Latest News- Foodservice Tea Market in US: Full-service restaurants is expected to lead the Distribution Channel segment during 2025-2029

The Foodservice Tea Market in US is being driven by Rising demand for mobile foodservice

The Foodservice Tea Market in US is expected to grow at a CAGR of 4.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 3862.1 million. The foodservice tea market in the US presents a diverse array of offerings, encompassing various flavors, qualities, volumes, and price points. Consummers exhibit a strong preference for premium tea products, which are characterized by natural or organic ingredients, for their associated health advantages. USDA certification is a key differentiator for these premium offerings, ensuring the authenticity of organic product quality. Market growth is anticipated to be fueled by the introduction and demand for premium products, such as herbal tea and organic functional teas, in developed nations like the US. For instance, Gong Cha, a prominent market player, distinguishes itself through its offering of bubble tea, a unique blend of fruits, toppings, and innovative mixes. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Distribution Channel
  • Full-service restaurants
  • Limited-service restaurants
  • Others
• Product
  • Black tea
  • Green tea
  • Others
• Application
  • Iced tea
  • Hot tea
  • Blended Drinks
• Geography
  • US

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising demand for mobile foodservice
• Growth of food delivery and takeaway industry
• Functional benefits of tea

However, the market also witnesses some limitations, which are as follows:

• Negative impact of overconsumption of tea
• Growing preference for DIY-at-home functional tea recipes
• Availability of substitutes for tea

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Market Scope in Foodservice Tea Market in US Research Report

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Research Analysis Overview

The US Foodservice Tea Market landscape is shaped by increasing consumption, innovative campaigns, and competitive vendor selection. According to the latest research report, the market is forecast to grow, driven by promotions and segmentation based on pricing, historic data, and cultural influences. Health and wellness, tourism, and social beverages are key trends, with quality control, safety regulations, and sustainability important considerations. Brands focus on brand awareness, health benefits, education programs, and sensory analysis, offering beverages in various forms, including brewing, ready-to-drink, and subscription services. Specialty blends, packaging solutions, dispensers, and equipment cater to diverse preferences, with a focus on social responsibility and environmental impact. Competition is fierce, with innovation, brand loyalty, and safety regulations shaping the market's future.

Market Research Overview

In the takeaway industry, the foodservice segment of the US tea market is a significant contributor to the global soft drinks and non-alcoholic beverages market. Key participants in this sector include leading companies such as Starbucks, Dunkin' Brands, and McDonald's. Innovations and new product launches, including flavored and functional teas, are key growth drivers for this market. These companies continually introduce new tea offerings to cater to evolving consumer preferences, thereby fueling profitability. The tea market's growth is further propelled by promotions and partnerships, as well as the increasing popularity of plant-based and functional beverages. Technavio projects that the global soft drinks and non-alcoholic beverages market, which encompasses carbonated beverages, juices, bottled water, functional beverages, sports drinks, and others, will experience substantial expansion due to these factors.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/