Hard seltzer refers to carbonated water infused with alcohol. It contains carbohydrates from added sugars or natural flavors, with around 100 calories per can. Hard seltzers offer a refreshing low-calorie drinking option compared to beers and are gluten-free. Growing health awareness among millennials and Gen Z has fueled the demand for light alcoholic beverages.

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 Opportunity:
The increasing demand among health-conscious consumers presents a major opportunity for the hard seltzer market. As consumers are becoming more aware about the ingredients and nutritional value of food and drinks, they prefer light alcoholic beverages that are low in sugar and carbs. Hard seltzers with their low-calorie nature and refreshing taste are increasingly appealing to young consumers who want to drink responsibly and healthily. Its gluten-free composition also makes it suitable for people with gluten intolerance or celiac disease. Beverage companies can leverage this growing demand by launching new flavored varieties and expanding the availability of hard seltzers across retail stores and bars. Emphasizing on the health benefits through marketing campaigns can help attract more conscious drinkers to this category.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the hard seltzer market has several large and established players. However, the market is growing at a fast pace attracting new local and global players.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have several product options from different brands at varied price points. However, brand loyalty and habit play a role in choices.
Bargaging power of suppliers: The hard seltzer market has consolidated supplier base for raw materials like alcohol, water and flavors. This grants existing suppliers moderate bargaining power over manufacturers.
Threat of new substitutes: The threat from substitutes is high as other drinks like beer, wine, fizzy drinks offer similar functional benefits of refreshment. Constant new product innovations further intensify this threat.
Competitive rivalry: The competitive rivalry is high among top players. Companies try to strengthen their market presence through targeted marketing campaigns, new flavors and varied pack types.

SWOT Analysis
Strength: Hard seltzers have gained popularity among health-conscious millennial customers due to low sugar and calorie content. The sparkling format and variety of flavors also appeal to new customers.
Weakness: Hard seltzers face issues of limited distribution reach compared to other alcoholic beverages. Their pricing is also generally higher than beer and certain cider options limiting mass appeal.
Opportunity: Emerging geographies like Asia Pacific and Latin America yet to tap into the hard seltzer trend offers new growth prospects. Potential partnerships with restaurants and social gatherings increase visibility.
Threats: Stringent regulations over alcohol marketing and taxation pose challenges. Health concerns regarding alcohol consumption, especially binge drinking, impact social acceptance.

Key Takeaways
The global Hard Seltzer Market Size is expected to witness high growth in the forecast period supported by increasing millennial spending and focus on low-calorie drinks.

Regional Analysis: North America currently dominates the market backed by early availability and mainstream acceptance in the US and Canada. Western Europe is another sizable regional market for hard seltzers led by demand in countries like UK, Germany, and Spain.

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. The US-based brands like White Claw and Bon & Viv enjoy leading shares currently. International players are now entering this space organically as well as via acquisitions to gain market share and variety.

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