Hard Seltzer - Germany

The Hard Seltzer market in Germany has been experiencing significant growth in recent years.

Customer preferences: German consumers have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. These beverages are low in calories and sugar, making them an attractive choice for health-conscious individuals. Additionally, Hard Seltzers are often flavored with natural ingredients, appealing to consumers who prioritize clean and natural products. The convenience of ready-to-drink cans also aligns with the busy lifestyles of many German consumers.

Trends in the market: One of the key trends in the Hard Seltzer market in Germany is the increasing variety of flavors available. Manufacturers are constantly introducing new and innovative flavors to cater to the diverse preferences of consumers. This trend is driven by the desire to offer unique and exciting options that stand out in a crowded market. Additionally, there has been a growing trend towards premiumization, with some brands offering higher-end, craft-style Hard Seltzers that appeal to consumers looking for a more sophisticated drinking experience. Another trend in the market is the expansion of distribution channels. Initially, Hard Seltzers were primarily sold through traditional retail outlets such as supermarkets and convenience stores. However, there has been a shift towards online sales and direct-to-consumer channels. This allows brands to reach a wider audience and tap into the growing e-commerce trend in Germany. Additionally, the COVID-19 pandemic has accelerated the adoption of online shopping, further driving the growth of the Hard Seltzer market through digital channels.

Local special circumstances: Germany has a strong beer culture, with a wide variety of traditional beer styles available. However, the rise of Hard Seltzers presents a new alternative to beer for consumers. This has led to increased competition within the alcoholic beverage market, with Hard Seltzers appealing to individuals who are seeking a lighter and more refreshing option. The presence of established beer brands in Germany also provides an opportunity for these companies to diversify their product offerings and enter the Hard Seltzer market.

Underlying macroeconomic factors: The growing popularity of Hard Seltzers in Germany can be attributed to several macroeconomic factors. Firstly, the increasing focus on health and wellness has influenced consumer behavior and preferences, leading to a shift towards healthier beverage choices. Additionally, the rise of the millennial and Gen Z consumer segments, who prioritize convenience and variety, has contributed to the demand for Hard Seltzers. Furthermore, the growing trend of socializing and drinking in outdoor settings, such as parks and picnics, has created a demand for portable and easy-to-consume beverages like Hard Seltzers.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.