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 global root beer market accounted for significant growth in the past years and is anticipated to have the highest CAGR during the forecast period. The increase in disposable income among the working population allows consumers to go to bars and restaurants more and spend more on drinks. Additionally, consumers are willing to pay more for beers made from premium ingredients. 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 the preference for beverages are some of the major drivers for the global root beer market. The rising inclination towards low-alcoholic beverages, growing demand for organic and natural beverages, and continuous innovations in product launches by manufacturers are expected to enhance market growth opportunities in the coming years.
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.
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 spicy solid roots. Root beers are often found in different flavors, unlike traditional beers, which are gaining traction among consumers, leading to market growth. 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 and restaurants, increase in acceptance of Western culture and relaxation of the rules and regulations related to the operation of the beer industry, and preference for takeaway drinks are some of the main driving factors in the root beer market.
The rising awareness among the people regarding health and wellness and the escalating vegan population is accelerating the demand for root beer, creating revenue for the global market. The growing interest among consumers regarding artisanal and gourmet food and beverages will positively influence the expansion of the root beer market size. Rapid urbanization and the adoption of sedentary lifestyles are accelerating the adoption of beverages among people, where teenagers and working people play a crucial role. The rising demand for alcoholic and non-alcoholic beverages among consumers is propelling the market share growth. The rising focus on innovations by manufacturers to meet consumer demands by introducing new flavors with unique taste experiences is estimated to provide market growth opportunities.
The major disadvantage of the growth of the root beer market is the high sugar content in beverages, which will restrict their adoption among consumers. Sassafras, the primary flavoring agent of root beer, is banned in the USA because of safrole, a carcinogenic ingredient. This is expected to hamper the market share growth across various regions. The presence of stringent regulations regarding alcoholic beverages and strict government rules for alcohol consumption in various regions will limit the expansion of the global market share. The strict regulations by the U.S. FDA regarding beverage and product launches will be challenging for manufacturers due to product delays. The high costs and availability of healthy alternative beverages are expected to impede the growth of the global root beer market revenue.
|
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. |
The non-alcoholic segment held the most significant share of 87% of the global market revenue. Most root beer is non-alcoholic; only a typical portion contains alcohol. Non-alcoholic root beer is widely consumed worldwide due to its unique taste, which drives the segment's growth rate. The authenticity of non-alcoholic root beer is highly preferred by consumers, and it is available in different flavors with specifications like gluten-free and caffeine-free, which are highly safe for teenagers. These advantages are fueling the segment growth.
The alcoholic segment is expected to grow moderately during the forecast period. The growing traction for low-alcoholic beverages, where traditional alcoholic root beer contains 0.5 to 2% alcohol by volume (ABV), is augmenting the segment growth. Few market players introduced complex root beers with a high ABV value, more than 5.9%. The changing preferences are making the manufacturers focus on incorporating alcohol in the beverages, which enhances the segment growth during the forecast period.
The specialty liquor stores segment dominated the global root beer market with a prominent market share. The availability of diverse brands and flavors in specialty liquor stores, which offer both alcoholic and non-alcoholic beverages, gives consumers a choice. These advantages and the presence of many stores are propelling the market growth.
The supermarkets and hypermarkets segment is expected to grow moderately during the forecast period. The vast distribution network and availability and accessibility to different flavors and brands will fuel the segment's-segment
The online segment is estimated to grow the fastest in the coming years due to increased adoption of digital shopping platforms, exploration of diverse brands, and door-delivery benefits.
The vanilla segment dominated the global root beer market share as vanilla is considered the basic and traditional flavor of root beer. Manufacturers are focusing on developing and introducing various specific and unique taste flavors to gain a consumer base.
The wintergreen segment is expected to grow prominently during the forecast period as these are preferred as classic and original flavors.
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.
North America dominated the global root beer market with significant market revenue due to the high consumption rate in the United States. Soft root beer is popular in the country. The growing demand for alcoholic beverages across the region due to rising health concerns makes root beer low-alcohol content beverages. Root beer is native to the U.S. as it was traditionally made from the root bark of the sassafras tree, which is majorly seen in the United States. These factors drive the market growth rate across the North American region.
The European region holds the second position in the global market revenue and is anticipated to grow with a significant CAGR during the forecast period. The rising awareness regarding health and wellness among consumers is expected to enhance the demand for natural beverages in the region. European countries like the U.K. and Germany have high consumption compared to other countries. European people are highly health-conscious, and the demand for healthy food and beverages is fueling the regional market growth. The escalating vegan population in the region and the growing demand for specific requirements such as gluten-free, low-calorie foods and organic diet drinks are expected to positively impact the expansion of the root beer market revenue in the European region.
The Asia Pacific region is estimated to have moderate growth in the coming years due to the expanding food and beverage industry. Changing consumer preferences and rising health concerns are expected to augment market growth in the region.
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.
By Type:
By Distribution Channel:
By Flavour:
By Region:
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.
Related Reports
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region