Global Hard Seltzer Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Hard Seltzer Market is expected to record a CAGR of 20.1% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 21.3 billion. By 2032, the valuation is anticipated to reach USD 61.7 billion.

The Hard Seltzer Market refers to the segment of the alcoholic beverage industry dedicated to the production and sale of flavoured alcoholic carbonated drinks, often packaged in cans. Its nature is characterized by a focus on healthier alternatives to traditional alcoholic beverages, featuring low-calorie and low-sugar content.

Recent trends include an array of innovative Flavors, sustainable production practices, expanding regional markets, and heightened emphasis on health-conscious consumer choices. These evolving dynamics reflect growing consumer demand for refreshing, convenient, and more health-conscious alcoholic options.

Hard Seltzer Market – Significant Growth Factors

The Hard Seltzer Market presents significant growth opportunities due to several factors:

• Health and Wellness Trends: The increasing emphasis on health-conscious consumer choices has driven the demand for low-calorie and low-sugar alcoholic beverages, positioning hard seltzers as a healthier alternative. Consumers are actively seeking options that align with their dietary and wellness goals.

• Flavour Innovation: Continuous introduction of innovative and diverse Flavors attracts a broader consumer base, keeping the market dynamic and appealing to changing taste preferences. Flavour experimentation allows brands to stay ahead of the competition by offering exciting and unique taste experiences.

• Competitive Landscape: Competition among established alcoholic beverage companies has intensified, with many launching their own hard seltzer brands, resulting in increased market growth and product variety. The competition fosters innovation, leading to the creation of new brands and Flavors to meet evolving consumer demands.

• E-commerce and Direct-to-Consumer Sales: The growth of e-commerce channels and direct-to-consumer sales has provided brands with new avenues to reach consumers, especially during the COVID-19 pandemic, boosting market accessibility and sales. Brands can now engage directly with their customer base, build brand loyalty, and gather valuable data for targeted marketing efforts.

• International Expansion: The hard seltzer market has significant growth potential in international markets where it is not yet well-established. Companies can explore opportunities to expand their reach globally, tapping into the growing demand for refreshing alcoholic alternatives in regions beyond their current markets.

• Sustainability Initiatives: Embracing sustainable production practices and eco-friendly packaging can not only reduce environmental impact but also appeal to environmentally conscious consumers, creating a competitive edge and enhancing brand image. Brands that prioritize sustainability can differentiate themselves and contribute to a greener future, aligning with the values of a growing segment of the consumer base.

Hard Seltzer Market – Mergers and Acquisitions

The Hard Seltzer Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Hard Seltzer Market include:

• Coca-Cola and Molson Coors: In 2022, Coca-Cola partnered with Molson Coors to enter the hard seltzer market with their brand Vizzy, combining Coca-Cola’s brand recognition and Molson Coors’ brewing expertise. Molson Coors expands exclusive agreement with the Coca-Cola Company to launch a topo chico spirited line of canned cocktails.

• Boston Beer Company and Beam Suntory: In 2021, Boston Beer Company, the maker of Truly Hard Seltzer, partnered with Beam Suntory to create unique, ready-to-drink (RTD) alcoholic beverages by blending spirits and hard seltzer. Beam Suntory and The Boston Beer Company have formed a long-term, strategic partnership to extend select iconic brands into some of the fastest-growing beverage alcohol segments.

• PepsiCo and Boston Beer Company: In 2021, The Boston Beer Company partnered with PepsiCo for the US launch of the new “HARD MTN DEW” alcoholic offering. PepsiCo entered the hard seltzer market through a partnership with Boston Beer Company, focusing on producing alcoholic beverages using PepsiCo’s branding and distribution channels.

• Molson Coors and Atwater Brewery: In 2020, Molson Coors acquired Atwater Brewery to expand its portfolio, potentially including hard seltzer offerings under the Atwater brand.

