Hard Seltzer Market Size, Share & Trends Analysis Report By ABV Content (1.0 To 4.9%, 5.0 To 6.9%), By Distribution Channel (Off-trade, On-trade), By Region (Asia Pacific, North America), And Segment Forecasts, 2022 - 2030

Report Overview

The global hard seltzer market size was valued at USD 8.95 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030. The rising adoption of low alcohol content beverages among millennials and the younger generation is driving the product demand. Moreover, consumers are trying to reduce their alcohol consumption or becoming ‘sober-curious’, which has further led to an increase in the demand for low-alcoholic beverages. The outbreak of the COVID-19 pandemic has drastically impacted the consumption pattern of alcoholic beverages from high alcohol content to low alcohol content due to the rising health consciousness among the consumers. The sale of hard seltzer during the pandemic rose significantly through e-commerce channels due to stay-at-home orders around the world. Alcohol delivery apps, such as Drizly and Minibar, reported a significant jump in orders during February and March 2020, with the total costs per order more than 20% higher than usual.

Hard seltzers, with their low-calorie and low-sugar profiles, appeal to consumers who are conscious of their dietary choices and are seeking refreshing alternatives to traditional alcoholic beverages. This target market includes individuals who prioritize wellness and are looking for alcoholic options that align with their healthier lifestyle choices. The rise in health consciousness and the desire for beverages that offer a balance between taste and wellness are significant drivers for the target market of hard seltzers.

According to a survey by IWSR, as of 2019, 52% of consumers surveyed were trying to reduce their alcohol consumption. Moreover, hard seltzer contains low amounts of alcohol, ranging from 1%-8% ABV, and is low-calorie in comparison to beer, with most versions having around 100 calories. Thus, moderate drinkers prefer to consume hard seltzer as a substitute for beer. These properties are anticipated to boost product sales across the globe over the forecast period. Many consumers are looking for reduced sugar, low-calorie, organic, and healthy halo beverages that not only fulfill their demands but also align with their keto and vegan diet. Many manufacturers have been offering products in this category.

For instance, Mass Bay Brewing Co.’s hard seltzers contain 100 calories and 3 grams of carbohydrates. These are sugar- and gluten-free as well as considered vegan and keto-friendly. In January 2021 Anheuser-Busch InBev launched Michelob Ultra Organic Seltzer in three flavors including spicy pineapple, peach pear, and cucumber lime with zero added sugars. The hard seltzer category has seen immense expansion due to its booming social media presence and pop culture buzz. Brands can be seen grabbing a piece of the social media buzz by creating Instagram-worthy hard seltzer packaging to increase engagement and partnering with influencers and consumers. According to research conducted by Bank of America, there were six times as many conversations about hard seltzer on Instagram in January 2020 as compared to January 2019.

ABV Content Insights

On the basis of ABV content, the global market has been further segmented into 1.0% to 4.9%, 5.0% to 6.9%, and others. The 5.0% to 6.9% ABV content segment held the largest market share of more than 51.5% in 2021 and is expected to maintain dominance over the forecast period. The idea of moderation is a booming trend, especially in the U.S., which is driving the growth of this segment. Many players operating in the alcohol industry have been expanding their product range of low-alcohol beverages. However, the 1.0% to 4.9% ABV content segment is projected to register the fastest CAGR during the forecast period of 23.9% from 2022 to 2030.

Owing to the rising consumer focus toward health and wellness, people of all ages are trying to cut down on alcohol. Over the last two years, there has been a significant increase in online discussions about low- and no-alcohol drinking and a noteworthy decrease in conversations about casual and heavy drinking occasions. Some of the brands offering these drinks with 1.0% to 4.9% of ABV content include Corona, BON V!V Spiked, Smirnoff, Night Shift Hoot, Willie’s Superbrew, Coors, San Juan Spiked, Crook & Marker Spiked Seltzer, and Funky Buddha Premium Hard Seltzer.

Distribution Channel Insights

On the basis of distribution channels, the global market has been further divided into off-trade and on-trade. Off-tradewas the largest distribution channel segment and accounted for a revenue share of around70.0% in 2021.The segment includes all retail outlets, such as hypermarkets, supermarkets, convenience stores, mini markets, and wine & spirit shops. People prefer these stores as they offer huge discounts and offers. Furthermore, the majority of the brands launch their products through big chains of supermarkets, such as Walmart, Target, and others, to reach maximum customers.

