The hard seltzer market has witnessed significant growth in recent years on account of the rising health consciousness among consumers. Hard seltzers are made from sparkling water, alcohol, and natural flavors providing a lower calorie and lower carb alternative to beer. Typically containing between 90-150 calories per can, hard seltzers offer consumers a more refreshing alcoholic beverage experience as compared to beer and sugary cocktails. The market has also significantly benefitted from the new product launches by established beer companies looking to cash in on the growing demand.
Key Takeaways
Key players operating in the hard seltzer market include Hindalco Industries Ltd., Arconic Corp., Norsk Hydro ASA, Constellium N.V., Kaiser Aluminum, Alupco, Gulf Extrusions Co. LLC, Balexo Bahrain Aluminium Extrusion Company, and QALEX. These players are focusing on expanding their product portfolios and offerings to cater to the growing consumer demand.
The Hard Seltzer Market Demand provides numerous opportunities for new entrants and existing players in terms of new product innovation and flavor offerings. With competition intensifying, companies are investing heavily in R&D to develop unique recipes and flavors. The growth in e-commerce is also allowing brands to directly reach consumers and target new demographics.
North America currently dominates the global hard seltzer market. However, regions such as Europe and Asia Pacific are witnessing rapid growth on account of changing lifestyles and expanding consumer base. Many global hard seltzer brands are exploring opportunities in international markets through partnerships with local distributors.
Market Drivers
The rising health awareness among millennial and Gen Z consumers has been a key driver for the hard seltzer market. Hard seltzers are viewed as a healthier alcoholic drink compared to beer and sugary cocktails. They are lower in calories, carbs and sugars making them appealing to consumers who prefer maintaining their fitness levels. The social media boom has further popularized the concept of ‘healthy drinking’. This along with aggressive marketing campaigns by big brewers has propelled market growth over the past few years.
PEST Analysis
Political: The hard seltzer market is regulated by alcohol control laws and regulations in countries worldwide. Production and marketing of alcoholic beverages require special permits and licenses from respective authorities. Alcoholic beverage regulations can influence market growth.
Economic: Rising disposable incomes and growing spending capacities of consumers have boosted demand for premium and healthy alcoholic beverages like hard seltzer. The economic outlook impacts consumer sentiments and purchasing decisions in the hard seltzer industry.
Social: Health-consciousness and changing lifestyle preferences have increased interest in low-calorie, gluten-free beverages with natural flavors. Hard seltzers are viewed as a refreshing alternative to beer and cocktails for socializing.
Technological: Technology facilitates efficient manufacturing processes, product customization, and direct-to-consumer marketing activities in the hard seltzer industry. Advancements in carbonation methods help maintain clarity and effervescence in hard seltzers.
The North American region currently accounts for the largest share of the global hard seltzer market in terms of value. The United States is the major national market, driven by rising popularity of the beverage format among Millennials and Gen Z consumers. The Asia Pacific region is projected to be the fastest growing market for hard seltzer during the forecast period, led by countries such as China, Japan and Australia. Growing exposure to Western lifestyle trends and increasing experimentation with innovative alcohol categories bode well for regional market expansion.
Get more insights on Hard Seltzer Market
About Author:
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
(LinkedIn: https://www.linkedin.com/in/vaagisha-singh-8080b91)
Comments
0 comment