Hard Seltzer Market Size Report | Growth & Overview 2028

Hard Seltzer Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Flavor (Citrus Fruits, Berries, Tropical Fruits, and Others), Packaging Type (Bottles and Cans), and Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Online Retail, and Others)

Publication Month : Jan 2022

  • Report Code : TIPRE00014668
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 158
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[Research Report] The hard seltzer market is projected to reach US$ 4,355.46 million by 2028 from US$ 2,500.82 million in 2021; it is expected to grow at a CAGR of 8.2% from 2021 to 2028.

MARKET INSIGHTS & ANALYST VIEW

Hard seltzers are alcoholic beverages typically containing carbonated water, alcohol, and fruit flavors. They gained popularity due to their low-calorie content, refreshing taste, and perceived healthier image than other alcoholic beverages. They appealed to consumers looking for lighter and more flavorful options. Hard seltzers are alcoholic beverages typically containing carbonated water, alcohol, and fruit flavors. They gained popularity due to their low-calorie content, refreshing taste, and perceived healthier image than other alcoholic beverages. They appealed to consumers looking for lighter and more flavorful options. Factors such as flavor variety, demographic appeal, growing health conscious consumers, and brand marketing for hard seltzer on social media platforms are expected to drive hard seltzer market growth.   

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Hard Seltzer Market: Strategic Insights

hard-seltzer-market
Market Size Value inUS$ 2,500.82 million in 2021
Market Size Value byUS$ 4,355.46 million by 2028
Growth rateCAGR of 8.2% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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GROWTH DRIVERS AND CHALLENGES

The increasing consumption of ready-to-drink (RTD) beverages has played a significant role in driving the growth of the hard seltzer market. RTD beverages have become popular due to their convenience, simplicity, and on-the-go nature. Consumers today have busy lifestyles and seek convenient options that fit their fast-paced routines. RTD beverages, including hard seltzers, offer a hassle-free solution as they come pre-mixed and ready to drink, eliminating the need for additional preparation or mixing. This convenience factor has resonated with many consumers, including those who prefer easy-to-enjoy beverages without the need for complicated recipes or bartending skills. Moreover, the portability of RTD beverages allows consumers to enjoy their favorite drinks in various settings and occasions, whether it's a picnic, outdoor event, or social gathering. The rise in RTD consumption has created a natural opportunity for hard seltzers to thrive, as they embody the characteristics that align with the demands of modern consumers. The accessibility and versatility of RTD beverages have expanded the consumer base for hard seltzers, attracting individuals who may have previously opted for non-alcoholic beverages or other alcoholic options. Furthermore, the growth of online retail channels and the emergence of direct-to-consumer delivery services have made it easier for consumers to access and purchase RTD beverages, contributing to the overall market expansion. As a result, the increasing consumption of RTD beverages has provided a favorable environment for the growth of the hard seltzer market.

However, ingredient sourcing and supply chain issues can pose challenges for the hard seltzer market. Hard seltzers often incorporate natural flavors and ingredients, which can be subject to fluctuations in availability and pricing. Sourcing high-quality ingredients consistently and maintaining a reliable supply chain can be demanding, especially when dealing with seasonal or region-specific ingredients. Supply chain disruptions, such as transportation delays, weather-related issues, or geopolitical factors, can impact the timely delivery of ingredients and production capabilities. Ensuring a resilient and efficient supply chain becomes crucial for hard seltzer brands to meet consumer demand, maintain product quality, and avoid potential production bottlenecks.

REPORT SEGMENTATION AND SCOPE

The "Global Hard Seltzer Market Analysis to 2028" is a specialized and in-depth study with a major focus on the global hard seltzer market trends and growth opportunities. The report aims to provide an overview of the global hard seltzer market with detailed market segmentation by flavor, packaging type, distribution channel, and geography. The global hard seltzer market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of hard seltzer worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the hard seltzer market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the hard seltzer market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative hard seltzer market opportunities that would, in turn, aid in identifying the major revenue pockets.

Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global hard seltzer market, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global hard seltzer market is segmented based on flavor, packaging type, and distribution channel.  Based on flavor, the hard seltzer market is segmented as citrus fruits, berries, tropical fruits, and others.  Based on packaging type, the hard seltzer market is classified as, bottles and cans. Based on distribution channel, the hard seltzer market is classified as, supermarkets and hypermarkets, specialty stores, online retail, and others.           

Based on packaging type, the cans segment accounted for a significant hard seltzer market share in 2021.   Cans offer several advantages that have resonated with consumers and propelled the market forward. Firstly, cans provide convenience and portability, allowing consumers to easily transport and enjoy hard seltzers in various settings, including outdoor activities, social gatherings, and events. Cans are lightweight and more durable than glass bottles, reducing the risk of breakage and making them ideal for on-the-go consumption. Additionally, cans offer superior protection against light and oxygen, helping to preserve the freshness and flavor of the product. Furthermore, cans are often associated with sustainability, as they are widely recyclable and have a lower carbon footprint compared to other packaging materials. This aligns with the increasing consumer demand for eco-friendly options. The popularity of cans has also been driven by the marketing and branding efforts of hard seltzer companies, which have successfully created a stylish and trendy image around canned products. As a result, the cans segment has contributed significantly to the growth of the hard seltzer market.

REGIONAL ANALYSIS

The report provides a detailed overview of the global hard seltzer market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America.  The North America hard seltzer market is one of the largest markets having revenue more than US$ 1700 million in 2021. North America has been a key market for hard seltzers US. The region has witnessed a surge in consumer demand for alcoholic beverages with lower alcohol content and fewer calories. Hard seltzers have successfully tapped into this trend, becoming a popular choice among young adults and health-conscious consumers. The market in North America is highly competitive, with several established and emerging players offering a wide range of flavors and variations. Major brands have also been quick to respond to changing consumer preferences, launching innovative product lines to maintain their market share. Based on country, the US hard seltzer market held one of the largest share in North America region.

