COMPETITIVE LANDSCAPE
Nestea transition reshapes leadership while Fuze enters the market
The competitive landscape for RTD tea in Canada underwent a notable shift in 2024 and 2025 centred on the long-standing Nestea brand. For many years, Nestea held a dominant position in iced tea, supported by a distribution agreement that saw Coca-Cola manage manufacturing and bottling.
Smaller brands and kombucha specialists diversify the competitive set
Beyond the major multinational brands, a growing number of smaller players and kombucha specialists are contributing to a more diverse and differentiated RTD tea landscape. Local and regional kombucha producers, as well as niche herbal and botanical RTD tea brands, are carving out space in natural channels, independent retailers and selected mainstream outlets.
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Overview:
Understand the latest market trends and future growth opportunities for the RTD Tea industry in Canada with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the RTD Tea industry in Canada, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The RTD Tea in Canada report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of RTD Tea in Canada?
- To what extent are health considerations impacting consumption of RTD Tea in Canada?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of RTD Tea in Canada?
- Which are the leading brands in RTD Tea in Canada?
- What potential exists for multinational or domestic soft drinks companies to expand in Canada?
- How are products distributed in RTD Tea in Canada?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of RTD Tea?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
RTD Tea in Canada - Category analysis
KEY DATA FINDINGS
Health positioning and premium innovation support a levelling RTD tea market
RTD tea growth slows as inflation and category maturity weigh on demand
Growth pockets in carbonated RTD tea, kombucha and reduced sugar formats
Moderate growth outlook driven by health trends but constrained by demographics and competition
Functional benefits and cross-category innovation gain prominence
Sugar reduction, sweeteners and labelling changes shape future dynamics
Nestea transition reshapes leadership while Fuze enters the market
Smaller brands and kombucha specialists diversify the competitive set
Brick-and-mortar remains the primary sales channel for RTD tea
E-commerce and omni-channel models continue to gain importance
Soft Drinks in Canada - Industry Overview
Soft drinks adjust to shifting health priorities, economic caution and changing consumption behaviour
KEY DATA FINDINGS
Health and wellness expectations reshape category dynamics
Premiumisation and affordable indulgence gain relevance in a cautious economic climate
Customisation and home beverage making expand, challenging ready-to-drink formats
Soft drinks forecast to maintain modest value growth amid constrained volume gains
Health priorities and functional positioning to intensify across categories
Regulatory shifts and ingredient pressures to influence product strategy
Category leaders diversify portfolios while adjusting to shifting distribution agreements
Agile challengers and specialised players gain traction through innovation
Store-based retail remains dominant as shoppers shift toward value-oriented purchasing
E-commerce strengthens as infrastructure and shopper confidence mature
Foodservice recovery remains weaker than anticipated
Fountain sales stabilise alongside foodservice recovery but remain constrained by economic pressures
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
RTD Tea
- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
RTD Tea
This category includes all packaged products based on brewed tea or tea extract. May be sweetened or unsweetened, carbonated or still, with a wide variety of different flavourings. May contain juice.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our RTD Tea research and analysis database.
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