Alcoholic Seltzer Trends

Goals

To understand the major trends within the alcoholic seltzer category and how they differ from broader trends in the alcoholic beverage industry in order to aid a pitch to a seltzer alcoholic brand.

Early Findings

  • The alcoholic seltzer category is growing rapidly. In 2018, alcoholic seltzer sales grew by 169% and volume grew by 181%, while beer sales remained flat at about 0.7%, wine sales increased by 2.4%, and spirits sales increased by 3.8%.
  • The growth of the alcoholic seltzer segment is benefiting from the health-conscious choices being made by consumers. Alcoholic seltzers contain about 100 calories and are gluten-free, compared to beer, wine, and spirits that may contain up to 400 calories.
  • While trends in the spirits and wine category impacts beer, alcoholic seltzer isn't impacted by such trends and the sales keep rising while others are flattening.
  • The main driver of choice for alcoholic seltzer is its low calories and sugar content which is significantly smaller than that in beer.
  • About 70% of alcoholic seltzers consumers are female, whereas 62% of beer drinkers are male.
  • The alcoholic seltzer category is expected to keep growing as major beer brands have either recently launched an alcoholic seltzer brand, or plan to do so. In fact, some major beer brands like Boston Beer are decreasing their beer brand production, while dedicating more resources to its alcoholic seltzers as the brand's 2018 growth in revenue was due to its non-beer brands.
  • Sales of alcoholic seltzers seem more seasonal than beer, with sales peaking in the summer months between Memorial Day and Labor Day. Although this is similar for beer, the seasonality seems more pronounced for alcoholic seltzers.
  • Some experts believe that men need to be exposed more to alcoholic seltzers more and for more of them to choose the drink before it can transition from a fad to a long-tern movement.

Proposed next steps:

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