RTD Tea Market to Hit $66.7B by 2031 as Sugar Taxes Reshape Category
Sheridan, Wyo. – – September 15, 2026 -- The global ready-to-drink (RTD) tea market is forecast to expand from $45.0 billion in 2026 to $66.7 billion by 2031, a compound annual growth rate of 8.2%, according to a new study by Wissen Research.
Sugar-tax rules in the UK and India are forcing rapid reformulation
The UK confirmed in November 2025 it will lower the Soft Drinks Industry Levy threshold from 5g to 4.5g of sugar per 100ml, extending the tax to more pre-packaged beverages, with a January 2028 compliance deadline. In India, the GST Council raised tax on carbonated and caffeinated non-alcoholic drinks from 28% to 40% in September 2025, directly hitting sweetened, caffeinated RTD tea pricing in one of the category's largest consumption markets. More than 116 countries have now implemented sugar-sweetened beverage taxes aligned with WHO recommendations.