Hard seltzer is a type of light alcoholic beverages that is typically made from fermented sparkling water and alcohol. Common flavors include citrus fruits like lemon and lime. Hard seltzer has lower alcohol content and calories as compared to beer and flavored malt beverages. There has been significant demand for ready-to-drink, low alcohol beverages with fewer calories. Hard seltzer provides the alcohol experience along with a healthier alternative.

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 Dynamics:
Rising demand among health-conscious consumers is the primary driver driving the growth of the global hard seltzer market. Hard seltzer has lower alcohol and calories content as compared to beer and flavored alcohol beverages. They provide similar alcohol experience with fewer calories which appeal to health-conscious population. According to a survey, 32% of U.S. drinkers are increasing their consumption of low- and no- alcohol beverages. Additionally, millennial population have higher preference for ready-to-drink beverages that fits their active lifestyle. They are willing to pay premium for quality and healthy beverages. Furthermore, hard seltzer eliminates sugar content thus appealing to diabetic population as well.

SWOT Analysis
Strength: Hard Seltzer Market Size has gained immense popularity among health-conscious consumers and millennials as it has low-calorie and low-alcohol content. It is considered a healthier alcoholic beverage alternative to beer and sugary mixed drinks. The market has witnessed significant innovation with varied flavor offerings. This wide product portfolio caters to evolving consumer preferences.
Weakness: Being a relatively new product category, consumer awareness about hard seltzer is still limited in some markets. High marketing and promotion costs are incurred to create brand visibility and educate consumers. Supply chain disruptions due to the Covid-19 pandemic temporarily hindered production capacity expansion plans of some manufacturers.
Opportunity: Emerging markets like Asia Pacific and Latin America present lucrative growth prospects as consumers adopt western drinking habits. Product launches targeting specific demographic segments like Gen Z can further propel market growth. Collaborations with restaurants, bars and pubs provide opportunities to promote hard seltzer consumption occasions outside homes.
Threats: Stringent regulations pertaining to alcoholic drinks may pose challenges. Increased competition from alternative low-calorie/low-sugar beverages threatens category leadership. High commodity costs of raw materials required for production may squeeze profit margins.

Key Takeaways

The global hard seltzer market is expected to witness high growth over the forecast period.

Regional analysis comprises: North America currently dominates the market and is expected to maintain its leading position throughout the forecast period. Evolving lifestyle and health trends have driven early adoption of the category among US consumers.

Key players related content comprises: 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, Designs for Health. Hard seltzer witnessed exponential growth during the Covid-19 pandemic as consumers shifted from bars/restaurants to at-home drinking occasions. The category provides lucrative prospects for retailers, merchants, and distributors to expand their beverage portfolio. Companies are differentiating product lines through varied organic formulations, potencies, tasting notes and sustainable packaging to target niche consumer segments. However, as more producers enter the market, pricing pressures and promotional spends are expected to rise.

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