Global Hard Seltzer Market - 2023-2030

Overview:

Global Hard Seltzer Market reached US$ 7.1 billion in 2022 and is expected to reach US$ 18.2 billion by 2030, growing with a CAGR of 12.5% during the forecast period 2023-2030.

Rising popularity of hard seltzers is fueling a surge in demand for low-alcohol beverages among millennials and the younger generation. In addition, the increased demand for non-alcoholic beverages has been influenced by consumers' propensity to cut back on alcohol consumption and explore the idea of being "sober-curious."

In addition, hard seltzer has fewer calories than beer and less alcohol than beer, with an ABV of between 1% and 8%. The majority of varieties have around 100 calories. As a result, moderate drinkers favor hard seltzer in place of beer. Over the forecast period, it is anticipated that these characteristics will increase the product's sales all over the world.

Products in the market have been available from numerous manufacturers. For instance, the hard seltzers from Mass Bay Brewing Co. have 100 calories and 3 grammes of carbohydrates. High demand has been seen in North America, particularly from young consumers. North America held highest market revenue share of about 46.2% in the year 2022

Dynamics:

Growing Consumer Preference for Gluten-Free and Low-Calorie Alcoholic Beverages

The increased consumer preference for alcoholic beverages that are gluten-free and has low in calories has led to a significant increase in the global hard seltzer market. Consumers who care about their health are increasingly looking for products that support their wellness objectives without sacrificing flavour or enjoyment.

When compared to more traditional alcoholic beverages such as beer or cocktails, hard seltzers-which are typically made with carbonated water, alcohol, and natural flavors-present an alluring proposition because they are frequently thought of as being lighter and less calorically dense. In addition, by catering to people with gluten sensitivities or those who follow gluten-free diets, hard seltzers' appeal to a wider audience is increased by the use of gluten-free ingredients.

Rising Trend of Health and Wellness

The current consumer trend towards health and wellness is expected to contribute for the expansion of the hard seltzer market globally. The demand for beverages that support people's healthy lifestyle decisions is rising as people prioritise their health and wellbeing. Because they are frequently promoted as a healthier alternative to traditional alcoholic beverages, hard seltzers have become more and more popular.

In addition, some hard seltzers have natural additives like fruit extracts that give them a refreshing flavour and a little nutritional value. Hard seltzers have become more popular among consumers who want to enjoy alcoholic beverages without compromising their commitment to personal wellness as a result of the positive association between them and healthier lifestyle options.

Escalating Demand for Diverse and Refreshing Flavors Due to Inflating Consumer Per Capita Income

The appeal of a wide range of reviving flavours has fueled the growth of the global hard seltzer market. The importance of providing a wide variety of flavour options to accommodate varying consumer tastes and preferences has been acknowledged by manufacturers. While the market has developed to include more exotic and creative options, such as tropical fruits, herbs, and botanical infusions, traditional fruit flavours like lemon, lime, and berry are still widely used.

The availability of these intriguing flavour combinations has aroused consumer interest and raised consumption. Consumers' sense of discovery and novelty has been cultivated by the ongoing product innovation and flavour experimentation in the hard seltzer market, which has sustained interest in these beverages across a range of demographics.

The Visibility and Acceptance of Hard Seltzers Have Increased as a Result of the Influence of Social Media and Celebrity Endorsements

Brands of hard seltzer have successfully created and promoted their products using social media sites like Instagram, Twitter, and TikTok. Such channels offer a visually appealing way to highlight the refreshing and low-calorie qualities of the product. By creating visually appealing hard seltzer packaging to increase user engagement and working with influencers and customers, brands have actively capitalised on this social media buzz. According to research by Bank of America, there were six times as many Instagram discussions about hard seltzer in January 2020 as there were in January 2019. Consumers can now share their personal experiences with hard seltzers on social media platforms.

Genuine endorsements and recommendations can be found in user-generated content, such as photos and reviews. People may be more likely to try these drinks if they observe their friends enjoying them. Brands of hard seltzer can gain credibility and star power from celebrity endorsements. The promotion of these drinks by well-known celebrities can draw in a larger audience and garner media attention. In addition, celebrities frequently include hard seltzers in their social media posts as discreet product placements during normal activities or events. The product may seem more appealing and accessible as a result of this exposure.

Lack of Nutritional Value

Hard seltzers' lack of significant nutritional value can be seen as a potential market restraint because it may reduce their appeal to some consumers and raise questions about their potential effects on their health. Hard seltzers frequently contain few calories and carbohydrates, making them appealing to people trying to control their weight or carb intake. However, since they don't provide necessary nutrients, some consumers might consider these beverages to be "empty calories" sources. Some people prioritise nutrient-rich beverages due to dietary preferences or restrictions. For instance, people who adhere to certain diets (such as veganism or gluten-free eating) may favour alcoholic beverages with particular nutritional profiles that suit their dietary preferences.

