Root Beer Market is expected to grow at a CAGR of 6.0 %, from USD 0.94 billion in 2023 to USD 1.25 billion in 2028.
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.
Recent Development in the Industry:
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.
In June 2016, Illinois Small Town Brewery signed a distribution agreement with Pabst Brewing Company, which started selling the product earlier this year. The specific terms of the deal were not disclosed, and representatives of Pabst and Small Town Brewery were not available for comment.
Soft drink and candy giant Cadbury Schweppes announced Thursday it would pay £ 217 million ($ 334 million) to soft drink maker A and W Brands. A and W Brands is one of the largest base brewers in the United States, and the acquisition is part of Cadbury's strategy to position itself in the fastest-growing cola-free market.
In 2020 January, a group of Milwaukee investors, including businessman Andy Nunemaker and former MillerCoors executive Jim Kanter, have reached an agreement to acquire Sprecher Brewing Co. from founder and CEO Randy Sprecher and shareholders, according to a joint announcement of the two parties.
Based on Type:
Based on Distribution Channel:
Specialty liquor stores
Bar and nightclubs
Based on the Flavor:
Cherry tree husk
Specialty liquor stores have major market shares followed by bar and nightclubs.
North America (United States, Canada),
Latin America (Brazil, Argentina, Mexico),
Europe (United Kingdom,
France, Germany, Spain, Italy),
Middle East and Africa (Saudi Arabia, United Arab Emirates, Lebanon, Jordan, Cyprus),
Asia Pacific (China, India, Japan, South America, Australia, New Zealand, and Southeast Asia)
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.
Dr. Pepper Snapple Group
Blitz-Weinhard Brewing Co
The Dad's Root Beer Company
Sprecher Brewing Co. Inc
Stewart’s Restaurants, Inc
Whole Foods Market
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