Sparkling tea is gaining attention worldwide as a healthier and refreshing alternative to sugary sodas and alcoholic beverages.
Introduction
While serving tea, the key issue raised used to be “milk or sugar” but will it be “still or sparkling” soon? Sparkling tea is a creative combination of traditional brewed tea with refreshing carbonation. This drink appeals to modern customers, particularly the younger generation, who seek flavor, wellness, and innovation. Although it is a niche market, the sparkling tea segment has experienced significant growth.
Sparkling tea market overview
The size of the sparkling tea market worldwide was valued at about more than 459 million USD in 2023. It is projected to develop at a CAGR of over 6% between 2024 and 2030. The appeal of fizzy tea comes from the combination of the refreshing qualities of carbonated drinks and the health benefits of traditional tea. The wealth of antioxidants and vitamins in this beverage makes it stand out from its competitors. Additionally, sparkling tea has become a desirable choice due to the increase in demand for plant-based and clean-label products.
Sparkling tea has attracted health-conscious customers who are looking for an alternative for sugary sodas and other carbonated drinks with little nutritional value. It is often made from tea infusions with herbal and fruit blends, offering health benefits and attractive flavors. Millennials and Gen Z find its appeal especially compelling because they place a high value on wellness and are open to trying out specialty beverages. Fizzy tea is believed to suit younger lifestyles as it fits in with their need for high-quality, refreshing mouthfeel, and Instagram-friendly aesthetics.
Product analysis
Regarding the product, the carbonated tea market is often divided into green tea, black tea, white tea, and others. Green tea is the market leader in the sparkling tea market in 2023, accounting for about 43%. Green tea is renowned for its rich source of antioxidants and many potential health benefits. Besides improving the flavor of green tea, adding sparkling effervescence gives it a refreshing touch that appeals to many consumers.
Meanwhile, the black tea segment witnesses promising growth, at a CAGR of over 6% from 2024 to 2030. The addition of sparkling components to black tea enhances its appeal by bringing a dynamic and invigorating touch. Furthermore, its flexibility in flavor combinations and blends contributes incredibly to its popularity.
Recently, the sparkling tea market has witnessed a noticeable shift toward low-calorie, adaptogenic, organic, and botanically enriched products, with a focus on sustainability and RTD forms. It is because consumers are getting increasingly health and environment conscious. They are ready to pay more for a product that benefits their health.
Category analysis
Based on the category, fizzy tea is segmented into no-alcohol and alcohol-based ones. In which, no-alcohol sparkling tea has dominated the market, accounting for over 88% market share in 2023. Moreover, it is also projected to grow at the fastest CAGR, driven by the growing demand for low-calorie and calorie-free drinks. This category is ideal for those seeking complex flavors without the negative effects of alcohol, especially health-conscious youngsters.
Meanwhile, carbonated tea as a base ingredient for cocktails is increasing in demand. Therefore, the alcohol-based fizzy tea segment is expected to continue to grow in the next 5 years. As sparkling tea is so flexible, it can be mixed with spirits such as gin, vodka, or rum to create countless amazing blends.
Packaging analysis
Similar to other beverages, sparkling tea packaging is mainly categorized into glass bottles, plastic bottles, and aluminum cans. Tetra Pak boxes are not suitable for packing sparkling tea, because the materials are not designed to put up with pressure from carbonated beverages.
Among these, glass bottles dominate the market, with more than 47% of market share in 2023. It is thanks to their excellent barrier properties, premium experience, and eco-friendly characteristics. Therefore, using glass packaging creatively can increase the demand for carbonated tea across various customer groups, especially Gen Z and Millennials, who place a high value on sustainability and aesthetics.
In addition, aluminum cans are ideal options for sparkling tea, with a promising rise at a CAGR of over 7% from 2024 to 2030. Aluminum cans are renowned for their recyclability, lightweight properties, and ability to preserve carbonated drinks. Moreover, they are easy to transport and suitable for on-the-go lifestyles.
Regional analysis
Sparkling tea is experiencing global growth, with North America leading the market. The reasons for this dominance are the health-conscious trends and the rise of alternative beverages. In addition, key players in this region have launched a diverse range of fizzy teas infused with natural flavors, herbs, and additional functional benefits.
Asia Pacific is expected to grow considerably in the next 5 years. This region has a long-standing tea-drinking culture, particularly in countries such as China, Vietnam, Taiwan, and Japan. The latest release of sparkling varieties has drawn the attention of consumers who prefer effervescence and unique flavor combinations.
From 2024 to 2030, the European sparkling tea market is anticipated to expand at a CAGR of 5.7%. According to The Guardian, sparkling tea is competing with cola and lemonade for market share as a lunchtime beverage in supermarkets in Britain. Hot teas are recast as a healthy thirst quencher and a headache-free alternative to alcoholic drinks. Especially, as a replacement for champagne, sales of sparkling tea are sore during holidays, like Christmas.
Distribution channel analysis
The revenue of the sparkling tea market is dominated by supermarket and hypermarket channels, with more than 43% of the market share in 2023. Those large retail outlets offer a wide variety of carbonated tea products with different brands and flavors, benefiting from their considerable reach and convenience.
Additionally, the sparkling market has witnessed incredible growth in the online retail segment. This is because of the booming of the Internet, social media, and e-commerce platforms and as a result of long-term lockdown during the Covid-19 pandemic. People are gradually familiar with online shopping, which is easy to access and offers a broader selection of brands and flavors.
Sparkling tea key players
Although sparkling tea is a niche market, it has witnessed the footprints of many companies. Some key players are Copenhagen Sparkling Tea Company, New Berlin Beverage, Fortnum & Mason, Nongfu Spring, and DAVIDsTEA. Tea manufacturers are developing new products with diverse flavors and packaging. Besides, they constantly carry out activities to increase market share, including partnerships, mergers & acquisitions, and global expansion.
Explore more RTD Tea market in APAC:
About Future Generation Co.,Ltd
Future Generation Company Limited is one of the largest beverage suppliers in Vietnam, with 30 years of experience in production and export. FGC is equipped with modern machines such as Hotfill PET and TetraPak, ensuring high-capacity production. FGC strives to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards such as ISO, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity.
FGC also provides Private Label Services. With this service, we can help customers in researching and formulating beverages, designing product label packaging, and creating their own brands. This is an ideal solution for small and medium enterprises. Moreover, FGC provides free samples for customers to test before bulk orders. We also ensure delivery as fast as possible.
Contact
Address: R4 building, Office Quarter 02, Royal City, 72A Nguyen Trai St., Thanh Xuan Dist., Hanoi.
Phone: +84 24 73 000 125/ +84 24 73 063 369
Mail: info@vietnam-tea.com
Website: https://oem-fgc.com/
Facebook: https://www.facebook.com/fgcvietnamtea
LinkedIn: https://www.linkedin.com/company/fgcvietnamtea/
Alibaba: https://fgcvietnam.m.trustpass.alibaba.com/
Source:
https://www.grandviewresearch.com/industry-analysis/sparkling-tea-market-report
https://www.theguardian.com/business/2025/jan/10/sparkling-tea-sales-festive-fizz-soft-drink
https://www.researchandmarkets.com/reports/5998776/sparkling-tea-market-size-share-and-trends