High Price of Hard Seltzers

Younger consumers and those with lower disposable incomes are more likely to be price sensitive, and if they think hard seltzers are too expensive, they might opt for more reasonably priced alcoholic options instead. As it may restrict the affordability and accessibility of hard seltzers for some consumers, the high cost of hard seltzer can be a restraint on the market for this product. The market for alcoholic beverages is extremely competitive, and consumers have access to a wide variety of options. Hard seltzers' market share and growth potential may be impacted if they are significantly more expensive than other comparable alcoholic products. Thus, high prices might prevent hard seltzers from being adopted more widely by limiting the market to a more specialised or upscale segment of consumers.

Segment Analysis:

The global hard seltzer market is segmented based on ABV content, packaging, flavor, distribution channel and region.

Convenience and Portability Offered by Metal Cans

In 2022, the market was dominated by the metal cans category. The high share can be attributed to the portability and convenience they provide, making them a great packaging choice for drinks that are ready to drink, like hard seltzers. Cans fit in well with consumers' active and mobile lifestyles because they are lightweight, portable, and convenient for on-the-go consumption. Metal cans offer superior product integrity and defence against airborne contaminants like light and oxygen that can impair the quality and flavour of the beverage.

Metal cans help preserve the freshness and prevent spoilage of hard seltzers, which frequently have delicate flavours and carbonation. Metal cans also give beverage companies the chance to create visually appealing packaging that draws customers' attention on store shelves or in online marketplaces due to their ample space for branding and attractive designs.

Geographical Penetration:

High Demand From Young Consumers in North America

High demand has been seen in the region, particularly from young consumers. Leading manufacturers are using creative methods to promote their products. For instance, in June 2019, the well-known Mark Anthony Brands brand White Claw from Vancouver saw a significant increase in sales due to its active social media presence, which included YouTube videos and internet memes.

In order to capture spontaneous, momentary content inspired by the feeling White Claw evokes, Mark Anthony Brands' White Claw brand launched its first global marketing campaign in April 2021 in partnership with a diverse group of creators from the U.S. and other countries. Strong consumer demand and a wide variety of market players are expected to propel the U.S. market to a notable CAGR during the forecast period.

COVID-19 Impact Analysis

People who place a high priority on wellness and are looking for alcoholic beverages that fit in with their healthier lifestyle choices make up this target market. Due to a greater emphasis on health and wellbeing, the COVID-19 pandemic has had a significant impact on alcoholic beverage consumption, with consumers switching from high to low alcohol content preferences. Thus, hard seltzer sales on e-commerce platforms significantly increased.

In February and March 2020, alcohol delivery services like Drizly and Minibar experienced a sharp increase in orders, with total order costs more than 20% higher than average. Hard seltzers appeal to consumers who are mindful of their dietary choices and looking for refreshing alternatives to traditional alcoholic beverages due to their low calorie and low sugar profiles.

Russia-Ukraine War Impact Analysis

Russia-Ukraine uncertainty in the world economy brought on by war have affected consumer spending habits. The conflict affected consumer confidence and their willingness to spend on discretionary items, including alcoholic beverages like hard seltzers. The conflict between Russia and Ukraine disrupted supply chains for many different industries, have an impact on the manufacturing and distribution of hard seltzers.

Disruptions in the supply chain result in delays, shortages, and higher production costs, may have an impact on the availability and cost of the products. Governments adopted new regulations or changed existing ones in response to geopolitical events. These modifications to the import/export laws, labelling requirements, and marketing strategies for alcoholic beverages could have an effect on the market for hard seltzer.

By ABV Content

• 1.0% to 4.9%
• 5.0% to 6.9%
• Others

By Packaging

• Glass Bottles
• Metal Cans

By Flavor

• Unflavored
• Flavored

By Distribution Channel

• On-Trade
• Off-Trade

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On April 18, 2023, In Hyderabad, India, Spyk Hard Seltzer has been introduced. This 100% natural fruit-flavored beverage has a respectable 5.5 percent alcohol content, low calories, and low carbs. Spyk is freshly brewed, as opposed to other seltzers that use carbonated cocktail mixes, giving it a crisp, refreshing taste that is light and guilt-free. Spyk has introduced four delectable variants, each costing INR 210 for 330 ML and INR 240 for 500 ML. The flavours include lime, orange, mixed berry, and original.
• On February 22, 2023, With the release of "Grizly" Hard Seltzer Ale, Indian craft beer brand Bira 91 entered the hard seltzer market. The launch followed the release of "Hill Station" Hard Cider Ale and is a part of the brand's goal to branch out beyond beers in order to meet the changing tastes of young consumers.
• On July 10, 2023, With the introduction of the Truly Zero Gravity Bar, Boston Beer Company's Truly Hard Seltzer raised the bar for the seltzer season. Truly flavours will be enjoyed by drinkers as they sip, float, and flip at 32,000 feet in a similar zero gravity environment to that experienced by astronauts.

Competitive Landscape

The major global players in the market include: Carlsberg Group, Mark Anthony Brands International, Anheuser-Busch InBev, Diageo plc, The Coca-Cola Company, Heineken N.V., The Boston Beer Company, Constellation Brands, Inc., Molson Coors Beverage Company Kopparberg, San Juan Seltzer, Inc.

Why Purchase the Report?

• To visualize the global hard seltzer market segmentation based on ABV content, packaging, flavor, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hard seltzer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global hard seltzer market report would provide approximately 61 tables, 58 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies