Hard Seltzer Global Market Opportunities and Strategies to 2032

This report describes and explains the hard seltzer market and covers 2017-2022, termed the historic period and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and the major economies within each region.

The global hard seltzer market reached a value of nearly $12,255.3 million in 2022, having increased at a compound annual growth rate (CAGR) of 18.8% since 2017. The market is expected to grow from $12,255.3 million in 2022 to $27,143.0 million in 2027 at a rate of 17.2%. The market is then expected to grow at a CAGR of 19.0% from 2027 and reach $64,771.2 million in 2032.

Growth in the historic period resulted from the rise in disposable income, the increased online sales of beverages, the growth in the tourism industry, and the advancements in brewing technology. Factors that negatively affected growth in the historic period were the impact of COVID-19 and the higher taxation policies.

Going forward, the rapid urbanization, the rising consumption of alcoholic drinks, the rising demand for gluten-free beverages, and the growing demand for keto and vegan diet will drive the market. Factors that could hinder the growth of the hard seltzer market in the future include the impact of the Russia-Ukraine war and the strict government regulations.

The hard seltzer market is segmented by type into ABV more than 5% and ABV less than 5%. The ABV more than 5% market was the largest segment of the hard seltzer market by type, accounting for $7,840.7 million or 64.0% of the total market in 2022. The ABV less than 5% market is expected to be the fastest-growing segment going forward at a CAGR of 18.1%.

The hard seltzer market is segmented by packaging into cans, glass, and other packaging. The cans market was the largest segment of the hard seltzer market by packaging, accounting for $7,999.0 million or 65.3% of the total market in 2022. The glass market is expected to be the fastest-growing segment going forward at a CAGR of 17.3%.

The hard seltzer market is segmented by distribution channel into off-trade and on-trade. The off-trade market was the largest segment of the hard seltzer market by distribution channel, accounting for $8,580.5 million or 70.0% of the total market in 2022. The on-trade market is expected to be the fastest-growing segment going forward at a CAGR of 18.3%.

The hard seltzer market is segmented by flavors into cherry, grapefruit, mango, lime, and other flavors. The cherry market was the largest segment of the hard seltzer market by flavors, accounting for $4,426.0 million or 36.1% of the total market in 2022. The other flavors market is expected to be the fastest-growing segment going forward at a CAGR of 18.2%.

North America was the largest region in the hard seltzer market, accounting for 51.3% of the global market in 2022. It was followed by Western Europe, Asia-Pacific, and other regions. Going forward, the fastest growing regions in the hard seltzer market will be Asia-Pacific and the Middle East, where growth will be at CAGRs of 20.2% and 18.6% respectively from 2022-2027.

The global hard seltzer market is highly concentrated, with a few players dominating the market. The top ten competitors in the market made up to 69.92% of the total market in 2022. Mark Anthony Group was the largest competitor with a 23.50% share of the market, followed by Anheuser-Busch InBev with 14.15%, The Boston Beer Company with 12.70%, Diageo plc with 8.66%, E. & J. Gallo Winery with 4.24%, Heineken N.V. with 3.20%, Molson Coors Beverage Company with 1.83%, Constellation Brands, Inc. with 1.52%, Kona Brewing Company with 0.08%, and San Juan Seltzer, Inc. with 0.05%.

The top opportunities in the hard seltzer market by type will arise in the ABV more than 5% market, which will gain $9,150.8 million of global annual sales by 2027. The top opportunities in the hard seltzer market by packaging will arise in the cans market, which will gain $9,742.8 million of global annual sales by 2027. The top opportunities in the hard seltzer market by distribution channel will arise in the off-trade market, which will gain $10,051.5 million of global annual sales by 2027. The top opportunities in the hard seltzer market by flavors will arise in the cherry market, which will gain $5,576.0 million of global annual sales by 2027. The hard seltzer market size will gain the most in the USA at $6,134.4 million.

Market-trend-based strategies for the hard seltzer market include offering natural ingredient-based hard seltzers, providing multiple flavor hard seltzers, a focus on expansion of stores or increasing product availability, a focus on product innovations, launch of innovative marketing campaigns, and a focus on strategic partnerships.

Player-adopted strategies in the hard seltzer industry include a focus on expanding production capacities to cater to the growing demand for the product category, a focus on developing alternate products portfolio through existing products line, a focus on expanding product reach and presence through tapping different distribution channels and touchpoints, a focus on expanding the market presence through the acquisition of high growth brands in fast growing categories, and a focus on increasing product offerings and expanding manufacturing capacities to cater to the growing demand for seltzer products.

To take advantage of the opportunities, the analyst recommends the hard seltzer companies to focus on natural ingredient-based hard seltzers, focus on product innovations, focus on multiple flavor hard seltzers, focus on cans and glass packaging, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, focus on expansion of stores, provide competitively priced offerings, focus on online marketing, focus on innovative marketing campaigns, and focus on urban population.