• Anheuser-Busch InBev and Cutwater Spirits: In 2019, Anheuser-Busch InBev acquired Cutwater Spirits, known for its canned cocktails, including hard seltzers, to diversify its product range.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Hard Seltzer Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Hard Seltzer Market – Significant Threats

The Hard Seltzer Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Saturation and Competition: The market is becoming increasingly saturated with numerous brands and Flavors, leading to intensified competition. This can make it challenging for new entrants to gain a foothold and for existing brands to maintain market share.

• Regulatory Changes: Changes in regulations, especially regarding alcohol content, labelling, and marketing restrictions, can pose a significant threat. Stricter regulations or taxes on alcoholic beverages could impact production and sales within the industry.

• Health and Wellness Scepticism: Despite being marketed as a healthier alternative; some consumers may become sceptical of the health claims associated with hard seltzers. Negative perceptions or concerns about ingredients and additives could dampen demand.

• Supply Chain Disruptions: Disruptions in the supply chain, such as shortages of key ingredients or packaging materials, can affect production and distribution, leading to product shortages and higher costs.

• Evolving Consumer Preferences: Shifts in consumer preferences can pose a threat, as trends and tastes may change. If hard seltzers fall out of Favor or if consumers seek other alcoholic alternatives, it could impact the market’s growth and profitability.

Report Scope

Category-Wise Insights

By ABV Content:

• 1.0% to 4.9% ABV (Alcohol by Volume): This segment of the Hard Seltzer market features beverages with a mild alcohol content. These low-ABV seltzers appeal to consumers seeking a light and refreshing alternative to traditional alcoholic drinks. Recent trends show a growing interest in natural flavors and low-calorie options within this category, reflecting the demand for healthier drinking choices.

• 5.0% to 6.9% ABV (Alcohol by Volume): This sector represents a moderately stronger segment within the Hard Seltzer market. Consumers in this category seek a more substantial alcoholic kick while still enjoying the refreshing and fruity characteristics of seltzer. Trend-wise, there’s a rise in premium offerings, craft-style seltzers, and unique flavor combinations to cater to discerning palates.

• Others: The “Others” category encompasses a diverse range of Hard Seltzer products with ABV levels outside the previous two categories. This segment is characterized by experimentation and innovation, with some seltzers boasting higher alcohol content or unique ingredients. Recent trends in this category include the emergence of botanical-infused seltzers, exotic fruit blends, and collaborations with breweries and distilleries, expanding the market’s boundaries.

By Packaging Type

• Glass Bottles: Glass bottles are a traditional packaging type known for their recyclability and preservation of product quality. In the Hard Seltzer market, glass bottles have gained popularity as a premium packaging choice, reflecting a growing consumer demand for eco-friendly options. Brands are utilizing unique bottle shapes and labelling to differentiate themselves and enhance their aesthetic appeal, targeting a more discerning consumer base.

• Metal Cans: Metal cans have become synonymous with convenience and portability in the Hard Seltzer market. They offer superior shelf-life preservation, are lightweight, and easily recyclable. A significant trend is the proliferation of slim, sleek cans and vibrant, eye-catching designs that cater to on-the-go consumers seeking variety and freshness in their beverage choices.

By Distribution Channel

• Off-Trade: Off-trade refers to the distribution channel where alcoholic beverages like hard seltzers are sold for consumption off-premises, such as in retail stores or through e-commerce. In the hard seltzer market, off-trade sales have seen significant growth due to the convenience of purchasing and increased online sales. Consumers prefer diverse flavor options and low-calorie choices.

• On-Trade: On-trade pertains to the distribution channel where alcoholic beverages, including hard seltzers, are consumed on-premises, such as bars, restaurants, and clubs. In the hard seltzer market, on-trade sales have also surged, driven by the demand for premium offerings and unique flavor profiles. It’s a trend linked to the rise of experiential drinking and social settings.

By Flavor

• Classic or Unflavored: Classic or unflavored hard seltzers are the original, pure essence of the hard seltzer trend. These beverages contain no added flavors or sweeteners, offering a crisp and clean taste. In the hard seltzer market, they cater to consumers seeking a simple and refreshing alternative to traditional alcoholic drinks. While flavored options dominate the market, classic hard seltzers maintain a loyal following among those who appreciate their simplicity and versatility.

