GLOBAL HARD TEA MARKET (2024 - 2030)

The global hard tea market was valued at USD 2.1 billion and is projected to reach a market size of USD 8.94 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 23%. 

An alcoholic version of iced tea is called hard iced tea. Hard iced teas, which are frequently flavored with lemon or other fruits or mixed with lemonade, typically contain 4% to 8% alcohol by volume. In the past, this market had a smaller share with limited offerings and awareness. Presently, with an increase in the number of eateries, globalization, and food experimentation, this market has seen an elevation. In the future, with a growing focus on innovations and global expansion, this market is anticipated to grow. During the forecast period, a considerable growth rate is expected.

Key Market Insights:

Over the last three years, the number of hard tea brands available has increased dramatically, rising from around 80 in 2020 to almost 150 so far in 2023—a +80% rise.

Currently, the menus of 2501 restaurants include hard tea.

Hard teas are the main driver of growth in FMBs; the subcategory's dollar sales rose by 38.7% year over year to about $385 million, or 2.3% of all beer dollar sales in NIQ-tracked channels.

People drink hard tea 1.48 times a year on average.

In the last year, there has been a 194.89% decline in the popularity of hard tea. To tackle this, companies in the market have been concentrating on working on a variety of flavors and alternatives to high-calorie items to attract a broader consumer base.

Hard Tea Market Drivers:

A changing consumer preference has been fueling the growth.

Over the past decade, numerous changes have been observed in the lifestyle and standard of living. Factors like urbanization, rising middle-class income, and increasing disposable income have played a huge role in market upliftment. People have started to go out more often. This has increased the number of dineries and other fast-food chains that offer hard tea on their menus. Besides, subscription boxes have gained prominence. Corporate sectors include hard tea as a part of the delicacies. This helps with the promotion of the product.

Product innovations have been accelerating the market.

Product diversity is constantly needed in the food and beverage industry. A lot of individuals are keen on experimentation. Many youngsters and college students tend to explore different places owing to their authenticity, taste, and flavors. There have been many evolutions concerning the taste of this beverage. Unique and exotic herbs that hold medical significance are being used. Additionally, a lower alcohol content is being used. This has been helping with attracting a greater customer base who are health conscious. Sweet, tangy, and other offbeat favors are being commercialized through various launches and collaborations between companies. Freshly brewed tea is in high demand. Personalization is being prioritized. Internet retail is helping to gain access to a wide range of creative options.

Social media has been contributing to market expansion.

Social platforms like WhatsApp, YouTube, Instagram, and Facebook are used by billions of people. Influencers and other celebrities have been endorsing various brands and products. Organic commodities have been greatly appreciated by the community. Besides, some individuals create content about the importance of each ingredient, thereby broadening human understanding. This marketing strategy helps in a better outreach amongst the fans. Travel and food bloggers create content about uncommon places in remote and unfamiliar areas. This assists small and local businesses in boosting their retail.  

Hard Tea Market Restraints and Challenges:

Health concerns, a lack of transparency, incomplete knowledge, and intense competition are the main issues that the market is currently experiencing. 

These beverages contain a high amount of sugar. This can result in an increased sugar intake. Additionally, they contain alcohol. Excessive consumption can lead to liver damage and unhealthy weight gain. Secondly, certain individuals might be allergic to a few herbs which are used. Therefore, clean labeling and transparency are extremely necessary. Few companies might neglect this, leading to serious repercussions. Thirdly, since this is a relatively new beverage, there might be limited awareness about this product. Few individuals can have misconceptions and prejudices about the product, hampering its growth. Furthermore, heavy competition can saturate the market. People tend to buy well-known and popular brands. This can create losses for smaller firms, draining them financially.

Hard Tea Market Opportunities:

Various health and wellness trends have been providing the market with an ample number of possibilities. Due to the increasing prevalence of chronic illnesses like diabetes and cardiovascular diseases, sugar-free options have gained immense attention. Additionally, low-calorie and sugary alternatives are becoming popular. Functional ingredients are being incorporated into the beverage. This includes antioxidants, adaptogens, and other minerals. Unique flavors are being looked for that hold cultural significance. Locally sourced and organic ingredients are witnessing an upsurge. Online retail is being given utmost prominence. People are leaning towards online delivery owing to its convenience. This has been aiding the sales.

HARD TEA  MARKET REPORT COVERAGE:

Hard Tea Market Segmentation:

Market Segmentation: By Alcohol By Volume:

• 2.0%–5.0% ABV
• Over 5.1% ABV

Based on ABV, 2.0%–5.0% ABV is both the largest and fastest-growing segment in the market. This is because of the low alcohol content, versatility, consumer demand, and broader consumer base. Due to growth in health awareness, this segment is expected to show an upsurge during the forecast period. Besides, it is easier to mix other beverages with this proportion, thereby augmenting the growth rate.

