Market Insights

The Hard Seltzer market was valued at USD 4510.89 Million in 2020, and it is expected to reach a value of USD 14580.3 Million by 2027, at a CAGR of 16.20% over the forecast period (2020 - 2027).

Hard seltzer is a flavored carbonated alcoholic beverage that contains low calories and carbohydrates in comparison to other alcoholic beverages. Rising demand for low alcohol content, low calories, and gluten-free beverages is driving the growth of the market. Additionally, increased disposable income and overall spending on alcoholic beverages are contributing to market growth in the given forecast period (2020-2027).

Hard Seltzer has gained enormous popularity due to effective social media marketing that has sold hard seltzers as a “healthier” alcohol choice. Hard seltzer's growth is also due to numerous manufacturers entering the market and offering a large variety of products. For instance, in May 2020 Kopparberg, a Swedish manufacturer launched a range of hard seltzer drinks in the U.K.

Segmental Analysis

The Global Hard Seltzer market is segmented based on Distribution channel, Packaging, Raw materials used, Alcohol Volume (ABV), and Region. Based on Distribution channel it is categorized into: On- trade, Off-trade. Based on Packaging it is categorized into: Bottles, Cans. Based on Raw materials used it is categorized into: Fruity flavors, Alcohol, Sparkling water, Carbonated water, Others. Based on Alcohol Volume (ABV) it is categorized into: ABV more than 5.0%, ABV less than 5.0%. Based on region it is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Alcohol Volume (ABV)

The global market has been divided into three sections based on ABV content: more than 5.0% and less than 5.0%. The more than 5.0% ABV content segment held the largest market share of more than 51.5% in 2021 and is predicted to continue its dominance throughout the projection period (2020-2027). The concept of moderation is a burgeoning trend, particularly in the United States, which is fueling the growth of this market. Many businesses in the alcohol sector have been increasing their product line of low-alcohol beverages. However, the 1.0 percent to 4.9 percent ABV content group is expected to grow at the fastest rate, with a CAGR of 23.9 percent from 2022 to 2030.

Analysis by Distribution Channel

The global market has been subdivided into off-trade and on-trade distribution channels. Off-trade was the largest distribution channel segment, accounting for approximately 70% of total sales in 2021. All retail outlets, including hypermarkets, supermarkets, convenience stores, micro-markets, and wine and spirit shops, are included in this segment. These stores are preferred by customers because they provide substantial discounts and special deals. Furthermore, in order to reach as many customers as possible, the majority of brands launch their products through large supermarket chains like Walmart, Target, and others.

Regional Insights

North America dominated the Hard seltzer market by contributing over 70% in 2019. Multiple product launches and the entry of new players are attributed to the rising growth in the region. For instance, in May 2020, California-based Sudwerk Brewing Co. launched a product named “Life Is Hard Seltzer”. A variety of flavors are available for this product including grapefruit flavors, passionfruit, and black cherry. Additionally, the Asia Pacific region is witnessing rapid growth and is expected to witness the fastest CAGR of 17.0% from 2020 to 2027 due to the rising demand for hard seltzer in South Korea and Australia.

Market Dynamics

Driver: -

• Increased demand for low-calorie, low-alcohol, and low-carbohydrate beverages is expected to raise demand for hard seltzer in developed countries such as the United States, Japan, and Australia.  Furthermore, gluten-free beverages are gaining popularity among health-conscious consumers, as people with celiac disease or allergies discover the benefits of a gluten-free beverage, and gluten-free hard seltzer beverage has proven to be beneficial for people suffering from inflammatory diseases and autoimmune disorders.

Restrain: -

• When consumers consume a food or drink that they believe is "healthier," they frequently drink to excess. While socializing with a drink or two is acceptable, excessive consumption causes many people to binge drink. This occurs when a woman consumes four or more alcoholic beverages in a two- to three-hour period, whereas a male consumes five or more. It raises the danger of bad health consequences, accidents, and injuries, not to mention the risk of lethal alcohol poisoning. These factors can slightly affect the demand and may create an obstacle in the growth of the Hard Seltzer in the market.

Competitive Landscape

The market is consolidated in nature with the presence of a few major companies dominating the market. The key players are implementing various strategies, such as new product launches, technological innovation, and mergers and acquisitions, to diversify the product offering and expand their geographical presence.

Top Players Company Profiles

• Anheuser-Busch InBev (Belgium)

• Barefoot Cellars (US)

• Blue Marble (UK)

• White Claw (US)

• Boathouse Beverage Co. (US)

• Future Proof Brands LLC (US)

• Cutwater Spirits (US)

• Ficks & Co. (US)

• High Noon Spirits Company (US)

• Lift Bridge Brewing Co. (US)

Recent Developments: -

• In March 2022, Truly announced the release of its first-ever flavored vodka in collaboration with seasoned alcohol producer Beam Suntory. The bottles will be landing on liquor shelves nationwide in three flavors—Strawberry Lemonade, Wild Berry, and Pineapple Mango.

• In January 2022, Coca-Cola is partnering with Constellation Brands, the brewer of Corona and other beers in the U.S., to launch ready-to-drink cocktails through its Fresca brand.

• In April 2021, White Claw, from Mark Anthony Brands, launched its first global marketing campaign in collaboration with a diverse group of creators from across the United States and around the world to capture unscripted, momentary content inspired by the feeling White Claw evokes.

Key Market Trends

• The increasing popularity of flavored alcoholic beverages among Millennials is the key trend in the hard seltzer market which is expected to boost the market over the forecast period. The high demand for hard seltzers is due to their easy availability in hypermarkets, supermarkets, convenience stores, and wine shops and they are also affordable. Online channels are also rapidly offering alcoholic drinks including hard seltzers to increase their revenue. For instance, In May 2020, Taffer’s Mixologist partnered with an e-commerce platform, Thirstie, which provides DTC sales for alcohol brands, in order to allow the customers to buy hard seltzer through online platforms.

• With its thriving social media presence and pop culture buzz, the hard seltzer category has seen tremendous growth. Brands can be seen trying to grab a piece of the social media engagement by designing Instagram-worthy hard seltzer packaging and partnering with influencers and consumers. According to Bank of America research, there were six times as many conversations about hard seltzer on Instagram in January 2020 as there were in January 2019.

SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research has identified that Alcohol, Sparkling water are two of the major raw material in primary end-user industries for Hard Seltzer market throughout the forecast period in the Food & Beverages industries.