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Nitro Tea Market Outlook from 2024 to 2034

The global nitro tea market is estimated to be worth USD 27.3 million in 2024. Displaying a CAGR of 7.8%, the nitro tea sector is slated to be worth USD 58 million by the end of the forecast period.

The nitro tea industry is benefitting from the all-around support for nitrogen-infused drinks. These drinks are providing something fresh to consumers. The marketers’ efforts to make apparent the health benefits of nitro drinks, such as low sugar and acidity levels, also contribute to their appeal.

With tea being one of the most popular drinks in the world, nitrogen-infused versions of it have significant growth potential. Thus, nitrogen-infused tea is climbing in the nitro-infused beverages market share.

The industry is benefitting from an increase in the number of consumers preferring brew options. Nitrogen is reputed to go well with brew options. Thus, options like nitro brew tea and cold brew nitro tea are winning over consumers.

Global Nitro Tea Industry Assessment

Attributes Description
Historical Size, 2023 USD 25 million
Estimated Size, 2024 USD 27.3 million
Projected Size, 2034 USD 58 million
Value-based CAGR (2024 to 2034) 7.8%

The beverage sector, on the whole, is in the midst of the ready-to-drink trend. With increasingly busy lifestyles and demand for on-the-go drinks, ready-to-drink varieties of beverages are becoming more common.

Ready-to-drink tea is thus rising to prominence. Ready-to-drink nitro tea is also riding on this wave of popularity. Thus, stakeholders are investing more in ready-to-drink versions of the product. Nitrogen-infused tea is also earning top marks from consumers for its suitability to different flavors.

Even as conventional tea makers are experimenting with different flavors, those of the nitrogen inclination are also getting treated to a wide array of flavors. Mango, vanilla, and chocolate are just some of the flavors that are winning over consumers. Thus, flavored nitro tea is a promising avenue of growth for investors.

There are, however, certain problems manufacturers have to deal with. Lack of awareness of the drinks is a prominent limiting factor for the industry. The difficulty in obtaining nitrogen also makes investment tricky.

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Key Industry Highlights

Technological Advancements in Nitro Tea Production

As with other nitro beverages, technological advancements play a crucial part in the nitro tea sector too. Producers look to streamline the production process and make considerable savings on costs.

Nitrogen-infused tea from taps, as with other nitrogen-infused beverages like coffee, is earning the preference of consumers. Thus, manufacturers are focusing on making the tea suitable for tap preparations. In general, manufacturers are concentrated on increasing the convenience of consumers, in line with the demand for convenience drinks.

Innovations in Nitro Cold Brew Tea

Brew drinks are getting popular, not just in the traditional coffee category, but also in teas. Thus, producers in the nitro tea market are concentrating on innovating in the brew section. The infusion of nitrogen also allows manufacturers to move away from preservatives, another factor benefitting the industry.

Some innovations that are earning the favor of consumers include teas that are free from all caffeine, oolong tea, green tea, and more. Innovation is also being made in the packaging, with the brew teas coming in cans, bottles, and more to make them more appealing to consumers.

Packaging to Play Prominent Role in Widening the Consumer Base

Attractive packaging is one of the foremost strategies being used by marketers to draw more eyeballs toward the nitro tea industry. Packaging is focusing on the various flavors provided by nitrogen-infused tea manufacturers, whether they be fruit-based or matcha-based.

Suppliers are also making prominent the health benefits of the product. As nitrogen-infused drinks are still new to certain regions and consumers, manufacturers are painstakingly communicating the health benefits and unique taste of the product through the packaging itself. The popularity of cans is also being taken advantage of by suppliers.

2019 to 2023 Global Nitro Tea Sales Outlook Compared to Demand Forecast for 2024 to 2034

The nitro tea market size was tipped to be USD 17.4 million in 2019. Throughout the historical period, the industry grew at a CAGR of 9.5%, reaching a size of USD 25 million in 2023.

The spotlight was on healthy drinks as the pandemic raged on. As people spent more time at home, there was more clamor for tea and coffee. The freeing up of time also allowed consumers to experiment with their drinks. Thus, the nitro tea sector flourished in the historical period.

The industry is expected to progress at a slower rate in the forecast period as compared to the historical period. The presence of alternatives and the unavailability of the drink in certain parts of the world are reasons for the slow uptake of the sector.

There are, however, a myriad of opportunities for investors. The e-commerce boom has seen numerous manufacturers go the online route to improve business scope. With the availability of nitro drinks a question in certain areas, e-commerce sites have helped bridge the gap between suppliers and consumers.

