Per capita tea consumption

In 2025, per capita tea consumption in the United States is estimated to reach 0.95 pounds, reflecting ongoing moderate growth in demand. This performance is being driven by an increasing preference for hot beverages, with both tea and coffee becoming more popular drinks. Concurrently, perceptions of tea's health benefits, especially compared to coffee, have supported a shift among some consumers. However, the segment faces headwinds from the expanding popularity of energy drinks, which has partially offset gains in tea and coffee consumption.

Over the five years to 2025, per capita tea consumption is projected to increase at an annualized rate of 0.5%, rising from 0.92 pounds in 2020 to 0.95 pounds in 2025. This overall growth has been influenced by a combination of macro consumer trends and competitive beverage market dynamics. The improved public image of tea, rooted in health claims about antioxidants and lower caffeine levels relative to coffee, has drawn some users away from coffee, contributing to consumption growth. Conversely, the proliferation of energy drinks, which market themselves on convenience, has eroded the market share of other caffeinated beverages. Even so, the rise in tea consumption has been notable and relatively resilient. For instance, during broader economic uncertainty in other periods, tea consumption was less affected than many alternative beverages. While not immune to broader beverage industry shifts, per capita tea consumption posted annual growth in each year of the current period. This recent growth also contrasts with previous periods of volatility, such as in 2011-2014, when per capita consumption declined in response to global price increases.

Additional trends shaping the landscape during this time include changing consumer preferences toward wellness and the growing availability of specialty teas through both retail and foodservice channels. Americans increasingly seek functional and healthy drink options, and expanding product varieties, such as herbal and specialty teas, have attracted new consumer segments.

Across the five-year period to 2025, consistent, if modest, gains underscore the underlying stability of tea consumption in the U.S. Despite intermittent competition from new beverage categories and a continually evolving consumer landscape, the market for tea remains steady, supported by health trends and incremental growth in hot beverage preferences.