.
Major Market Trends & Insights
- By Product - Black iced tea segment was valued at USD 2.07 billion in 2023
- By Distribution Channel - Offline segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 8.73 billion
- Market Future Opportunities: USD 6.99 billion
- CAGR from 2024 to 2029 : 17.7%
Market Summary
- The iced tea market in India is undergoing a significant transformation, shaped by evolving consumer preferences for healthier, convenient beverage options. Key drivers include a shift away from carbonated drinks and a growing wellness consciousness among urban populations. Market dynamics are influenced by innovations in product formulation, such as the introduction of sugar-free variants and the use of natural ingredients.
- Trends indicate a strong movement toward ready-to-drink formats that cater to on-the-go lifestyles, alongside a surge in online sales channels that enhance product accessibility. For instance, optimizing cold chain logistics is a critical operational focus for manufacturers to ensure product integrity from bottling to final delivery, reducing spoilage and maintaining quality for temperature-sensitive products.
- However, the industry faces challenges related to stringent food safety regulations and intense competition from a wide array of beverage substitutes. Navigating these complexities requires strategic brand differentiation, robust distribution networks, and continuous adaptation to regional taste profiles to sustain market relevance and capture growth opportunities in this dynamic sector.
What will be the Size of the India Iced Tea Market during the forecast period?
Get Key Insights on Market Forecast (PDF) Request Free Sample
How is the India Iced Tea Market Segmented?
The india iced tea industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Product
- Black iced tea
- Green iced tea
- Others
- Distribution channel
- Offline
- Online
- Packaging
- Bottled
- RTD
- Powdered mix
- Others
- Geography
- APAC
- India
- APAC
By Product Insights
The black iced tea segment is estimated to witness significant growth during the forecast period.
The black iced tea segment is evolving, driven by changing consumer lifestyle shifts toward healthier beverage alternatives. Positioned as an antioxidant-rich beverage, it meets demand from urban consumption patterns for convenient, on-the-go consumption formats.
Innovations in tea leaf steeping and beverage preservation methods are enabling the creation of premium, low-sugar iced tea options.
This segment is capitalizing on a cultural familiarity with black tea, reformulating it for a modern audience seeking refreshment with perceived wellness benefits.
With a year-over-year growth of 15.3%, the segment's expansion reflects a successful premium beverage positioning strategy that aligns with health-conscious trends and the appeal of a healthy beverage alternative without sacrificing traditional flavor profiles.
The Black iced tea segment was valued at USD 2.07 billion in 2023 and showed a gradual increase during the forecast period.
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.
- Strategic decision-making in the market increasingly revolves around specific consumer needs and operational efficiencies. Understanding the health benefits of low-sugar iced tea is crucial for product development, as consumers actively seek low-calorie ready-to-drink beverages. The impact of natural sweeteners on taste remains a key area for R&D, influencing consumer acceptance and brand loyalty.
- Operationally, effective cold chain management for rtd tea is non-negotiable for maintaining quality and extending shelf life. For instance, supply chains that adopt real-time temperature tracking for rtd tea show a more than three-fold reduction in quality control rejections compared to legacy logistics models.
- Furthermore, the push for sustainable packaging for bottled beverages is now a core competitive differentiator, not just a regulatory hurdle. Innovators are exploring sugar-free iced tea flavor innovation to capture new market segments. Success hinges on integrating effective e-commerce strategies for beverage brands, as the debate over offline vs online beverage distribution continues to shape go-to-market plans.
- Businesses must align product attributes with channel capabilities to succeed.
What are the key market drivers leading to the rise in the adoption of India Iced Tea Industry?
- The market's growth is principally driven by accelerating urbanization and evolving consumer lifestyles that prioritize convenience and healthier choices.
- Market growth is significantly propelled by a consumer-led push for healthier options and product innovation. The demand for sugar-free iced tea and products brewed from organic leaves that use natural sweeteners is a primary driver.
- These offerings, often enriched with herbal infusions, are positioned as a premium non-alcoholic refreshment. Distribution strategies are adapting, with increased convenience store placement and quick-service restaurant menuing making products more accessible.
- This is supported by a clear product premiumization strategy and effective in-store promotional activities. Products with 'low-sugar' claims are showing 18% higher consumer retention, while QSRs featuring premium iced teas report a 12% increase in average beverage transaction value.
- Additionally, a focus on ethical sourcing practices is resonating with conscientious consumers.
What are the market trends shaping the India Iced Tea Industry?
- A primary market trend is the significant increase in product visibility and accessibility, which is being driven by the expansion of online retailing.
- Emerging trends are reshaping market dynamics, with a strong pivot toward health and convenience. The popularity of green iced tea and herbal iced tea is rising, driven by their perceived wellness benefits. This is complemented by the convenience of the ready-to-drink format and innovative cold brew tea bags, which cater to busy lifestyles.
- Online platforms are a major growth frontier, with e-commerce beverage sales demonstrating a 25% higher growth rate than traditional retail. The expansion of modern retail formats and direct-to-consumer channels is increasing accessibility, while digital platform engagement deepens brand relationships. Furthermore, the adoption of sustainable packaging materials has increased by over 30% as consumers and companies alike prioritize environmental responsibility.
- Innovations with fruit extracts are also diversifying flavor profiles.
What challenges does the India Iced Tea Industry face during its growth?
