July 24, 2024
Hard Seltzer Market

The Rapid Growth Of The Hard Seltzer Market Driven By Innovation And Product Diversification

Hard Seltzers have gained immense popularity in recent years due to their low alcohol and calorie content and refreshing flavor profiles. Hard seltzers contain water, alcohol, and natural flavors with no added sugar. Their growing demand from health-conscious consumers and millennials is driving innovation in new product offerings which come in innovative flavors and healthier ingredients. Hard seltzers have diversified into different flavors including mango, lemon-lime, strawberry, ginger beer, grapefruit, and more. They have also been launched in different ABV and packaging formats including aluminum bottles and cans suited for on-the-go consumption.

The global Hard Seltzer Market is estimated to be valued at US$ 6.64 Bn in 2023 and is expected to exhibit a CAGR of 5.6%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

One of the key trends being witnessed in the hard seltzer market is the growing focus on innovations and new product launches. Popular brands have diversified into ready-to-drink cocktails and launches with unique flavors. For instance, White Claw launched flavors like Blackwell rum drink in 2021. Another leading brand, Truly, introduced flavors like strawberry lemonade and blackberry. These innovative offerings have resonated well with consumers and driven market growth. The companies are also introducing different ABV varieties and package formats including 19.2-oz cans and bottles suited for solo enjoyment or on-the-go consumption occasions. This has further expanded the consumer base and augmented hard seltzer sales volumes over the past years.

Porter’s Analysis

Threat of new entrants: The growth of the hard seltzer market has attracted several new players. However, establishing brands and distribution channels remains a challenge for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, customer loyalty towards established brands provides some stability to players.
Bargaining power of suppliers: A few major companies dominate the supply of raw materials. This enables suppliers to exercise some control over prices.
Threat of new substitutes: Alternatives like beer, wine and flavored sparkling water provide competition. However, the health positioning of hard seltzers has afforded some protection against newer substitutes.
Competitive rivalry: The market sees intense competition amongst existing players. Companies compete on the basis of flavor innovation, variety, taste, and aggressive marketing campaigns.

Key Takeaways

The global Hard Seltzer Market Size is expected to witness high growth over the forecast period driven by rising health consciousness and demand for low-calorie alcoholic drinks, especially among millennials and Generation Z.

Regional analysis: North America currently dominates the global hard seltzer market accounting for over 50% value share. The U.S. represents the largest market owing to early adoption of the concept and strong marketing initiatives by players. Europe is also witnessing considerable growth backed by growing health awareness. Asia Pacific is expected to be the fastest-growing regional market with China, Japan and Australia being major revenue generators.

Key players: Key players operating in the hard seltzer market are Life Extension, Pure Encapsulations, Nutricost, BulkSupplements.com, Swanson Health Products, Douglas Laboratories, Thorne Research, NOW Foods, Seeking Health, Jarrow Formulas, Source Naturals, Vital Nutrients, Integrative Therapeutics, BioMatrix and Designs for Health. Players compete based on flavors, variety in taste and marketing initiatives to strengthen their product portfolio and brand presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it