Continuing health trends are also predicted to inform industry growth. Many health-conscious people have a hard time letting go of tea. For them, nitro tea is emerging as a suitable option.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Market Concentration

Some tier 1 companies that have a notable presence in the market include Starbucks, Rise Brewing Co., and BonaFide Nitro Coffee & Tea. Starbucks is going all in on nitro tea as part of its initiative to bring a healthier menu to consumers.

Rise Brewing Co. is focused on servicing all and thus is manufacturing vegan versions of the product. BonaFide Nitro Coffee & Tea relies on its brewing quality to gain consumers.

Tier 2 companies include Portal Tea Company and East Forged. Portal Tea Company uses branding to establish that while its scale may be small, the quality is world-class. Meanwhile, Australian brand East Forged espouses its nitrogen-infused teas’ qualities as an alternative to alcohol. For example, its nitro ice tea is reputed to mimic the taste of beer.

Another prominent tier 2 company is Twrl Milk Tea. The company focuses on the ethical sourcing of ingredients and relies on its in-house expertise in Chinese and Taiwanese confections to get ahead. The company also prides itself on producing non-GMO products.

Comparative Market Overview

Apart from the nitro tea market, an in-depth analysis has been done on two other related industries. These include nitrogenated coffee and the iced tea industries.

Nitrogenated Coffee Industry Assessment:

Coffee shop culture being on the rise informs the growth of the nitrogenated coffee industry. Consumer willingness to experiment with different types of coffee also helps the growth of the sector.

Attributes Description
Related Market Nitrogenated Coffee Market
Value-based CAGR (2024 to 2034) 4.1%
Market Trend Growing popularity of ready-to-drink coffee beverages.
Restraint Lack of proper distribution channels.
Growth Factor Healthy nature of nitrogenated coffee making it popular among gym-going younger generations.

Iced Tea Industry Assessment:

Experimentation in iced tea, such as cannabis-infused iced tea, is helping suppliers to keep the demand fresh. With temperatures on the up throughout the globe, the demand for cool drinks like iced tea is also going up.

Attributes Description
Related Market Iced Tea Market
Value-based CAGR (2024 to 2034) 6.0%
Market Trend Suppliers making service available for consumers to design own iced tea blends.
Restraint Presence of various other drinks for cooling down.
Growth Factor Rise of social media leading to greater brand visibility.

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Country-wise Insights

The popularity of tea lays out the groundwork for the nitro tea industry in the Asia Pacific. However, there are still some problems regarding the reach of the product. Problems regarding the availability of nitrogen and the necessary technology are faced in the region. These problems are felt less keenly in North America and Europe.

Countries CAGR (2024 to 2034)
China 8.6%
United States 8.2%
United Kingdom 9.1%
Japan 9.5%
South Korea 10.0%

Expanding Coffee and Tea Shops Boosting Industry Growth in the United States

The United States industry is slated to progress at a CAGR of 8.2% during the assessment period. Coffee shop culture is prevalent in the United States and this positively affects the nitro tea market too.

Various small-scale coffee and tea establishments help the industry’s cause in the country. Tea chains such as Boba Guys are also prominent distributors of nitro tea. Thus, the United States is set to remain a prominent pocket for players.

Presence of Nitrogen Beverage Startups Boosts the Sector in South Korea

South Korea nitro tea market is set to register a CAGR of 10.0% through. The nitrogen-infused tea sector is advancing along with other nitrogen beverages in the country. The presence of start-ups adds a fresh element to the industry in the country. For example, The Color Group Co., Ltd. is experimenting with various nitrogen teas and coffees, widening the scope of the product in South Korea.

Consumer Fascination with Tea Bolsters the Market in the United Kingdom

The industry is set to walk on ahead at a CAGR of 9.1% in the United Kingdom. This can be attributed to a combination of factors, including growing popularity of tea.

The United Kingdom is claimed to consume the third-most tea in the world. A considerable amount of tea drinkers in the nation are also willing to experiment, especially the young crowd. Thus, the nitro tea industry has a positive aspect in the United Kingdom.

Category-wise Insights

Below section provides insights into leading segment. Nitro ginger ale green tea leads in the product type segment. Specialty tea stores are the most frequent haunt of nitro infused teas.

Nitro Ginger Ale Green Tea Remains Hot-selling Product Type

Segment Nitro Ginger Ale Green Tea (Product Type)
Value Share (2023) 28%

Nitro ginger ale green tea took up 28% of the industry share in 2023. Green tea has earned its fans both due to its healthy nature as well as the refreshments provided by it. Combining nitrogen with green tea is seen by many as combining the best of both worlds.

