Cold Brew Tea Market Size | Global Report [2033]

Cold Brew Tea Market Overview

The Cold Brew Tea Market size was valued at USD 2.51 million in 2025 and is expected to reach USD 4.75 million by 2033, growing at a CAGR of 8.29% from 2025 to 2033.

The cold brew tea market is gaining significant traction worldwide, particularly among health-conscious consumers and millennials. In 2023, more than 31% of global consumers reported increased consumption of low-caffeine and cold-extracted beverages. Cold brew tea, unlike traditional iced tea, undergoes a slow steeping process in cold water for 8–12 hours, enhancing flavor and reducing bitterness. The global demand for cold beverages has driven notable innovation, with approximately 45 new cold brew tea products launched in the last 18 months.

In the United States alone, ready-to-drink (RTD) cold brew beverages grew by 18% in volume sales in 2023, with tea-based products accounting for 26% of that growth. Asia-Pacific saw a 12% rise in online cold brew tea purchases, led by South Korea and Japan, where bottled formats dominate urban retail. The retail shelf share for cold brew tea in beverage aisles increased by 8.4% year-over-year, especially among premium and organic segments. Growing preference for natural, antioxidant-rich, and sugar-free drinks has led nearly 40% of consumers aged 25–34 to shift from soda to cold brew alternatives. These trends reflect the evolving beverage consumption patterns and the expanding footprint of cold brew tea across developed and emerging markets.

Key Findings

Driver: Growing consumer demand for low-caffeine, antioxidant-rich beverages.

Top Country/Region: United States accounts for over 43% of global cold brew tea retail sales.

Top Segment: Bottled cold brew tea holds over 55% of the market share globally.

Cold Brew Tea Market Trends

The cold brew tea market is witnessing substantial growth across both retail and food service channels. The shift toward health-oriented lifestyles is a major factor propelling the rise in cold brew tea consumption. As of 2024, cold brew beverages make up 11.7% of all RTD tea product launches, up from 7.3% in 2021. Black tea remains the most popular variety, accounting for 39% of cold brew tea sales, followed by green tea at 27%, and herbal variants at 19%. In terms of packaging trends, single-serve PET bottles account for 61% of product formats, while multi-serve glass bottles hold 24%, particularly in premium segments. Sustainability also plays a key role, with over 52% of new product launches using recyclable or biodegradable packaging. Flavored cold brew teas are gaining traction, with lemon, hibiscus, and peach being top flavor choices. In 2023, over 80 new SKUs were launched featuring botanical or superfood infusions such as turmeric and moringa.

The rise of e-commerce has changed the cold brew tea purchase model. Online sales grew by 21% globally in 2023, with Amazon and regional grocery platforms accounting for the bulk of transactions. Subscription-based models are gaining popularity, with over 200 brands offering monthly cold brew tea deliveries worldwide. Functional cold brew teas with added adaptogens or probiotics have seen a 31% increase in global launch activity between 2022 and 2024. Demand for organic certification is high—more than 60% of surveyed consumers in North America prefer USDA-certified or non-GMO cold brew options. The food service sector, including fast-casual and specialty cafes, increased cold brew tea offerings by 28% in Q4 2023, compared to the same period in 2022.

Cold Brew Tea Market Dynamics

DRIVER

Rising demand for low-caffeine, healthy beverage alternatives

The increasing awareness of health benefits associated with tea consumption, particularly cold-infused varieties, has led to a surge in demand. Cold brew tea offers smoother taste and reduced acidity compared to hot brew, which appeals to consumers avoiding digestive irritation. Approximately 58% of surveyed consumers in urban regions across North America and Europe consider cold brew tea a healthier alternative to carbonated beverages. Moreover, a 23% increase in fitness-related purchases of tea beverages in 2023 signals its role in wellness routines. Major beverage companies have responded by increasing production capacity, with more than 15 bottling plants upgraded specifically for cold brew lines in 2023–2024.

RESTRAINT

Limited cold-chain infrastructure in emerging markets

Despite growth in developed countries, the expansion of cold brew tea in emerging markets is constrained by insufficient cold-chain logistics. Countries in Sub-Saharan Africa and South Asia report only 18% refrigerated storage capacity for perishable beverages, compared to 72% in North America. This limits shelf-life and impacts product consistency. Additionally, fluctuating power supply and high operational costs restrict smaller players from entering these markets. The per-unit distribution cost in developing nations can be up to 2.3x higher than in developed economies, making it unviable for mass-market scaling.