- A key challenge impacting industry expansion is the requirement for strict adherence to rigorous regulatory standards and food safety protocols.
- Navigating operational and logistical hurdles is a primary challenge for market participants. The complexity of cold chain logistics is paramount, as maintaining temperature integrity can prevent spoilage by up to 99%, whereas improper storage may reduce shelf life by 40%. This is especially critical for products requiring chilled beverage processing and aseptic packaging.
- Catering to diverse regional taste preferences in products like fruit-flavored iced tea while managing seasonal demand fluctuations complicates inventory planning. The market for powdered mix formulation and traditional sun tea brewing methods also competes for consumer attention.
- Understanding what transforms a purchase into one driven by impulse purchase drivers versus a planned buy is key to adapting to shifting beverage consumption behavior.
Exclusive Technavio Analysis on Customer Landscape
The india iced tea 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 india iced tea market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of India Iced Tea Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, india iced tea market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Barrys Tea - Key offerings include specialized gold blend iced tea formulations, developed to meet discerning consumer taste profiles and premium market demands.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Barrys Tea
- Goodwyn Tea
- Gujarat Tea Processors and Packers
- Harris Freeman
- ITO EN Ltd.
- Karma Kettle Teas
- Nestle SA
- ORGANIC INDIA Pvt. Ltd.
- Positive Food Ventures Pvt. Ltd.
- Tata Consumer Products Ltd.
- TE A ME
- The Coca Cola Co.
- The Good life Co.
- The Hain Celestial Group
- The Republic of Tea Inc.
- Unilever PLC
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 industry 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 India iced tea market
- In May, 2025, FreshBrew Co. launched a new line of organic, low-sugar iced teas featuring fully biodegradable packaging, specifically targeting health-conscious urban consumers.
- In February, 2025, Arctic Teas International announced its acquisition of a regional beverage bottler, a move set to increase its production capacity by nearly 40% and strengthen its distribution network.
- In November, 2024, PureLeaf Innovations disclosed a strategic partnership with a leading food delivery platform to enhance its direct-to-consumer distribution and last-mile delivery capabilities across major metropolitan areas.
- In August, 2024, the Food Safety and Standards Authority of India (FSSAI) issued revised labeling guidelines for ready-to-drink beverages, mandating clearer front-of-pack nutritional information on sugar and calorie content.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled India Iced Tea Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 179 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 17.7% |
| Market growth 2025-2029 | USD 6985.2 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 15.3% |
| Key countries | India |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The market is undergoing a structural shift, moving beyond simple refreshments to become a key category in the wellness beverage space. A core boardroom-level decision involves balancing product innovation with supply chain investment. For instance, firms leveraging advanced flavor infusion techniques have reported a 25% faster time-to-market for new product variants, a critical advantage in a trend-driven market.
- Formulations range from traditional black iced tea and green iced tea to newer entrants like herbal iced tea, matcha iced tea, and fruit-flavored iced tea, often brewed from organic leaves. The demand for low-sugar iced tea and sugar-free iced tea is met using natural sweeteners and herbal infusions.
- Convenience is addressed through the ready-to-drink format, powdered mix formulation, and cold brew tea bags. The underlying technology, including tea leaf steeping, chilled beverage processing, and aseptic packaging, ensures the final product is an antioxidant-rich beverage.
- Effective beverage preservation methods are vital for creating a shelf-stable non-alcoholic refreshment, whether through classic packaged drink preparation or modern sun tea brewing with beverage concentrates and fruit extracts.
What are the Key Data Covered in this India Iced Tea Market Research and Growth Report?
-
What is the expected growth of the India Iced Tea Market between 2025 and 2029?
-
USD 6.99 billion, at a CAGR of 17.7%
-
-
What segmentation does the market report cover?
-
The report is segmented by Product (Black iced tea, Green iced tea, and Others), Distribution Channel (Offline, and Online), Packaging (Bottled, RTD, Powdered mix, and Others) and Geography (APAC)
-
-
Which regions are analyzed in the report?
-
APAC
-
-
What are the key growth drivers and market challenges?
-
Rising urbanization and changing consumer lifestyles, Adherence to stringent regulations and guidelines
-
-
Who are the major players in the India Iced Tea Market?
-
Barrys Tea, Goodwyn Tea, Gujarat Tea Processors and Packers, Harris Freeman, ITO EN Ltd., Karma Kettle Teas, Nestle SA, ORGANIC INDIA Pvt. Ltd., Positive Food Ventures Pvt. Ltd., Tata Consumer Products Ltd., TE A ME, The Coca Cola Co., The Good life Co., The Hain Celestial Group, The Republic of Tea Inc. and Unilever PLC
-
Market Research Insights
- The market's dynamic nature is shaped by significant shifts in beverage consumption behavior and distribution strategies. The expansion of modern retail formats and the surge in e-commerce beverage sales are enhancing online retailing accessibility, with direct-to-consumer channels improving customer engagement metrics by over 20%.
- In parallel, optimized cold chain logistics have become crucial, successfully cutting spoilage-related losses by 15% for temperature-sensitive products. This focus on operational efficiency supports the growing demand for on-the-go consumption and facilitates deeper penetration into the food service channel.
- Product premiumization strategy, coupled with in-store promotional activities and an emphasis on ethical sourcing practices, further drives market expansion and brand loyalty in a competitive environment.
We can help! Our analysts can customize this india iced tea market research report to meet your requirements.