Hard seltzer is a type of alcoholic beverage made with sparkling water, alcohol and flavors. It has less sugar and calories than beer and wine and is becoming increasingly popular among health-conscious drinkers. The major ingredients used in hard seltzer are carbonated water, alcohol and natural flavors. Flavored varieties include fruit flavors like lime, strawberry, lemon and raspberry. Hard seltzer is gluten-free, low in calories and carbs with no artificial preservatives which is attracting the millennial population.
The global hard seltzer market is estimated to be valued at US$ 7.65 Bn in 2023 and is expected to exhibit a CAGR of 14.9%over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing popularity of hard seltzer among millennial population due to its low calorie, gluten-free and natural ingredient profile is expected to drive the market growth over the forecast period. According to a survey, around 60% of millennials consume hard seltzer. Also, 42% of millennials claimed they would drink hard seltzer weekly in 2022. Furthermore, rising number of new product launches in various flavors by the key manufacturers is also fueling the market growth. For instance, in 2022, White Claw launched new flavors like Aloha Beaches and Sunrise Skies to cater to changing consumer preferences.
Segment Analysis
The hard seltzer market can be segmented based on ABV content, packaging, flavor, and distribution channel. The below 5% ABV content segment dominates the market as these products are considered healthier options compared to beers and other alcoholic beverages. This segment enjoys higher consumer demand.
PEST Analysis
Political: The market is governed by regulations related to alcohol content, sales, and marketing. Changes in political leadership and priorities can impact market dynamics.
Economic: Factors such as per capita income, demographics, and spending power influence consumer demand. High disposable incomes spur premiumization.
Social: Health and wellness trends drive popularity of low-calorie options. Social media influences purchase decisions through brand promotions.
Technological: Packaging innovations for aesthetics, portability and sustainability help engage consumers. Emergence of e-commerce boosted accessibility.
Key Takeaways
The Global Hard Seltzer Market Growth is expected to witness high. The global hard seltzer market is estimated to be valued at US$ 7.65 Bn in 2023 and is expected to exhibit a CAGR of 14.9%over the forecast period 2024 to 2031.
North American region currently dominating the market due to early adoption. The USA holds over 85% market share due to availability of variety across off-premise and on-premise distribution channels. Growth in Latin America and Europe is expected to rise notably in the forecast period driven by increasing awareness.
Key players operating in the hard seltzer market are Hindalco Industries Ltd.; Arconic Corp.; Norsk Hydro ASA; Constellium N.V.; Kaiser Aluminum; Alupco; Gulf Extrusions Co. LLC; Balexo Bahrain Aluminium Extrusion Company; QALEX. Key players are investing in innovative product formulations and marketing strategies to gain market share. Packaging and flavor extensions are strengthening their portfolio. Acquisitions are complementing their geographic expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