Market Segmentation: By Flavor Type:

• Lemon
• Raspberry
• Peach
• Orange
• Others

Based on flavor type, the citrus segment is the largest in the market. Citrus flavors include lemons and oranges. However, the lemon flavor is the one with the most revenue. This is because of its nutritional benefits. Lemons can help with weight loss and lower the chances of cancer, heart disease, anemia, kidney stones, and digestive problems. Furthermore, its rising popularity is associated with the taste and flavor that lemon imparts to tea. Peach is the fastest-growing category. The demand for this segment is due to aesthetic appeal, demand, flavor, and availability. Additionally, peaches aid with digestion, improve eye and heart health, enhance immunity, and protect our skin.

Market Segmentation: By Distribution Channel:

• Supermarkets/Hypermarkets
• Online Retail
• Convenience Stores
• Others

Based on distribution channels, the supermarkets/hypermarkets segment is the largest in the market, holding a share of around 60% in 2023. This is because of reasons like presence, originality, authenticity, accessibility, availability, in-person communication, and visual examination. Online retail is the fastest-growing segment. The ongoing digital revolution is contributing to the success of this category. Due to increased consumer awareness and a willingness to explore new options, more and more customers are selecting online food delivery services. Customers can place orders at the convenience of their own homes. This makes it easier for individuals to buy food, particularly those who reside in rural areas. To further enhance their performance, online merchants have begun to ensure the freshness of their items and offer superior customer service.

Market Segmentation: Regional Analysis:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

With a roughly 33% market share in 2023, North America is the largest market by region. Countries like the United States and Canada are at the forefront. Numerous elements contribute to this, such as population density, the existence of huge organizations, mass production, demand, distinctiveness, inventions, cultural significance, attractiveness, and advancements in flavor. Due to several factors, including the rise in fast-food franchises and restaurants, population expansion, the founding of new businesses, worldwide operations, growing attractiveness, investments, and the need for innovation, Asia-Pacific is the fastest-growing region with an approximate share of 22%. Countries like China and Japan are at the top. This area makes up around 25% of the total. Europe is also one of the top regions, with countries like the United Kingdom, Germany, and Italy showing progress. This is due to a rise in tourists, regional specialties, exclusive dining establishments, the expansion of internet shopping, and flavor advances.

COVID-19 Impact Analysis on the Global Hard Tea Market:

The outbreak of the virus hurt the market. Lockdowns, movement restrictions, and social isolation were the new norm. This caused disruptions in the supply chain, transportation, and logistics. Import-export trade had an impact due to this. Most of the companies, restaurants, and manufacturing units were closed. Losses were common as people were unable to go out and have a social life. Furthermore, due to uncertainty, there were tight financial budgets. People lost their jobs. There were very few launches and investments in this market. Most of the investments were shifted towards healthcare applications. Besides, people realized the importance of having good health. Many of them started to rely on home-cooked meals. According to a report by Fresh Cup Magazine, global tea exports were valued at $8.1 billion in 2017, but in 2021, sales fell to $7.3 billion, a 9.4% decrease from that year. Post-pandemic, the market has started to pick up because of e-commerce as well as the upliftment of guidelines and protocols.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heavily to improve existing creations while maintaining competitive pricing. This has further resulted in increased enlargement.

Over the past five years, there has been a lot of awareness about the concept of sustainability. To keep up with this, organizations in this market have been emphasizing sustainable packaging techniques. This includes the use of organic and recyclable materials. Additionally, ethical sourcing culture is being prioritized.

Key Players:

• Twisted Tea (Boston Beer Company)
• Mike’s Hard Tea
• Briggs True
• White Claw Hard Tea
• Artie’s Hard Tea
• Sincere Tea
• Bon & Viv Spiked Seltzer
• Teavana
• Wild Leaf
• AriZona Beverages

In September 2023, Molson Coors Beverage Company introduced Peace Hard Tea. There are three flavors of the drink available. Coca-Cola and Molson Coors collaborated to create Peace Hard Tea. This brand of flavored tea has no artificial coloring and is naturally flavored. The beverage, which has 5% alcohol by volume, is meant for people who are at least 21.

In May 2023, Twisted Tea Hard Iced Tea, the top-selling hard iced tea in the country, is ensuring that America Parties with Tea with the unexpected launch of Twisted Tea Rocket Pop, a new limited-edition flavor. This limited-edition Twisted Tea mixes the powerful, iconic flavors of Rocket Pop—lemon-lime, cherry, and blue raspberry—with the smooth and delectable taste of America's favorite hard iced tea, creating a smooth and delicious taste.

In April 2023, in response to growing customer demand for hard teas, Lipton, a British tea brand distributed in 150 countries worldwide, introduced its first hard tea. The beverage has no carbonation and a 5% ABV. It has a triple-filtered malt base, natural fruit flavors, and actual Lipton tea. Lipton Hard Iced Tea is smooth, cool, and incredibly tasty, with four flavors to choose from.