Tea Beer Market

Tea Beer Market Outlook (2022-2032)

It is exactly as it sounds- Beer infused with tea. Probably the greatest combination for those who are tea-sippers and love beer too. Tea beer is a recent concept and making an appearance at many fancy food events. Some craft brewer brands are opting to manufacture these blends by integrating various tea flavors with beer.

The beer industry has seen steady growth in recent years. According to the Brewers Association, craft beer production increased by 4% in 2019, with a total of 13.7 million barrels produced. The overall beer market also saw growth, with total beer sales increasing by 1.2% in 2019.

What do consumer insights say about the product?

Brewers are enhancing their preferred beverage with beneficial ingredients, and media attention to beer is at an all-time high. Articles touting the health advantages of beer are rising in popularity. Another reason for the growth in this market is the high possibility for small manufacturers to craft tea beer.

Some countries have beer as an integral part of their culture, beer consumption is deeply rooted in American culture making it raise the sales and market share to make the USA the second largest country in the world in terms of beer production. Moreover, Tea production is also anticipated to grow globally with a CAGR of 4.22% in 2023.

The average volume per person in the tea segment is expected to amount to 0.92 kg in this year i.e. 2023. These facts signify both Tea and Beer appeal to consumer tastes and preferences making them the most popular drinks. The infusion of both into a blend seems interesting to many consumers.

The changing consumption patterns are also reasons to consider the choice of tea beer. It is also anticipated that by 2025, about 5% of volume and 52% of spending of the tea segment will attribute to out-of-home consumption i.e. in bars and restaurants. This projects a high possibility for a good response from brewers who launch tea beer in the forecast period.

Manufacturers have started adding other ingredients, such as tea, coffee, and chocolate, to their beers in recent years. The expansion of the market is being driven by the increased consumption of infused beer, particularly among millennials. Millennials are more likely to favor infused beer and to be open to trying new things.

Additionally, the market for tea beer increases globally because of the adult population's rising tea consumption. In addition, increased beer consumption–particularly in Europe during the summer–boosts the market. To increase their client base, manufacturers are also introducing new goods by brewing beer with various kinds of tea.

What makes it healthy?

Beer with lower alcohol content is chosen by people out of health consciousness. When beer is infused with tea it reduced the alcohol content significantly which makes it more appealing to health-conscious people. Tea infusion can still provide benefits as that traditional herbal tea options.

These include- antioxidants and lowers blood pressure. Additionally, the lower calories make this drink more attractive. Consumers looking for more flavors without compromising on their taste will likely get this product.

Tea beer is not necessarily healthy, as it still contains alcohol. However, some tea beers are made with natural ingredients and contain fewer calories than traditional beers. Additionally, some tea beers are made with herbal teas that may provide some health benefits, such as antioxidants.

Regional Insights

Demand is gaining popularity in North America, due to an increase in the consumption of beer and the rising inclination of consumers toward tea and beer. Also, various mergers and acquisitions by manufacturers in this region are driving the growth of tea infused beer market.

Asia Pacific is one of the largest consumers of beers globally. More specialized tea-infused versions of beer are also increasingly available in China and Japan, they are specialized in providing beer infused with famous green tea.

The trend of consumption of beer in summer in Europe is gaining popularity over the past few years, especially in the UK. The increased popularity of tea beer and the rising development in the economy in the Latin America region has brought an immense opportunity for the market to grow.

Manufacturers strategies

Beverages are typically high-margin offerings that further can assist brands to maintain high differences. Hence companies also need to keep eye on the competition offerings and pricing strategies. Consumers are moving away from conventional drink options like sugary carbonates due to their heavy sweet profiles they are switching towards a little bit lighter and yet healthier drink options. Manufacturers working on the quality of beverages will likely gain major attention from consumers as consumers are not merely looking for distinct flavors.

Some of the key market participants in the global Tea Beer Market are :

• Wild Ohio Brewing Company
• TWISTED TEA COMPANY
• STONE BREWING
• Breakside Brewery
• LAKEFRONT BREWERY, INC.
• MARZ COMMUNITY BREWING CO.
• THREE TAVERNS CRAFT BREWERY
• Dangerous Man Brewing Co.
• Dogfish Head Craft Brewery Inc.
• I & I BREWING
• Other Prominent Players

Recent developments :

• Twisted tea company has launched hard ice tea which should taste like real ice tea. Since the foundation of the firm, it’s been crafting hard ice tea with not only real tastes but also an incredibly smooth and refreshing mouth feel.
• Wild Ohio brand has launched various tea flavors such as peach wild tea, black cherry bourbon, and Blueberry to enhance its product portfolio. With 6.5% ABV, these drinks make them popular among customers.

Tea Beer Market : Segmentations

• By Tea Type :

  • Green Tea
  • Black Tea
  • Earl Grey Tea
  • Chamomile Tea
  • White Tea
  • Others

• By Distribution Channels :

  • Speciality Store
  • Supermarkets
  • Online
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Middle East and Africa (MEA)
  • East Asia
  • South Asia
  • Oceania