Hard Seltzer - Canada

The Hard Seltzer market in Canada has been experiencing significant growth in recent years, driven by changing consumer preferences and a growing demand for low-calorie and refreshing alcoholic beverages.

Customer preferences: Canadian consumers are increasingly seeking healthier and more mindful drinking options, which has led to a shift towards low-calorie and low-sugar beverages. Hard Seltzers, with their lower calorie content and natural flavors, have gained popularity among health-conscious consumers. Moreover, the younger demographic in Canada, particularly millennials and Gen Z, have shown a preference for lighter and more refreshing alcoholic beverages, making Hard Seltzers an appealing choice.

Trends in the market: One of the key trends in the Hard Seltzer market in Canada is the introduction of a wide range of flavors. Manufacturers are constantly innovating and launching new flavors to cater to diverse consumer preferences. From classic flavors like lime and grapefruit to more exotic options like mango and passion fruit, the variety of flavors available in the market has expanded significantly. This trend is driven by the desire to attract a broader consumer base and provide options for those seeking unique and adventurous taste experiences. Another trend in the market is the increasing number of local and craft Hard Seltzer brands. While international brands initially dominated the market, Canadian consumers are now showing a preference for locally produced beverages. This trend aligns with the broader "buy local" movement in Canada, where consumers are seeking to support local businesses and reduce their carbon footprint. Craft Hard Seltzer brands are also gaining traction, as they offer a more artisanal and premium drinking experience.

Local special circumstances: The Canadian market has its own unique characteristics that influence the development of the Hard Seltzer market. One of the key factors is the country's strict regulations on alcohol sales and distribution. The government-controlled liquor boards in each province have a significant impact on the availability and marketing of alcoholic beverages, including Hard Seltzers. This regulatory environment can create challenges for both domestic and international brands looking to enter the market. Additionally, Canada's diverse climate and geography play a role in shaping consumer preferences. With long, hot summers in some regions and colder climates in others, the demand for refreshing and light beverages like Hard Seltzers can vary across the country. Manufacturers need to consider these regional differences and adapt their marketing and distribution strategies accordingly.

Underlying macroeconomic factors: The growth of the Hard Seltzer market in Canada is also influenced by broader macroeconomic factors. The country's strong economy and high disposable income levels have contributed to increased consumer spending on alcoholic beverages. Additionally, the rising trend of socializing and entertaining at home, especially during the COVID-19 pandemic, has led to an increased demand for convenient and ready-to-drink options like Hard Seltzers. In conclusion, the Hard Seltzer market in Canada is experiencing significant growth due to changing customer preferences towards healthier and refreshing alcoholic beverages. The introduction of a wide range of flavors and the rise of local and craft brands are key trends in the market. The country's strict alcohol regulations, diverse climate, and strong economy are all factors that shape the development of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.