Hard Seltzer Market Size & Share, by ABV Content (1.0 - 4.9%, 5.0 - 6.9%); Packaging Type (Glass Bottles, Metal Cans); Distribution Channel (Off-Trade, On-Trade); Flavor (Classic or Unflavored, Flavored) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6038
  • Published Date: May 16, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Hard Seltzer Market size was over USD 13 Billion in 2023 and is anticipated to cross USD 90 Billion by the end of 2036, witnessing more than 17% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hard seltzer is assessed at USD 17 Billion. With their low calorie and sugar levels, hard seltzers appeal to consumers who are conscious of the food choices they're making or looking for refreshing alternatives to traditional alcoholic beverages.

A major driver of the target market for hard seltzers is an increase in health consciousness and a desire to drink beverages that satisfy both taste and well-being. In a survey carried out by International Wine & Spirit Research in 2019, 52% of respondents tried to reduce their alcohol consumption.


Hard Seltzer Market
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Hard Seltzer Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing popularity of vegan diet - As a result of the increasing demand for alcoholic beverages with lower calories and greater nutritional content, this market is growing rapidly. Consumers are also becoming more health conscious and are choosing a healthy lifestyle rich in vitamins and minerals.
    The growth of the hard seltzer market is also supported by increasing interest in diet trends and vegan food, e.g. keto, plant-based meat, and vegan diets. As per Euromonitor International's research in 2020 found that 2.9% population of Germany was classified as vegan this is expected to grow high in the future.
  • Growing flavor innovation and development in hard seltzer - Significant innovation in flavor has taken place in the hard seltzer market, characterized by a wide variety of creative developments. The expansion of flavor varieties, from traditional to exotic and targeting a broad range of consumer tastes, is one of the most important areas.
    In April 2023, Hard Seltzer Co launched a limited edition of Vizzy Orange Cream Pop flavored Hard Seltzer, in conjunction with its "Flavor For Every Vibe" advertising campaign, with bold and creative TV commercials.
  • Key players working on developing growth strategies - With the adoption of various growth strategies, major players aim to expand their customer bases. Significant growth opportunities are expected to be generated by this factor.
    For example, Casatera, a producer of zero-sugar tequila seltzers that are made for health-conscious consumers, announced its expansion into several new markets such as Florida, Massachusetts, New Hampshire, and Connecticut in November 2022. The Casatera restaurant and bar has been extended to almost 500 liquor stores, restaurants, bars, and hotels, such as Select Total Wine & More, Omni Hotels & Resorts, and Marriott Hotel.

Challenges

  • Health issues associated with hard seltzer - Alcoholic beverages like wine and beer have some health benefits but they also contain toxic ethanol. Alcohol can also cause dehydration and weight gain. Another disadvantage of hard seltzer is that many nutritionists wouldn’t consider it healthy because it has fewer calories than beer. That’s because it’s still a sugary drink with alcohol, so it’s important to drink it in moderation.
  • Availability of substitute products is assumed to hamper the market growth in the forecast period
  • Strict government standards are expected to restrict market growth in the upcoming period.

Hard Seltzer Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

17%

Base Year Market Size

USD 13 billion

Forecast Year Market Size

USD 90 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Hard Seltzer Segmentation

ABV Content (1.0 - 4.9%, 5.0 - 6.9%)

1%-4.9% segment is estimated to hold hard seltzer market share of more than 65% by 2036. Consumers across the board are deliberately cutting back on their alcohol use as the importance of health and well-being continues to rise. In the United States, more than half of regular wine drinkers aged 21 to 34 years reported actively reducing their consumption in 2019.

Packaging Type (Glass Bottles, Metal Cans)

In hard seltzer market, metal cans segment is poised to capture revenue share of around 60% by the end of 2036. This can be attributed to the fact that they are amazing for packaging ready-to-drink drinks owing to their mobility and ease.

Excellent product integrity and defense against light, air, and other outside factors that might tarnish the beverage's quality and flavor are offered by metal cans. These cans are highly utilized in beverage packaging, thus, increasing demand for ready-to-drink beverages including alcoholic and non-alcoholic ones. Pre-mixed cocktails and spirits-based RTDs were the fastest-growing spirits sector in 2021, with a 42 percent gain in revenue and a 56 percent rise in sales volume over 2020, according to the Distilled Spirits Council of the United States.

Distribution Channel (Off-trade, On-trade)

In terms of distribution channel segmentation, the off-trade segment is anticipated to dominate the hard seltzer market growing at a size of USD 18.7 billion during the year 2026. All retail establishments, including small markets, supermarkets, hypermarkets, convenience stores, and wine and spirit stores, are included in this sector.

