Hard Seltzer Market By Distribution Channel (Off-Trade, On-Trade), Packaging (Cans, Bottles), Raw Materials (Sparkling Water, Alcohol, Fruit Tastes), & Region for 2024-2031

Hard Seltzer Market Valuation – 2024-2031

The growing demand for hard seltzer can be ascribed to consumers evolving tastes for healthier beverage options. As people become more aware of the importance of health and well-being, they are looking for low-calorie and sugar-free alternatives to typical alcoholic beverages. Hard seltzers which typically have fewer than 100 calories and no added sugars meet this desire, particularly among younger generations like Millennials and Generation Z who value careful drinking by enabling the market to surpass a revenue of USD 11.54 Billion in 2024 and reach a valuation of around USD 80.84 Billion by 2031.

Hard seltzer’s adaptability makes them ideal for gatherings, parties, and outdoor activities. Hard seltzers are ideal for warm weather situations with their refreshing taste and frequently fruity flavors that complement summer festivities. The market is seeing an increase in product offers with many firms creating seasonal or limited-edition varieties enticing consumers to try new things by enabling the market to grow at a CAGR of 30.39% from 2024 to 2031. 

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Hard Seltzer Market: Definition/ Overview

Hard seltzer is a sort of alcoholic beverage that has become extremely popular in recent years, particularly among younger consumers. It is made up of carbonated water and alcohol which are frequently flavored with natural or artificial fruit essences. The alcohol in hard seltzer is often derived from fermented cane sugar or malted grains, giving it a clear, crisp flavor.

Hard seltzer, a carbonated beverage infused with alcohol and flavors has grown in popularity in recent years as a healthier alternative to typical alcoholic beverages. Hard seltzer is mostly used as a refreshing beverage choice at social gatherings and events. Its light and crisp texture makes it an excellent choice for outdoor events, barbecues, and gatherings when customers desire low-calorie options without compromising flavor.

The future of hard seltzer seems hopeful, thanks to changing customer preferences and an increasing emphasis on health-conscious lives. As the beverage industry moves toward lower-calorie, lower-alcohol choices, hard seltzer has emerged as a viable alternative to traditional alcoholic beverages. Its appeal stems from its purported health benefits which include fewer calories, no added sugars, and gluten-free alternatives.

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Will Increasing Urbanization Drive the Hard Seltzer Market?

Increasing urbanization is a crucial driver for the hard seltzer market as urban consumers are more open to new beverage trends and have more access to a wide range of alcoholic drinks.

According to the United Nations Department of Economic and Social Affairs, the world urban population is expected to rise from 4.4 billion in 2020 to 6.7 billion in 2050, with Asia and Africa accounting for approximately 90% of the increase. In the United States, a main market for hard seltzers, the Census Bureau forecasts that 82.7% of the population resided in cities in 2020, up from 80.7% in 2010. The National Institute of Alcohol Abuse and Alcoholism (NIAAA) discovered that 54.9% of urban adults reported current alcohol usage.

According to the United States Department of Health and Human Services, 31.8% of urban people met federal physical activity guidelines for aerobic and muscle-strengthening exercises in 2018, but only 25.3% of rural individuals did. Furthermore, according to the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, urban households spent an average of $595 on alcoholic beverages in 2020, compared to $456 for rural households indicating that urban residents have more disposable income and are more willing to try new alcoholic products.

Will the Adverse Health Effects as well as Alcohol Poisoning Hamper the Hard Seltzer Market?

While the hard seltzer business is expanding due to its stylish image and attraction to health-conscious consumers, it is facing significant problems as people become more aware of the dangers of alcohol and its potential for poisoning. Despite being touted as a lighter, lower-calorie alternative to traditional alcoholic beverages, hard seltzers still contain alcohol which can lead to unintended overconsumption. This is especially concerning for inexperienced drinkers, who may misjudge the alcohol content because of the refreshing flavor and “healthier” packaging.

The long-term health consequences of drinking strong seltzers regularly like as liver damage, dehydration, and poor judgment are receiving more attention. Many people are becoming aware that, although being marketed as a low-calorie, low-sugar option, hard seltzers have major health hazards. Furthermore, an increase in reports of alcohol-related health problems attributed to hard seltzer usage could result in stronger restrictions, labeling requirements, or social backlash, stifling the market’s current rapid growth.

Category-Wise Acumens

Will Rising Urbanization and Rapid Retail Sector Drive Growth in the Distribution Channel Segment?

The off-trade segment is the dominant distribution route in the hard seltzer market accounting for over 71% of total revenue. This section includes a diverse range of retail locations such as convenience stores, supermarkets, wine and spirit stores, and micro markets. The popularity of off-trade sales can be related to consumers’ preference for buying in physical retail venues where they can choose from a wide range of hard seltzer brands and flavors.