OPPORTUNITY

Expansion of functional and wellness tea formulations

The global functional beverage market recorded over 650 new product launches in 2023, with a notable share attributed to cold brew tea. Fortified cold brew variants with collagen, antioxidants, L-theanine, or immune-boosting herbs have been growing steadily. Wellness teas targeting mood enhancement and sleep support make up 15% of new cold brew entries in North America. The youth demographic is driving this segment, with 64% of consumers aged 18–30 indicating preference for multifunctional beverage products. Functional cold brew tea represents a lucrative expansion area for both startups and legacy brands.

CHALLENGE

High product development and storage costs

The cold brew tea segment faces steep product development costs due to its extended steeping times and cold-processing requirements. On average, cold brew production requires 8–14 hours of extraction time, demanding longer facility use. This raises labor and utility costs. Shelf-stable cold brew also needs specialized aseptic processing, increasing capital investment by nearly 27% over standard RTD tea production. Moreover, maintaining a consistent flavor profile across large batches remains a challenge due to natural ingredient variability. For smaller producers, packaging and preservation remain financially intensive, inhibiting new market entries.

Cold Brew Tea Market Segmentation

The cold brew tea market is segmented by type and application. By type, it includes Bottled Cold Brew Tea, Cold Brew Tea Concentrates, and Loose-Leaf Cold Brew Tea. By application, it covers Retail, Beverage Industry, Health & Wellness, and Restaurants. Bottled Cold Brew Tea dominates the segment, representing over 55% of volume share, followed by Concentrates at 28%, and Loose-Leaf formats at 17%. On the application side, Retail holds the largest share at 41%, followed by Restaurants at 24%, and the Health & Wellness sector at 20%, indicating strong market penetration across both consumer-packaged goods and food service.

By Type

Bottled Cold Brew Tea: formats are the most popular, accounting for over 55% of sales globally. Convenience, portability, and shelf-stability are key advantages. Leading brands such as Teavana and ITO EN offer a wide range of bottled cold brews, with peach, hibiscus, and matcha flavors among top sellers. In the U.S., bottled sales grew by 12% in 2023 alone, with distribution expanding in both grocery and online platforms.
Cold Brew Tea Concentrates: Concentrates make up approximately 28% of market volume. They are especially popular in food service and among at-home enthusiasts seeking custom brews. Concentrate formats allow retailers to offer cold brew tea through dispensing machines, reducing waste. In 2023, more than 2,000 cafes globally introduced cold brew tea on tap using concentrate systems.
Loose-Leaf Cold Brew Tea: cater to the premium and wellness consumer segments and account for 17% of market share. These products require steeping in cold water for 6–12 hours and appeal to eco-conscious consumers due to minimal packaging. Online retailers report a 19% year-on-year growth in cold brew loose-leaf sales, especially among organic blends.

By Application

Retail: segment constitutes 41% of overall market share, driven by supermarket chains and online platforms. In 2023, Walmart and Target increased cold brew tea shelf presence by 22%, while online players reported a 16% increase in D2C cold brew subscriptions.
Beverage Industry: integration accounts for 15% of usage, particularly among RTD manufacturers and co-packers. Co-manufacturing agreements rose by 18% in 2023, led by private-label and health beverage brands.
Health & Wellness: This segment captures 20% of the market, driven by gyms, spas, and wellness centers. Functional ingredients like ashwagandha, L-theanine, and ginger are prominent in these formulations. Products in this segment command price premiums up to 35% over standard cold brews.
Restaurants: sales contribute 24%, with cafes and fast-casual chains leading adoption. Starbucks, Dunkin’, and regional chains added new cold brew tea SKUs in Q3 2023, increasing menu penetration by 17% over the previous year.

Cold Brew Tea Market Regional Outlook

The cold brew tea market demonstrates varied regional performance, with North America leading both in volume and innovation. Asia-Pacific follows with rising adoption, while Europe, the Middle East, and Africa show moderate yet consistent growth.

North America

holds the dominant position, with the U.S. alone accounting for 43% of global cold brew tea sales. Canada has seen a 13% increase in cold brew availability in convenience stores. Over 70% of cold brew SKUs in North America are USDA Organic certified. In 2023, over 90 brands launched new cold brew tea variants in this region.

Europe

market is growing steadily, with the UK, Germany, and France leading adoption. In 2023, RTD cold brew tea sales rose by 9% in the UK, fueled by demand for sugar-free beverages. Germany saw a 7.5% increase in eco-labeled cold brew tea product launches. Premium brands dominate in Western Europe, with average pricing 24% higher than in North America.

