The global hard seltzer market size is expected to reach $14.5 billion by 2027, expanding at a CAGR of 16.2%, according to a new report by Grand View Research, Inc.
The market is expected to experience substantial growth during the forecast period owing to the growing popularity of low content alcoholic beverages among the millennials in the developed economies including the U.S., Canada, and Australia. Furthermore, strong marketing campaigns by alcoholic drinks companies on such products is expected to have a positive impact on the industry.
Low ABV content of such products is expected to attract health-conscious consumers over the next few years. the study says.
On-trade is expected to register the fastest growth during forecast years with a CAGR of 16.5% from 2020 to 2027. An increasing number of consumers drinking hard seltzers in bars and restaurants is creating the rising opportunity
Asia Pacific is expected to register the fastest growth during forecast years with a CAGR of 17.0% from 2020 to 2027. A large number of manufacturers focusing on the Australian market is playing a crucial role in the growth of the market
North America dominated the market by contributing over 70.0% in the global revenue in 2019. The wide penetration of the product in the U.S., Canada, and Brazil is acting as a catalyst in creating dominance.
Products launched have played a crucial role in the growing penetration of hard seltzer. In June 2020, Tesco announced to launch dedicated hard seltzer. It will be distributed by Mark Anthony Brands. The launch makes a significant milestone for the category in the U.K. that has been turning into a hotspot for hard seltzer manufacturers.
In November 2019, AB InBev’s launched Mike’s Hard Sparkling Water in the U.K. The increasing demand for the product in the country is attributed to the increasing demand for healthier products with low calorie and sugar and clean labels which are still luxurious.
Similarly, in June 2020, Smirnoff Seltzer also entered the U.K. through various off-trade channels. The product is available in two flavors in the country including Smirnoff Seltzer Orange and Grapefruit, and Smirnoff Seltzer Raspberry and Rhubarb. The product is available in 250ml cans with ABV content of 4.7% and is priced at GBP 1.8 per can.