by The global hard seltzer market is estimated to be valued at US$5.88 billion in 2022 and is expected to exhibit a CAGR of 13% over the forecast period of 2023-2030, according to a new report published by Coherent Market Insights.
Market Overview:
Hard seltzer is an alcoholic beverage that has gained significant popularity in recent years. It is made by combining carbonated water, alcohol, and flavorings. The key advantage of hard seltzers is that they are low in calories and carbohydrates, making them a healthier alternative to traditional alcoholic beverages. The growing consumer preference for low-alcohol and low-calorie options is driving the demand for hard seltzers in the market. Moreover, the rise in health-conscious consumers and the increasing trend of mindful drinking are further fueling the market growth.
Market Key Trends:
One key trend in the hard seltzer market is the introduction of new flavors and variants. Manufacturers are constantly innovating and launching new flavors to cater to the changing consumer preferences and to stay ahead in the competitive market. Flavors like tropical fruits, citrus, berries, and herbs are gaining popularity among consumers. These new flavors not only enhance the taste of the beverage but also appeal to a wider consumer base. The introduction of new flavors and variants is expected to drive the market growth and create opportunities for the market players.
Porter’s Analysis
Threat of New Entrants: The hard seltzer market has a moderate threat of new entrants. While there are low barriers to entry and the market is growing rapidly, there are already established players with strong brand recognition. However, the increasing popularity of hard seltzers may attract new entrants looking to capitalize on this trend.
Bargaining Power of Buyers: The bargaining power of buyers in the hard seltzer market is relatively high. With a wide range of choices available, buyers have the ability to switch between brands easily. Additionally, the low switching costs and lack of brand loyalty among consumers further increase their bargaining power.
Bargaining Power of Suppliers: The bargaining power of suppliers in the hard seltzer market is moderate. While there are a limited number of suppliers for key ingredients such as malt and flavorings, there are still multiple options available. If suppliers increase their prices, manufacturers can switch to alternative suppliers without much difficulty.
Threat of New Substitutes: The threat of new substitutes in the hard seltzer market is low. Hard seltzers occupy a unique position as a low-calorie, low-alcohol alternative to traditional alcoholic beverages. While other alcoholic beverages exist, such as beer, wine, and spirits, none of them offer the same combination of attributes that hard seltzers provide.
Competitive Rivalry: The competitive rivalry in the hard seltzer market is intense. With the rapid growth of the market, numerous players have entered the industry to capture a share of the market. Key players are constantly innovating and expanding their product offerings to differentiate themselves from competitors.
Key Takeaways
The global hard seltzer market is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period (2023-2030). This growth can be attributed to the increasing popularity of low-calorie alcoholic beverages, as well as the growing consumer preference for healthier and lighter drinking options. Furthermore, the entry of major alcoholic beverage companies into the hard seltzer market is expected to drive market growth.
In terms of regional analysis, North America is projected to be the fastest-growing and dominating region in the hard seltzer market. This can be attributed to the strong presence of key players in the region, as well as the high consumer demand for convenient and refreshing alcoholic beverages. The increasing popularity of hard seltzers among younger demographics, including millennials and Gen Z, is also contributing to the market growth in this region.
Key players operating in the hard seltzer market include Barefoot, Bon V!V Spiked Seltzer, Bud Light, Ficks Beverage Co, Future Proof Brands LLC, Hard Seltzer Beverage Company LLC, Kona, Lift Bridge Brewing Co, Nude Beverages, and White Claw. These players have established strong brand recognition and are constantly introducing new flavors and variants to cater to evolving consumer preferences. Additionally, strategic partnerships, mergers, and acquisitions are common strategies employed by key players to strengthen their market position.
Overall, the hard seltzer market is poised for significant growth in the coming years, driven by increasing consumer demand for low-calorie alcoholic beverages and the entry of major players into the market. Key players are expected to invest in product innovation and marketing initiatives to differentiate themselves in this competitive market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
