The 1979 “The Muppet Movie” starring Kermit the Frog, Miss Piggy and Fozzie Bear, opens as the beloved amphibian, strumming his ukulele in the swamp, poignantly sings “The Rainbow Connection,” reminding us that, “Rainbows are visions, they're only illusions and rainbows have nothing to hide.” Another category with “nothing to hide” is the tea category because it truly has a “rainbow of options” in terms of varietal and format.
Despite the fact that tea market sales have remained relatively flat, there have been small pockets of growth in the $6.1 billion ready-to-drink (RTD) tea category, which saw a compound annual growth rate (CAGR) of 2.2 percent from 2013-2018, according to Los Angeles-based IBISWorld’s December 2018 report titled “RTD Tea Production in the US.” The industry continues to attract new consumers, thanks to the growing variety of flavors, strengths and sweeteners offered by manufacturers. Fast-growing niche products such as kombucha and mate also are attracting new industry entrants, the report adds.