Hard Seltzer - Iceland

The Hard Seltzer market in Iceland has been experiencing significant growth in recent years, driven by changing consumer preferences and a shift towards healthier beverage options.

Customer preferences: Consumers in Iceland are increasingly looking for low-calorie and low-sugar alternatives to traditional alcoholic beverages. Hard Seltzers, with their light and refreshing taste, have quickly gained popularity among health-conscious individuals. The convenience of ready-to-drink cans and the wide range of flavors available have also contributed to the growing demand for Hard Seltzers in Iceland.

Trends in the market: One of the key trends in the Hard Seltzer market in Iceland is the increasing number of local and international brands entering the market. As consumer demand continues to rise, both established and new players are capitalizing on the opportunity to offer a variety of flavors and unique product offerings. This has led to a more competitive landscape, with brands focusing on innovation and differentiation to gain market share. Another trend in the market is the rising popularity of locally produced Hard Seltzers. Icelandic consumers have shown a preference for products that are made locally, as they value the use of high-quality, natural ingredients. This trend has opened up opportunities for local breweries and distilleries to enter the Hard Seltzer market and cater to the specific tastes and preferences of Icelandic consumers.

Local special circumstances: Iceland's unique geography and natural resources play a significant role in shaping the Hard Seltzer market. The country is known for its pristine water sources, which are often used in the production of beverages. This gives Icelandic Hard Seltzers a distinct advantage, as they can highlight the purity and quality of their ingredients. Furthermore, Iceland's tourism industry has also contributed to the growth of the Hard Seltzer market. The country attracts a large number of international visitors who are looking to explore its natural wonders and experience its vibrant culture. Hard Seltzers have become a popular choice among tourists, as they offer a refreshing and convenient option for enjoying alcoholic beverages while on the go.

Underlying macroeconomic factors: The growing demand for Hard Seltzers in Iceland is also influenced by broader macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, consumers are more willing to try new and innovative products, including Hard Seltzers. Additionally, the health and wellness trend that is prevalent worldwide has also influenced the Hard Seltzer market in Iceland. Consumers are becoming more conscious of their dietary choices and are actively seeking healthier alternatives to traditional alcoholic beverages. Hard Seltzers, with their lower calorie and sugar content, align with this trend and have become a popular choice among health-conscious individuals in Iceland. In conclusion, the Hard Seltzer market in Iceland is experiencing significant growth due to changing consumer preferences, the introduction of new flavors and brands, and the influence of macroeconomic factors. The trend towards healthier beverage options, combined with Iceland's unique geography and the country's thriving tourism industry, has created a favorable environment for the growth of the Hard Seltzer market.

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.