Hard Seltzer

Hard Seltzer

Hard seltzer, also referred to as spiked seltzer or hard sparkling alcohol water, is a beverage that typically contains carbonated water, alcohol, and open fruit flavouring. Cane sugar or malted barley fermentation may also produce hard seltzer. Hard seltzer is the best alcohol substitute because it has the least amount of calories and only contains about 5% alcohol. Hard seltzer is a low-calorie, low-carb, sugar-free alcoholic beverage with a 5% or slightly higher alcohol content that is clear, bubbly, and lightly flavoured. The hard seltzer market is expanding as a result of factors like the expanding travel sector, the tourism economy, and the rise in online sales of alcoholic beverages, coffee, and bars. The expansion of this consumer market will be impacted by urbanisation, shifting consumer preferences in developing nations, and shifting alcoholics' perspectives.

The hard seltzer market is expected to grow at a steady rate of around CAGR of 13% from 2023 to 2030 owing to rise in low or non-sugar drinks. The main factors anticipated to drive demand for the global alcoholic beverage segment are the rising trend of consumption of alcoholic beverages among the young generation and millennials as a result of changing consumer choices, rising disposable income, and peer influence among consumers. Beer companies introducing hard seltzer to expand its market among millennial drinkers. For instance, According to NIQ, 60 % to 70% of millennial drinkers who are of legal drinking age (over 21) categorise hard seltzers as a separate category, which is probably why beer manufacturers developed their own hard seltzer products, such as Bud Light Seltzer and Corona Seltzer.

• Based on ABV type, the market is segmented into ABV less than 5% and ABV more than 5%. ABV more than 5% is the dominant segment for Hard Seltzer Market. Due to the high level of consumer preference, ABV greater than 5% is growing. Segment growth is driven by an increase in consumer demand for hard seltzer with more than 5% ABV over alcoholic beverages like whisky, beer, and wine. The usual proportion of ingredients for hard seltzer, which is mostly created by manufacturers, is 5% ABV.
• Based on sales channel type, the market is segmented into on-trade and off-trade. The off-trade segment holds a significant share of the global hard seltzers market. Easily availability of hard seltzer in retail stores, mini-markets, wine shops, supermarket and hypermarkets like Walmart, Target, Costco, and Tesco. Increasing urbanization and the swift retail sector expansion helps to grow hard seltzer market through off-trade channels. For Instance, Companies are concentrating on marketing campaigns and product promotion through wine stores to raise consumer awareness of hard seltzers. Off-trade holds the largest portion of distribution channels and contributed over 70.0% of total income in 2021.
• Based on packaging type, the market is segmented into metal cans and bottles. Metal cans dominant the market in 2020. As metal cans are widely used as containers in the beverage industry and have many advantages including durability, the ability to print in multiple colours, convenience, and sustainability, metal cans hold a larger market share and are still increasing their share. Manufacturers are introducing hard seltzer in canned form because the product's vibrant colour and design give it a more premium appearance and increase its all-around appeal. For Instance, in August 2020, The Coca Cola Company launched Topo Chico hard seltzer in sleek aluminum cans in Mexico and Brazil to attract the consumers.
• For a better understanding of the market adoption of the hard seltzer market, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America dominant market share in 2020. The main drivers of the expansion of the North American hard seltzer market are the rising young populations in countries with economies like the United States, Canada, and Mexico. The growth of the North American Hard Seltzer Market is further supported by rising initiatives from the government and NGOs to raise public awareness about excessive consumption and the negative effects of carbonated beverages and soda drinks. Companies introducing new flavours in the market to rise its share in the region. For Instance, in March 2021, Stewarts Enterprises introduced Stewart's Spiked Seltzer, a brand of low-calorie hard seltzers in three flavors—Root Beer, Orange Cream, and Black Cherry in order to grow in the northeastern United States.
• Some of the major players operating in the market include Mark Anthony Brands International; 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.