Are you a fan of hard seltzers? These popular beverages are sweeping the beverage market, capturing share from traditional drinks like beer and wine coolers. But just how popular are hard seltzers? Is it a large market? It seems like everyone is shifting their drinking habits to these beverages, so should you follow suit?
How Popular Are Hard Seltzers?
Hard Seltzer Explained
Hard seltzer beverages include a blend of carbonated water and fruit flavoring, with alcohol. In most hard seltzer brands, the alcohol content in each serving is equivalent to beer. Like beer, hard seltzers come in cans and are readily available from any store serving alcoholic products.
The flavoring masks the taste of alcohol, making it easy to have one too many because they go down so easily. You’ll find these flavored malt beverages available in refreshing flavors like lemon agave hibiscus, melon basil, and cucumber peach.
The average alcohol by volume in hard seltzer ranges from four to six percent and usually derives from fermented cane sugar, similar to rum blends.
How Big is the Hard Seltzer Market?
According to a study by Grand View Research, in 2019, the global hard seltzer market had a valuation of $4.4 billion, with an expected CAGR of 16%, reaching $14.5 billion by 2027. The US, Canada, and Australia are the largest markets for this alcoholic beverage, with North America accounting for over 70% of global revenue.
From 2020 to 2027, lower ABV hard seltzers between 1% and 4.7% will grow faster than higher ABV brands, with an expected CAGR of 16.6%. These products focus on capturing health-conscious consumers.
What is the Target Demographic of the US Hard Seltzer Market?
Regarding consumer demographics, hard seltzers have gained significant popularity among the Generation Z and Millennial age groups in the US, according to NielsenIQ insights. Furthermore, an impressive 60% to 70% of legal-age Millennials and Zoomer drinkers (above 21 years) perceive hard seltzer as a distinct category within alcoholic beverages. Only a minor fraction, less than 10%, of consumers in this age range classify hard seltzer as a type of beer.
White Claw – The Biggest Hard Seltzer Brand
White Claw is the biggest hard seltzer brand on the market. In 2018, there were 10 brands: growing to 26 a year later. By 2020, more than 65 brands were offering hard seltzer products.
Founded by Mark Anthony Brands, White Claw enjoys around 50% market share, with no signs of slowing down.
Research by NielsenIQ shows off-premise hard seltzer sales at $4.1 billion in 2020, an increase of 160% over 2019. In 2020, beer sales accounted for $40 billion, a 15% increase over the previous year with off-premise sales of $36.8 billion.
Emerging White Claw Competitors
Truly is the closest brand to White Claws’ market share, accounting for 21.8% of sales in 2020. The CEO of Tolago Hard Seltzer, Nicholas Greeninger, expects the top two brands in the industry, White Claw and Truly, to lose market share to smaller companies in the coming years but remain the market leaders.
Additional Reading: Will Hard Seltzers Surpass Craft Beer Sales Off-Premise in just Five Years?
Fortress Nutrition is your full-service food and beverage contract manufacturing partner. From manufacturing & packaging to warehousing & fulfillment, we partner with discriminating high-growth clients to provide them with all their contract manufacturing and logistics needs.
Fortress Nutrition is your full-service food and beverage contract manufacturing partner. From manufacturing & packaging to warehousing & fulfillment, we partner with small to large clients to provide them with all their contract manufacturing and logistics needs.