Ginger ale Market

Ginger Ale Market Size, Share, Growth (2023-2028)

Ginger ale market was registered at USD 2.48 Billion in 2023 and is expected to reach USD 6.7 Billion by 2028, with a CAGR of 6.9% during the forecast period (2023-2028.)

Ginger Ale Market Overview:

Ginger ale is a ginger-flavoured carbonated beverage that also has some sweetening agent in it and is considered to be a refreshing beverage. Ginger ale can be consumed either hot or cold and helps give a soothing feeling in the throat and chest. The drink was first introduced in the 1800s and came in two prevalent forms, golden ginger ale, and pale ginger ale. The golden ginger ale is a fermented version that is dark brown, has a pungent, strong smell, and is sweet. The pale ginger ale is a more unrefined and more potent version of the drink. It is less sweet, highly carbonated, and more acidic in nature. As a result, the drink has a strong, pungent flavor and is often mixed with other beverages, preferably spirited drinks, for that extra kick. Ginger ale also comes with various additions to the drink, like citrus, foaming materials, fruit juices, etc. Thus, these traditional fermented ginger ale and the modern carbonated ginger ale with sugar and fructose are both trendy drink choices due to their unique flavor supporting the growth of the ginger ale market.

REPORT COVERAGE:

Ginger Ale Market drivers:

Ginger ale is a popular drink because it can be mixed with several alcoholic beverages for flavor. It is often mixed with multiple cocktails to enhance flavor and is extremely popular among alcohol-consuming populations for its essence and freshness. Some of the most common cocktails made using ginger ale are whiskey ginger, rum & ginger ale, shandy, pimm's cup, Tequila & ginger ale, vodka & ginger ale, transfusion, blue long island iced tea, mimosa mocktail, and Shirley temple. Aside from being used in alcoholic beverages, ginger ale is also used in cooking several dishes like Filipino pork barbeques and pork ribs, supporting the growth of the ginger ale market. The drink is easy to make and can be made at home, with only a few ingredients. Therefore, the easy availability and the multiple applications of the drink make it popular around the world driving the ginger ale market growth.Additionally, Ginger ale is good for your health. The drink has several health benefits due to the ginger content in the beverage, like helping to prevent nausea, improving digestion, along with helping with migraine problems. Ginger ale is also said to help reduce cardiovascular problems and also lessen the risk of contracting rheumatoid arthritis. Furthermore, ginger ale is an excellent substitute for caffeinated beverages as it is entirely caffeine free and gives the same refreshing effect without it. The drink is also associated with providing inflammation relief and antioxidant properties. Gingerols and shogaols, the elements present in ginger ale, are said to help relieve the symptoms of morning sickness in pregnant women, these several benefits help grow the ginger ale market size. In addition, the beverage supports the release of digestive enzymes, leading to better digestion, and it is also considered good for sore throat and cough. Additionally, ginger ale is a preferable beverage, especially for fights, as it helps prevent motion sickness and tastes better due to changes in taste buds caused by cabin pressure and altitude further promoting ginger ale market growth.

The latest interest of key players in the market and the release of new products in packaged form is expected to support the growth of the ginger ale market. The growing RTD (Ready to Drink) use of ginger ale supports ginger ale market revenue. In addition, the long shelf life of the product makes it the perfect drink to be bought in bulk and stored. Ginger ale can be stored for around 6-9 months after packaging, leading to market growth. Furthermore, new product launches in the industry support the market's growth. For example, in 2021, REED, the beverages company, released two new flavors of can ginger ale called shirley tempting and transfusion; additionally, Reed also released a 'ginger all the way' holiday package with a variety of ginger ales like zero sugar and real ginger ale in the package leading to ginger ale market demand.

Ginger Ale Market Restraints:

Even though several health benefits are associated with ginger ale, most of these benefits are due to the ginger content in the drink, and sometimes, if the ginger content is exceptionally minimal and the sugar content dominates the ginger content in the beverage, the advantages may not show, leading to a drawback to the market. Therefore, checking the ingredients label of ginger ale before buying is essential to ensure you get a good amount of ginger root benefits. Additionally, ginger ale may sometimes cause bloating and diarrhea, interfering with blood clotting, which is a drawback to the ginger ale market. 

Impact of Covid-19 on the ginger ale market:

The ginger ale market faced a mixed impact due to the pandemic. As the spread of covid-9 led to several restrictions on transport and production and led to the rise of prices for everyday commodities, the market for food and beverages faced severe losses. The ginger ale market also faced losses due to the imposition of the lockdown and restrictions on the sale of the product. However, due to the pandemic, there was a sudden rise in the health-conscious populations, and all foods or beverages considered healthy rose in sales. Because ginger ale has several health benefits, the beverage's popularity increased dramatically during the pandemic, positively impacting the market. Therefore, the pandemic has had a mixed impact on the market. 

Key developments:

• In February 2023, Fever-Tree, a famous supplier of premium mixers for alcoholic spirits, was interviewed by Forbes to understand and gauge their business. Forbes stated that the company is still challenging industry norms in its field, just as they have been doing since the start. Fever-Tree provides products like tonics, ginger beers, ginger ale, lemonades, sodas, etc., and is making innovations in the product range. 

• In February 2023, The UK-based drinks company Caleno gained a footing in the UAE region with its listing in Spinney's supermarket chain. Caleno is a company producing beverages that taste like alcohol but are completely non-alcoholic, sugar-free, and vegan. These drinks are often combined with sodas, tonics, and ginger ales. The market is expanding due to growing acceptance. 

• In August 2022, Reed, the all-natural ginger ale beverage company, launched its new spiked ginger ale variety called the "Hard Ginger Ale." The beverage reached the shelves of supermarkets in 2022 and is an advanced version of the company's consumer favorite, "Real Ginger Ale." The product is expected to be available in 4 flavors, cherry lime, coconut, pineapple, and mango. 

• In July 2021, An article was released about how the Chandigarh-based ginger ale company Gunsberg gained popularity through the recipes shared by the owner's mother. Today Gunsberg is one of the most prominent ginger ale companies worldwide, and its recipe is a generation old from the founder's mother. 

Ginger ale market segmentation:

By Type:

• Dry Ginger Ale

• Golden Ginger Ale

The Golden ginger ale segment is expected to dominate the market during the forecast period due to the growing demand for original and organic fermented ginger ale. Additionally, the golden ginger ale is sweeter in taste and less spicy, therefore preferred more by people due to its soothing and spicy taste. Furthermore, golden ginger ale is good for health, leading to more demand for the segment. 

Dry or pale ginger ale also has demand in the market due to its use in mixing alcoholic drinks and its light taste.  

By Distribution Channel:

• Specialty Stores

• Hypermarkets/supermarkets

• Online Sale Channel

• Convenience Store

The Hypermarkets/supermarkets segment is expected to dominate the market during the forecast period due to the wide range of varieties provided to consumers and the large influx of buyers all year round. Additionally, the growing preference for RTD (Ready to Drink) ginger ale in the market is expected to gain popularity. 

The online sales and specialty stores are also expected to have ginger ale market revenue due to the growing digitalization of the world, and the demand for authenticity and freshly made ginger ales from specialty stores drive the segments.

Ginger Ale Market Regional Analysis:

• North America

• Europe

• Asia-Pacific

• Latin America

• MEA

The Nort american region is expected to dominate the ginger ale market due to the growing interest of populations toward healthier foods and beverages. Additionally, ginger ale is a trendy drink in the region and is present in almost every household in countries like the U.S. and Canada. The popularity of ginger ales in drinks also supports the growth of the market in the region. Additionally, growing retailers of ginger ale in the region support the market's growth. Furthermore, the growing preference for organic beverages and awareness about the benefits of ginger in the region supports the growth of the market. Additionally, some key players in the market, like Canada Dry, which has been around for around 100 years, support the growth of the market. 

The European ginger ale market is also expected to grow due to the region's availability of authentic ginger ale. As Ireland is the origin country of ginger ale, it is extensively used in multiple drinks and specialties and available in specialty stores. Additionally, the U.K. is among the largest transporters of ginger ale to various regions worldwide, supporting the market growth in the region. 

The Asia-Pacific region is also expected to have significant growth due to the growing shift toward non-alcoholic drinks and also due to the fact that countries in the region, like India, are among the top importers of ginger ale. Furthermore, with the rising concern for calorie intake and unhealthy packaged foods, the market for ginger ale is growing in countries like China, Vietnam, Japan, etc. Thus promoting growth for the ginger ale market in the region.

The Latin American region is also expected to witness market growth as countries like Mexico and Chile are among ginger ale's top transporters and producers worldwide. 

Ginger Ale Market Key market players:

1. DR PEPPER SNAPPLE GROUP

2. BRUCE COST GINGER ALE

3. HANSEN BEVERAGE

4. ZEVIA

5. BLENHEIM BOTTLING COMPANY

6. POLAR BEVERAGES

7. HONEST TEA

8. SEAGRAM

9. BUFFALO ROCK COMPANY

10. BOYLAN BOTTLING CO.