Hard Seltzer Market is Estimated To Witness High Growth Owing To Increased Health Consciousness

Hard seltzer refers to low-calorie, low-carb alcoholic beverages that are fermented similarly to beer but with added flavors and carbonation. Hard seltzers are usually made from a base of seltzer water and malted barley or other grains, which provides its alcohol base. Apart from being a low-calorie alcoholic drink, hard seltzers are gluten-free which has increased its popularity among health-conscious consumers.

Market key trends:

One of the major trends fueling the growth of the Hard Seltzer Market Growth is the rising health consciousness and preference for low-alcohol or alcohol-free drinks among consumers. As hard seltzers are low in sugar and carbs content as compared to beer, they are viewed more favorably by health-conscious consumers. The millennial population is especially driving this trend by opting for low-calorie alcoholic drinks to maintain their health and fitness. Another factor promoting the consumption of hard seltzers is their portability and ease of consumption. Hard seltzers come in slim cans which can be easily carried on the go without the fuss of bottles and are convenient to consume as well. This convenience factor has increased the preference for hard seltzers among outdoor activity enthusiasts and young consumers.

Porter’s Analysis

Threat of new entrants: Low capital requirement and established brand value of existing players makes threat of new entrants low in the hard seltzer market. However, increasing popularity of the segment attracts new entrants.

Bargaining power of buyers: Buyers have high bargaining power due to availability of substitute products like beer, wine, etc. However brand loyalty keeps buyers hooked to certain brands.

Bargaining power of suppliers: Major players have established relationships with suppliers giving them an edge over bargaining. However, easy availability of raw materials limits supplier power.

Threat of new substitutes: Products like wine, cocktails are alternatives but hard seltzer has gained popularity due to its low sugar and calorie content. However, new health drinks can penetrate the market.

Competitive rivalry: Intense competition exists between existing players to increase their market share.

SWOT Analysis

Strength: Healthy and gluten free products appeal to health conscious consumers. Innovative flavors attract various target segments.

Weakness: Dependency on agricultural commodities exposes companies to supply chain and price volatility. Substitute products eating into market share.

Opportunity: Growing demand from millennials and Gen Z population. Penetration into developing markets with increasing health awareness.

Threats: Stringent regulations around alcohol content. increasing raw material prices and taxes can dent margins.

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Coherent Market Insights *Note: 1. Source: Coherent Market Insights, Public sources, Desk research 2. We have leveraged AI tools to mine information and compile it