Hard Tea Market Size, Share & Trends Analysis Report By Flavour (Lemon, Mango, Blueberry, Orange, Blackberry, Peach, Raspberry, Huckleberry, Others), By ABV (More than 5.1%, 2%-5%), By Distribution Channel (Hypermarket/ Supermarket, Convenience Store, Online Store, Others), By Packaging (Bottles, Cans) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global hard tea market size was valued at USD 2.81 billion in 2023. It is expected to reach USD 20.34 billion in 2032, growing at a CAGR of 24.6% over the forecast period (2024-32). With increasing health consciousness, many consumers are looking for alcoholic beverages perceived as healthier alternatives to traditional options like beer and cocktails. Hard tea, often marketed with natural ingredients and lower calorie content, appeals to health-conscious consumers who still want to enjoy an alcoholic drink without compromising their wellness goals.

Hard tea is a product that falls under the flavoured malt beverages (FMB) category and is made by combining tea with alcohol. It's vital to define malt beverages in general to understand flavoured malt beverages. A fermented drink called a malt beverage is one in which the principal ingredient is the grain of the barley plant, which is malted before it is processed. Malt beverages are often darker in colour than other types of drinks. According to the Federal Alcohol Administration Act, a malt beverage produced in the United States must start with a base comprised of at least 25 per cent malt and must include a minimum of 7.5 pounds of hops for every 100 barrels of the final product. The two malt beverages consumed the most frequently are beer and FMB.

A flavoured malt beverage, also known as FMB, is an alcoholic beverage that starts with a base that contains malt but is subsequently flavoured after the malt flavour is removed. These drinks are also called flavoured alcoholic drinks, "alcopops," "malternatives," and many other names in everyday use. And hard tea falls under the category of flavoured malt beverage. Hard tea consumption has skyrocketed in recent years due to the sweetness and mild euphoria it offers. Also, hard tea provides some health benefits, which affect the growth in some locations. It leads to the expansion of the industry.

Market Dynamics

Global hard tea market drivers

• The expansion is being fuelled by traction in demand for alcohol-infused products.

One of the liquids that are consumed the most frequently globally is alcohol. Consumers' attitudes toward alcohol consumption are changing positively because of the flavour and advantages it provides. The increased consumption of alcoholic beverages has led to the development of novel product offerings founded on alcohol. These alcohol-infused products, such as hard tea, are quickly gaining traction in the market due to growing consumer interest.

Both low alcohol hard tea and high alcohol hard tea are available from the manufacturers of hard tea. These two varieties are available to consumers. The hard tea that has been infused with beer has a low alcohol content, while the hard tea that has been infused with whiskey or rum has a higher alcohol content. These two varieties are supplied to consumers according to their tastes and preferences.

• Health benefits and various flavours are increasing the market growth.

The numerous flavours provided by the manufacturers have contributed to the profitable expansion that the industry of hard tea has been experiencing. A large variety of flavours are available for hard tea, some of which are lemon, mango, blueberry, orange, blackberry, peach, raspberry, huckleberry, and so on. The flavours are provided by the most popular demand from customers in the area.

A growing number of people are becoming aware that drinking alcohol in moderation has positive effects on their health, which has increased demand. It is associated with a reduced chance of developing cardiovascular disease, diabetes, and stroke, among other health benefits. The popularity of hard tea has grown due to these benefits, resulting in a global expansion of the hard tea market.

Because of the increasing demand, manufacturers have been forced to come up with creative new tastes for hard tea by combining various fruits with alcohol. In addition, a number of the producers are concentrating their efforts on producing goods that carry various claims, such as "non-GMO," "no added preservatives," and so on. Because this is such an innovative offering, the manufacturers are placing a strong emphasis on partnerships and alliances to provide customers with products of the highest possible quality and expand their product offerings in line with current market trends.

Regional Analysis

According to the region, the global hard tea market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. North America dominates the market.

North America accounted for the majority of the global market share in 2021. The presence of market participants in the area is what drives the demand for hard teas in the area. In the course of the pandemic in the area, numerous new hard tea brands have appeared. Local producers sell alcoholic beverages with low alcohol content. Sales of hard tea are expected to increase in the area due to the persistent trend toward decreased consumption.

Revenue growth is predicted to be faster in Europe during the projection period. The increased usage of low-ABV alcoholic beverages and increased consumer awareness of alcohol are factors fuelling the demand for hard teas in the area. Local and important regional enterprises are offering low-ABV versions of the beer, kombucha, and wine. The epidemic has also led to an increase in the demand for botanical flavours in alcoholic beverages. Lemon and orange-flavoured beverages are the most popular choices among consumers.

Sales of hard tea have increased dramatically in the area due to growing awareness of the health dangers linked to vital alcohol intake. According to the Society of Independent Brewers, the number of 18-24-year-olds who don't drink is expected to rise from 6% in 2020 to 23% in 2025. (SIBA). Furthermore, according to BMC Health, 46 per cent of British consumers under 35 prefer mocktails to cocktails.

Segmental Analysis

The global hard tea market is segmented into five parts based on flavour, ABV, distribution channel, packaging and region. Further, based on flavour, the market is segmented into Lemon, Mango, Blueberry, Orange, Blackberry, Peach, Raspberry, Huckleberry and Others. Regarding market share, lemon-flavoured products account for most of the sales. Increased awareness of the health benefits of foods and beverages high in antioxidants boosts the demand for lemon-flavoured hard teas. Due to the epidemic, holistic health has risen to the top priority list for many customers. Consumers prefer citrus flavours because they go well with health-conscious alcoholic beverages.

Citrus-flavoured alcoholic beverages, on the other hand, provide a refreshing beverage that is popular with a wide range of consumers. Increased interest in cocktails like the margarita, mojito, and other ready-to-drink concoctions is fuelling the growth of the lemonade industry. Other teas like white, green, and oolong are also experimented with in lemonade.

Based on ABV, the market is bifurcated into More than 5.1% and 2%-5%. Due to consumer desire for low-alcohol beverages, the 2% - 5% ABV segment commanded the bulk of the market. Beverages with less than 5% ABV are becoming more popular as the number of health-conscious consumers grows. Millennials consume the most low-alcohol drinks than any other generation because they have a more holistic perspective on drinking than previous generations. Customers in the market are concerned about the clean labelling, carbs, and sugar content of alcoholic drinks. The readily available teas are boosting sales of hard teas with ABVs of 4% to 5% from Costco, Walmart, and Tesco.

The market is divided into Hypermarkets/Supermarkets, Convenience stores, Online stores and Others. In 2021, the supermarket/hypermarket channel sector held the most significant market share, while the online segment is predicted to increase at the fastest rate over the forecast period.

Liquor sales are rising as people's attitudes toward alcohol shift due to health concerns. A wide range of canned cocktails, ales, and other hard drinks on a different shelves in supermarkets makes shopping simpler for customers. Through internet storefronts and smartphone apps, booze has become more accessible to those affected by the pandemic.

Regulations and imbalanced delivery networks, on the other hand, present an opportunity for neighbourhood supermarkets and brick-and-mortar retailers. To sell alcoholic beverages, supermarkets and hypermarkets must have a liquor licence. Additionally, the increased frequency of alcoholic beverage sales has increased the demand for supermarkets. It is common for retailers to use marketing campaigns to promote newer items and services.

Based on packaging, the market is bifurcated into Bottles and Cans.

Recent Developments

• May 2024 - Spirit of Gallo announced that they are introducing its new product, High Noon Vodka Iced Tea, which is crafted with real vodka, real iced tea, and no added sugar. High Noon's new non-carbonated, gluten-free hard teas are now available nationwide. They come in four popular summer flavors: Original, Peach, Lemon, and Raspberry. Each has 90 calories, 4.5% ABV, and an MSRP of USD 19.99 for eight packs of 355mml cans.
• January 2024 - Monster Beverage Corp. announced that they are expanding its portfolio of alcoholic beverages with the release of Nasty Beast Hard Tea, a beverage with 6% alcohol by volume. According to the company, the Nasty Beast product will initially debut in a 12-oz variety.