San Francisco, 07 February 2024: The Report Hard Seltzer Market Size, Share & Trends Analysis Report By ABV Content, By Packaging Type, By Distribution Chanel (Off-trade, On-trade), By Flavor, By Region, And Segment Forecasts, 2024 - 2030

The global hard seltzer market is anticipated to reach USD 60.16 billion by 2030 and it is projected to grow at a CAGR of 8.5% from 2024 to 2030, 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 as low-calorie and low-sugar alternative alcoholic drinks to traditional alcoholic beverages among health-conscious demographics across the world. Hard seltzer flavors, such as citrus and other fruity flavors, are gaining rapid traction among consumers. The rising adoption of new flavors among consumers is likely to provide opportunities to the players operating in this market.

An example of this trend can be seen in March 2021 when Stewarts Enterprises introduced Stewart's Spiked Seltzer, a range of low-calorie hard seltzers available in three flavors: Root Beer, Black Cherry, and Orange Cream, aiming to expand their market presence in the northeast U.S. Among hard seltzers, those with an alcohol by volume (ABV) content ranging from 5.0% to 6.9% held the largest market share in 2021 and are expected to maintain their dominance throughout the forecast period. The considerable consumption and wide availability of this particular category of hard seltzers, particularly in the North American region, are propelling the growth of this segment. In 2021, the off-trade segment emerged as a dominant contributor to global revenue, forming a significant portion of the market.

The wider availability of hard seltzer products in major retailers like Walmart, Target, Costco, Tesco, and others has played a crucial role in driving sales through the off-trade channel. In addition, the temporary closure of the on-trade channel during the COVID-19 pandemic has further accelerated sales through the off-trade channel. The global 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.

The surge in market demand for low-alcohol content beverages among millennials and the younger generation is propelled by their growing popularity. In addition, consumers' inclination towards reducing alcohol consumption and exploring the concept of being "sober-curious" has contributed to the heightened demand for low-alcoholic beverages. The COVID-19 pandemic has had a profound effect on the consumption habits of alcoholic beverages, with consumers shifting their preferences from high alcohol content to low alcohol content due to an increased focus on health and well-being. During the pandemic, the sales of hard seltzer experienced a substantial increase through e-commerce platforms owing to global stay-at-home orders. 

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Alcohol delivery applications like Drizly and Minibar witnessed a significant surge in orders during February and March 2023, with the total order costs surpassing the usual amount by over 20%. 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 2024, 52% of consumers surveyed were trying to reduce their alcohol consumption.

Hard Seltzer Market Report Highlights

• Hard seltzers with ABV content of 5.0% to 6.9% accounted for a share of 51.8% of the global revenues in 2023. The idea of moderation is a booming trend, not just a fad, especially in the U.S., which is driving the growth of this segment.
• The metal cans segment dominated the market, having accounted for a revenue share of over 75% in 2023. This can be attributed to the convenience and portability they offer making them an ideal packaging option for ready-to-drink beverages like hard seltzers.
• The off-trade sales segment accounted for a share of over 70% of the global revenues in 2023. The segment includes all retail outlets, such as hypermarkets, supermarkets, convenience stores, mini markets, and wine & spirit shops
• The flavored hard seltzer market accounted for a share of over 80% of the global revenues in 2023. Consumer preferences have shifted towards lighter and low-calorie alcoholic beverages.
• The North America hard seltzer market held a share of around 56% of the global revenues in 2023. The region has been witnessing high demand, especially from young consumers. Key manufacturers are promoting their products in innovative ways.

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 the sales of the product 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 diets. 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.

The flavored hard seltzer market accounted for a share of over 80% of the global revenues in 2023. Consumer preferences have shifted towards lighter and low-calorie alcoholic beverages. Flavored hard seltzers align with these preferences as they offer a refreshing, low-calorie, and low-sugar alternative to traditional alcoholic beverages like beer or cocktails. Consumers seeking healthier options or those looking for variety have embraced flavored hard seltzers. Flavored hard seltzers provide a wide range of flavors including Black Cherry, lime, and mango among others, which offers consumers a diverse and enjoyable drinking experience.

The availability of various fruit flavors, Black Cherry blends, and even unique combinations appeals to consumers who appreciate variety and experimentation. The ability to cater to different taste preferences has contributed to the growth of this segment. Classic or unflavored hard seltzers are projected to grow at a CAGR of 19.4% during the forecast period. Unflavored or classic hard seltzers appeal to consumers who prefer simplicity and versatility in their beverage choices. These beverages provide a clean and straightforward flavor profile without added fruit or flavorings.

Hard Seltzer Market Report Scope

They can be enjoyed on their own or used as a base for creating personalized cocktails by adding mixers or garnishes according to individual preferences. Unflavored hard seltzers are often marketed as low-calorie and low-sugar alternatives to traditional alcoholic beverages. With increasing health consciousness among consumers, these beverages align with the trend toward healthier choices. Unflavored hard seltzers cater to individuals seeking a lighter alcoholic option while minimizing calorie and sugar intake.

Similarly, in December 2023, White Claw, a brand known for its hard seltzers, launched a 0% alcohol version in the U.S. The brand identifies a shift in drinking culture, with a majority of people, especially Gen Z and Millennials, showing interest in exploring a sober or damp lifestyle. White Claw promises that their 0% Alcohol seltzers will have the taste and complexity of alcoholic beverages, achieved through years of research and proprietary plant-based sweetener technology. The brand aims to provide better non-alcoholic options that have flavors consumers like, are from familiar brands, contain electrolytes, and are low in sugar.

Brands have actively capitalized on this social media buzz by designing visually appealing hard seltzer packaging to enhance user engagement and by collaborating with influencers and consumers. Research conducted by Bank of America reveals a six-fold increase in Instagram conversations about hard seltzer in January 2020 compared to January 2024.

List of Key Players in the Hard Seltzer Market

• Mark Anthony Brands International
• Carlsberg Group
• 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.