A new report is predicting the huge growth of hard seltzers will continue around the world over the coming year, with the off-trade contributing a majority of the share.

According to the Global Hard Seltzer Market Size, Share & Trends Analysis the global hard seltzer market will reach US$49.4bn by 2028 and is expected to expand at a compound annual growth rate of 31.4 per cent from 2021 to 2028.

The report states: “Shifting consumer preference for low alcohol content beverages especially among millennials and the working-class population is expected to be a key factor contributing to the growth of the market.

“Hard seltzers are gaining popularity as low-calorie and low-sugar alternative alcoholic drinks to traditional alcoholic beverages among the health-conscious demographics across the world.

“Hard seltzer flavours such as citrus and other fruity flavours are gaining rapid traction among consumers. The rising adoption of new flavours among consumers is likely to provide opportunities to the players operating in this market.”

Although the report says the desire for low alcohol beverages is key factor, it also points to the important role of higher alcohol seltzers in driving the category.

“Hard seltzer with 5.0 per cent to 6.9 per cent ABV content held the largest segment share in 2020 and is expected to maintain dominance over the forecast period,” the report said. “The high consumption and wide availability of hard seltzer of this category, especially in the North American region, are driving the growth of this segment.”

The report also states that while off-premise has been strong of late, lockdowns have been a significant factor and the report points to hope for the on-premise.

“The off-trade segment contributed a majority of the share to become a larger division in the global revenue in 2020,” the report said.

“The increasing availability of such products at Walmart, Target, Costco, and Tesco among others has helped in driving the sale of hard seltzer through the off-trade channel. Further, the closure of the on-trade channel due to the outbreak of COVID-19 has also boosted sales through the off-trade channel.”

It adds: “The on-trade channel segment is anticipated to register a CAGR of 34.0 per cent from 2021 to 2028 due to the rising demand for it instead of beer and cocktails in pubs and bars.”

According to the report the Rest of the World is expected to register the fastest growth during the forecast period, with countries including Australia and New Zealand expected to see a rapid surge in the consumption of hard seltzer.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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