Alcoholic Tea Market Size, Share, Growth Report 2032

Industry Perspective:

The global alcoholic tea market size was evaluated at $20.1 Billion in 2022 and is slated to hit $30.1 Billion by the end of 2030 with a CAGR of nearly 11.9% between 2023 and 2030.

The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace. The report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the report explores the investor and stakeholder space to help companies make data-driven decisions.

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Alcoholic Tea Market: Overview

Alcoholic tea is a drink that is prepared by mixing tea and alcohol. Furthermore, it is cooled with ice and is consumed. In addition to this, there is a humungous demand for cocktails infused with tea due to surging demand for island-based flavors including long island tea. Reportedly, the product is available in myriad flavors including fruity flavor, sweet tea, and fancy tea martini. In addition to this, alcoholic tea is in much demand from the millennial population. Apart from this, in the U.S., over 80% of the people drink iced tea and hence the demand for alcoholic tea is predicted to gain traction across the country.

Key Insights

• As per the analysis shared by our research analyst, the global alcoholic tea market is projected to expand annually at the annual growth rate of around 8.8% over the forecast timespan (2023-2030)
• In terms of revenue, the global alcoholic tea market was evaluated at nearly $20.1 billion in 2022 and is expected to reach $30.1 billion by 2030.
• The global alcoholic tea market is anticipated to record massive growth over the forecast period owing to surging alcohol intake in developed countries due to low temperatures throughout the year.
• Based on base, the vodka segment is predicted to contribute a majorly towards the market growth over the forecast timeline.
• In terms of flavor, the berries segment is projected to account for a major share of the global market in 2023-2030.
• Region-wise, the European alcoholic tea market is projected to register the highest CAGR during the assessment period.

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Alcoholic Tea Market: Growth Factors

Growing health benefits derived from alcoholic tea consumption to drive the global market trends

Rise in health awareness and ice tea will boost the growth of the alcoholic tea market across the globe. Surging alcohol intake in developed countries due to low temperatures throughout the year will steer the global market trends. Health benefits offered due to the intake of alcoholic tea such as effective cardiac health will steer the global alcoholic tea market. Escalating popularity of alcoholic iced tea cocktails is predicted to carve a profitable chart for the global market. Busy and stressful lifestyle has transformed into huge demand for drinks for relieving mental stress along with a need for rejuvenating & relaxation. This, in turn, will proliferate the size of the global alcoholic tea market.

Furthermore, alcoholic tea helps in reducing weight loss and enhancing mental alertness, thereby spurring the growth of the global market.  In addition to this, the product is a rich source of antioxidants and offers huge health benefits. This, in turn, will prop up the growth of the global market. Increasing trend of consuming cocktails will contribute majorly to the global market revenue.

Alcoholic Tea Market: Hindrances

Low product access to hinder the global industry surge by 2030

Limited product availability and enforcement of strict laws regulating the sale of alcoholic drinks can put brakes on the expansion of the alcoholic tea industry across the globe in the years ahead.

Alcoholic Tea Market: Opportunities

Increase in intake of kombucha to open new growth opportunities for the global market

Surging consumption of kombucha and various fermented drinks is likely to provide new growth avenues for the global alcoholic tea market. Promotion of alcoholic tea as a health-benefitting drink will accentuate the scope of product demand in the coming years.

Alcoholic Tea Market: Challenges

Seasonal sales of the product in some countries can pose a huge challenge for the global industry expansion

Low product awareness along with high costs can pose a huge challenge to the growth of the global alcoholic tea industry. In addition to this, seasonal demand for the product can further become a big threat to the global industry surge.

Alcoholic Tea Market: Segmentation

The global alcoholic tea market is sectored into base, flavor, end-use, and region.   

In terms of base, the global alcoholic tea market is sectored into Irish cream, gin, vodka, bourbon, and rum segments. Furthermore, the vodka segment, which accounted for more than 45% of the global market share in 2022, is anticipated to retain its segmental domination even during 2023-2030. The segmental surge in the next eight years can be attributed to growing awareness about the brand among consumers.

Based on the flavor, the global alcoholic tea industry is divided into mint, berries, cucumber, lime, mango, and peach segments. The mint segment, which dominated the flavor segment in 2022, is set to account for a major market share over the forecast timeline. The growth of the segment in the coming years can be due to the large-scale demand for berries flavor in the millennial population of the developed countries of Europe and North America.

In terms of end-use, the alcoholic tea market across the globe is sectored into retail, commercial, and industrial segments.

Recent Breakthroughs

• In the first half of 2022, Broadland Drinks, a major alcoholic beverage manufacturing firm based in the UK, launched an alcoholic cold brew tea product which is a ready-to-drink alcoholic and semi-sparkling cold brew tea. Reportedly, the beverage is available in four flavors that include white peach & mango, rhubarb & ginger, blood orange & mandarin, and lemon & lime. The move will promote the demand for alcoholic tea in the UK and across the Western world.
• In August 2022, Monster Beverage Corporation, announced launching of its first alcoholic malt beverage flavor in the near future. For the record, the beverage is likely to be available in four flavors. The initiative will contribute majorly towards the global alcoholic tea market profits.
• In the second half of 2022, Hi-Spirits, a UK spirits distributing firm, launched Kranbet, an Italian Gin Liquor, in the UK alcoholic beverages industry. The move will expand the scope of demand for alcoholic tea in the UK.

Alcoholic Tea Market: Report Scope

Alcoholic Tea Market: Regional Insights 

Asia-Pacific Alcoholic Tea market to record noteworthy growth over 2023-2030

The Asia-Pacific, which accounted for a major revenue share of the global alcoholic tea market in 2022, is anticipated to dominate the regional market growth over the forecast timeline. The regional market surge over 2023-2030 can be due to the availability of appropriate climatic conditions for tea in the countries such as India and China. Apart from this, an increase in the presence of brewers in the sub-continent will further add to the growth of the regional market.

On the other hand, the alcoholic tea industry in Europe is predicted to record the highest gains of 9.1% in the forthcoming years. The regional market expansion over the forecast timespan can be due to large-scale export of alcoholic beverages from countries such as Russia, Italy, France, Spain, and the UK to North American and Latin American countries including the U.S., Canada, Brazil, Mexico, and Argentina.

Alcoholic Tea Market: Competitive Space

The alcoholic tea market profiles key players such as:

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

The global alcoholic tea market is segmented as follows:

By Base

• Irish Cream
• Gin
• Vodka
• Bourbon
• Rum

By Flavor

• Berries
• Lime
• Mint
• Cucumber
• Mango
• Peach

By Flavor

• Retail
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa