Iced tea trends 2025: time for sustainability and innovation
Spring is here, and with it the warmth and the desire for cool refreshing drinks. One drink in particular has been enjoying growing popularity for some time now - iced tea. At the same time, sales in the iced tea market have risen significantly over the past five years. However, the boom is being held back by several external negative factors, led by the continuously rising price level and recessionary trends in the economy as a whole. Manufacturers who want to remain successful in the future should therefore focus more on product quality, innovation and the lifestyle qualities of their drinks. Several current trends in consumer behaviour and customers' taste preferences lend themselves to this.
Iced tea is on trend. According to the latest studies1 , the number of Germans who have bought or consumed iced tea in the last 14 days was around 10.6 million in 2024, which is significantly more than in previous years. Iced tea has gained many fans in Germany, especially since 2021: Back then, the 14-day consumer reach was still around 8.7 million people. Sales in the sector have also risen continuously since 2020: Total revenue climbed from around 175 million euros to just under 240 million euros between the first half of 2020 and the same period in 20242.
Number of people in Germany who have bought or consumed iced tea in the last 14 days (portions in million):
Paradigm shift in a mature market
Nevertheless, there are unmistakable signs of market saturation. For example, the volume of iced tea sold has been falling for several years, as market data shows3. While manufacturers sold around 314 million litres in the first half of 2021, this figure had fallen to around 272 million litres by the middle of the previous year. The boom in 2021 and the following years was largely fuelled by iced tea brands launched by well-known rappers and hip hop artists such as Capital Bra, Haftbefehl and Shirin David. The 750-millilitre carton size in which Capital Bra sells its ‘BraTee’ was first established on the market at the time. Even if the momentum has slowed considerably in the meantime, the rapper iced teas gave the industry lasting impetus - particularly in the area of unusual flavours and marketing.
These developments characterise Germany as a mature market with high sales but a lack of impetus for further strong growth. In order to expand market share, manufacturers can rely less and less on organic growth in consumption and must instead focus on product innovations, qualitative improvements and the (added) benefits of their products. There are currently several trends that can be used as starting points for this.
Functional and Natural Iced Teas Are on the Rise
A market segment that has been developing promisingly for several years is freshly brewed and minimally processed iced teas. Current data shows that the buyer reach in this segment increased from 10.9 percent to 13.5 percent between 2022 and 20244. The repurchase rates and market share of freshly brewed iced teas have also developed more positively compared to the overall market during this period.
Consumer reach of different iced tea flavours in Germany (in %):
Consumers are also increasingly asking for iced teas with functional, i.e. health-promoting, ingredients. The four most important benefits they expect are:
Increasing health awareness in society and the desire to support the performance of body and mind in often challenging and fast-paced everyday life are fuelling the demand for iced teas with functional ingredients. The health ‘add-on’ gives manufacturers the opportunity to set their products apart from the competition and realise higher prices.
Flavour trends 2025: boring is a thing of the past
Another trend with growth potential that iced tea producers are increasingly embracing is innovative flavour experiences and unusual flavour combinations. Although the variety structure on the German market is still dominated by peach, lemon and increasingly also cherry, unusual or exotic flavours such as chamomile, hemp, jasmine or pomegranate are increasingly being offered and consumed.
Variety structure January to June 2024:
The combination of exotic flavours with the qualities of functional additives also opens up further potential for growth and innovation. Herbs such as eucalyptus or algae products such as spirulina are not only healthy due to the nutrients they contain, but can also enrich iced teas with excitingly foreign flavours. And in the end, it's the flavour that counts: By indulging the senses and creating positive associations, it has a spiritual quality that radiates to the product and the associated brand.
Fresh snow meets flavoured herbal tea
The market leader for iced tea in Germany, Hermann Pfanner Getränke GmbH, has recognised the importance of innovative taste experiences for its customers and, together with slalom world cup winner Manuel Feller, has developed an iced tea edition in the flavours raspberry, alpine herbs and lemon and launched it on the market in a sustainable 750ml Pure-Pak® carton. Around the launch of the iced tea, Pfanner ran a communication campaign mainly on social media with Manuel Feller at the helm.
The Pfanner campaign and the ‘rapper iced teas’ show that the launch of new iced tea varieties is not just about advertising an innovative product, but also about conveying a corresponding attitude to life. As a professional winter sportsman, Manuel Feller stands for an active lifestyle and youthful dynamism, while Pfanner lays the foundations for consumption ‘on the go’ with the handy 750ml Pure-Pak® carton size, thus emphasising the active lifestyle promised by the product and represented by the associated testimonial.
Sustainability and Responsibility Remain Central
Above the product-level trends, the mega-trend of sustainability, whose core values – environmental and climate protection as well as ethically responsible business practices – have been influencing the iced tea market for several years. Iced tea manufacturers try to meet their customers' demands for sustainability through natural ingredients, short delivery routes, regional products, or recyclable packaging and efficient production mechanisms.
Changes in packaging structure are also a consequence of the mega-trend of sustainability. The proportion of iced teas filled in beverage cartons has been steadily increasing for years, mainly at the expense of plastic bottles. While 19.4 percent of all iced teas in Germany were sold in carton packaging in 2020, the proportion last year was already 30.1 percent. At the same time, the attractiveness of PET bottles for manufacturers decreased, which was reflected in a decline from 77.1 percent to 64.3 percent in the same period. Glass bottles play a subordinate role, although the share of this comparatively sustainable packaging type in the overall market is also steadily growing.
Conclusion and Outlook
The German iced tea market has reached a considerable size. However, factors such as significantly increased costs and prices are hindering further natural expansion. Current trends, however, offer manufacturers opportunities to get their business back on track. Whether it's iced teas that offer functional added value or surprising flavor compositions, or those that embody sustainability and naturalness – in the current market environment, quality and innovation should generally take precedence over quantity and sticking to the status quo. Communication campaigns with brand ambassadors, such as the one launched by Pfanner in collaboration with Manuel Feller, can also significantly increase the attractiveness of the beverages.
1 Statista 2025
2 GfK Consumer Panel and YouGov
3 GfK Consumer Panel and YouGov
4 GfK Consumer Panel and YouGov
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