Root Beer Market is expected to grow at a CAGR of 6.0 %, from USD 1.00 billion in 2024 to USD 1.33 billion in 2029.
Root beer is a drink made from different roots of sassafras or sarsaparilla, which is made at home as a medicinal drink. The main ingredients used to make root beers are anise, sugar, licorice root, sarsaparilla, and sassafras extract. Vanilla is used to make creamy root beers; sarsaparilla is added to bitter root beers, and mixing is added for a mint flavor. Root beers can be carbonated and non-carbonated. New root beers are carbonated beverages and are generally frothy and smooth. The increase in disposable income among the working population allows the consumer to go out more to bars and restaurants and spend more on drinks. Additionally, consumers are willing to pay more for beers made from premium roots. The continually growing population, the increase in the number of restaurants, bars, and the increase in the adoption of Western culture and the easy-to-follow rules and regulations related to the operation of the beer market, and preference for beverages are some of the major drivers for the global root beer market.
The consumer's desire for exciting new craft breweries is the primary driver of the global root beer market. Root beers have the right balance between full flavor creamy roots and strong spicy roots. Root beers are often found in different flavors, unlike traditional beers. Furthermore, the unique aromatic profile of beer roots has made it one of the most popular drinks among consumers. Growing consumer interest in sweeter beers has also spurred the root beer market globally. Increase in disposable income, increase in population, increase in the number of bars, restaurants, increase in acceptance of Western culture and relaxation of the rules and regulations related to the operation of the beer industry, preference for takeaway drinks are some of the main driving forces in the root beer market.
Increasing the disposable income of the workforce allows the customer to go to restaurants and bars more frequently and spend more on the beer industry. Furthermore, consumers are now also ready to pay more for premium segments. The rapid adoption of Western culture has greatly influenced alcohol consumption patterns in the Asia-Pacific region. People living in the west often have a habit of drinking beer with their meals, at parties, and even during gatherings. Teenagers wish to drink, and parents allow to drink root beer which has less or no alcohol; also give the kick to root beer.The increase in campaigns against alcohol and the increase in the aging of the population are some of the main limitations of the beer market. There are numerous recipes for root beer, and the drink has a wide range of flavors, making it possible to offer different beer flavors on the market. By mixing wintergreen with additional ingredients in the soft drink, it provides the right balance against sweetness. Also, teens are more prone to alcoholic beverages and prefer beer to other alcoholic drinks. This fact also drives the growth of the root beer market. Additionally, there is a multitude of root beer flavors to appeal to a large consumer base, creating opportunities for the root beer market.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
6.00 % |
Segments Covered |
By Type, Distribution Channel, Flavour & Region |
Various Analyses Covered |
Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Dr. Pepper Snapple Group, Blitz-Weinhard Brewing Co, The Dad's Root Beer Company, Sprecher Brewing Co. Inc, Stewart’s Restaurants, Inc, Berghoff Beer, Whole Foods Market. |
Specialty liquor stores have major market shares followed by bar and nightclubs.
In North America, the U.S. is the leading consumer of Root beers. Sassafras, the primary flavoring agent of root beer, is banned in the USA because of the presence of safrole, a carcinogenic ingredient. Root beer is emerging in many other countries like Australia, Argentina, Germany, and Mexico, etc. With an ability to pair well with a scoop of vanilla ice cream and distinctive flavoring, these soft root beers remain a popular choice among consumers across the globe. Alcohol root beers are slowly gaining ground and are becoming more popular because of its less alcohol percentage and sweet taste.
The brew tastes almost similar to a non-alcoholic root beer. Europe is another prominent market for root beers after North America that is rising at a noteworthy growth rate. Root beers are also gaining popularity in the Asia Pacific and the Middle East and Africa regions, owing to changing consumer lifestyles and influences of western culture. These factors are foreseen to drive root beer market growth in developing areas, supporting the rise in overall profits.
Key players in Root Beer Market are Dr. Pepper Snapple Group, Blitz-Weinhard Brewing Co, The Dad's Root Beer Company, Sprecher Brewing Co. Inc, Stewart’s Restaurants, Inc, Berghoff Beer, Whole Foods Market.
In November 2020, a group of Milwaukee-based investors acquired the 35-year-old Sprecher Brewing Company. Other investors include Andy Nunemaker, vice president of product management for software company Milwaukee Applied Systems, as chairman of the board, and Peter Skanavis, founder of Milwaukee real estate agent, Homeowners Concept. Real estate agents, who will sit on the board of directors.
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Frequently Asked Questions
Root beer is a carbonated soft drink traditionally made using various roots and herbs, such as sassafras, sarsaparilla, and licorice.
The key ingredients in root beer typically include water, sugar or sweeteners, flavorings (such as sassafras, vanilla, and wintergreen), and carbonation.
There are various variations of root beer available, including traditional root beer, diet root beer, natural root beer made with real ingredients, and craft root beer with unique flavor profiles.
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