Hard Seltzer Market

Global Hard Seltzer Market Size (2024 to 2029)

As per our analysis report, the global hard seltzer market is expected to reach USD 54.96 billion by 2029 from USD 30.23 billion in 2024, growing at a compound annual growth rate (CAGR) of 12.7 % during the forecast timeline.

MARKET DRIVERS

The increasing rate of alcohol consumption and the upward trend of soft drinks among young people are other factors driving the demand for soft drinks in the global hard seltzer market.

 Rapid urbanization, changes in lifestyles, high disposable incomes, increasing rates of alcohol consumption, and the growing tendency to sell energetically among young people are factors driving the demand for energetic vendors in the hard seltzer market. With the increasing popularity of alcoholic beverages among millennials and younger generations, the global market for hard mineral water has increased consumer preference for scented alcoholic beverages. Along with the introduction of new fermentation processes by various companies, the development of new ingredients combining new innovative flavors of cake, sugar, flavorings, and fruit is an important factor in the expansion of the global hard seltzer water market. Younger crowds and millennials have increased the appeal of carbonated, light aromatic drinks.

The growth of the tourism and travel industries increased online sales of alcoholic beverages, and coffee shops and bars are further boosting the hard seltzer market growth worldwide.

The impact of rapid urbanization, Western culture, changes in consumer perceptions of alcohol consumption, and changes in consumer preferences in developing countries is supposed to increase, leading to the growth of the global hard seltzer market. The growing demand for gluten-free and low-alcohol beverages in developed countries, including the United States, Australia, and Korea, has created great opportunities for the hard seltzer business. Manufacturers have carried out marketing campaigns for wider dissemination. The main reason for the increased adoption of hard seltzer is the reduced calorie and carbohydrate content compared to beer and other mixed drinks.

Younger generations and millennials have increased their appeal for flavored soft drinks, which is contributing to the expansion of the hard seltzer market.

In addition, more and more manufacturers have entered the hard seltzer market, making a wide range of products available. The trend of alcohol consumption among youth and millennials, driven by changing consumer choices, increasing disposable income, and the influence of consumer peers, are the main factors expected to drive demand for the global hard seltzer market. Sales and demand for low-alcohol beverages have increased significantly. The reason is that light carbonated beverages are offered with improved taste and a wide range of options for health-conscious consumers, driving the growth of the global hard seltzer market. The potential of developing countries is estimated to create profitable opportunities for market participants in the future. The development of new innovative and fruity flavors and the launch of new ingredients, together with the introduction of new fermentation processes by various companies, are the main factors that are expected to enhance the growth of the global hard seltzer market growth.

MARKET RESTRAINTS

Health-sensitive, low-calorie, carbonated, and carbonated soft drinks are gaining attention in the consumer segment unexplored by the alcoholic beverage industry. Due to strict government regulations on the use of water resources, waste management companies suffer losses that hamper the growth of the global hard seltzer market demand. In addition, higher taxes and excise duties, import and export policies, and taxes on local manufacturers limit the expansion of the global hard seltzer business. Additionally, the hard seltzer meets the demand for new flavors, the demand for different cocktail combinations, and ease of use thanks to sustainable, Instagram-friendly cans. Due to these factors, companies are trying to profit from a fast-growing trend.

Impact of COVID-19 on the Hand Seltzer Market

The rising coronavirus outbreak adversely affected the hard shelter market by accidentally stopping assembly operations at critical assembly centers, leading to significant log jams at creation. Several manufacturers have disrupted manufacturing processes and postponed product launches and other investment activities in developing countries. Most producers have ceased product launch and assembly activities in developing countries in regions such as Asia Pacific and LAMEA. Even six months after the outbreak of the pandemic, many countries are taking comprehensive containment measures to prevent the spread of the coronavirus, making it difficult for difficult-selling manufacturers to expand their business in undeveloped areas. Hard Seltzer is a potential market that has yet to be developed and as an unexplored market in the spirits industry, it is likely to present dynamic and profitable business opportunities to new entrants. Many countries are implementing lockdowns to control the spread of the coronavirus, which is the biggest challenge for hard-selling manufacturers and distributors to expand their business in undeveloped areas.