Asia-Pacific

is rapidly emerging, with Japan, South Korea, and China driving demand. South Korea recorded a 14% growth in convenience-store cold brew sales in 2023. Japan has over 2,300 vending machines offering cold brew tea. China’s urban middle class has shown a 21% increase in functional cold brew tea interest, particularly among Gen Z consumers.

Middle East & Africa

Cold brew tea is a niche product but expanding in UAE, Saudi Arabia, and South Africa. In UAE, cold brew tea consumption rose by 8.2% in 2023. Health-focused cafés in Dubai introduced 17 new cold brew SKUs in 2023. South Africa’s retail space for premium cold brews expanded by 11.4%, signaling growing middle-class appeal.

List of Top Cold Brew Tea Companies

Unilever (UK)
Nestle (Switzerland)
The Coca-Cola Company (USA)
PepsiCo (USA)
ITO EN (Japan)
Celestial Seasonings (USA)
The Republic of Tea (USA)
Teavana (USA)
Harney & Sons (USA)
Argo Tea (USA)

Unilever: Owns Lipton and Pure Leaf, which together capture over 18% of global cold brew tea sales, dominating grocery and food service channels.

ITO EN: Leading in Asia-Pacific, especially in Japan, where it holds over 27% market share in bottled cold brew tea formats.

Investment Analysis and Opportunities

The cold brew tea market has attracted strong investor interest, with strategic capital being deployed across production capacity, sustainable packaging, and flavor innovation. In 2023, over $340 million was invested globally in functional and wellness beverage startups, with 18% of that directed toward cold brew tea-related ventures. Large beverage companies such as PepsiCo and Nestlé increased capital expenditure in their RTD cold brew lines by 12% year-over-year. Notably, Nestlé’s expansion of its Swiss-based R&D facility included a $45 million investment into low-temperature infusion technologies aimed at enhancing shelf life and nutrient retention. Private equity is also showing strong interest. Between 2022 and 2024, there were more than 24 acquisitions or equity infusions involving small- to mid-size cold brew tea companies. One such example includes a $22 million investment in a U.S.-based organic cold brew brand focusing on adaptogen-infused teas. Venture capital firms are increasingly funding D2C cold brew startups, with over $70 million raised by three leading platforms in 2023. Franchise-based cold brew tea chains are also gaining traction, particularly in Southeast Asia. Singapore-based tea café brand Heytea launched 14 new outlets in 2023, each offering multiple cold brew options, supported by a $15 million expansion fund.

Cold brew tea is also being integrated into smart retail and AI-powered vending systems. In Japan, investment in cold brew vending machine deployment reached $8.2 million, with over 1,700 machines installed in urban areas by late 2023. Cross-industry collaborations are on the rise, especially between fitness clubs and cold brew tea makers offering functional hydration solutions. Opportunities abound in co-manufacturing, private-label partnerships, and clean-label product development. Approximately 36% of new entrants in 2023–2024 are leveraging third-party manufacturing contracts to scale quickly and focus on marketing. Contract manufacturing services for cold brew tea reported a 19% increase in service demand in 2023 alone. The market also presents opportunities in regional expansion, especially in Latin America and Eastern Europe, where cold brew tea penetration remains below 5%, but urbanization and e-commerce are driving beverage diversification. Additionally, consumer willingness to pay a 15–30% premium for organic and sustainably packaged cold brew tea suggests a lucrative path for value-added investments in the segment.

New Product Development

Innovation in the cold brew tea market has intensified over the past 24 months, with more than 260 new product launches globally since early 2023. These innovations span flavors, packaging, functionality, and sustainability. Leading the wave is a shift toward botanical and functional ingredient infusion—over 40% of new SKUs launched in 2023 feature ingredients like hibiscus, ginger, ashwagandha, chamomile, matcha, and lavender. For example, The Republic of Tea introduced its ""Daily Calm"" cold brew line with lemon balm and L-theanine, targeting stress relief and relaxation, which quickly expanded to over 4,000 retail locations. Sustainability in packaging is another major area of innovation. Approximately 62% of cold brew tea brands introduced between 2023 and 2024 use recycled PET, aluminum, or biodegradable cartons. Coca-Cola launched a cold brew tea product line in Europe using plant-based bottles made from sugarcane, reducing plastic consumption by 30% per unit. Teavana, under Starbucks, released its “Cold Brew Sparkling Tea” with citrus infusions, combining cold brew extraction with carbonation. This product is already available in 5,800 outlets and online in the U.S. and Canada, targeting Gen Z buyers. Meanwhile, functional tea blends that support immunity, energy, and digestion have emerged as a core development focus. More than 70 SKUs launched in 2023 included added ingredients such as zinc, vitamin C, and probiotics.

Loose-leaf cold brew starter kits have also seen increased popularity in the home-brew segment. Brands like Argo Tea and Harney & Sons launched kits that include brewing jars and time-based infusion guides. These kits witnessed 38% growth in sales in North America during the 2023 summer season. Multi-serve formats and pouch-based concentrates are entering mainstream retail. In Q2 2023, PepsiCo introduced a cold brew tea concentrate under its Pure Leaf label designed for use in commercial kitchens, yielding 5 liters per 100ml pouch, now adopted by 2,500 restaurant chains. AI-driven personalization in cold brew teas is also rising. Several D2C brands allow consumers to customize blends online based on mood, dietary needs, or flavor preferences. In 2023, these platforms recorded an average cart value increase of 17% compared to traditional RTD orders. As competition intensifies, brands that invest in new product formats, sustainable practices, and personalized functionality are capturing greater market share and brand loyalty.

Five Recent Developments

Unilever launched Pure Leaf Cold Brew Green Tea with Matcha in over 6,000 U.S. stores in April 2024, focusing on health-conscious millennials and promoting it as a zero-sugar hydration beverage.
Nestlé Japan introduced a cold brew tea vending system in Tokyo and Osaka with over 1,200 machines by Q4 2023, offering premium oolong and jasmine tea in chilled 300ml formats.
ITO EN expanded its cold brew tea presence in Southeast Asia, signing a distribution partnership with Thailand’s leading supermarket chain and launching three cold brew variants across 1,500 retail locations.
The Coca-Cola Company partnered with a biotech firm to infuse probiotics into its Honest Tea cold brew line. The pilot batch in North America yielded positive results with 60% repeat purchase rate within 90 days of launch.
Celestial Seasonings launched a biodegradable tea bottle initiative, committing to replacing 100% of its PET bottles with corn-based plastics by Q1 2025. Their initial test market in California saw a 19% uplift in unit sales.

Report Coverage of Cold Brew Tea Market

This report on the cold brew tea market provides an in-depth analysis of global market dynamics, trends, and opportunities shaping the future of this rapidly evolving sector. The report covers all critical aspects influencing demand—from health trends and sustainability to packaging innovation and consumer preferences. The research includes detailed segmentation by type, including Bottled Cold Brew Tea, Cold Brew Tea Concentrates, and Loose-Leaf Cold Brew Tea. Each type is examined for consumption trends, product innovation, and performance in different geographic and retail contexts. Application segmentation highlights how the cold brew tea category is integrated into Retail, Beverage Industry, Health & Wellness, and Restaurant sectors, with numeric insight into each sub-sector’s share and growth patterns. Regionally, the report offers comprehensive insights into North America, Europe, Asia-Pacific, and the Middle East & Africa. North America leads due to early adoption and high consumer awareness, whereas Asia-Pacific exhibits the fastest growth due to urbanization and health-focused younger populations. Europe shows steady growth with a focus on premiumization, while Middle East & Africa is an emerging market with rising health consciousness.

Top company profiling includes Unilever, Nestlé, The Coca-Cola Company, PepsiCo, ITO EN, and others. Their product launches, distribution networks, and R&D strategies are explored with numeric performance indicators. Competitive dynamics are analyzed to reflect brand diversification, acquisitions, and new brand entries into this space. Additionally, the report discusses critical market drivers such as rising health awareness, growing demand for non-carbonated beverages, and interest in plant-based hydration. It evaluates restraints like cold-chain limitations, shelf-life variability, and high development costs. Key opportunities are identified in functional formulations, e-commerce models, and eco-friendly packaging. Emerging challenges including flavor consistency, steeping time, and pricing pressure are evaluated with their market implications. The report provides investors, manufacturers, and marketers with quantitative tools and insights to assess potential in the cold brew tea market. It offers both macro- and micro-level analysis, enabling strategic planning across product development, supply chain, and market positioning. With data-driven segmentation, regional focus, and industry-specific insights, the report serves as a robust tool for decision-makers looking to capitalize on the booming demand for cold brew tea worldwide.