Hard Seltzer Market By ABV Content (1.0-4.9%, 5.0-6.9%, More than 6.9%), By Distribution Channel (Off-trade, On-trade), and Region (North America, Latin America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2020 – 2027
The global hard seltzer market size was valued at USD 3,544.6 Million in 2019 and is projected to reach USD 14,482.0 Million by 2027, expanding at a CAGR of 19.2% during the forecast period, 2020 - 2027. In terms of volume, the market is projected to expand at a CAGR of 18.4% during the forecast period. Hard seltzer is a carbonated alcoholic drink that is fermented with sugar. It has low calories (than other alcoholic beverages) and carbohydrates. Alcohol used in high seltzer can be just fermented cane sugar with added fruit flavors or flavored malt.
Hard seltzers are significantly used in developed countries including the US, Japan, and the UK. Moreover, increasing demand for low alcohol content, low carbohydrates beverages, and low calories beverages in developing countries is fueling the hard seltzer market in Asia Pacific, and Latin America and Middle East & Africa (LAMEA). Hard seltzer is a gluten free beverage; therefore, its demand among health-conscious consumers and those with allergies or celiac disease is rising.
Hard Seltzer Market Dynamics
The market is driven by factors such as rising preference for hard seltzers over beer among millennial, growing preference for flavored low alcohol beverages, increasing product penetration in on-trade channel, and increasing product advertisement on social media platforms.
Increasing internet penetration in countries across the world has significantly increased the number of people using social media websites and applications. Thus, key players are engaged in advertising their hard seltzers through social media platforms including Instagram, Facebook, and Twitter. Moreover, partnerships between key players and online stores are helping them promote their products online through various platforms.
Furthermore, increasing Internet penetration is also increasing product awareness, which is estimated to boost the sales of hard seltzer during the forecast period. Rising trend of consuming beverages with low alcoholic content by young consumers due to changing consumer choices, rising health concern, and peer influence among consumers are expected to propel the growth of global hard seltzer market.
Significant increase in the sales and demand for low alcohol beverages is attributed to the availability of hard seltzer drinks in various tastes, less carbonation, and low calories content. These drinks are preferred by health-conscious consumers, which in turn, drives the growth of the market. For instance, in 2020, Kopparberg, a Sweden-based manufacturer launched a range of hard seltzer drinks in the U.K., in new flavors, packaging and design, based on iridescent graphic bubbles.
Innovations in the packaging of hard seltzers is expected to create opportunities for key players in the market in the near future. Key players in the market are engaged in offering innovative cans for hard seltzers to attract consumers. The development of new innovative flavors in tart and fruity flavors, use of new ingredients and sugars, and the introduction of new fermenting processes by various companies are creating opportunities in the market. Hard seltzers is preferred due to the less sweetness and calories, which has increased its demand among consumers.
However, presence of alternative products and strict government regulations for alcoholic beverages in multiple countries across the world is expected to hinder the market growth. For instance, alcohol prohibition laws, ban on shipping of alcohol beverages, and restriction on their advertisements and promotional activities in some of the countries, including India (some states including Gujarat, Mizoram, and Nagaland), the UAE (Sharjah, Iran, and Kuwait), Iran, Saudi and Arabia, are challenging the growth of the hard seltzers market.
Hard Seltzer Market Segment Insights
ABV Content Segment Analysis
In terms of ABV content, the hard seltzers market is categorized as 1.0-4.9%, 5.0-6.9%, and above 6.9%. The 5.0-6.9% ABV content segment holds a significant share of the market due to its high preference among consumers. Increase in shift of consumer preference from alcoholic beverages such as whiskey, beer, and wine to hard seltzer with more than 5% of ABV drives segment growth.
Furthermore, hard seltzer with 5% ABV is considered as standard proportion of ingredients, which is majorly produced by the manufactures. The 1.0-4.9% segment is estimated grow at a significant pace during forecast period. Consumer demographic which favors low alcoholic drinks significantly supports the growth of this segment.
Distribution Channels Segment Analysis
In terms of distribution channels, the hard seltzers market is bifurcated as off-trade and on-trade. The on-trade segment is anticipated to expand at a significant CAGR during the forecast period due to partnership between manufacturers and restaurants, bars, and other on-trade channels. Moreover, increasing consumer preference for drinking hard seltzers at on-trade shops is expected to drive the market growth.
Off-trade distribution channel holds a significant share of the global hard seltzers market. Ease of availability, and retail stores expansion supports the significant share of the off-trade segment in the market. Companies are focused on marketing campaigns and product promotion through wine stores to increasing consumer awareness about hard seltzers.