The health benefits of green tea are enhanced by infusing nitro. The resulting drink also has a unique taste. Thus, nitro green ale tea is forecast to progress at a CAGR of 7.6% over the period from 2024 to 2034.

Specialty Tea Stores Remain Popular Distribution Channel Category

Segment Specialty Tea Stores (Distribution Channel)
Value Share (2023) 62%

Specialty tea stores accounted for 62% of the industry share in 2023. Specialty tea stores are populated by numerous tea connoisseurs who are willing to try out new flavors and types of tea in a heartbeat. Thus, specialty tea stores provide an easy pathway for the distribution of nitro tea. For the forecast period, specialty tea stores are predicted to record a CAGR of 7.4%.

Competition Outlook

Coming up with innovative flavors is seen as a must by market players. Making the product available at a competitive price is also a strategy employed to reach more consumers. The online boom is seeing new entrants come to the industry at a rapid pace, and, thus the competition is intense in the nitro tea landscape.

Leading players are coming up with new versions to attract more and more consumers. Similarly, strategies like mergers, collaborations, distribution agreements, and partnerships are becoming prevalent among companies.

Several companies are focusing on utilizing attractive and eco-friendly packaging to woo eco-conscious customers. Social media platforms are becoming key marketing tools for players to expand their reach globally.

Key Industrial Developments

  • In May 2024, ready-to-drink (RTD) Cold Brew Nitro Tea brand East Forged won the Best Processing Award at the Hive Awards.
  • In December 2023, Twrl Milk Tea partnered with Whole Foods Market. With the partnership, the former expanded its presence in North America.

Leading Nitro Tea Brands

  • Starbucks
  • Caveman Coffee Company
  • BonaFide Nitro Coffee & Tea
  • East Forged
  • Rise Brewing Co.
  • Others

Key Segments of Market Report

By Product Type:

Based on the product type, the nitro tea market has been divided into nitro ginger ale green tea, nitro hibiscus tea, nitro matcha tea, nitro peach tea, nitro masala tea, nitro strawberry tea, and others.

By Distribution Channel:

Based on the distribution channel, the nitro tea industry is segmented into specialty tea stores, supermarkets, convenience stores, online stores, and others.

By End User:

Based on the end user, the market is trifurcated into the following segments: individual consumers, HoReCa, and institutional end users.

By Region:

The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.

Frequently Asked Questions

How big is the nitro tea sector?

The size of the nitro tea sector is estimated to be USD 27.3 million in 2024.

At what rate is the industry expected to grow?

The industry is expected to increase at a CAGR of 7.8% over the forecast period.

What is the forecast for the nitro tea sector?

The nitro tea sector is forecast to reach a size of USD 58 million by 2034.

Which are the key companies in the industry?

Starbucks and East Forged are some of the prominent companies in the industry.

What is the scope of the sector in the United States?

Sales in the nations are expected to register a CAGR of 8.2% through 2034.

Table of Content

1. Executive Summary

2. Industry Introduction, including Taxonomy and Market Definition

3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. Product Type

    6.2. End User

    6.3. Distribution Channel

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type

    7.1. Nitro Ginger Ale Green Tea

    7.2. Nitro Hibiscus Tea

    7.3. Nitro Matcha Tea

    7.4. Nitro Peach Tea

    7.5. Nitro Masala Tea

    7.6. Nitro Strawberry Tea

    7.7. Others

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User

    8.1. Individual Consumers

    8.2. HoReCa

    8.3. Institutional End Users

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel

    9.1. Specialty Tea Stores

    9.2. Supermarkets

    9.3. Convenience Stores

    9.4. Online Stores

    9.5. Others

10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region

    10.1. North America

    10.2. Latin America

    10.3. Western Europe

    10.4. South Asia

    10.5. East Asia

    10.6. Eastern Europe

    10.7. Middle East & Africa

11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Sales Forecast 2024 to 2034 by Product Type, End User, and Distribution Channel for 30 Countries

19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

20. Company Profile

    20.1. Starbucks

    20.2. Nitro Tea

    20.3. Caveman Coffee Company

    20.4. BonaFied Nitro Coffee & Tea

    20.5. East Forged

    20.6. Rise Brewing Co.

    20.7. Califia Farms

    20.8. PepsiCo

    20.9. Quivr

    20.10. Left Hand Brewing Co.

    20.11. Lucky Jack

    20.12. BEANLY


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