• Flavored: Flavored hard seltzers have surged in popularity in the beverage industry. They come in a wide array of fruit, botanical, and exotic flavors, catering to diverse consumer preferences. In the hard seltzer market, flavored options dominate, reflecting the demand for unique and exciting taste experiences. Popular flavors include citrus, berry, and tropical variations, often marketed as low-calorie and low-sugar alternatives, aligning with health-conscious and flavor-seeking consumers.

Hard Seltzer Market – Regional Analysis

The Hard Seltzer Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, the hard seltzer market continues to experience exponential growth, with consumers gravitating towards healthier beverage choices. An increasing emphasis on health and wellness among consumers is fuelling the desire for hard seltzers that are low in calories, sugar, and gluten, aligning with evolving dietary preferences. Furthermore, the market is witnessing a surge in alcoholic seltzer varieties with higher alcohol content, appealing to consumers looking for a stronger flavour.

• Europe: In Europe, the hard seltzer market is catching up with the North American trend, albeit with distinct preferences. Consumers here are embracing hard seltzers as a sophisticated and lower-alcohol alternative, aligning with European drinking culture. Unique botanical and floral Flavors are gaining popularity, reflecting a penchant for subtler tastes. The market also sees growth in alcohol-free or low-alcohol seltzers, appealing to a broader audience, including those seeking non-alcoholic alternatives during social occasions.

• Asia-Pacific: Asia-Pacific is witnessing a burgeoning interest in hard seltzers, primarily driven by urbanization and a growing health-conscious population. This region showcases a penchant for exotic and tropical fruit Flavors, reflecting the vibrant and diverse culinary landscape. Innovative packaging and branding strategies are vital in this market, capturing the attention of younger consumers who are seeking trendy, Instagram-worthy beverages. As consumers here become more adventurous, expect to see unique regional twists on traditional hard seltzer flavors.

• LAMEA (Latin America, Middle East, and Africa): LAMEA is an emerging market for hard seltzers, with exciting potential. In Latin America, hard seltzers infused with local fruits like guava, passionfruit, and mango are gaining traction. Consumers appreciate the refreshing nature of these beverages in hot climates. In the Middle East, there’s a growing demand for halal-certified and non-alcoholic seltzer alternatives, cater to diverse cultural preferences. Africa, too, is seeing a rise in hard seltzers, with flavors inspired by indigenous ingredients and natural botanicals, tapping into the region’s rich biodiversity. Collaborations with local breweries and producers are also on the rise, fostering authenticity in the market.

Competitive Landscape – Hard Seltzer Market

The Hard Seltzer Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• White Claw Hard Seltzer (Mark Anthony Brands)
• Truly Hard Seltzer (The Boston Beer Company)
• BON V!V (The Boston Beer Company)
• Smirnoff Seltzer (Diageo)
• Topo Chico Hard Seltzer (The Coca-Cola Company)
• Bud Light Seltzer (Anheuser-Busch InBev)
• Corona Hard Seltzer (Constellation Brands)
• High Noon Sun Sips (E & J Gallo Winery)
• Vizzy Hard Seltzer (Molson Coors)
• AHA Sparkling Water (The Coca-Cola Company)
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the hard seltzer market are leveraging innovation to gain a foothold. Many craft and microbreweries are embracing the trend by experimenting with unique flavors and craft production techniques. These newcomers often emphasize local sourcing and sustainability, catering to niche and environmentally conscious consumers.

Key players dominating the market include established beverage giants like White Claw, Truly, and Bud Light Seltzer, who have harnessed their extensive distribution networks and marketing prowess to maintain market leadership. These brands invest heavily in advertising, sponsorships, and product diversification to retain consumer loyalty and expand their market share, making it challenging for newcomers to compete on a large scale.

The Hard Seltzer Market is segmented as follows:

By ABV Content

• 0% to 4.9%
• 0% to 6.9%
• Others

By Packaging

• Glass Bottle
• Metal Cans

By Flavour

• Classic or Unflavoured
• Flavoured

By Distribution Channel

• Off-Trade
• On-Trade

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America