The global root beer market size is anticipated to reach USD 1.09 billion by 2030, registering a CAGR of 4.6% over the forecast period, according to a new report by Grand View Research, Inc.
Root Beer Market Report Highlights
- The conventional product type segment accounted for the maximum revenue share of the global market in 2021
- The alcoholic product segment is expected to witness the fastest CAGR over the forecast period on account of the increasing consumer inclination towards low-alcoholic drinks
- The off-trade distribution channel segment is projected to register the fastest CAGR over the forecast period
- Supermarkets & hypermarkets, in particular, dominated the off-trade segment in 2021. The COVID-19 pandemic increased the off-trade sales of the product
- Europe is the second-largest regional market in the world. Countries, such as Germany, Italy, and France, are the major contributors to the regional market growth
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Root beer is a North American drink that’s been traditionally made using the root bark of the sassafras tree. Sassafras was banned by the Food and Drug Administration (FDA) in 1960 owing to the presence of safrole, a carcinogenic component. Thus, most commercial root beers available in the market contain the artificial flavoring of sassafras. However, some companies, such as Hansen Beverage, use safrole-free sassafras extract to retain the authenticity of root beer.
The global market is predominantly driven by the increasing demand for low-alcoholic beverages, the growing number of hotels, restaurants, & bars, and the increasing interest of millennials in exotic and new flavored drinks globally. With the changing lifestyle of consumers across the globe and increasing disposable income levels, the demand for services like restaurants, hotels, clubs, and bars is rising. This, in turn, is expected to favor the growth of the global market over the years to come. The outbreak of Coronavirus disrupted the distribution channel and supply chain of the global market owing to the closure and restrictions on bars, restaurants, and hotels. The overall market observed a slight dip in growth in 2020.
However, the sales from off-trade channels, such as supermarkets and e-commerce, were observed high during the lockdown period. The COVID-19 pandemic shifted consumer preference for root beer over other liquors as it contains no or small amount of alcohol, which makes it a healthier option over other drinks. New product launches, mergers & acquisitions, and geographical expansion are some of the key strategies adopted by market players to strengthen their industry position. For instance, in 2018, JAB Holding Co. entered into a strategic agreement to merge with Dr. Pepper Snapple Group through its Keurig Green Mountain business unit. The merger of both the companies formed “Keurig Dr. Pepper”. The combined companies offer various products under brands, such as A&W Root Beer, 7UP, Dr. Pepper, and more.
Root Beer Market Insights By Geographical Regions
North America dominated the global market and accounted for a 41.3% share of global revenue in 2021. The U.S. is the leading consumer of root beer in North America. Soft root beer is popular among consumers in the country. However, increasing consumer inclination towards low-alcoholic beverages with distinct flavors is driving the demand for hard root beer in the region. Consumers in European countries are increasingly becoming aware and more knowledgeable regarding health. Consumers in the region are opting for premium healthy and organic products. Growing trends in the food and beverage sector, such as vegan foods, sugar-free & low-calorie food, among others, are influencing people to choose diet drinks over conventional drinks.
Industry Share Analysis By Major Producers
The global market is characterized by the presence of numerous well-established players. Companies are increasingly focusing on new product development to gain a higher market share. New product launches, mergers & acquisitions, and geographical expansion are some of the key strategies adopted by market players to strengthen their industry position. Some of the prominent players in the global root beer market include:
- Keurig Dr. Pepper
- Anheuser-Busch Companies, LLC.
- Blitz-Weinhard Brewing Co.
- Dad’s Root Beer
- Sprecher Brewing Co. Inc.
- The Berghoff
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Root Beer Market Segmentation
Grand View Research has segmented the global root beer market on the basis of product, type, distribution channel, and region:
- Root Beer Product Outlook (Revenue, USD Million, 2017 – 2030)
- Root Beer Type Outlook (Revenue, USD Million, 2017 – 2030)
- Root Beer Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
- Root Beer Regional Outlook (Revenue, USD Million, 2017 – 2030)
Research Methodology
We employ a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. We utilize a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously.
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
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