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.
Growth Drivers
Challenges
|
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 |
|
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 |
|
|
Packaging Type |
|
|
Distribution Channel |
|
|
Flavor |
|
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.
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.
Author Credits: Parul Atri
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?