Nitro Tea Market to Reach $304,494 thousand by 2027 in the short run and $503,689.3 by 2035 Globally, at 6.3% CAGR: Allied Market Research

Nitro tea is anticipated to become more widely used due to its creamy texture, natural sweetness, and growing consumer preference for innovative, health-conscious beverages.

WILMINGTON, Del., April 15, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Nitro Tea Market - Global Opportunity Analysis and Industry Forecast, 2024-2035", was valued at $ 242,192 in 2023, and is expected to witness significant growth. With a projected CAGR of 6.3% from 2024 to 2035, the market is expected to reach $503,689.3 thousand by the end of 2035. The growing demand for clean-label beverages and natural functional drinks is propelling the nitro tea market.

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Market Introduction

Nitro tea is a cold-brewed tea infused with nitrogen gas, creating a smooth, creamy texture and a naturally sweet taste without added sugars or dairy. This innovative beverage has gained popularity due to its appeal as a healthy, clean-label alternative to carbonated and artificially sweetened drinks.

The market has witnessed significant growth in recent years, driven by increasing consumer preference for functional beverages and plant-based drinks. Key developments include the expansion of ready-to-drink (RTD) nitro tea products by major beverage brands, rising café and specialty tea shop offerings, and the incorporation of exotic tea varieties such as matcha and oolong. The growing trend of health-conscious consumption and reduced sugar intake has further fueled demand. Additionally, advancements in nitrogen infusion technology and packaging innovations, such as canned nitro tea, have broadened market accessibility. As awareness increases, the nitro tea market is poised for further expansion in retail and foodservice channels.

Report Overview:

The nitro tea market is segmented on the basis of product type, packaging, distribution channel, and region. On the basis of product type, it is categorized into black nitro tea, green nitro tea, herbal nitro tea, and others. On the basis of packaging, it is divided into cans, bottles, and kegs. On the basis of distribution channel, it is fragmented into supermarket/hypermarket, convenience store, online retail, and cafes & specialty store. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

• By product type, black nitro tea dominated the market in 2023.
• By packaging type, cans dominated the market in 2023.
• By distribution channel, supermarket/hypermarket dominated the market in 2023.
• Region-wise, North America dominated the market in 2023.

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Report Coverage & Details:

Market Growth & Opportunities Factors:

Consumers are increasingly seeking beverages that offer health benefits beyond hydration. Nitro tea, rich in antioxidants and free from artificial additives, aligns with this trend, driving its adoption.

The global growth of specialty coffee and tea shops has fueled interest in nitrogen-infused drinks. Major chains like Starbucks and niche cafés now offer nitro tea, introducing consumers to its unique texture and taste. As consumers move away from sugary sodas and artificial ingredients, nitro tea presents a naturally sweet, calorie-conscious alternative without added sweeteners or dairy.

The increasing preference for convenient, grab-and-go beverages makes way for canned and bottled nitro tea products, expanding retail and e-commerce distribution. The increasing preference for convenient, grab-and-go beverages opens doors for canned and bottled nitro tea products, expanding retail and e-commerce distribution. Innovating with botanical infusions, adaptogens, and functional ingredients like probiotics or CBD can attract health-conscious consumers looking for enhanced wellness benefits.

The shift toward sustainable consumption presents an opportunity for brands to use recyclable cans, biodegradable packaging, and ethically sourced tea leaves to appeal to environmentally conscious buyers.

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Major Challenges in Industry & Solutions:

Despite growing interest in functional beverages, nitro tea remains relatively niche compared to mainstream tea or coffee. Many consumers are unfamiliar with its benefits, nitrogen infusion process, or how it differs from traditional iced tea. Educating consumers through sampling campaigns, social media marketing, and in-store promotions can increase awareness. Collaborations with cafés and influencers can help introduce nitro tea as a premium, health-conscious alternative. Brands like RISE Brewing Co. and Starbucks have successfully introduced nitro tea through café chains and RTD products, using experiential marketing and in-store tastings to familiarize consumers with the beverage.

The nitrogen infusion process requires specialized equipment and packaging, thus increasing production costs. In addition, maintaining freshness in RTD formats poses logistical challenges. Investing in scalable nitrogen infusion technology and optimizing cold-chain distribution can help reduce costs. Partnerships with third-party manufacturers and co-packers can also streamline production while maintaining quality. Companies like Guayakí, known for nitro-infused yerba mate, have tackled cost challenges by leveraging existing beverage distribution networks, ensuring efficient market penetration without excessive overhead.

Regional Insights

North America is the largest and most developed market for nitro tea, driven by the strong presence of specialty coffee and tea chains, rise in consumer preference for premium beverages, and a well-established RTD (ready-to-drink) segment. The U.S. and Canada are leading the adoption, with growing demand for clean-label and functional beverages.

The European market for nitro tea is steadily expanding, driven by increasing demand for plant-based and premium beverages. The UK, Germany, and France are key growth areas, with café culture and health-conscious lifestyles supporting adoption. The RTD segment is gaining traction, particularly among young professionals seeking functional, on-the-go beverages.

Asia-Pacific is emerging as a high-growth region for nitro tea, driven by increasing consumer interest in innovative tea-based beverages. Countries like China, Japan, and Australia are leading the trend, with growing café culture and premiumization of traditional tea markets. Japan, known for its affinity for matcha and tea innovations, is witnessing an early adoption of nitro-infused drinks.

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Key Players:

Leading companies in the area are concentrating on developing new products to provide herbal-based goods with improved functional qualities.

The key players profiled in this report include Portal Tea, Starbucks Coffee Company, Minor Figures, East Forged, Rise Brewing Co., Quivr, Novus Tea Ltd., Southmatea, QuantiPerm, LLC, and Bona Fide Nitro Coffee and Tea.

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