Hard Seltzer - GCC

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

Customer preferences: Customers in the GCC region have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. These beverages are known for their low calorie and low sugar content, making them a more attractive choice for health-conscious individuals. Additionally, the refreshing and fruity flavors of Hard Seltzers have also appealed to consumers who are looking for a lighter alternative to traditional alcoholic beverages.

Trends in the market: One of the key trends in the Hard Seltzer market in GCC is the increasing number of local and international brands entering the market. This has led to a wider variety of options for consumers to choose from, catering to different taste preferences. The market has also witnessed the introduction of innovative flavors, further expanding the appeal of Hard Seltzers. Another trend in the market is the growing popularity of ready-to-drink (RTD) beverages. Hard Seltzers fall into this category, providing convenience to consumers who are looking for on-the-go options. The RTD format allows consumers to enjoy their favorite beverages without the need for additional ingredients or preparation.

Local special circumstances: The GCC region has a predominantly Muslim population, and the consumption of alcohol is restricted in many countries. However, Hard Seltzers have gained popularity due to their low alcohol content, making them more socially acceptable in the region. This has opened up a new market segment for beverage companies, allowing them to tap into a previously untapped consumer base.

Underlying macroeconomic factors: The economic growth and increasing disposable income in the GCC region have played a significant role in the development of the Hard Seltzer market. As consumers have more purchasing power, they are willing to spend on premium and healthier beverage options. This has created a favorable environment for the growth of the Hard Seltzer market. Furthermore, the changing demographics in the region, with a growing younger population, have also contributed to the rise in demand for Hard Seltzers. Younger consumers are more open to trying new and innovative products, and their preference for healthier options aligns with the qualities of Hard Seltzers. In conclusion, the Hard Seltzer market in GCC is experiencing growth due to customer preferences for healthier beverage options, the introduction of new flavors and brands, the convenience of ready-to-drink formats, the acceptance of low-alcohol beverages in the region, and the underlying macroeconomic factors such as economic growth and changing demographics.

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.