The off-trade distribution channel allows customers to stock up on hard seltzers for parties, events, or personal enjoyment at home. This tendency has been accelerated by the growing popularity of home entertainment in which consumers seek out refreshing beverage options to enhance their experiences. Retailers take advantage of this by producing compelling in-store displays and promotions geared exclusively for hard seltzers which increase visibility and boost sales.

Will the Convenience and Sustainability Drive the Packaging Segment?

Metal cans have gained a large market share in the beverage business due to their multiple benefits such as durability, multi-color printing, convenience, and sustainability. These advantages make metal cans an appealing packaging option for many beverage businesses. Importantly, beverages stored in metal cans do not require additional flavor preservation agents allowing them to retain their natural taste for an extended period. This feature is especially useful for hard seltzers which rely on freshness and flavor consistency. Furthermore, the stunning design and brilliant colors that may be accomplished on aluminum cans add to the product’s luxury appearance and appeal luring customers and making the packaging a crucial component of the branding strategy.

Bottles are likely to dominate the market during the projection period owing to their improved handling and usability. Consumers prefer bottles for a variety of reasons with transparency being a major one. The clear shape of bottles allows consumers to see the beverage within instilling trust and quality. As a result, manufacturers may focus on manufacturing hard seltzers in both cans and bottles to cater to a wide range of consumer tastes.

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Country/Region-wise Acumens

Will the Rising Focus on Low-Calorie, Low-Alcohol, and Gluten-Free Beverages Drive the Market in the North American Region?

The North American region dominates the hard seltzer market owing to the growing popularity of low-calorie, low-alcohol, and gluten-free beverages. According to the Centers for Disease Control and Prevention (CDC), 39.7% of adults aged 20 and over are obese, which increases demand for low-calorie alcoholic beverages. Hard seltzers typically contain 90-100 calories per 12 oz serving, as opposed to 150.

The low alcohol concentration of hard seltzers is consistent with shifting drinking trends. The National Institute on Alcohol Abuse and Alcoholism states that per capita ethanol use in the United States has remained relatively steady, rising only slightly from 2.32 gallons in 2010 to 2.35 gallons in 2019 indicating a preference for lower-alcohol choices. From 2018 to 2019, the United States Alcohol and Tobacco Tax and Trade Bureau recorded a 127% growth in the manufacturing of flavored malt drinks (including hard seltzers). Furthermore, Nielsen data suggests that hard seltzer sales in the United States increased by 140% in 2020, hitting $3 billion.

Will the Rising Consumer Demand for Low and No Alcoholic Drinks Drive the Market in the Asia Pacific Region?

Rising customer demand for low and non-alcoholic beverages in Asia Pacific is enabling the region experience the fastest-growth in the  hard seltzer market. This quick increase is mostly due to rising health awareness among younger consumers, combined with tougher alcohol use rules in various countries across the region. According to the World Health Organization (WHO), the incidence of excessive episodic drinking among those aged 15 and up in the Western Pacific region which encompasses much of Asia, fell from 39.4% in 2010 to 36.5% in 2019.

Government actions are also contributing to this transition. This regulatory environment encourages consumers to seek out low-alcohol options. According to the Australian Bureau of Statistics, the proportion of adults who consume alcohol at amounts that put them at risk of harm during their lifetime fell from 18.2% in 2014-15 to 16.8% in 2020-21, indicating a shift toward moderation.

Competitive Landscape

The Hard Seltzer Market is a dynamic and competitive space characterized by diverse players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations focus on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the hard seltzer market include:

• Mark Anthony Brands International
• Carlsberg Group
• Anheuser-Busch InBev
• The Coca-Cola Company
• Diageo plc
• Heineken N.V.
• The Boston Beer Company
• Molson Coors Beverage Company
• Constellation Brands, Inc.
• Kopparberg
• San Juan Seltzer, Inc.

Hard Seltzer Market Latest Developments

• In April 2023, Spyk Hard Seltzer was introduced in Hyderabad, India. This 100% natural fruit-flavored beverage has 5.5 percent alcohol and is minimal in calories and carbohydrates. Spyk is freshly brewed, as opposed to other seltzers that employ carbonated cocktail mixes, so it has a crisp, refreshing flavor that is light and guilt-free.
• In February 2023, Bira 91, an Indian craft beer company, joined the hard seltzer market with the debut of “Grizly” Hard Seltzer Ale. The Jill launch follows the launching of “Hill Station” Hard Cider Ale and is part of the brand’s ambition of expanding beyond beer to match the changing interests of youthful people.

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