May 24, 2024
Hard Seltzer Market

The Hard Seltzer Market Is Driven By Increasing Popularity Of Low-Alcohol Beverage Options

Hard seltzer is a type of flavored, fermented alcoholic drink made with water, sugar and natural flavors. Hard seltzer drinks contain around 4-6% alcohol by volume and provide an alternative to beer and malt-based drinks for health conscious consumers. The growing desire for low sugar and low calorie drinks with fewer carbohydrates has boosted the popularity of hard seltzer products. These drinks are gluten free and per packaged drink contain around 100 calories, making them preferred choices for active lifestyle individuals. The wide array of fruity and innovative flavors in hard seltzers such as lemon, lime, black cherry and mango also appeals to younger consumers.

The global Hard Seltzer Market is estimated to be valued at US$ 7.65 Bn in 2024 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 key trends:

Variety of innovative flavors and packaging is witnessing increasing popularity among consumers. Hard seltzer manufacturers are focusing on developing new flavors inspired by desserts, tropics and even savory items in order to appeal to more customer segments. For example, hard seltzers flavors include candy popcorn, root beer float and Thai iced tea. Furthermore, hard seltzers are available in slimmer 12 ounce aluminum cans instead of cluttered 12 pack carton boxes. The can packaging provides portability and convenience of consumption allowing consumers to enjoy these products at outdoor events and music festivals.

Porter’s Analysis

Threat of new entrants: The global hard seltzer market is expected to witness high growth in the forecast period due to increasing health consciousness among consumers. New players may find it difficult to enter this market and gain traction due to established brands and requirement of significant investments.

Bargaining power of buyers: Buyers have moderate bargaining power in the global hard seltzer market. The presence of several established brands provides buyers with alternatives.

Bargaining power of suppliers: A few large companies dominate the supply side of hard seltzers providing suppliers with less bargaining power. Suppliers depend on few brands for major part of their revenue.

Threat of new substitutes: Low as hard seltzers provide a unique combination of taste and alcohol which is difficult to be replicated by other substitutes. There are no direct substitutes for hard seltzers.

Competitive rivalry: Intense as major brands competing for market share. Innovation, product quality, effective marketing are key to sustain in this competitive market.

Key Takeaways

The Global Hard Seltzer Market Demand is expected to witness high growth. The global Hard Seltzer Market is estimated to be valued at US$ 7.65 Bn in 2024 and is expected to exhibit a CAGR of 14.9%over the forecast period 2024 to 2031.

North America currently dominates the market due to rising health awareness. Europe and Asia Pacific are expected to emerge as high potential markets going forward. The U.S. is the primary driver of growth in the region. Europe is witnessing rapid expansion led by the U.K. and Germany. Asia Pacific is expected to be the fastest growing regional market with wide acceptance in countries like China and India.

Key players: Key players operating in the hard seltzer market include White Claw, Truly, Bon & Viv, Bud Light Seltzer, Nauti Seltzer. These brands are focusing on product innovations and expansion into international markets. Coors Seltzer by Molson Coors and Lemonade Hard Seltzer by Anheuser Busch entered the market recently.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it