Spurred by quarantine and dramatic shifts in consumer habits, the hard seltzer category has become unstoppable. The rise of hard seltzers has forever changed the alcohol beverage industry but it has also inadvertently reinvigorated the soft seltzer market. Riding the coattails of trending alcoholic seltzers, sparkling water brands are rising to the occasion and shaking up the soft drink market.
Grandview Research recently reported that the sparkling water market, which was valued at $29.71 billion in 2020, is projected to enjoy a compound annual growth rate of 12.6% between 2021 and 2028. Growth will be led by the flavored sparkling water sub-segment, which will experience a CAGR of 12% from 2021 to 2027.
The biggest beverage companies in the world are investing heavily in soft seltzer water.
The Coca-Cola Company launched AHA Sparkling Water in March of last year, during the height of the pandemic. By the end of 2020 AHA controlled a formidable 8.3% of the flavored, unsweetened sparkling water category. Now, Coke is banking big on AHA with the launch of “Can I Get an AHA?”, the brand’s first full marketing campaign.
Coca-Cola’s North American VP for water, Celina Li, explained that flavored sparkling water is “the largest and fastest-growing part of the water business.” Li insisted it is “a segment we know we must double-down on”.
AHA’s new marketing campaign features comedians Lauren Lapkus of Orange Is The New Black and Colton Dunn of Superstore. In one of the two ad spots, the duo contemplates what to eat for dinner, but as soon as AHA Sparkling Water is mentioned the comedians begin replacing every “ah” sound they make with “AHA.” The word “pasta” becomes “pAHAstAHA,” the word “falafel” becomes “fAHAlAHAfel” and so on. The humorous campaign, which was produced in partnership with acclaimed creative agency Preacher, launched on all platforms in early May.
“Aha is our big-bet brand in this big-bet category,” Li stated.
AHA is available in eight bubbly flavors including Peach + Honey, Blueberry + Pomegranate, Strawberry + Cucumber, Orange + Grapefruit, Lime + Watermelon, Raspberry + Acai, Mango + Black Tea and Citrus + Green Tea. The two tea varieties also contain 30mg of caffeine. All flavors are free from calories, sugars and carbohydrates making AHA ideal for health-conscious consumers.
“Consumers are gradually adopting a healthy lifestyle,” the Grandview Research report stated. “The global market is full of new flavoured sparkling or carbonated water launches as a healthy alternative to soft drinks.” Flavored, like AHA, are a significantly healthier alternative to calorie-heavy and sugar-laden sodas.
AHA isn’t Coke’s only sparkling water. The company purchased the popular mineral water brand Topo Chico in 2017 and has since launched a line of Topo Chico hard seltzers. The brand is currently developing an alcoholic Ranch Water seltzer as well.
Earlier this year another household name and evian’s parent company, Danone, launched evian+, a line of sparkling water enhanced with zinc and magnesium. The sparkling water comes in four flavors in the US including Lime & Ginger, Grapefruit & Basil, Cucumber & Mint and Raspberry & Ginseng. The drinks contain no calories and no sugar.
According to Nielsen, sparkling water experienced a 24% increase between 2020-2021, while the world quarantined. Experts believe sparkling water is on the rise thanks, in part, to the hard seltzer’s recent success. The hard seltzer category experienced unprecedented growth of 130% last year and is projected to become a nearly $11 million market by 2027.
As the hard seltzer market continues to shine, it is likely the soft seltzers will do the same. We are eager to see more innovations in soft seltzer as the industry expands.
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