The on-trade distribution channel segment is anticipated to register the fastest growth rate of more than 23.5% from 2022 to 2030. The on-trade distribution channels include outlets, such as bars, clubs, hotels, and lounges. The global COVID-19 pandemic has led to lockdowns and shutdowns across the world. This has led to a reduction in sales from these channels. However, with relaxed norms and people focusing on socializing, get-togethers, and parties, product sales are likely to increase through on-trade channels.

Regional Insights

North America accounted for the largest revenue share of more than 55.5% in 2021. The region has been witnessing high demand, especially from young consumers. Key manufacturers are promoting their products in innovative ways. For instance, White Claw, a popular brand manufactured by Vancouver-based Mark Anthony Brands, received a significant sales boost courtesy of its strong social media presence including internet memes and YouTube videos in June 2019.

The U.S. hard seltzer market is expected to witness a CAGR of 21.7% during the forecast period, driven by strong consumer demand and a diverse range of market participants. The success of brands like White Claw serves as a prominent example, while other players, both established and emerging, compete for market share.

Furthermore, the mass appeal of these drinks has made them acceptable to both male and female consumers, which, in turn, is likely to further increase the consumption of hard seltzer in the coming years.

The European hard seltzer market is expected to experience a significant growth rate of 48.2% during the forecast period. This growth can be attributed to the emergence of numerous new brands in the U.K. and Germany hard seltzer market, which has intensified competition among industry players. In response to the rising demand for hard seltzers, established alcoholic beverage companies and craft breweries are entering the market by launching their own hard seltzer products. This strategic move allows them to tap into the expanding consumer base and capitalize on the growing popularity of hard seltzers in Europe.

The health consciousness of U.K. consumers has reached new heights, with the challenge of the Covid-19 pandemic further amplifying this trend. Currently, 68% of UK consumers actively strive to lead a healthy lifestyle, with two out of three individuals taking precautions to safeguard their long-term health. These precautions include making dietary changes and adjusting exercise routines.

Against this backdrop, consumers are increasingly inclined to choose alcoholic beverages that are lighter in nature and lower in calories. Due to this shift in preferences, the U.K. hard seltzer market is expected to witness a CAGR of 60.4% over the forecast of 2022 to 2030.

The rest of the world is the fastest-growing market from 2022 to 2030. Countries like Australia, New Zealand, and China contribute most of the share in the rest of the world segment. Rising disposable income, health consciousness, and easy availability of international brands have led to increased consumption of such products in these countries. 1% to 4.9% ABV segment content is much more popular in Asian countries, thus manufacturers are keen to capture this market by launching new products. For instance, in May 2020, United Breweries and Carlton launched Actual Vodka Seltzer with 4.2% ABV in two flavors-Pure and Lime-made with 100% natural ingredients to attract the growing vegan population in Australia.

Key Companies & Market Share Insights

The market is still in its nascent stage, where new entrants are launching products and other key players in the alcoholic beverages market are planning to launch their products due to the increasing popularity of these low-alcohol content beverages across the globe. Nowadays, drinks with natural ingredients, low-calorie content, and health claims appeal the most to consumers, thus, manufacturers are focused on launching products with these attributes. For instance, in April 2021, HEINEKEN launched a new hard seltzer brand, Pure Piraña, in Europe and would be available in Austria, Ireland, the Netherlands, Portugal, and Spain.

It is crafted with carbonated purified water and natural flavorings with 4.5% alcohol and is available in three flavors, namely Lemon Lime, Red Berries, and Grapefruit. In May 2020, Kopparberg Brewery launched a hard seltzer in the U.K. that claims to be vegan-friendly and gluten-free, with a 5% ABV content. It is available in mixed berries, black cherry, and passion fruit flavors. In April 2021, Mark Anthony Brands, White Claw, launched its first global marketing campaign in collaboration with a diverse group of creators from across the U.S. and around the world to capture unscripted, momentary content inspired by the feeling White Claw evokes. Some of the key players operating in the global hard seltzer 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.

Hard Seltzer Market Report Scope

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 2017 to 2030. 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, 2017 - 2030)

  • 1.0% to 4.9%

  • 5.0% to 6.9%

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Off-trade

  • On-trade

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • The Netherlands

    • Ireland

  • Rest of the World (RoW)

    • Australia

    • China

    • New Zealand