Regional Analysis
In terms of regions, the global hard seltzers market is fragmented into North America, Europe, Asia Pacific, and LAMEA. North America accounted for a significant market share in 2019 due to high product awareness among consumers. Moreover, new product launches played a vital role in the growth of hard seltzer market across North America. For instance, in May 2020, Sudwerk Brewing Co., launched a product called Life Is Hard Seltzer.
The market in Asia Pacific is projected to expand at a significant CAGR of 20.4% during the forecast period. The reduction in taxes and relaxation in regulations for alcoholic beverages in Asia Pacific is expected to fuel the growth of hard seltzer market in the Asia Pacific region. Furthermore, increasing number of small players offering hard seltzers in the regions supports the growth hard seltzers market in Asia Pacific during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Hard Seltzer Market
- Historical, Current and Projected Market Size in terms of Value and Volume (‘000 Units)
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Hard Seltzer Market Performance
Chapter 2 Assumptions and Acronyms Used
Chapter 3 Research Methodology
Chapter 4 Hard Seltzer Market Overview
4.1 Introduction
4.1.1 Market Taxonomy
4.1.2 Market Definition
4.1.3 Macro-Economic Factors Impacting the Market Growth
4.2 Hard Seltzer Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunity
4.3 Hard Seltzer Market - Supply Chain Analysis
4.3.1 List of Key Suppliers
4.3.2 List of Key Distributors
4.3.3 List of Key Consumers
4.4 Key Forces Shaping the Hard Seltzer Market
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of Substitution
4.4.4 Threat of New Entrants
4.4.5 Competitive Rivalry
4.5 Global Hard Seltzer Market Size & Forecast, 2017-2027
4.5.1 Hard Seltzer Market Size and Y-o-Y Growth
4.5.2 Hard Seltzer Market Absolute $ Opportunity
4.6 Global Hard Seltzer Market: Impact Of Key Regulations
Chapter 5 Global Hard Seltzer Market Analysis and Forecast By ABV Content
5.1 Introduction
5.1.1 Key Market Trends & Growth Opportunities By ABV Content
5.1.2 Basis Point Share (BPS) Analysis By ABV Content
5.1.3 Absolute $ Opportunity Assessment By ABV Content
5.2 Hard Seltzer Market Size & Volume Forecast By ABV Content
5.2.1 1.0-4.9%
5.2.2 5.0-6.9%
5.2.3 More than 6.9%
5.3 Market Attractiveness Analysis By ABV Content
Chapter 6 Global Hard Seltzer Market Analysis and Forecast By Distribution Channel
