SAN FRANCISCO, Dec. 7, 2021 /PRNewswire/ -- The globalhard seltzer market size is expected to reach USD 49.4 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 31.4% from 2021 to 2028. 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 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.
Key Insights & Findings from the report:
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.
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 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 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.
Grand View Research has segmented the global hard seltzer market on the basis of ABV content, distribution channel, and region:
Hard Seltzer ABV Content Outlook (Revenue, USD Million, 2016 - 2028)
1.0% to 4.9%
5.0% to 6.9%
Hard Seltzer Distribution channel Outlook (Revenue, USD Million, 2016 - 2028)
Hard Seltzer Regional Outlook (Revenue, USD Million, 2016 - 2028)
Craft Spirits Market– The global craft spirits market size was valued at USD 6.13 billion in 2016 and is expected to witness a growth at a CAGR of 33.4% in the coming years. Millennial population with considerable purchasing power is expected to drive the market.
Canned Alcoholic Beverages Market– The global canned alcoholic beverages market size was valued at USD 4.9 billion in 2020 and is expected to expand at a CAGR of 13.3% from 2021 to 2028. Products are gaining popularity among consumers since cans are more convenient, portable, and travel-friendly.
Wine Market– The global wine market size was valued at USD 417.85 billion in 2020 and is expected to expand at a CAGR of 6.4% from 2021 to 2028. The rising adoption of wine among all age groups from the young generation to the old age population across the globe is the key factor for market growth.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.