April 20, 2024
Hard Seltzer Market

Hard Seltzer Market Poised to Witness High Growth Owing to Rising Health Consciousness Among Consumers

The hard seltzer market has witnessed substantial growth over the past few years owing to the rising demand for low-calorie and low-sugar alcohol beverages among health-conscious consumers. Hard seltzer is a type of flavored and sparkling alcoholic beverage made from water, cane sugar, and natural flavors. Its light taste and refreshing feel make it popular among youth and women consumers. The availability of hard seltzer in various fruit flavors such as lime, grapefruit, black cherry, strawberry, and lemon has further bolstered its appeal. Hard seltzers provide the perfect balance between beer and soda or seltzer and have minimal alcohol content compared to beers, which drives their preference. 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. Major players are investing heavily in product innovations and the development of new flavor profiles to cater to evolving consumer tastes. They are also adopting sustainable packaging solutions and adopting clean labeling practices to strengthen brand positioning.

The hard seltzer market provides several lucrative growth opportunities such as the development of more variety in terms of flavors, including exotic fruit flavors. Companies are also coming up with dietary-specific variants like low-calorie, low-carb, natural, gluten-free options to expand consumer base. The growing popularity of hard seltzers across developing nations indicates vast potential for global expansion. Players are focusing on Southeast Asia, Latin America, Eastern Europe, Australia, and other regional pockets through strategic partnerships and acquisition of local companies.

Market Drivers and Restraints

The key driver propelling the hard seltzer market growth is the rising health consciousness among consumers, predominantly millennials. They are actively seeking beverages with low sugar, carbs, and calories. The clean and basic ingredient profile of hard seltzers makes them an ideal alternative to beers and sugary drinks. Moreover, the availability of hard seltzers in various fruit flavors is also fueling their uptake. However, the market still faces challenges from stringent regulations on alcohol marketing and consumption in some regions. Heavy taxation imposed on alcoholic beverages also acts as a growth deterrent to some extent. Furthermore, the availability of alternative low-cal options like spiked sparkling waters and hard sodas intensifies competition in the category.

Segment Analysis

The hard seltzer market is currently dominated by the flavored segment. Flavored hard seltzers make up over 70% of the total market share as consumers prefer the variety of flavors over the plain seltzers. Flavored hard seltzers come in a wide range of flavors like lemon, lime, berry, mango, passionfruit etc. The availability of multiple flavor options attract different consumer segments and tastes. This wide choice of flavors has led to the flavored segment becoming the frontrunner within the hard seltzer market.

Global Analysis

The North American region currently dominates the global hard seltzer market with the United States alone accounting for over 80% of sales. Hard seltzers first gained popularity in the US and established a strong foothold due to increasing health consciousness. The market is witnessing the fastest growth in the European region on account of rising experimentation among consumers. Regions like the United Kingdom are adopting the hard seltzer trend at a quick pace. The Asia Pacific region is projected to grow at the highest CAGR during the forecast period given its huge population base and increasing disposable incomes leading to more experimentation with western drinks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it