Hard seltzer market to reach $49.4bn by 2028
The global hard seltzer market size is expected to reach $49.4 billion by 2028 and is expected to expand at a CAGR of 31.4% from 2021 to 2028, according to a report on Reports And Markets.
Shifting consumer preference for low alcohol content beverages especially among millennials and the working-class population is expected to be a key factor contributing to the growth of the market.
Hard seltzers are gaining popularity as low-calorie and low-sugar alternative alcoholic drinks to traditional alcoholic beverages among the health-conscious demographics across the world.
Hard seltzer flavours such as citrus and other fruity flavours are gaining rapid traction among consumers.
The rising adoption of new flavours among consumers is likely to provide opportunities to the players operating in this market.
Hard seltzer with 5.0% to 6.9% ABV content held the largest segment share in 2020 and is expected to maintain dominance over the forecast period.
The high consumption and wide availability of hard seltzer of this category, especially in the North American region, are driving the growth of this segment.
The off-trade segment contributed a majority of the share to become a larger division in the global revenue in 2020.
The increasing availability of such products at Walmart, Target, Costco, and Tesco among others has helped in driving the sale of hard seltzer through the off-trade channel.
Further, the closure of the on-trade channel due to the outbreak of COVID-19 has also boosted sales through the off-trade channel.
The market is consolidated in the US with a major share occupied by Mark Anthony Brands International and The Boston Beer Company.
However, it is fragmented in other regions/countries owing to the presence of a large number of players including Mark Anthony Brands International, Anheuser-Busch InBev, The Coca Cola Company, Diageo plc, Heineken N.V., and Constellation Brands, Inc. among others.
Hard Seltzer Market Report Highlights
- The hard seltzer with 1.0% to 4.9% ABV content is projected to register the fastest growth rate over the forecast period owing to increasing demand for low-alcoholic beverages among millennials and Gen Z
- The on-trade channel segment is anticipated to register a CAGR of 34.0% from 2021 to 2028 due to the rising demand for it instead of beer and cocktails in pubs and bars
- The Rest of the World (RoW) is expected to register the fastest growth during the forecast period. Countries such as China, Australia, New Zealand, India, and UAE among others are expected to see a rapid surge in the consumption of hard seltzer