Tea sales in the US have shown strong growth in 2016, continuing the upswing in ready-to-drink and refrigerated categories. In the brand new report Tea and Ready-to-Drink Tea: U.S. Retail Market, 6th Edition, market research firm Packaged Facts estimates tea sales slightly exceeded $7 billion in 2015, up almost 6%. By 2020, Packaged Facts expects retail sales of tea in the US to close in on $9 billion for the first time.

Continued growth will come from the still hot ready-to-drink and refrigerated tea markets, as well as consumers’ ongoing recognition of tea’s healthy properties and their switch to tea from carbonated soft drinks. Most importantly, the category is quite dynamic: with innovative new products and creative new players that engage consumers.

“The tea industry is known for both established brands in tea bags and ready-to-drink categories, with names like Lipton and AriZona joining traditional beverage heavyweights PepsiCo and Coca-Cola at the top of the tea chain,” says David Sprinkle, research director, Packaged Facts. “The overall health of the industry can largely be measured by how those companies’ brands are performing. But much of the industry’s innovation still comes from smaller operators, who introduce new ingredients and flavors that consumers are eager to try.”

Eighteen companies have at least one percent of the tea market, a tribute to the variety of tea available on shelves. Still, the top five marketers account 56% of all tea sold in supermarkets, drugstores, mass merchandisers, military commissaries, and select club and dollar stores, as calculated by dollar sales.

View additional information about Tea and Ready-to-Drink Tea: US Retail Market, 6th Edition.