The hard seltzer market is one of the fastest growing segments in the alcohol beverages industry. Hard seltzers are low-calorie, low-carb alcoholic beverages made from sparkling water, alcohol, and natural flavors. They are seen as a healthier alternative to beers and spirits by health-conscious consumers. Hard seltzers appeal to a variety of drinkers, from those focusing on wellness to casual social users. 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. The growing popularity of low-calorie and low-carb drinks among health-conscious consumers is a major opportunity for players in the hard seltzer market. Several companies are expanding their hard seltzer offerings globally to capitalize on the rising demand. For instance, major beer companies like AB Inbev and Molson Coors are investing heavily in the hard seltzer segment.
The hard seltzer market is witnessing high growth in North America currently. However, players are also focusing on Europe and Asia Pacific markets experiencing increased consumption of low-alcohol beverages. The market is expected to grow as hard seltzer's appeal expands beyond health-conscious consumers to casual drinkers as well.
Market Drivers
- Rising health consciousness among consumers is a key driver for the hard seltzer market. More people are switching to low-calorie alcoholic drinks for a healthier lifestyle.
- Hard seltzers' light, refreshing taste and versatility has made them popular social drinks. Their growth is supported by new product launches catering to evolving consumer preferences.
- Large beer and spirits companies view hard seltzers as an important growth category. Their foray into the segment has bolstered availability through mainstream retail channels.
PEST Analysis
Political: There are minimal political risks for the hard seltzer market. Policymakers are increasingly supportive of low-abv and low-cal drinks as a responsible alcohol alternative.
Economic: The hard seltzer market continues expanding during economic downturns, recessions as consumers seek affordable luxuries. However, rising inflation and slowing economy can curb some discretionary spending on the category in the short-term.
Social: Hard seltzers appeal to health-conscious millennials and Gen Z who want low-cal options with natural ingredients while socializing. The drinks are increasingly being marketed towards women too.
Technological: Advancements in fermentation and canning technologies have enhanced product quality, variety and production efficiency. Hard seltzer brands are leveraging technologies like augmented reality, geo-targeting for immersive digital experiences.
The United States dominates the hard seltzer market in terms of value, accounting for over 90% share currently. The category originated and grew exponentially in the country over the last few years, driven by the rising popularity of White Claw. Canada is emerging as another major region for hard seltzers, with companies like Truly and Mike's Hard Lemonade entering the market. Europe and Asia Pacific regions present significant headroom for future growth as hard seltzer culture permeates globally with new product launches by international brewers.
The fastest growing regional market for hard seltzers is Asia Pacific excluding Japan. Led by growing exposure to western flavors and experimentation with alcohol alternatives, the category is gaining popularity among young adults in countries like Australia, China and India. Domestic and international seltzer brands see immense growth potential tapping into Asia Pacific's huge population and urbanizing middle class seeking experiential indulgences. Regions like Latin America and Middle East & Africa also offer robust prospects over the forecast period.
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