July 15, 2024
Hard Seltzer Market

Accelerated hard seltzer consumption to bolster growth of the global Hard Seltzer Market

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 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hard seltzer is a low-alcohol beverage made from fermented fruit infusion or natural flavoring, carbonated water, and usually containing around 5% alcohol by volume. It has gained immense popularity among consumers, especially millennials and Generation Z, owing to its low-calorie and low-sugar content compared to beer. The hard seltzer market has observed significant growth over the recent past owing to growing health consciousness among consumers and surging demand for low-alcohol beverages. The booming craft brewery industry and innovative product launches by major market players are further fueling the market growth.

Market key trends:

One of the major trends witnessed in the global Hard Seltzer Market Growth is the rising demand for variety in products and flavors. Manufacturers are innovating and introducing new flavors such as mango, grapefruit, lemon-lime, black cherry to attract new customers and expand their product portfolio. Furthermore, the expanding distribution network across online and offline retail channels is making hard seltzers more accessible to consumers globally. Growing awareness regarding the health benefits of zero-sugar and gluten-free hard seltzers is also augmenting the market growth. Increasing consumption among millennial and female drinkers along with marketing campaigns by brands is further expected to propel the market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the hard seltzer market due to high initial investment required for manufacturing and packaging facilities. It also requires establishing brand recognition in a market dominated by top players.

Bargaining power of buyers: The bargaining power of buyers is high as the hard seltzer market offers variety of product options at different price points provided by domestic as well as global brands. Buyers can easily switch to alternatives based on price and flavor.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials for hard seltzer production such as alcohol, sparkling water and flavors are commoditized and available from numerous suppliers globally.

Threat of new substitutes: The threat of new substitutes is high due to presence of numerous alternative alcoholic beverages. Products such as beer, wine coolers, premixed cocktails provide competition.

Competitive rivalry: The competitive rivalry is high due to presence of numerous global and domestic brands offering differentiated products and aggressively competing on pricing and promotions.

Key Takeaways

The global hard seltzer market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing health consciousness and popularity among millennial and generation Z consumers. The market size for 2023 is US$ 6.64 Bn.

Regionally, North America dominates the global hard seltzer market holding around 80% share owing to increasing product awareness and social trends in countries like United States. The region exhibits double digit growth prospects over forecast period led by United States. Europe is expected to be the second largest and fastest growing market for hard seltzer assisted by burgeoning low and no-alcohol beverage culture in countries like United Kingdom and Germany.

Key players operating in the hard seltzer market are 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. White Claw dominates the global market, while competitors actively participate in innovations around flavors, packaging and marketing to garner greater market share

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it