Hard seltzer market to reach $57.34bn by 2030
The global hard seltzer market size is expected to reach $57.34 billion by 2030, registering a CAGR of 22.9%, according to a new report by Grand View Research, Inc.
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 due to the rising preference for low-calorie and low-sugar alternative alcoholic drinks over traditional alcoholic beverages among the health-conscious demographics across the world.
Key Insights & Findings from the report:
- Hard seltzer with 1.0% to 4.9% ABV content is projected to register the fastest CAGR.
- The growth can be credited to the high demand for low-alcoholic beverages among millennials and Gen Z consumers.
- The on-trade channel is anticipated to register a CAGR of more than 23% from 2022 to 2030 due to the rising demand through these channels.
- The rest of the World (RoW) is expected to be the fastest-growing market during the forecast period.
- This growth can be credited to the increasing product consumption in countries, such as China, Australia, New Zealand, and India.
Hard seltzer flavours, such as citrus and other fruity flavours, are gaining popularity among consumers.
The rising adoption of new flavours among consumers is likely to provide opportunities to the players operating in this market.
For instance, in March 2021 Stewarts Enterprises launched Stewart’s Spiked Seltzer, a line of low-calorie hard seltzers in three flavours, namely Root Beer, Orange Cream, and Black Cherry, to expand in the northeast US Hard seltzer with 5.0% to 6.9% ABV content held the largest revenue share in 2021 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 America region, are driving the growth of this segment. The off-trade segment accounted for a majority of the share in 2021.
The increasing availability of such products at Walmart, Target, Costco, and Tesco among others has helped in driving the product sales through off-trade channels.
Furthermore, the closure of on-trade distribution channels due to the outbreak of COVID-19 has also boosted product sale through off-trade channels.
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., Constellation Brands, Inc., and Constellation Brands, Inc.