United States Organic Tea & Coffee Market By Product Type (Organic Tea, Organic Coffee), By Sales Channel (Supermarket/Hypermarket, Departmental Store, Convenience Store, Online, Non-Retail), By Region, Competition Forecast & Opportunities 2018-2028F

The organic tea and coffee market in the United States is projected to witness significant growth in the forecast period. This can be attributed to the increasing consumer awareness regarding safer alternatives to conventional products and the growing demand for clean label products, including pesticide-free commodities. The rising demand for organically cultivated tea and coffee, driven by the desire to maintain general health and well-being, further contributes to this growth.

United States Organic Tea & Coffee Market Scope

Organic tea and coffee production involves the cultivation of tea and coffee without the use of chemicals, pesticides, herbicides, fungicides, or chemical fertilizers. The cultivation of organic tea and coffee utilizes natural minerals and nutrients to stimulate growth, as well as natural methods to eliminate pests and weeds that could hinder healthy crop development. Consumers can purchase organic tea and coffee through supermarkets, hypermarkets, department retailers, convenience retailers, online, and non-retail channels.

United States Organic Tea and Coffee Market Overview

The organic tea and coffee market is experiencing steady growth in the United States due to increasing consumer awareness of health and environmental concerns, and a preference for organic tea and coffee over conventional options. Additionally, organic tea saw significant benefits in 2020 due to its perceived immune support and overall health benefits. As consumer interest in health continues to grow, organic tea will be driven by concerns for quality sleep and relaxation.

According to research, the retail sales value of organic tea in the United States was USD 405.6 million. In 2021, organic tea sales in the United States were largely driven by fruit and herbal products, accounting for USD208.3 million, representing 54.7 percent of the total organic tea market. Black tea accounted for 24.2 percent of organic tea sales, followed by green tea at 21.2 percent.

United States Organic Tea and Coffee Market Drivers

The market for organic tea and coffee is expanding due to increasing consumer awareness of the health benefits associated with these products. The rising demand for organic and eco-friendly products, coupled with the willingness of the United States population to pay a premium price for such products, is driving market growth. The increasing disposable income, growing health consciousness, and the popularity of organic products among the youth population are expected to further fuel market growth. Organic tea and coffee are perceived as healthier options as they are grown without synthetic chemicals and pesticides. The health benefits associated with organic tea and coffee, such as improved digestion, immunity, and protection against colds, are driving market growth. Vendors are also selling tea products that contain different types of ingredients with health benefits, contributing to the expansion of the organic tea and coffee market in the United States.

Moreover, consumers' growing concerns about the environmental impact of conventional tea and coffee farming, such as deforestation and chemical runoff, have prompted them to choose organic alternatives. Organic coffee farming practices prioritize sustainability, biodiversity, and soil health, aligning with the values of environmentally conscious consumers. Collaborations between organic coffee roasters and cafes have helped expand the availability of organic coffee products. Partnerships with popular coffee shops and chains have launched organic coffee to a broader consumer base. For instance, Carrboro Coffee Roasters in the United States partner with cafes, restaurants, groceries, and retailers to offer incredible coffee programs throughout the country.

United States Organic Tea & Coffee Market Trends

The organic tea and coffee market in the United States is constantly evolving, with new trends emerging continuously. Consumers are increasingly willing to spend more on healthy alternatives over conventional ones. Nowadays, consumers show interest in teas and coffees that offer specific health benefits, such as immunity-boosting blends, stress-relief teas and coffees, and teas and coffees with adaptogenic herbs. Moreover, there is growing demand for exotic and unique flavors in organic teas and coffees, with companies experimenting with innovative ingredients like turmeric, hibiscus, matcha, and various herbal infusions. For instance, hibiscus flower petals in tea help control blood sugar levels and blood pressure. Consumers are becoming more aware of the availability of these tea products and the benefits they offer.

Additionally, consumers are increasingly interested in exploring unique and high-quality coffee experiences, leading to a rise in demand for specialty coffees and organic coffees. For instance, Starbucks, the leading coffee retailer, has launched its own organic coffee line to tap into the growing demand for organic products. The company is also investing in technology to make the process of obtaining sustainably grown coffee beans easier and more efficient. Additionally, developing innovative organic tea and coffee products, such as ready-to-drink formats, functional blends, or infused varieties, can attract new customers and create a competitive advantage. Thus, these new trends in the United States organic tea and coffee market are expected to boost growth during the forecasted period.

United States Organic Tea & Coffee Market Challenges

The organic tea and coffee market faces many challenges. For instance, when compared with conventional products, organic tea and coffee are found at at a higher price. Hence, balancing competitive pricing with maintaining organic standards can be difficult. Moreover, many people are still unaware of the benefits associated with organic tea and coffee. Thus, educating them about the difference between organic and conventional products, as well as the benefits of organic products, is essential but can be challenging.

Recent Developments

•  2022, 8th Wonder Tea launched its line oforganic sparkling teas in the United States. The four flavors are made of realfruit juice, superfoods, and ancient ingredientsSparkling Green Tea, SparkingChai, Sparking Oolong Tea, and Sparkling Rooibos Tea.
• In 2022, Luxmi Estates launched itsretail line of premium, estate-grown, organic teas in the United States, includingits first-ever range of functional wellness tea blends. The US product rangeincludes blends from estates in each of the tea-growing regions of Assam,Rwanda, and Darjeeling, and features teas sourced from one of the world's mostlauded estates, Makaibari.
• In 2022, Numi OrganicTea partnered with WeWork to become the exclusive tea partner. In

Market Opportunities

Increasing awareness among consumers about the health and environmental benefits of organic products creates opportunities for organic tea and coffee manufacturers to expand their market share in the United States. Moreover, the rising willingness of consumers to pay a premium for high-quality organic tea and coffee provides opportunities for brands to offer specialty products and unique flavors. The growth of e-commerce platforms allows organic tea and coffee brands to reach a wider audience and expand their customer base beyond traditional retail channels.

Furthermore, organic tea and coffee manufacturers can partner with cafes, restaurants, and other foodservice establishments to offer organic tea and coffee, tapping into the growing demand for such products in the out-of-home consumption market. Additionally, the rising popularity of specialty coffee shops and cafes has created a strong demand for organic and ethically sourced coffee beans and tea leaves. Companies can organize exhibitions, health fairs, and wellness events that often feature organic tea and coffee vendors, attracting health-conscious consumers, leading to the expansion of the organic tea and coffee market in the United States during the forecasted period.

Market Segmentation

The United States organic tea & coffee market is segmented based on product type, sales channel, region and competitive landscape. Based on product type, the market is fragmented into carbonated drinks and non-carbonated drinks. On the basis of sales channel, the market is divided into supermarket/hypermarket, departmental store, convenience store, online, and non-retail. The market is fragmented into South, West, Midwest, and Northeast regions.

Company Profiles

Starbucks Corporation, Hain Celestial Group Inc., Honest Tea Inc., Oregon Chai Inc., Newman’s Own, Inc., Numi, Inc., Associated British Foods Plc, The Organic Coffee Co.,

Report Scope

In this report,

• United States Organic Tea & Coffee Market, By Product Type
• Organic Tea
• Organic Coffee
• United States Organic Tea & Coffee Market, By Sales Channel
• Supermarket/Hypermarket
• Departmental Store
• Convenience Store
• Online
• Non-Retail
• United States Organic Tea & Coffee Market, By Region
• South
• West
• Mid-West
• Northeast