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The hard seltzers market is marked for dramatic growth, despite setbacks due to the COVID-19 pandemic. This is according to global ingredients manufacturer Treatt who has named 2020 categorically “the year of the hard seltzer.” Before the novel coronavirus hit, these light, ready-to-drink (RTD) alcoholic beverages were set to take off at festivals, parties and in the travel sector, according to the company. While the canceling of large summer gatherings may have delayed growth in the sector, Treatt asserts that the strong health appeal of hard seltzers across geographical and gender demographics will drive continued expansion in the category.
“The market for hard seltzers in North America is booming and we can expect to see sales continue to skyrocket for the foreseeable future. In fact, some of the latest research shows that hard seltzers have proven to be the most resilient alcoholic beverage during the COVID-19 pandemic,” Charlotte Catignani, Lead Category Manager at Treatt, tells FoodIngredientsFirst.
The category is already comfortably established in the US, according to Treatt, which estimates a retail value of US$3.4 billion for hard seltzers. Momentum continues to grow, as the US’s hard seltzer market share jumped threefold from 0.8 percent in 2018 to 2.5 percent in 2019, adds the company.
Global reach
Catignani explains that a strong advantage of the hard seltzers is in its global appeal as a low-calorie refreshment. “While European culture and taste can differ from the US, the consumer demand for natural, healthier beverages is a global phenomenon.”
With hard seltzers now making their debut on supermarket shelves in Europe, Catignani flags that consistency in labeling is important.
Spicier flavors, such as ginger and jalapeño, are being added to hard seltzers in the US market to give the beverage a kick.
“Brands looking for success need to consider clear messaging on the product proposition before targeting consumers.” Terms replacing “seltzer,” such as sparkling, fizzy or soda, may cause confusion, the company flags.
“It is an exciting time for the hard seltzer sector as well-known US brands emerge in Europe. Global web searches for ‘hard seltzer’ have shot up exponentially in 2020 according to Google Trends,” says Catignani.
Latin America has also been pinpointed as a major market for opportunity. Coca-Cola recently announced it would expand the hard seltzer trend to Latin America with the 2021 launch of Topo Chico Hard Seltzers. Topo Chico Hard Seltzer is an experimental beverage inspired by Topo Chico sparkling mineral water, which Coca-Cola acquired in 2017.
Flavors forward
While Treatt reports that classic flavors such as mango, lime and grapefruit are leading the pack, spicier flavors such as ginger and jalapeño are being added in the established US market to give the beverage a kick, and importantly, a point of difference on shelf.
According to the company, fruit flavors will continue to boom, but a rise in the use of botanical flavors as it has in gin-based beverages is also pegged for growth in up-and-coming brands.
“In the US, popular botanicals include hibiscus, acai, chili and lemongrass, but we also see botanicals that are typically popular in Europe, such as elderflower, begin to emerge too,” says Catignani.
“Meanwhile in Europe, we can expect to see mint, rose and ginger appear on supermarket shelves as familiar choices, while the category establishes itself,” she adds.
A gender-neutral beverage
Catignani explains that another strong suit for hard seltzers is their ability to appeal to any gender. “The secret to the success of the hard seltzer is its ability to break down walls and cross the gender divide as a healthier alcoholic beverage. Hard seltzers have huge appeal to a variety of demographics because they are low-calorie, contain natural ingredients and are light and refreshing.
She further notes that beer companies have played an important role in decoupling gender-specific marketing to hard seltzers. “We’ve seen beer lead the way in growing the hard seltzer market and the sector has used its influence and gender-neutral branding to reach out to health-conscious consumers,” she notes.
In March, the 153-year-old Jacob Leinenkugel Brewing Company launched Leinenkugel’s “Spritzen” beer with a splash of seltzer. Other new additions to the beer with seltzer trend include Anheuser-Busch InBev’s Bud Light Seltzer and Constellation Brands’ Corona Hard Seltzer.
Cleaner labels
Because of the health advantage, Catignani recommends that manufacturers prominently feature the calorie content on a hard seltzer can. “Alcoholic beverages, in general, are known for their ambiguity when it comes to calorie content, but consumers are altering their shopping habits based on this information.”
In the UK, RTD cocktails recently came under fire for their high calorie and sugar content. “Outrageous amounts of sugar” were highlighted by a report from the Action on Sugar earlier this year.
In contrast, hard seltzers generally contain few ingredients and they are often entirely natural. “As a result, we have seen many brands show off their ingredients proudly on-pack. We can also expect to see manufacturers updat the labeling across a variety of alcoholic beverages to compete with hard seltzers.”
An upcoming ingredient to watch in the space is cannabidiol (CBD). Catignani asserts that it is becoming an increasingly popular health supplement around the world and it is being added to a variety of products as a result.
“We are beginning to see CBD being added to hard seltzers in the US and expect to see more brands tap into this growing trend,” she concludes.
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