Allied Market Research

2024

Alcoholic Tea Market

Alcoholic Tea Market Size, Share, Competitive Landscape and Trend Analysis Report by Base, by Flavor and by End-use : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: | Roshan Deshmukh
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The 21st century saw a trend of growing demand for flavored drinks in both alcoholic and non-alcoholic beverage sector, which stands as a key factor boosting the global alcoholic tea market during the forecast period.

Alcoholic tea is a beverage prepared by mixing alcohol and tea. It is cooled with ice and consumed cold. There is high demand for tea-infused cocktails with the increasing popularity of island-inspired flavors such as Long Island Tea. Alcoholic tea is available in a variety of flavors such as sweet tea, fancy tea martini, and fruity flavors as well. Alcoholic Tea is very much preferred by the millennials. Millennials seek innovation and variety of flavors when it comes to current tea offerings. In the U.S., more than 80% of the population prefers iced tea, as Alcoholic tea is also iced, a majority chunk of the population consumes it on daily basis. According to World Tea News, in a forecast by Packaged Facts, the foodservice tea market will likely have an edge in future growth momentum as sales are expected to increase through 2020 and beyond further driving the sales of the alcoholic tea market. The increasing health consciousness as well as the demand for transparently simple, whole food and beverage offerings continue to drive interest in the alcoholic tea market. Innovations, backed with a great and lasting tasting, healthy product, means that Alcoholic tea market will continue to grow in the US. New versions of tea-infused alcoholic beverage specialties have opened an entirely new, younger target audience in the alcoholic tea market. The tea-infused cocktails such as Long Island tea are becoming the hottest trending island-inspired flavors with the crisp, clear taste of premium tea.

COVID-19 Impact analysis

  • Food and beverages sector is one of the few sectors whose demand was not adversely impacted due to COVID-19 pandemic.
  • Tea has become a necessity of human’s daily lives. In the U.S., where 80% of the consumers consume tea as iced, Alcoholic tea market is bound to thrive.
  • Chris Caruso, co-founder of craft cocktail brand VACAY, agreed that while traditional routes to market had been hampered by supply constraints and closures in on-trade, products that are well-suited to at-home consumption such as alcoholic tea are thriving.
  • There is an excellent ecosystem of independent retailers, bottle shops and home-delivery services that are thriving as consumers have shifted their Alcohol purchasing habits. Sales through these types of retailers have been driving the business forward.
  • Similarly, the industry had great results in direct-to-consumer sales, as well as catering to office social gatherings hosted on online platforms such as Zoom.
  • Due to increasing stress among people and consequent rising alcohol consumers, demand for alcoholic tea hiked.
  • Closure of bars and nightclubs hampered its market a little during lockdown.

Top Impacting Factors

  • Rising population of tea consumers. Tea is the second most consumed drink on the planet, behind water.
  • Rising population of alcohol consumers. Increase in alcohol consumption at home has produced a huge growth in the industry’s retail channels, which has boosted online business.
  • People preferring iced beverages.
  • Health benefits such as improvement in cardiac health.
  • Increasing brand awareness of this market in millennials and younger market segment.
  • Increase in the trend of nightlife, i.e. partying in night clubs and bars.
  • Dramatic increase in the demand for alcoholic beverages, especially in COVID-19 due to stress.
  • However, alcoholic tea contains addictive properties as both tea and alcohol are known to be addictive drinks.
  • Once consumer gets intoxicated and starts to consume alcoholic tea above than the average, the consumer’s body require its intake regularly for proper functioning.
  • While the on-trade side of the alcohol industry faces continued challenges as the COVID-19 pandemic rolls on, opportunities are emerging in the off-trade sector for local provenance and online alcohol sales.

Market Trends:

Scottish tea brand Eteaket, dispatched three tea lagers in 2020 and plans to divulge a fourth one as well.

Alcoholic ice tea brand Harry Brompton's entered the UK market with the first mover advantage in the wake of winning a posting for its 4% ABV tea in 56 Waitrose stores and the organization continued to win postings in Sainsbury's and Ocado.

Japanese cafe network Wagamama introduced iKi brew into the main UK eatery – a combination of wheat lager and green tea.

Mintel‘s flagship British Lifestyles report showcased that the sales of alcoholic beverages in 2020 during lockdown jumped 16.3% to £3.6bn as eating and drinking occasions moved into the home.

The Financial Times recently reported that global sales of alcoholic spirits including tea such as vodka, liquor outperformed the broader alcohol market in 2020 as consumers took to crafting their own cocktails at home and trading up to higher end spirits.

According to research by Dragonfly AI, Online sales for alcoholic beverages including alcoholic tea were up 200% in April and May 2020, as compared to 2019.

However, the alcoholic tea market has also seen its dark days. For instance, when American ice tea brand Twisted Tea launched hard iced tea, its sales did not reach the criteria required for continuing to import the product. Moreover, Whole Foods Market Inc., an American supermarket chain yanked kombucha teas from its store shelves after discovering that the popular fermented drinks contained elevated levels of alcohol.

In light of the difficulties the sector has faced, The Drinks Trust created The Drinks Community, a first-of-its-kind space for drinks professionals to connect, pool their experience and upskill with one another.

According to IWSR’s Global Trends 2020 report, the premium-and-above spirits and tea are projected to increase their global market share to 13% during the upcoming years as consumers continue to favor quality over quantity, including cocktails and high-end sipping spirits.

Key Benefits of the Report:

  • This study presents the analytical depiction of the Alcoholic Tea industry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the Alcoholic Tea market share.
  • The current market is quantitatively analyzed to highlight the Alcoholic Tea market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed Alcoholic Tea market analysis based on competitive intensity and how the competition will take shape in coming years.

Questions answered in the Report:

  • Who are the leading market players active in the Alcoholic Tea market?
  • What current trends will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the market?
  • What future projections would help in taking further strategic steps?
  • What is "Alcoholic Tea" Market prediction in the future?
  • Which will be the niches at which players profiling with recent advancements should set a presence?
  • What are the driving factors and opportunities in the market?
  • What are the current trends and predicted trends?
  • What are the challenges faced in the "Alcoholic Tea" Market?

Alcoholic Tea Market Report Highlights

Aspects Details
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By Base
  • Gin
  • Vodka
  • Bourbon
  • Irish Cream
  • Rum
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By Flavor
  • Berries
  • Lime
  • Mint
  • Cucumber
  • Mango
  • Peach
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By End-use
  • Retail
  • Industrial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

Harry Brompton's London Ice Tea, Tea Venture, Wagamama, Eteaket, Synergy Flavors, Red Diamond

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Alcoholic Tea Market

Global Opportunity Analysis and Industry Forecast, 2023-2032