Hard Seltzer - NAFTA

NAFTA

Highlights

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Hard Seltzer market amounts to US$8.8bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$5.7bn in 2024.
Revenue, combined amounts to US$14.5bn in 2024.
The revenue, at home is expected to grow annually by 0.47% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated United States (US$9bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$17.15 are generated in 2024.
In the Hard Seltzer market, volume, at home is expected to amount to 1.5bn L by 2024.
Volume, out-of-home is expected to amount to 382.2m L in 2024.
Volume, combined is expected to amount to 1.9bn L in 2024.
The Hard Seltzer market is expected to show a volume growth, at home of -3.6% in 2025.0.
The average volume per person, at home in the Hard Seltzer market is expected to amount to 3.02L in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Hard Seltzer market in NAFTA is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the NAFTA region are increasingly seeking low-calorie and low-sugar beverage options, driving the demand for Hard Seltzers. With rising health consciousness and a desire for healthier alternatives to traditional alcoholic beverages, consumers are gravitating towards Hard Seltzers that offer a refreshing and light drinking experience. The convenience of ready-to-drink canned beverages also appeals to consumers who are looking for convenient options for on-the-go consumption.

Trends in the market: One of the key trends driving the growth of the Hard Seltzer market in NAFTA is the increasing popularity of flavored alcoholic beverages. Hard Seltzers are available in a wide range of flavors, including fruit flavors like lime, strawberry, and black cherry. These flavors appeal to consumers looking for a refreshing and flavorful drinking experience. Additionally, the trend of customization and personalization is also influencing the market, with some brands offering the option to mix and match flavors to create unique combinations. Another trend in the market is the growing popularity of local and craft Hard Seltzer brands. Consumers in NAFTA countries are increasingly interested in supporting local businesses and trying unique and innovative products. This has led to the emergence of local Hard Seltzer brands that offer a distinct flavor profile and a sense of authenticity. These local brands often leverage regional ingredients and flavors to cater to the preferences of the local market.

Local special circumstances: The Hard Seltzer market in NAFTA is influenced by the unique circumstances and preferences of each country within the region. In the United States, for example, the market is driven by a strong culture of innovation and entrepreneurship. This has led to the rapid emergence of a wide range of Hard Seltzer brands, each offering its own unique flavors and positioning. In Canada, the market is influenced by the country's multicultural population and diverse consumer preferences. Canadian consumers are open to trying new and innovative flavors, and the market has seen the introduction of unique flavors that cater to the preferences of different ethnic groups.

Underlying macroeconomic factors: The growth of the Hard Seltzer market in NAFTA is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which has led to increased disposable income and consumer spending power. This has allowed consumers to indulge in premium and higher-priced beverages like Hard Seltzers. Additionally, the region has a well-developed distribution network and a strong presence of retail chains, making it easier for Hard Seltzer brands to reach a wide consumer base. The presence of online platforms and e-commerce channels has further facilitated the growth of the market, allowing consumers to easily purchase Hard Seltzers from the comfort of their homes. In conclusion, the Hard Seltzer market in NAFTA is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The demand for low-calorie and low-sugar beverage options, the popularity of flavored alcoholic beverages, the trend of customization and personalization, and the support for local and craft brands are all driving the growth of the market. Additionally, the strong economy, well-developed distribution network, and presence of online platforms are facilitating the market's expansion.

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.