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The alcohol infused sparkling water market size is projected to increase by USD 714.39million, at a CAGR of 14.12% between 2023 and 2028
The growth rate of the North American market, particularly in the US, is driven by the increasing demand for alcohol-infused sparkling water, including hard seltzer and hard soda. This surge is fueled by shifting consumer demographics from baby boomers to millennials, heightened health awareness, and a preference for low-alcohol options. Moreover, the ease of ordering through digital direct-to-consumer channels enhances convenience for customers. This trend aligns with broader global trends favoring healthier beverage choices, contributing to optimistic forecasts for the market's expansion.
The market shows an Accelerated CAGR during the forecast period.
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Rising demand for low-calorie alcoholic beverages is the key factor driving market growth. Consumers' inclination toward healthier alcohol alternatives propelled by the low-carb movement and the inclusion of low or no sugar has fueled the growth of the market. Breweries and manufacturers have introduced low-calorie, low-carb, gluten-free alcohol induced sparkling water with new natural flavors, providing consumers with more varietal options to choose from.
Consequently, the demand for lighter alcoholic options is growing due to consumer preference for healthier alcoholic beverages, increasing awareness and concern for the nutritional value of beverages, and the rising trend of drinking in moderation. The rising demand for low-calorie alcoholic beverages is expected to drive the growth of the market during the forecast period.
Increasing usage of real fruits in alcoholic seltzer is the primary trend shaping market growth. As alcohol consumers are becoming mindful of their drinks and their nutrient content, the market for alcoholic seltzers is growing due to their low-calorie and low-carb specifications. Align with market trends and analysis, apart from alcohol rating, the inclusion of new and exciting flavors is also making these drinks appealing to consumers.
However, with an increasing number of market players and rising competition, companies are introducing hard sparkling water with natural flavors and real fruits. Additionally, as consumers prefer healthier alcoholic drinks and cutting back on sugar content and artificial flavoring, market players are likely to include real fruits in alcoholic-infused sparkling water for flavor as well as health factors. This, in turn, is expected to drive market growth during the forecast period.
Campaigns against alcohol consumption is a challenge that affects market growth. Due to the increasing incidence of alcohol abuse and alcohol-related accidents, especially among youth, various social organizations are launching campaigns against alcohol consumption. In the US, for instance, the Substance Abuse and Mental Health Services Administration's (SAMHSA) national substance use prevention program encourages parents and caregivers to talk to their children about the hazards of alcohol and other substances from an early age.
Besides, various foundations in the US, such as Mothers Against Drunk Driving (MADD), Students Against Destructive Decisions (SADD), the American Medical Association (AMA), and the National Center on Addiction and Substance Abuse (at Columbia University), discourage alcohol consumption. Thus, such prevention campaigns are expected to impede the growth of the market during the forecast period.
The bottled segment of the market is experiencing significant growth as consumer demand for low-calorie, refreshing alcoholic beverages continues to rise. Further, the key players in the bottled segment have been quick to capitalize on this trend, introducing innovative products that combine the crispness of sparkling water with a hint of alcohol, appealing to health-conscious consumers and those looking for a more sophisticated drinking experience. Market players such as White Claw, operated by Mark Anthony Brewing Inc., and High Noon, operated by E. and J. Gallo Winery, the brand's line of alcoholic infused sparkling waters with a variety of fruit flavors. Consequently, the above-mentioned advantages are expected to increase the demand for bottled alcoholic infused sparkling water, which will propel the growth of the bottled segment of the market during the forecast period.
The market share growth by the off-premises segment will be significant during the forecast period. The most common off-premise distribution channels of alcoholic-infused sparkling water include individual retailers, supermarkets, hypermarkets, and online platforms. Such distribution channels allow consumers to choose from a large variety of alcoholic-infused sparkling water products compared with those available in on-trade channels, as they have dedicated sections for different brands.
The off-premises segment was valued at USD 303.83 million in 2018.
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Moreover, the urban population prefers purchasing alcoholic infused sparkling water through various e-commerce platforms instead of visiting brick-and-mortar stores. Alcoholic infused sparkling water is widely available in hypermarkets and supermarkets. These distribution channels offer convenience and have extended hours of operation. The price of such sparkling water is higher online compared with traditional retail stores. Thus, such factors are expected to drive the off-premise distribution segment during the forecast period.
North America is estimated to contribute 61% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The growth of the market in North America will be led by the US, where the demand for alcohol-induced sparkling water such as hard seltzer and hard soda is rising owing to changing demographics of customers from baby boomers to millennials, increasing health awareness, consciousness toward the benefits of low alcohol content consumption and ease of ordering through digital direct-to-consumer channels.
Further, the presence of major brewers such as Anheuser-Busch InBev (AB InBev), Molson Coors Beverage Co. (Molson Coors), and The Boston Beer Co. Inc. (Boston Beer) has made product availability in the region easy and convenient. The rising number of product launches is also increasing awareness about and the visibility of the market. Thus, such factors are expected to significantly drive market growth in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Diageo Plc, E. and J. Gallo Winery, Eel River Brewing Co., Ficks and Co., Keurig Dr Pepper Inc., Lift Bridge Brewing Co., M.I.A. Beer Co., Mark Anthony Brands International Unlimited Co., Molson Coors Beverage Co., Monster Beverage Corp., Polar Beverages, San Juan Seltzer Inc., Sercy Spiked and Sparkling, Suntory Holdings Ltd., The Boston Beer Co. Inc., Wachusett Brewing Co. Inc., and XYZBEV
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market has experienced a resurgence, reclaiming pre-pandemic levels as consumer preferences shift towards healthier beverage options. This market offers a variety of choices, from genuine alcohol-infused beverages to those with fake flavors and alcohol extracts. Key players in the industry, including producers of vodka and other spirits, capitalize on the rising popularity of flavored alcoholic beverages, particularly within the fruit flavor category.
Online sales have surged, facilitated by advancements in artificial intelligence (AI) and machine learning, optimizing production and supply-chain operations. Despite initial setbacks due to lockdowns and restrictions, the market's revenue trajectory remains promising, driven by growing health consciousness and the appeal of low-calorie, low-carbohydrate options.
Seltzer water and carbonated water have gained traction among fitness enthusiasts for their potential benefits in aiding digestion, weight loss, and overall hydration. Concerns about constipation and stomach problems associated with sweetened fizzy drinks have prompted a shift towards beverages with healthier nutrient profiles.
Customer preference for healthy lifestyles and gluten-free alcoholic beverages shapes production standards, while restraint factors such as bloating and stomach problems underscore the importance of low-carb and health-conscious offerings. As the market evolves, maintaining a balance between flavors and health benefits is essential to meet the diverse needs of consumers worldwide.
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Alcohol Infused Sparkling Water Market Scope |
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Report Coverage |
Details |
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Page number |
158 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.12% |
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Market Growth 2024-2028 |
USD 714.39 million |
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Market structure |
USD Fragmented |
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YoY growth 2023-2024(%) |
12.92 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 61% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anheuser Busch InBev SA NV, Constellation Brands Inc., Diageo Plc, E. and J. Gallo Winery, Eel River Brewing Co., Ficks and Co., Keurig Dr Pepper Inc., Lift Bridge Brewing Co., M.I.A. Beer Co., Mark Anthony Brands International Unlimited Co., Molson Coors Beverage Co., Monster Beverage Corp., Polar Beverages, San Juan Seltzer Inc., Sercy Spiked and Sparkling, Suntory Holdings Ltd., The Boston Beer Co. Inc., Wachusett Brewing Co. Inc., and XYZBEV |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Packaging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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