Because these businesses have such great deals and discounts, people favor them. To reach as many consumers as possible, the majority of businesses also introduce their products through supermarket chains like Walmart and Target. 57% of consumers purchased new items on their most recent visit to a basic grocery shop.

Our in-depth analysis of the global market includes the following segments:

            ABV Content

  • 1.0 – 4.9%
  • 5.0 – 6.9%

          Packaging Type

  • Glass Bottles
  • Metal Cans

           Distribution Channel

  • Off-trade
  • On-trade

           Flavor

  • Classic or Unflavored
  • Flavored

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Hard Seltzer Industry - Regional Synopsis

North American Market Forecasts

The North America region is predicted to witness a market size of USD 10 billion by the end of 2036. This market growth can be impelled by the presence of leading producers who are using creative methods to market their goods. For example, in June 2019, the well-known brand White Claw, which is produced by Mark Anthony Brands in Vancouver, had a notable increase in sales due to its robust social media presence, which included YouTube videos and internet memes. There is competition for hard seltzer market share from both established and developing competitors, with White Claw and other well-known brands serving as notable examples.

Due to the widespread popularity of alcoholic beverages in the United States, both male and female consumers now find them acceptable, which means that in the years to come, hard seltzer usage will probably rise even more.

Introducing a wide variety of flavors is one of the most important Canadian market trends. To satisfy different consumer preferences, manufacturers continuously innovate and develop new flavors. The variety of flavors on the market has increased substantially, from traditional tastes such as lime and grapefruit to more unusual ones such as mango and passion fruit.  

APAC Market Statistics

Asia Pacific region in hard seltzer market is estimated to capture revenue share of over 28% by 2036. A growing awareness of health among the population of the emerging economies of Asia Pacific can be attributed to the development of the hard seltzer industry in the region.

In addition, the regional industry's growth in the coming years will be driven by an increase in the disposable income of the region's population. The total disposable income in Asia-Pacific is expected to more than quadruple in real terms between 2021 and 2040, faster than in any other area, according to Euromonitor's Income and Expenditure in Asia Pacific research.

China has witnessed a rise in the consumption of these items due to factors such as growing disposable income, improved awareness of health, and the accessibility of worldwide brands.

An increasing number of online brands in Japan that sell various types of hard seltzers in a variety of flavors and deliver them directly to consumers is contributing to market growth.
Growing demand and popularity for hard seltzer in the Korean domain.

Research Nester
Hard Seltzer Market Size
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Companies Dominating the Hard Seltzer Landscape

top-features-companies

    With the adoption of various growth strategies, major players aim to expand their customer bases. Significant growth opportunities are expected to be generated by this factor.  For example, Casatera, a producer of zero-sugar tequila seltzers that are made for health-conscious consumers, announced its expansion into several new markets such as Florida, Massachusetts, New Hampshire, and Connecticut in November 2022. The Casatera restaurant and bar has been extended to almost 500 liquor stores, restaurants, bars, and hotels, such as Select Total Wine & More, Omni Hotels & Resorts, and Marriott Hotel.

    • Mark Anthony Brands International
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Carlsberg Group
    • Anheuser-Busch InBev
    • The Coca-Cola Company
    • Diageo plc
    • Heineken N.V.
    • The Boston Beer Company
    • Molson Coors Beverage Company
    • Topo Chico Hard Seltzer
    • Constellation Brands, Inc.

In the News

  • Topo Chico Hard Seltzer debuted a new flavor, Topo Chico Ranch Water Hard Seltzer, in a few local markets and across the country in a variety pack. It retails for 4.7% alcohol by percentage and 100 calories a can in a 12-pack of thin cans that are available in multiple states. In addition, Topo Chico Hard Seltzer's current variety pack is being introduced countrywide with four new tastes.
  • Mark Anthony Brands' White Claw brand launched its first international marketing campaign in association with a wide range of producers from the United States and abroad, in order to collect spontaneous, ephemeral content inspired by the emotion that White Claw inspires.

Author Credits:  Anil Kumar, Ipsheeta Dash


  • Report ID: 6038
  • Published Date: May 16, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of hard seltzer was over USD 13 billion.

The market size for hard seltzer is projected to cross USD 90 billion by the end of 2036 expanding at a CAGR of 17% during the forecast period i.e., between 2024-2036.

The major players in the market are The Coca-Cola Company, Diageo plc, Heineken N.V., The Boston Beer Company, Molson Coors Beverage Company, Topo Chico Hard Seltzer, Constellation Brands, Inc., and others.

In terms of packaging type, the metal cans segment is anticipated to account for the largest market share of 60% during 2024-2036.

The North American hard seltzer sector is poised to hold the highest size of USD 10 billion by 2036.
Hard Seltzer Market Report Scope
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