The Europe hard seltzer market is expected to reach a revenue of more than US$ 450 million in 2028. In Europe, the hard seltzer market has experienced rapid growth, following the success of the category in North America. Consumers in Europe have shown increasing interest in lighter, low-calorie alcoholic beverages, aligning with the overall wellness and moderation trends. The market in Europe is characterized by the presence of both global and local players, each focusing on introducing diverse flavor profiles and unique branding strategies. Countries such as the UK, Germany, and France have emerged as key markets for hard seltzers, with growing consumer acceptance and a rise in distribution channels. The UK hard seltzer market held the substantial share in Europe region.

The hard seltzer market in Asia Pacific region is expected to reach CAGR of more than 8% during forecast period. The Asia Pacific region has witnessed a significant rise in the popularity of hard seltzers, driven by factors such as urbanization, changing lifestyles, and the influence of Western drinking trends. Countries like Australia, Japan, and South Korea have witnessed a surge in demand for these refreshing alcoholic beverages. Manufacturers have been quick to capitalize on this emerging trend, launching localized flavors and marketing campaigns to cater to the specific preferences of Asian consumers. However, the market is still in its early stages of development in many countries within the region, presenting immense growth potential in the coming years.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Partnership, acquisitions, and new product launches were found to be the major strategies adopted by the players operating in the global hard seltzer market.

  • In May 2020, Sudwerk Brewing Co., launched “Life Is Hard Seltzer” in black cherry, grapefruit and passionfruit flavors. It is fermented using sugar and yeast and then flavored with natural fruit concentrates.
  • In September 2020, Heineken N.V. launched Pure Piraña, new hard seltzer brand, available in Mexican & New Zealand markets. The product is available in a choice of up to nine different flavors.
  • In May 2020, Kopparberg launched range of hard seltzers. Kopparberg hard seltzer is made from the producer’s trademarked KopparSpirit, which is an alcohol base made from fermented fruit that leaves behind no residual sugar.

IMPACT OF COVID

The COVID-19 pandemic has had a significant impact on the hard seltzer market. Initially, the market experienced a surge in demand as consumers stocked up on alcoholic beverages for home consumption during lockdowns and social distancing measures. With the closure of bars, restaurants, and entertainment venues, consumers turned to retail channels for their beverage needs, driving sales of hard seltzers. However, as the pandemic progressed, the market faced challenges such as disruptions in the supply chain, production constraints, and changes in consumer behavior. The closure of on-premise establishments resulted in decreased sales for the hard seltzer, which heavily relied on the limited social and outdoor occasions during lockdowns.

Additionally, economic uncertainties and reduced consumer spending power affected purchasing patterns. Despite the challenges, the inherent attributes of hard seltzers, such as convenience, portability, and perceived healthier choice, have helped the market remain resilient. As the situation evolves, the market is expected to adapt to changing consumer preferences and gradually recover as restrictions ease and social activities resume.        

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Some of the key players operating in the hard seltzer market include Anheuser-Busch INBEV; Constellation Brands, Inc; Heineken N.V.; Kona Brewing Co.; Kopparberg; Lift Bridge Brewing Co.; Mark Anthony Brands International; Molson Coors Beverage Company; Oskar Blues; and The Boston Beer Company among others.           

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Flavor, Packaging Type, and Distribution Channel

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Can you list some of the major players operating in the global hard seltzer market?

Some of the prominent players operating in the global hard seltzer market include Anheuser-Busch INBEV; Constellation Brands, Inc; Heineken N.V.; Kona Brewing Co.; Kopparberg; Lift Bridge Brewing Co.; Mark Anthony Brands International; Molson Coors Beverage Company; Oskar Blues; and The Boston Beer Company.

What is the scope of the hard seltzer market?

Hard seltzers are typically available in fruit flavors such as citrus fruits, berries, tropical fruits, among others. Bottle and can packaging is generally used for packaging hard seltzers. They are available in supermarkets and hypermarkets, specialty stores, online retail, and other stores.

Which region led the global hard seltzer market in 2020?

In 2020, North America led the global hard seltzer market owing to the rising demand for low-calorie and low-ABV (alcohol by volume) content beverages

Based on flavor, which segment is leading the global hard seltzer market.

Based on flavor, the tropical fruits segment held the largest share in the hard seltzers market owing to their unique flavor, vibrant colors, and nutritional profile.

What are the key factors influencing market growth?

The global hard seltzer market is primarily driven by the increasing preference for ready-to-drink beverages with low-calorie and low-sugar content. Moreover the growing influence of celebrities and social media on the lifestyles of people is also projected to drive the market growth.

Based on distribution channel, which segment is expected to grow at a faster rate over the forecast period?

Based on distribution channel, the online retail segment is projected to grow at the fastest rate owing to the factors such as home delivery services, attractive discounts and offers, ease of comparing the products, and availability of a wide range of products of well-known brands under one roof.

The List of Companies - Hard Seltzer Market

  1. Anheuser-Busch INBEV
  2. Constellation Brands, Inc
  3. Heineken N.V.
  4. Kona Brewing Co.
  5. Kopparberg
  6. Lift Bridge Brewing Co.
  7. Mark Anthony Brands International
  8. Molson Coors Beverage Company
  9. Oskar Blues
  10. The Boston Beer Company

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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