by Hard seltzer refers to clear, flavored, and carbonated alcoholic beverages with relatively low alcohol content. It is made from sparkling water combined with alcohol derived from fermented cane sugar or malted barley. Various fruit flavors are added to hard seltzer to give it a refreshing taste. It has minimal sugar and carbohydrate content and is considered a healthy alternative to beer and sugary cocktails. The global hard seltzer market is witnessing tremendous growth owing to the rising popularity of low-calorie and low-carb alcoholic drinks among health-conscious consumers. Additionally, hard seltzer provides a lighter drinking experience as compared to beer or liquor, making it suitable for social gatherings and outdoor recreational activities. The growing preference for natural and plant-based ingredients is also driving the demand for hard seltzer made with cane sugar or natural fruit flavors.
The global hard seltzer Market is estimated to be valued at US$ 6.64 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The increasing health consciousness among consumers and growing preference for low-calorie alcoholic beverages are major factors fueling the growth of the global hard seltzer market. Hard seltzer contains fewer calories and carbohydrates as compared to beer and sugary cocktails, making it a suitable beverage choice for health-conscious individuals. Additionally, the promotion of hard seltzer products through social media marketing and celebrity endorsements has pumped more awareness about the category among millennials and Gen Z consumers. Furthermore, the introduction of various fruit flavors in hard seltzer has augmented its appeal as a refreshing summer drink. Manufacturers are also innovating packaging formats such as aluminum cans and bottle cartons to attract outdoor recreational activities. The combination of great taste, low sugar, and natural extracts will continue driving the demand for hard seltzer over the forecast period.
Segment Analysis
The global hard seltzer market can be segmented into flavor, ABV content, and distribution channel. The flavored hard seltzer segment dominates the market accounting for over 85% share. This is mainly because flavored seltzers appeal more to the younger demographic. In terms of ABV content, the under 5% ABV segment has the largest market share as lower alcohol beverages are preferred by health-conscious consumers. Supermarkets/hypermarkets account for the largest share in the distribution channel segment for hard seltzers sales owing to the availability of a wide range of products and offers/discounts.
PEST Analysis
Political: The regulations surrounding the alcohol industry influence the hard seltzer market growth. For instance, restrictions on alcohol advertisements targeting underage consumers.
Economic: Rise in disposable incomes and change in consumer preference towards healthy beverage options drive the market. The economic stability positively impacts the socialization and spending abilities.
Social: Increasing health awareness and trend of social gathering/events encourage choosing hard seltzers over beers/liquors. They are perceived as low-calorie alternative for occasions like picnic/parties etc.
Technological: Advancements in seltzer making and flavor infusion allows producing new variants. Manufacturers employ digital marketing strategies to spread brand awareness via social media.
Key Takeaways
The global Hard Seltzer Market Size is expected to witness high growth driven by the rising health consciousness, product popularity among millennials and Gen Z, and premiumization trend.
Regional analysis: North America is expected to maintain its lead position in the global hard seltzer market during the forecast period. This is attributed to the wide availability and acceptance of hard seltzers as a lifestyle drink among consumers in the US and Canada. The market in Europe is anticipated to witness high growth owing to rising health-consciousness and increasing experimental attitude of young demography towards innovative beverages.
Key players: Key players operating in the hard seltzer market are Life Extension, Pure Encapsulations, Nutricost, BulkSupplements.com, Swanson Health Products, Douglas Laboratories, Thorne Research, NOW Foods, Seeking Health, Jarrow Formulas, Source Naturals, Vital Nutrients, Integrative Therapeutics, BioMatrix, Designs for Health. White Claw leads the US market for hard seltzer with over 50% category share followed by Truly and Bon & Viv. These key players focus on new flavor introductions and marketing campaigns to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
