by The global hard seltzer market is experiencing significant growth owing to rising health consciousness among millennials and Gen Z consumers. Hard seltzers are usually made from a base of seltzer water, alcohol, and sometimes flavoured with natural fruits and herbs. Due to low alcohol content and fewer calories than beer, hard seltzer appeals to health-conscious consumers. Major hard seltzer brands are introducing innovative flavors and packaging formats to attract new customers.
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 8.0% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Global Hard Seltzer Market Share are Hindalco Industries Ltd., Arconic Corp., Norsk Hydro ASA, Constellium N.V., Kaiser Aluminum, Alupco, Gulf Extrusions Co. LLC, Balexo Bahrain Aluminium Extrusion Company, and QALEX.
The key growing demand in the market is driven by rising health awareness among millennials and Gen Z and increasing social media marketing by major brands. Millennials prefer hard seltzers as they contain fewer calories and carbohydrates than beers or ciders.
Technological advancements are leading to innovations in flavor profiles and package formats. Companies are introducing new flavors inspired by popular cuisines and tropical fruits. Some brands offer variety packs consisting of multiple favorite flavors. New packaging like aluminum cans appeals to an active on-the-go lifestyle.
Market Trends
Canned hard seltzers are gaining immense popularity over bottles due to portability and convenience of cans. Major brands have transitioned their portfolio mainly to cans which assist visibility on shelves and suit outdoor consumption occasions. Another trend is the increasing popularity of gluten-free and organic hard seltzers driven by health-conscious consumers.
Market Opportunities
The growing demand for low-calorie and zero-sugar alcoholic beverages presents significant opportunities for hard seltzer producers. Companies can leverage the trend by introducing innovative flavor profiles inspired by global cuisines and no/low-sugar options. The growing popularity of the hard seltzer category outside the United States also opens lucrative international growth opportunities.
Impact of COVID-19 on Hard Seltzer Market Growth
The Covid-19 pandemic significantly impacted the global hard seltzer market. The lockdowns imposed across various countries led to closure of on-trade channels like bars, pubs and restaurants which are major sales points for hard seltzers. This adversely affected the market revenues in 2020. However, off-trade channels like supermarket, hypermarkets and online retailers witnessed growth in sales as people stocked up beverages for home consumption during lockdowns. The health consciousness among consumers also increased demand for low calorie and low ABV options like hard seltzers.
The market is expected to bounce back strongly in post-COVID times. With vaccination drives underway globally, on-trade channels are gradually resuming operations. This will further aid the market revenues. Manufacturers are launching variety of flavors and innovative packaging formats to attract new consumers. Existing brands are expanding distribution networks and boosting marketing initiatives both offline and online. The growth trajectory of 8% CAGR during the forecast period indicates hard seltzer category is poised to become one of the fastest growing segments in the alcohol industry in coming years. Future strategies need to focus on product differentiation, strengthening supply chains and leveraging digital technologies to engage younger consumer base.
In terms of geography, North America dominates the global hard seltzer market in terms of value contribution. The US alone accounts for over 80% share led by huge popularity of the category among Millennials and Gen Z consumers. Western Europe is the second largest region driven by UK, Germany and Spain. However, Asia Pacific region is expected to be the fastest growing market during the forecast period. Countries like China, India and Southeast Asian nations are likely to offer immense untapped opportunities for hard seltzer brands owing to changes in consumer preferences towards health conscious options.
The hard seltzer market is concentrated in terms of value in North America and Western Europe regions currently. Asia Pacific, led by India and China, has potential to emerge as the fastest growing geographical region in the coming years considering increasing exposure of Western cultural influences and evolving tastes of young population towards low ABV beverages with natural ingredients in these countries. Ongoing urbanization and improving purchasing power also augur well for hard seltzer market growth in Asia Pacific region post Covid era.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn
