Alcoholic Tea Market Size
Global Alcoholic Tea Market reached USD 118.4 billion in 2022 and is expected to reach USD 211.1 billion by 2030 growing with a CAGR of 7.5% during the forecast period 2024-2031. Tea and alcohol are combined to create alcoholic tea. It is drunk cold after being chilled with ice. As island-inspired flavours like Long Island Tea gain popularity, there is a significant demand for cocktails incorporating tea as an ingredient.
Alcoholic tea comes in a range of flavours, including fruity flavours, elegant tea martinis, and sweet tea. The millennial generation strongly prefers alcohol-infused tea. When it comes to the existing tea products, millennials want innovation and variety of flavours.
Craft and artisanal alcoholic tea brands have emerged, offering a wide variety of flavors, blends, and brewing techniques. These brands emphasize high-quality ingredients, unique flavor profiles, and small-batch production methods, catering to consumers who appreciate the craft and artisanal aspects of their beverages.
Market Scope
| Metrics | Details |
| CAGR | 7.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Source, Flavor, Application, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Europe |
| Largest Region | Asia Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Growing Health Benefits Derived from Alcoholic Tea Consumption to Drive the Global Market Trends
Tea, particularly green and black tea, is known for its high antioxidant content. Antioxidants help protect the body from damage caused by free radicals, which are unstable molecules that can contribute to various diseases. According to The Tea Association of the U.S.A, in 2021, Americans consumed almost 85 billion servings of tea, or more than 3.9 billion gallons. About 84% of all tea consumed was black tea, 15% was green Tea, and the small remaining amount was oolong, white and dark tea.
The antioxidants in tea, such as catechins and polyphenols, have been related to potential health benefits, including reduced risk of cardiovascular disease and certain types of cancers. Moderate alcohol intake has been associated with certain health benefits, such as a reduced risk of coronary heart disease. However, it is important to note that excessive alcohol consumption could have adverse health effects, and moderation is key. Alcoholic tea, with its lower alcohol content compared to stronger alcoholic beverages, may additionally offer an option for those who prefer a milder alcoholic drink.
Increase in Consumption of Kombucha is Expected to Drive The Alcoholic Tea Market Growth
Kombucha has received recognition as a health-focused beverage, known for its probiotic residences and potential health benefits. It's a fermented tea drink crafted from tea leaves, sugar, and a symbiotic culture of bacteria and yeast (SCOBY). Kombucha is believed to support gut health and digestion due to the presence of live bacteria and yeasts.
Kombucha is known for its wide range of flavors, as it can be infused with various fruits, herbs, and spices during the fermentation process. Alcoholic kombucha further expands the flavor possibilities, allowing for the creation of unique and appealing taste combinations. The availability of diverse flavors can attract consumers looking for novel and interesting beverage options, thus contributing to the growth of the alcoholic tea market.
Limited Consumer Awareness is Restraining the Alcoholic Tea Market
Alcoholic tea is a rather new and niche product category compared to greater conventional alcoholic liquids like beer, wine, and spirits. Limited consumer awareness means that many potential consumers might not be acquainted with the concept of alcoholic tea or the variety of options to them. This lack of familiarity may be a gradual barrier to adoption and may slow down market growth.
The acceptance and popularity of different beverages can vary based on cultural and regional preferences. Tea has diverse cultural significance and consumption patterns worldwide, and the addition of alcohol to tea may not align with certain cultural norms or traditional perceptions of tea. This can limit consumer acceptance and adoption, particularly in regions where tea is primarily associated with non-alcoholic beverages.
Market Segment Analysis
The global alcoholic tea market is segmented based on source, flavor, application, and region.
The Vodka Segment Holds the Largest Market Share in the Alcoholic Tea Market
Vodka is a highly versatile spirit that can be easily mixed with various ingredients, including tea. This adaptability allows for the creation of a wide range of vodka-based tea cocktails, appealing to consumers who enjoy experimenting with flavors. The ability to customize drinks to individual tastes can contribute to the popularity of vodka in the alcoholic tea market.
Several vodka brands have established themselves as reputable and recognizable names in the alcohol industry. These brands often have extensive marketing campaigns, distribution networks, and loyal customer bases. Leveraging their brand strength, these vodka companies can promote their vodka-tea offerings effectively, capturing a significant portion of the market share.
Market Geographical Share
Asia Pacific is Dominating the Alcoholic Tea Market
The Asia Pacific region is renowned for its deep-rooted tea culture and traditions. Countries like China, Japan, India, and Taiwan have a long history of tea consumption and production. This cultural affinity towards tea creates a favorable environment for the growth and popularity of alcoholic tea in the region. According to Ingredion, Asia-Pacific (APAC)'s market for coffee and tea is booming. With 50% of the global market share in tea in 2020, APAC continues to lead in this sector. The presence of a strong tea culture can contribute to the domination of the Asia Pacific region in the alcoholic tea market.
The Asia Pacific region has a massive population, accounting for a significant portion of the global consumer market. This large consumer base provides a substantial customer pool for the alcoholic tea market. Moreover, the diverse preferences within the region allow for a wide variety of tea-based alcoholic beverages to cater to different tastes and preferences. The sheer size and diversity of the consumer base in Asia Pacific can contribute to its dominance in the alcoholic tea market.
Market Companies
The major global players in the market include Harry Brompton's London Ice Tea, Eteaket, Synergy Flavors, Wagamama, Tea Venture, Red Diamond, NOVELTEA UK, Döhler, Arnold Palmer, and Bully Boy.
COVID-19 Impact on Market
Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:
Covid-19 Impact:
COVID-19 and the associated lockdown measures implemented in many countries led to changes in consumer behavior. With the closure of bars, restaurants, and other on-premise establishments, there was a significant shift towards at-home consumption. This shift in consumption patterns could have impacted the alcoholic tea market, as consumers sought out new and interesting beverages to enjoy at home.
By Source
- Gin
- Vodka
- Bourbon
- Irish Cream
- Rum
By Flavor
- Cucumber
- Berries
- Lime
- Mint
- Mango
- Peach
By Application
- Retail
- Industrial
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Germany
- The U.K.
- France
- Italy
- Spain
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- In August 2021, The Boston Beer Company and PepsiCo announced plans to enter a business collaboration to produce HARD MTN DEW alcoholic beverage. The partnership unites Boston Beer's world-class innovation and expertise in alcoholic beverages with one of PepsiCo's most iconic and beloved brands.
- In July 2023, Labatt Blue Light released Throwback Tea, a non-carbonated red raspberry hard iced tea, featuring the iconic red helmet on its packaging. Newly named the official sponsor of Bills Mafia, Throwback Tea brings today's fans the intensity and nostalgia of the Bills' teams from the 1990's while they cheer on their favorite team.
- In July 2023, Investment company Kliro Capital Partners has acquired 100% of the share capital of UK-based independent alcoholic drinks manufacturer, Intercontinental Brands (ICB).
Why Purchase the Report?
- To visualize the global alcoholic tea market segmentation based on source, flavor, application, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of alcoholic tea market-level with all segments.
- The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The global alcoholic tea market report would provide approximately 61 tables, 61 figures, and 190 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
