Hard seltzer market

The global hard seltzer market size was valued at US$ 5.88 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 13% from 2023 to 2030. The growing preference for flavored beverages among millennials, rising demand for alcoholic beverages with lower alcohol content, increasing product penetration in the on-trade channel, and increasing product advertisement on social media platforms are driving the growth of the hard seltzer market. Additionally, the rising demand for gluten free beverages due to health-conscious consumers and individuals with allergies or celiac disease is further fueling the growth of this market.

Global Hard Seltzer Market: Regional Insights

Based on geography, the global hard seltzer market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

In the global hard seltzer market, North America is expected to be a dominant region over the forecast period. This is mainly due to the presence of prominent brands and high consumer awareness. Moreover, key manufacturers are focusing on marketing campaigns and promoting their products through retail stores and bars.

Asia Pacific is expected to witness fastest growth in the global hard seltzer market over the forecast period owing to the increasing disposable incomes and rising urbanization. In addition, a growing travel industry is driving demand for hard seltzers in these regions. The regional market is also characterized by a growing number of small and medium-sized producers. As a result, the competition in the market is intense.

Figure 1. Global Hard Seltzer Market by Region, 2022

Global Hard Seltzer Market Drivers:

Growing population of millennials and younger generations to augment market growth

The hard seltzer market is expected to continue growing as more and more millennials and younger generations adopt healthy lifestyle habits. With their focus on wellness, this generation is more interested in products that are organic, sustainable, and offer a natural halo. Moreover, brands are creating seasonal releases to appeal to this new audience of discerning drinkers, and these limited-edition products have been a big hit.

Advent of new product with innovative packaging to propel market growth

The emergence of newer products with innovative packaging and designs is a significant factor boosting the market. This is especially true in the United States, where brands are introducing hard seltzers with unique bottle shapes and designs. Additionally, the use of high-quality ingredients in the production of hard seltzers is a key factor in enhancing their taste and flavor profile.

Global Hard Seltzer Market Opportunities:

Key players are focusing on expanding their customer reach by adopting various growth strategies. This factor is expected to offer significant growth opportunities. For instance, in November 2022, Casatera, maker of zero sugar tequila seltzers made for health-conscious consumers, has announced its expansion into multiple new markets, including Florida, Massachusetts, New Hampshire and Connecticut. Casatera has expanded to almost 500 liquor stores, restaurants, bars and hotels, including select Total Wine and More, Omni Hotels & Resorts, Marriott Hotels and Serafina Restaurants.

Growing demand for beverages that are free from chemicals and preservatives is expected to serve major growth opportunities. Consumers are looking for beverages that are free from chemicals and preservatives. Hence, manufacturers are focused on introducing new alcoholic beverages with no preservatives and high nutritional value.

Global Hard Seltzer Market Trends:

Growing trend of keto and vegan diet

This market is growing at a rapid pace as a result of the increased demand for alcoholic beverages with low calorie count and higher nutritional value. It is also driven by the rising health consciousness of consumers, who are opting for a healthy lifestyle that is rich in vitamins and minerals. The growing popularity of dietary trends such as keto and vegan diet is further boosting the market growth of hard seltzer.

Launch of new product with different flavors

In order to capitalize on the growing demand for beverages with different flavors, companies are expanding their product portfolios and experimenting with different flavors.  For example, in May 2022, Truly created a limited-edition Truly Poolside Variety Pack that features summer cocktail flavors and vibrant can designs. The company is also promoting its brand by featuring it in various social media posts and events.

Global Hard Seltzer Market Restraints:

Health concern associated with hard seltzer to hinder market growth

While alcoholic drinks like wine and beer may have some health benefits, they also contain ethanol, which is a toxic substance. Moreover, alcohol can lead to dehydration and contribute to weight gain. Another drawback of hard seltzer is that while it is lower in calories than beer, most dietitians would not call it healthy. The reason is that it's still a beverage with added sugars and alcohol, so it is important to drink in moderation.

Easy availability of substitute products to restrict the market growth

Beer, wine, and sprits are some of the products that are considered to be substitute for the hard seltzer. Wine and beer have already gained wide popularity among the millennial population and it becomes critically hard for the hard seltzer to gain traction among these beverages.   

Figure 2. Global Hard Seltzer Market by Packaging, 2022

Global Hard Seltzer Market Segmentation:

The global hard seltzer market report is segmented into ABV content, packaging, distribution channel, and region

Based on ABV content, the market is segmented into ABV Less Than 5% and ABV More Than 5%. Out of which, ABV Less Than 5% is expected to dominate the global market over the forecast period and this is attributed to the growing number of health conscious consumers worldwide as ABV less than 5% are mostly consume by people looking for healthy drinks.

ABV More Than 5% segment is also expected to witness significant growth in the near future and this is owing to the growing preference of the millennial population toward flavored alcohol drinks with less alcohol content

Based on packaging, the market is segmented into Metal Cans, Glass Bottles, and Plastic Bottles. Out of which, Metal Cans is expected to dominate the global market over the forecast period as it offer sustainable and environment-friendly solution packaging of food and beverages. Also, it is very cost-effective raw materials used in packaging of beverages and can be customized with colors, embossing, and 3D printing. 

Glass Bottles segment is also expected to witness significant growth in the near future and this is owing to the fact that they are widely used to store wide range of alcoholic bevearges.

Based on distribution channel, the market is segmented into Off-trade and On-trade. Out of which, the off-trade segment holds a significant share of the market, mainly because of the presence of hypermarkets, supermarkets, convenience stores, mini-markets, and wine shops.

On-trade segment is growing at a fast rate, mainly due to the increased consumption of hard seltzer in bars and clubs.

Global Hard Seltzer Market: Key Developments

In January 2020, Barefoot launched popular hard seltzer category with Barefoot Hard Seltzer made with real wine. The brand began selling Barefoot Hard Seltzer nationwide in February 2020.

In September 2019, BeatBox Beverages announced the formation of Future Proof, a next-generation beverage portfolio company. It also launched its newest brand, Brizzy a hard seltzer beverage brand.

In April 2019, Craft Brew Alliance is launched its product line of low alcohol, low calorie seltzers. The new beverage is the latest innovation to come from CBA’s pH Experiment which is focused on creating, incubating and accelerating new products and experiences that put drinkers’ needs first.

Global Hard Seltzer Market: Key Companies Insights

The global hard seltzer market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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

*Definition: Hard seltzers are carbonated light aromatic drinks that contain a small amount of alcohol (1% to 4.7%). 

Detailed Segmentation:

• Global Hard Seltzer Market, By ABV Content
  • ABV Less Than 5%
  • ABV More Than 5%
• Global Hard Seltzer Market, By Packaging
  • Metal Cans
  • Glass Bottles
  • Plastic Bottles
• Global Hard Seltzer Market, By Distribution Channel
  • Off-trade
  • On-trade
• Global Hard Seltzer Market, By Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa