Hard Seltzer Market Size, Share & Trends Report

Hard Seltzer Market Size, Share & Trends Analysis Report By ABV Content (1.0% To 4.9%, 5.0% To 6.9%), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-805-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global hard seltzer market size was valued at USD 4.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2020 to 2027. Rising demand for drinks that are gluten-free and low ABV content in the developed economies including the U.S., Australia, and South Korea, has created a great opportunity for the market. Additionally, the increasing number of manufacturers has been entering the market creating availability of a large variety of products. The manufacturers have been running marketing campaigns to create a wider penetration. A major reason behind the increasing adoption of hard seltzer is the reduced content of calories and carbohydrates in comparison to beers and other mixed drinks.

U.S. hard seltzer market size

A blend of carbonated water, alcohol, and fruit flavoring contain about 100 calories and 2 grams of carbohydrates per 12 ounce can, compared to 150 calories and 15 to 30 grams of carbohydrates in a similar-sized beer. These products are expected to be one of the favorite choices among people who prefer to drink alcoholic beverages while restricting their carbohydrate or calorie intake. Furthermore, their use of fermented sugars, rather than fermented grains, makes them gluten-free making them suitable for consumers suffering from a gluten allergy.

The product enjoys a niche market and multiple product launches have played a crucial role in the growing popularity of the product. Kopparberg, a Swedish manufacturer launched a range of hard seltzer drinks in the U.K. in May 2020. The product has new packaging and design which is based on iridescent graphic bubbles. These are inspired by the sparkling water that forms the product’s core and reflects the refreshing lightness of seltzers. The bold colorfulness represents the full fruit flavor of the product.

ABV Content Insights

Hard seltzer with ABV content of 5.0% to 6.9% contributed a share of more than 45.0% in the global revenue in 2019. Popular brands offering hard seltzers with the aforementioned alcohol content include Arctic Summer, Bluemarble Pure Love, Brizzy, Bud Light, Canteen, Cutwater Spirits, Ficks, Kona Spiked, Lift Bridge, Pompette, Seekout, Truly, Vive, White Claw, Wild Basin, and NATRAL. CANTEEN’s hard seltzer is made using real vodka with sparkling water and all-natural flavors. It was launched in March 2020.

Hard seltzer with ABV content of 1.0% to 4.9% is expected to register the fastest growth rate during forecast years with a CAGR of 16.6% from 2020 to 2027. Major brands offering these products include Barefoot, Bon and Viv, Two Roads, Henry's, High Noon, Narwater, Omission, Press, Pulp Culture, Smirnoff, Willie's Superbrew, and Crook and Marker.

Distribution Channel Insights

Off-trade contributed a share of more than 55.8% of the global revenue in the market for hard seltzer in 2019. Hard seltzers are being increasingly sold through hypermarkets, supermarkets, convenience stores, mini markets, kiosks, wines, and spirits shops. Online channels have also been rapidly offering alcoholic drinks including hard seltzers. In May 2020, Taffer’s Mixologist partnered with an e-commerce platform, Thirstie, which provides DTC sales for alcohol brands, in order to allow the customers to buy hard seltzer through online platforms.

Global hard seltzer market share

On-trade is expected to register the fastest growth during forecast years with a CAGR of 16.5% in the hard seltzer market from 2020 to 2027. An increasing number of consumers drinking hard seltzers in bars and restaurants is creating a massive opportunity for the product. Hard seltzers have disrupted the U.S. on-premise space dramatically. Many consumers are actively choosing seltzers over their normal drink of choice when they are out of the house instead of beer and cocktail.          

Regional Insights

Americas has been registered to make the largest contribution in the market of over 70.0% in 2019. Product launches have played a crucial role in the wider penetration of the product in the region. For instance, California-based Sudwerk Brewing Co., launched a product named “Life Is Hard Seltzer” in May 2020. The product is available in various flavors including black cherry, grapefruit flavors, and passionfruit. These products are fermented using sugar and yeast and then flavored with natural fruit concentrates. The company sells these products in the preposition of four 16-ounce cans in most grocery stores across the U.S for USD 13. Along with choosing a single flavor, a mix of all three flavors is available in a combo pack of 24 cans that is priced at USD 75.0.

Asia Pacific is the fastest-growing market for hard seltzer and is expected to witness the fastest CAGR of 17.0% from 2020 to 2027. The industry is expected to witness strong potential as a result of increasing demand in developed economies including South Korea and Australia. As a result, companies have been launching new products to tap their buyers. For instance, in May 2020, Fellr, an Australian brand launched two locally brewed alcoholic seltzers flavors in Lime and Soda and Dry and Lime in Australia.

Key Companies & Market Share Insights

The market is expected to remain one of the potential investment zones for alcoholic beverages manufacturers on account of rising demand for low content alcoholic beverages among millennials. Over the past few years, it has been noticed that product launches have been played a crucial role in widening the penetration of the product. In June 2019, Two Brooks, a hard seltzer company launched its products in the U.K. The company sells its products in packs of 250mL available in three flavors including Passion Star, Mango Hi-Ball, and Lime Cooler. These products are free from artificial preservatives, flavorings, or sweeteners, which ensures that it is a 100.0% natural product. Some of the prominent players in the hard seltzer market include:

  • Anheuser-Busch InBev

  • Barefoot Cellars

  • Blue Marble

  • Boathouse Beverage Co.

  • Future Proof Brands LLC

  • CUTWATER SPIRITS

  • Ficks & Co.

  • HIGH NOON SPIRITS COMPANY

  • Kona Brewing Co,

  • Lift Bridge Brewing Co.

Hard Seltzer Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 4.5 billion

Revenue forecast in 2027

USD 14.5 billion

Growth Rate

CAGR of 16.2% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

ABV content, distribution channel, region

Regional scope

Americas; Europe, Middle East & Africa (EMEA); Asia Pacific

Country scope

U.S.; Canada; Brazil; U.K.; China; South Korea; Australia

Key companies profiled

Anheuser-Busch InBev; Barefoot Cellars; Blue Marble; Boathouse Beverage Co.; Future Proof Brands LLC; CUTWATER SPIRITS; Ficks & Co.; HIGH NOON SPIRITS COMPANY; Kona Brewing Co.; Lift Bridge Brewing Co.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global hard seltzer market report on the basis of ABV content, distribution channel, and region.

  • ABV Content Outlook (Revenue, USD Million, 2016 - 2027)

    • 1.0% to 4.9%

    • 5.0% to 6.9%

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

    • On-trade

    • Off-trade

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • Americas

      • The U.S.

      • Canada

      • Brazil

    • Europe, Middle East & Africa

      • The U.K.

    • Asia Pacific

      • China

      • Australia

      • South Korea

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