The global hard seltzer market size is expected to reach USD 49.4 billion by 2028 and is expected to expand at a CAGR of 31.4% from 2021 to 2028, according to a new report.
The “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 (North America, Europe, ROW), And Segment Forecasts, 2021 – 2028” report shows 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 become preferable to traditional alcoholic beverages among the health-conscious demographics across the world, the report notes. Hard seltzer flavors such as citrus and other fruity flavors are gaining rapid traction among consumers, inviting new players into the market.
For instance, in March 2021 Stewarts Enterprises launched Stewart’s Spiked Seltzer, a line of low-calorie hard seltzers in three flavors: Root Beer, Orange Cream, and Black Cherry, to expand in the northeast. U.S. Hard seltzers 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 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 U.S. 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 seltzerStay In Touch!