Hard Seltzer - Sri Lanka

The Hard Seltzer market in Sri Lanka is experiencing significant growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In recent years, there has been a shift in consumer preferences towards healthier and low-calorie alcoholic beverages. This trend is driven by a growing awareness of health and wellness, as well as a desire for more refreshing and lighter drink options. Hard Seltzers, with their low alcohol content and natural flavors, have gained popularity among consumers who are looking for a healthier alternative to traditional alcoholic beverages. The convenience of ready-to-drink cans and the availability of a wide range of flavors have also contributed to the increasing demand for Hard Seltzers in Sri Lanka.

Trends in the market: One of the key trends in the Hard Seltzer market in Sri Lanka is the increasing number of local and international brands entering the market. This has led to a wider variety of options for consumers, as well as increased competition among manufacturers. As a result, there has been a focus on product innovation and differentiation to attract and retain customers. Manufacturers are introducing new flavors, experimenting with unique ingredients, and even collaborating with local breweries to create limited-edition offerings. This trend is expected to continue as companies strive to capture a larger share of the growing market. Another trend in the market is the rising popularity of Hard Seltzers among the younger generation. Millennials and Gen Z consumers are driving the demand for these beverages, as they are more likely to prioritize health and wellness in their purchasing decisions. The social media influence and the desire to try new and trendy products have also contributed to the increasing popularity of Hard Seltzers among the younger demographic. This has prompted manufacturers to develop marketing strategies that target this specific consumer group, including collaborations with influencers and social media campaigns.

Local special circumstances: Sri Lanka is a tropical country with a warm climate, making it an ideal market for refreshing and light beverages. The demand for such drinks is further fueled by the country's tourism industry, which attracts a large number of international visitors who are looking for unique and refreshing drinks to enjoy during their stay. Additionally, Sri Lanka has a growing urban population with increasing disposable income, which has led to a rise in the consumption of alcoholic beverages, including Hard Seltzers.

Underlying macroeconomic factors: The growing economy of Sri Lanka, coupled with rising disposable incomes, has contributed to the development of the Hard Seltzer market. As consumers have more purchasing power, they are willing to spend on premium and innovative products, including Hard Seltzers. Furthermore, the increasing urbanization and changing lifestyles have led to a shift in consumer preferences towards convenience and healthier options, which has further propelled the growth of the market. In conclusion, the Hard Seltzer market in Sri Lanka is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for healthier and low-calorie alcoholic beverages, the availability of a wide range of flavors, and the influence of the younger generation are driving the growth of the market. With the increasing number of brands entering the market and the focus on product innovation, the Hard Seltzer market in Sri Lanka is expected to continue its upward trajectory in the coming years.

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.