Vodka Seltzer Market Expected to Reach $2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Vodka Seltzer Market," The vodka seltzer market size was valued at $472.30 million in 2021, and is estimated to reach $2 billion by 2031, growing at a CAGR of 13.8% from 2022 to 2031.

A pre-mixed alcoholic beverage known as vodka seltzer is created by mixing vodka with seltzer water. It is a well-liked low-calorie beverage that is served with a slice of citrus fruit such as lemon or lime. It available in a variety of fruit flavors that give the beverage some additional taste. For those seeking a light, refreshing alcoholic beverage that is low in calories, vodka seltzer is a popular option.

The market for ready-to-drink low-alcohol beverages is competitive, thus, market participants are concentrating on branding and advertising to pique customers' interest. As a result, to draw in customers, players are engaging in successful marketing initiatives. For instance, the British firm Serves, which Ellie Goulding co-owns, stated in March 2022 that it will launch the "world's first" carbon-negative hard seltzer brand to include carbon footprint labeling. Served and CarbonCloud have joined forces to automate the "Life Cycle Assessment" process and evaluate the climate footprints at each stage from "grower to grocer," which includes the production of agricultural inputs, logistics, processing, labeling, and distribution up until the product reaches the local supermarket shelf. To reach the widest possible audience, the product is advertised utilizing digital media. Thus, popularity and sales of vodka seltzer are rising as a result of media platform use, effective marketing, and advertising.

Vodka seltzer is gaining traction because of its low sugar and calorie content, as well as its unique flavor. To gain a competitive advantage in the global market, major corporations are introducing new flavors into their product lineups. In April 2022, Boston Beer Company, for instance, will release Truly Flavored Vodka and its first spirits-based hard seltzer. Some of the flavors available are cherry lime, blackberry citrus, peach tangerine, and pineapple cranberry. The launch of novel flavors and varieties of vodka seltzer boosts customer interest and attractiveness. The volume of sales in North America is increasing as a consequence of the increased popularity, is providing vodka seltzer market opportunities for growth.

However, prolonged intake of synthetic flavoring essence has been linked to dental problems, which impedes the expansion of the vodka seltzer industry. The American Dental Association claims that artificial flavoring essences such as citric acid have an impact on teeth and cause erosion. Long-term use of flavored water damages the structural integrity and destroys the enamel layer. Damage further causes hypersensitivity and increases the risk of tooth erosion and cavity development. Synthetic flavor essence, on the other hand, tends to maintain the pH level of the seltzer lower than the neutral pH level limit. The main element affecting a beverage's capacity to have an impact on teeth is its pH. Dental health is thought to be harmed by pH values lower than 4. As vodka seltzer includes carbonic acid, it causes the pH to fall below 3 when combined with artificial flavoring. Thus, increase in ’awareness among consumers to maintain tooth health lowers the consumption of vodka seltzer with artificial flavorings, which restrains the vodka seltzer market growth.

The global vodka seltzer market is analyzed based on type, packaging, distribution channel, and region. By type, the market is classified into ABV less than 4.6% and ABV more than 4.6%. Depending on packaging, it is categorized into metal cans and bottles. On the basis of distribution channel, it is segregated into on-trade and off-trade. Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, Ireland, Netherlands, Spain, and the rest of Europe), Asia-Pacific (Japan, Australia, Singapore, and the rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

Players operating in the global vodka seltzer market have adopted various developmental strategies to expand their vodka seltzer market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Boston Beer Co. Inc., Carlton & United Breweries Pty Ltd., Cutwater Spirits, LLC, Diageo Loyal Spirits Corporation, Diageo PLC, East London Liquor Company Limited, High Noon Spirits Company, Jem Beverage Company, LLC, La Dolce Vita Seltzer, Mark Anthony Brewing, Inc., Molson Coors Beverage Company, Nude Beverages, Inc., Pernod Ricard, Southern Tier Distilling, LLC, and Spirited Cocktails Corporation.

Key findings of the study

• According to vodka seltzer market trends, on the basis of type, the ABV more than 4.6% segment dominated the vodka seltzer industry in 2021 and is expected to retain its dominance throughout the forecast period.
• By packaging, the metal cans segment led the global vodka seltzer market demand in 2021 and is expected to retain its dominance throughout the forecast period.
• According to vodka seltzer market analysis, on the basis of distribution channel, the off-trade segment dominated the global market in 2021 and is expected to retain its dominance throughout the vodka seltzer market forecast period.
• Region wise, North America accounted for the highest vodka seltzer market share in 2021 and is expected to grow at a CAGR of 13.3%.