REPORT COVERAGE

SEGMENTAL ANALYSIS          

Global Hard Seltzer Market Analysis By ABV Content

More than 5% segment accounted for the dominant share in the global hard seltzer market in 2019 and is estimated to maintain its share during the forecast period. This is mainly due to the increased movement of consumers of alcoholic beverages such as spirits, beer and wine to hard warehouses with ABV of 5% or more. Additionally, hard seltzer with an ABV of 5% is primarily considered the standard percentage of ingredients produced by the manufacturer.

Global Hard Seltzer Market Analysis By Packaging

In the packaging segment, the metal cans held the largest share in 2019, accounting for more than half of the global hard seltzer market due to its light weight, waterproofing and high flexibility properties that are ideal for beverage packaging. Light carbonates. However, the glass bottle segment is expected to exhibit the highest CAGR of 13.6% during the outlook period due to benefits such as maintaining brightness and freshness of flavor, attractiveness of display, and sustainability.

Global Hard Seltzer Market Analysis By Distribution Channel

High levels of service, privacy, and community engagement are estimated to lead to the highest CAGR of 13.6% during the study period as the number of consumers drinking seltzers in bars and restaurants increases. However, the non-commerce segment had the largest share in 2019, contributing to more than two-thirds of the global hard seltzer market due to growth, urbanization, and urban sprawl of the retail industry.

REGIONAL ANALYSIS              

North America dominated the global hard seltzer market in 2019 and is foreseen to maintain its lead over the outlook period. A key factor driving the growth of the carbonated water market in the region is the growing consumer preference for calories, low alcohol content, and gluten-free beverages. Asia-Pacific is estimated to become a developing market for the global hard seltzer market and is likely to record the highest CAGR due to higher consumer demand and increased urbanization in the region. Asia-Pacific is the fastest-growing market for strong sellers and is supposed to have the fastest CAGR of 17.0% from 2020 to 2025. The industry will witness strong potential with growing demand from developed countries, including South Korea and Australia. As a result, companies are launching new products to attract buyers. The European region is foreseen to witness a significant increase in the global hard seltzer market during the conjecture period. Latin America has seen stable growth in its market share from strong sellers. The Middle East and Africa regions showed improved growth in the hard seltzer market.

KEY PLAYERS IN THE GLOBAL HARD SELTZER MARKET

Major Key Players in the global hand seltzer market are White Claw, Truly, Future Proof Brands LLC, Lift Bridge Brewing Co, Barefoot Cellars, Ficks & Co, Bon & Viv, Kona Brewing Co, Nude, and Bud Light Seltzer.

RECENT HAPPENINGS IN THE MARKET

• In May 2020, Australian brand Fellr launched two flavors of alcohol seltzer made locally in Australia: Lime & Soda and Dry & Lime.
• In June 2020, Smirnoff Seltzer entered the UK through various external channels. This product is available in two flavors in the United States: Smirnoff Seltzer Orange and Grapefruit, Smirnoff Seltzer Raspberry, and Rhubarb.
• In June 2020, Tesco announced the launch of a dedicated hard selfie. Distributed by Mark Anthony Brands. This launch marks a major milestone for the UK category, which is becoming a hotspot for top-selling manufacturers.
• In November 2019, AB InBev launched Mike's Hard Sparkling Water in the UK; the growing demand for products in this country is due to the growing demand for healthy low, calorie, and sugar products with still luxurious and clean labels.

DETAILED SEGMENTATION OF GLOBAL HARD SELTZER MARKET INCLUDED IN THIS REPORT   

This research report on the global hard seltzer market has been segmented and sub-segmented based on ABV content, packaging, distribution channel, & region.

By ABV Content

• Less Than 5%
• More Than 5%

By Packaging

• Glass Bottles
• Metal Cans
• Plastic Bottles

By Distribution Channel

• Off-trade
• On-trade

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa