Global Root Beer Market - 2022-2029

Global Root Beer Market - 2022-2029

Market Overview

The global root beer market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029)

Root beer is a beverage brewed from different roots of sassafras tree or the vine of sarsaparilla. It is made at home as a medicinal beverage. The primary ingredients used to make root beers include anise, sugar, liquorice root, sarsaparilla, and sassafras extract. Vanilla is used to make root beers creamy; sarsaparilla is added to make the root beers bitter; and wintergreen is added for a minty flavor. Root beers can be carbonated and non-carbonated. Modern root beers are carbonated soft drinks and usually foamy and soft. The herbs found in root beer are supposed to provide various benefits in traditional herbal medicine. Some studies suggest that licorice root can aid treat ulcers and relieve digestive distress in folk medicine.

Market Dynamics:

Availability of root beer in various flavors is anticipated to boost market demand

The want for new and innovative flavored root beers among the consumers is the major factor that drives the growth of the root beer market. Root beers have a fine balance between strong root spiciness and flavored creaminess. Root beers are available in various flavors. Moreover, the unique flavors have made it one of the most popular beverages among the consumers. The most common flavorings of root beer are vanilla, caramel, wintergreen, black cherry bark, licorice root, sarsaparilla root, nutmeg, acacia, anise, molasses, cinnamon, sweet birch, and honey. These availability of tons of flavors has drawn the attention of consumers across the globe. In addition, root beer is generally considered a drink for vegan people. The principal ingredients include various roots and sassafras albidum, quillaja Saponaria, Manihot esculenta, allspice, nutmeg, and other non-animal-derived ingredients like sugar, molasses, and yeast. For instance, the most popular root beer brands, like A&W, Barq's, Abita, Bundaberg, and Mug, are vegan-friendly beers. These factors are driving the demand for root beer market.

Moreover, an increase in the population, and an increase in the bars and restaurants and acceptance of western culture preference for drinks are some of the main driving forces in the root beer market. Also, the increased count of the bars and breweries is the primary force of the market growth. For instance, as per Brewers Association, the number of breweries in the US came to 9,247 in 2021. In addition to that, the growing trend of nightlife among the younger generation in both developed and developing worlds has its modest contribution to driving the market forward.

Market Segmentation:

The non-alcoholic segment held the highest market revenue share of xx% in the year 2021

Based on the product type, the non-alcoholic segment held the highest market revenue share of xx% in 2021. Non-alcoholic root beer is majorly consumed globally due to its unique taste. Root beer is generally non-alcoholic, but a small portion of root beer contains alcohol. It comes under the category of soft drinks. Most of them are gluten- and caffeine-free and are safe for teenagers. This non-alcoholic beverage became popular during the prohibition period in the U.S. in the early 19th century. Since then, non-alcoholic root beer demand has increased. Non-alcoholic root beers are also consumed compared to alcoholic root beers due to their authenticity. Moreover, beer manufacturer companies focus on non-alcoholic beer in their product list due to consumers shifting low alcoholic beers because of good health-conscious. For instance, A&W Diet Root Beer added zero sugar and low alcohol.

Based on the distribution channel, the liquor stores segment held the highest market revenue share of xx% in 2021. The off-trade channels like liquors shops enjoy a monopoly in rural areas due to the lack of sufficient infrastructure where e-commerce and modern retail outlets like supermarkets cannot operate. Moreover, specialty stores and supermarkets have across-the-board existence in urban areas, and busy shoppers always choose these outlets as they offer a one-stop solution. In addition to that, they also extend discounts and other alluring schemes that act as a potent trigger.

Geographical Penetration:

North America is dominating the global root beer market in the year 2021

North America dominated the global root beer market and accounted for XX% in 2021. Root beer is the most popular and more consuming in the U.S. However, increasing consumer tendency towards low-alcoholic beverages with distinct flavors drives the region's demand for hard root beer. Hard root beers commonly have an ABV of 5 to 6%. This drink is origin in the U.S. as it was traditionally made using the root bark of the sassafras tree, which is largely grown in the U.S.

The Europe region is expected to grow significantly in the root beer market in the forecast period. Growing consumer tendency towards healthy foods & beverages due to rising health and wellness awareness is the main factor driving the demand for root beer. The region has the presence of the world's most health-conscious population. Consumers in European countries are increasingly evolving and more knowledgeable regarding health, opting for premium healthy and organic products. This shift in consumer behavior is forcing the demand for diet root beer.

Competitive Landscape:

Some industry players operating in the root beer market are Dr Pepper Snapple Group, Boylan Bottling Co., Blitz-Weinhard Brewing Co., Dad's Root Beer Co., Sprecher Brewing Co., Anheuser-Busch InBev, Best Damn Brewing Co., Rhineland Brewing Co., and Berghoff Brewery, Inc. among others. The growing demand for new and unique flavors has shown intense innovation from the key players to meet consumers' changing tastes and demands. For instance, in April 2022, Sprecher Brewing Co. planned to expand the distribution of Sprecher Root Beer to 550 Walmart stores in over 25 states. In September 2020, Anheuser-Busch InBev announced the successful acquisition of Craft Brew Alliance. Anheuser has bought nearly 68.8% of the majority stake in Craft Brew Alliance. In August 2019, Anheuser-Busch InBev acquired the United States based renowned beer manufacturer Platform Beer Company.

Covid-19 impact:

Positive impact on the global root beer market

During the COVID‑19 pandemic, people have significantly changed drinking habits, shifting places of consumption from restaurants and bars to home. For many people, alcohol is part of their social life. This life has been significantly disrupted by the COVID-19 pandemic, which shifted consumer preference for root beer over other liquors. It contains a small amount of alcohol, making it a healthier option over other drinks. As per government tax receipt data, alcohol sales increased by 3% to 5% in Germany, the United Kingdom and the United States in 2020 compared to 2019. Sales of alcohol in bars and restaurants plunged, severely affecting this sector. In contrast, off-premise sales, such as e‑commerce and retail stores, grew significantly. For example, in the United States, online sales increased by up to 234%.

Why Purchase the Report?

Understand the current market scenario and viability of global root beer market over the forecast period

Visualize the composition of the global root beer market in terms of type, form, flavor, and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global root beer market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market share analysis covering business revenues ($) and revenue share (%) of key market players

The global root beer market report would provide an access to approximately 69 market data tables, 67 figures, and 180 pages

Target Audience:

Alcoholic Beverages Manufacturers

Food and Beverages Industry

Foodservice Industry

Education & Research Institutes

Research Professionals