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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.
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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