6.1 Introduction
6.1.1 Key Market Trends & Growth Opportunities By Distribution Channel
6.1.2 Basis Point Share (BPS) Analysis By Distribution Channel
6.1.3 Absolute $ Opportunity Assessment By Distribution Channel
6.2 Hard Seltzer Market Size & Volume Forecast By Distribution Channel
6.2.1 Off-trade
6.2.2 On-trade
6.3 Market Attractiveness Analysis By Distribution Channel
Chapter 7 Global Hard Seltzer Market Analysis and Forecast by Region
7.1 Introduction
7.1.1 Key Market Trends & Growth Opportunities by Region
7.1.2 Basis Point Share (BPS) Analysis by Region
7.1.3 Absolute $ Opportunity Assessment by Region
7.2 Hard Seltzer Market Size Forecast by Region
7.2.1 North America
7.2.2 Europe
7.2.3 Asia Pacific
7.2.4 Latin America and Middle East & Africa (LAMEA)
7.3 Market Attractiveness Analysis by Region
Chapter 8 Coronavirus Disease (COVID-19) Impact
8.1 Introduction
8.2 Current & Future Impact Analysis
8.3 Economic Impact Analysis
8.4 Government Policies
8.5 Investment Scenario
Chapter 9 North America Hard Seltzer Analysis and Forecast
9.1 Introduction
9.2 North America Hard Seltzer Market Size Forecast by Country
9.2.1 U.S.
9.2.2 Canada
9.3 Basis Point Share (BPS) Analysis by Country
9.4 Absolute $ Opportunity Assessment by Country
9.5 Market Attractiveness Analysis by Country
9.6 North America Hard Seltzer Market Size & Volume Forecast By ABV Content
9.6.1 1.0-4.9%
9.6.2 5.0-6.9%
9.6.3 More than 6.9%
9.7 Basis Point Share (BPS) Analysis By ABV Content
9.8 Absolute $ Opportunity Assessment By ABV Content
9.9 Market Attractiveness Analysis By ABV Content
9.10 North America Hard Seltzer Market Size & Volume Forecast By Distribution Channel
9.10.1 Off-trade
9.10.2 On-trade
9.11 Basis Point Share (BPS) Analysis By Distribution Channel
9.12 Absolute $ Opportunity Assessment By Distribution Channel
9.13 Market Attractiveness Analysis By Distribution Channel
Chapter 10 Europe Hard Seltzer Analysis and Forecast
10.1 Introduction
10.2 Europe Hard Seltzer Market Size Forecast by Country
10.2.1 Germany
10.2.2 France
10.2.3 U.K.
10.2.4 Rest of Europe
10.3 Basis Point Share (BPS) Analysis by Country
10.4 Absolute $ Opportunity Assessment by Country
10.5 Market Attractiveness Analysis by Country
10.6 Europe Hard Seltzer Market Size & Volume Forecast By ABV Content
10.6.1 1.0-4.9%
10.6.2 5.0-6.9%
10.6.3 More than 6.9%
10.7 Basis Point Share (BPS) Analysis By ABV Content
10.8 Absolute $ Opportunity Assessment By ABV Content
10.9 Market Attractiveness Analysis By ABV Content
10.10 Europe Hard Seltzer Market Size & Volume Forecast By Distribution Channel
10.10.1 Off-trade
10.10.2 On-trade
10.11 Basis Point Share (BPS) Analysis By Distribution Channel
10.12 Absolute $ Opportunity Assessment By Distribution Channel
10.13 Market Attractiveness Analysis By Distribution Channel
Chapter 11 Asia Pacific Hard Seltzer Analysis and Forecast
11.1 Introduction
11.2 Asia Pacific Hard Seltzer Market Size Forecast by Country
11.2.1 China
11.2.2 Japan
11.2.3 South Korea
11.2.4 Oceania
11.2.5 Rest of Asia Pacific (APAC)
11.3 Basis Point Share (BPS) Analysis by Country
11.4 Absolute $ Opportunity Assessment by Country
11.5 Market Attractiveness Analysis by Country
11.6 Asia Pacific Hard Seltzer Market Size & Volume Forecast By ABV Content
11.6.1 1.0-4.9%
11.6.2 5.0-6.9%
11.6.3 More than 6.9%
11.7 Basis Point Share (BPS) Analysis By ABV Content
11.8 Absolute $ Opportunity Assessment By ABV Content
11.9 Market Attractiveness Analysis By ABV Content
11.10 Asia Pacific Hard Seltzer Market Size & Volume Forecast By Distribution Channel
11.10.1 Off-trade
11.10.2 On-trade
11.11 Basis Point Share (BPS) Analysis By Distribution Channel
11.12 Absolute $ Opportunity Assessment By Distribution Channel
11.13 Market Attractiveness Analysis By Distribution Channel
Chapter 12 Latin America and Middle East & Africa (LAMEA) Hard Seltzer Analysis and Forecast
12.1 Introduction
12.2 Latin America and Middle East & Africa (LAMEA) Hard Seltzer Market Size Forecast by Country
12.2.1 Brazil
12.2.2 Mexico
12.2.3 GCC
12.2.4 Rest of Latin America and Middle East & Africa (LAMEA)
12.3 Basis Point Share (BPS) Analysis by Country
12.4 Absolute $ Opportunity Assessment by Country
12.5 Market Attractiveness Analysis by Country
12.6 Latin America and Middle East & Africa (LAMEA) Hard Seltzer Market Size & Volume Forecast By ABV Content
12.6.1 1.0-4.9%
12.6.2 5.0-6.9%
12.6.3 More than 6.9%
12.7 Basis Point Share (BPS) Analysis By ABV Content
12.8 Absolute $ Opportunity Assessment By ABV Content
12.9 Market Attractiveness Analysis By ABV Content
12.10 Latin America and Middle East & Africa (LAMEA) Hard Seltzer Market Size & Volume Forecast By Distribution Channel
12.10.1 Off-trade
12.10.2 On-trade
12.11 Basis Point Share (BPS) Analysis By Distribution Channel
12.12 Absolute $ Opportunity Assessment By Distribution Channel
12.13 Market Attractiveness Analysis By Distribution Channel
Chapter 13 Competition Landscape
13.1 Hard Seltzer Market: Competitive Dashboard
13.2 North America, Europe, Asia Pacific and Latin America and Middle East & Africa (LAMEA) Hard Seltzer Market: Market Share Analysis, 2019
13.3 Company Profiles (Details – Overview, Financials, Developments, Strategy)
13.3.1 Anheuser-Busch Companies, LLC.
13.3.2 Barefoot Cellars
13.3.3 Blue Marble
13.3.4 Ficks & Co
13.3.5 HARD SELTZER BEVERAGE COMPANY, LLC
13.3.6 HIGH NOON SPIRITS COMPANY
13.3.7 Kona Brewing Co.
13.3.8 Lift Bridge Brewing Co.
13.3.9 Mark Anthony Brands International
13.3.10 Mass Bay Brewing Co. (Arctic Chill)
13.3.11 Diageo
13.3.12 Future Proof Brands LLC
13.3.13 Nude Beverages